ThredUp Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>ThredUp Inc. has submitted its 2023 annual report (10-K) detailing its financial performance and position as of December 31, 2023.</b>

AI Summary

ThredUp Inc. (TDUP) filed a Annual Report (10-K) with the SEC on March 5, 2024. ThredUp Inc. filed its 2023 Form 10-K on March 5, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 969 Broadway, Suite 200, Oakland, CA 94607. ThredUp Inc. is incorporated in Delaware. The filing includes data related to common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income for fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking ThredUp Inc., this filing contains several important signals. The 10-K filing provides a comprehensive overview of ThredUp's financial health and operational status for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. This filing contains detailed financial statements and disclosures, including information on revenue segments, liabilities, and equity, enabling stakeholders to make informed investment decisions.

Risk Assessment

Risk Level: medium — ThredUp Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine disclosure for public companies. However, specific financial performance details within the report will determine the ultimate risk assessment.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-K to understand ThredUp's revenue trends, profitability, and any significant changes in its balance sheet or cash flow.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting Period)
• 2024-03-05 — Filing Date (Date Filed)
• 97 — Public Document Count (Filing Details)

Key Players & Entities

• ThredUp Inc. (company) — Filer
• 969 Broadway, Suite 200, Oakland, CA 94607 (company) — Business Address
• Delaware (company) — State of Incorporation
• 2023-12-31 (date) — Fiscal Year End
• 2024-03-05 (date) — Filing Date

FAQ

Industry Context

ThredUp operates in the online resale market, a segment of the broader retail industry focused on pre-owned apparel and accessories.

Regulatory Implications

As a publicly traded company in the US, ThredUp is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze ThredUp's revenue and profitability trends for FY 2023.
2. Assess the company's balance sheet for changes in assets, liabilities, and equity.
3. Review any disclosed risks or forward-looking statements to understand potential challenges and opportunities.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-05: Filing Date — Date ThredUp Inc. submitted its 10-K filing.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year ending December 31, 2023, providing a baseline for future comparisons.

Key Financial Figures

• $0.0001 — which registered Class A Common Stock, $0.0001 par value per share TDUP The Nasdaq Sto

Filing Documents

• tdup-20231231.htm (10-K) — 1550KB
• exhibit1018q42023.htm (EX-10.18) — 58KB
• exhibit211q42023.htm (EX-21.1) — 4KB
• exhibit231q42023.htm (EX-23.1) — 2KB
• exhibit311q42023.htm (EX-31.1) — 10KB
• exhibit312q42023.htm (EX-31.2) — 10KB
• exhibit321q42023.htm (EX-32.1) — 5KB
• exhibit322q42023.htm (EX-32.2) — 5KB
• exhibit971-q42023.htm (EX-97.1) — 30KB
• tdup-20231231_g1.jpg (GRAPHIC) — 195KB
• tdup-20231231_g2.jpg (GRAPHIC) — 87KB
• 0001484778-24-000035.txt (&nbsp;) — 8526KB
• tdup-20231231.xsd (EX-101.SCH) — 44KB
• tdup-20231231_cal.xml (EX-101.CAL) — 95KB
• tdup-20231231_def.xml (EX-101.DEF) — 254KB
• tdup-20231231_lab.xml (EX-101.LAB) — 730KB
• tdup-20231231_pre.xml (EX-101.PRE) — 472KB
• tdup-20231231_htm.xml (XML) — 1070KB

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 41 Item 1C. Cybersecurity 42

Properties

Item 2. Properties 43

Legal Proceedings

Item 3. Legal Proceedings 43

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 43 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 44

[Reserved]

Item 6. [Reserved] 46

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 46

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 55

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 56

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 83

Controls and Procedures

Item 9A. Controls and Procedures 83

Other Information

Item 9B. Other Information 84

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 84 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 85

Executive Compensation

Item 11. Executive Compensation 85

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 85

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 85

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 85 PART IV

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 86

Form 10-K Summary

Item 16. Form 10-K Summary 88

Signatures

Signatures 89 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Annual Report on Form 10-K include, but are not limited to, statements about: our future financial performance, including our revenue, cost of revenue and operating expenses and our ability to achieve and maintain future profitability; the sufficiency of our cash, cash equivalents and capital resources to meet our liquidity needs; our ability to effectively manage or sustain our growth and to effectively expand our operations; our strategies, plans, objectives and goals, including our expectations regarding future infrastructure investments as well as restructuring activities; our ability to attract and retain buyers and sellers and the continued impact of network effects as we scale our platform; our ability to continue to generate revenue from new Resale-as-a-Service ("RaaS") offerings as sources of revenue; trends in our key financial and operating metrics; our estimated market opportunity; economic and industry trends, projected growth or trend analysis, including the eff

Business

Item 1. Business ThredUp operates one of the world's largest online resale platforms for apparel, shoes and accessories. Our mission is to inspire the world to think secondhand first. We believe in a sustainable fashion future and we are proud that our business model creates a positive impact to the benefit of our buyers, sellers, clients, employees, investors and the environment. Our custom-built operating platform consists of distributed processing infrastructure, proprietary software and systems and data science expertise. This platform is powering the rapidly emerging resale economy, one of the fastest growing sectors in retail, according to a GlobalData market survey conducted in January 2023. ThredUp's proprietary operating platform is the foundation for our managed marketplace, where we have bridged online and offline technology to make the buying and selling of tens of millions of unique items easy and fun. The marketplaces we have built enable buyers in the United States ("U.S.") and in Europe to browse and purchase resale items for primarily apparel, shoes and accessories across a wide range of price points. Buyers love shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail price. Sellers love ThredUp because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet. ThredUp's sellers order a Clean Out Kit, fill it and return it to us using our prepaid label. We take it from there and do the work to make those accepted items available for resale. In addition to Clean Out Kits, ThredUp also sources inventory from a variety of supply channels, such as wholesale supply in Europe. In addition to our core marketplace, some of the world's leading brands and retailers are already taking advantage of our Resale-as-a-Service ("RaaS") offering, which allows them to conveniently offer a scalable closet clean out service and/or resale shop to t

Risk Factors

Item 1A. Risk Factors A description of the risks and uncertainties associated with our business is set forth below. You should carefully consider the risks and uncertainties described below, together with all of the other information in this Annual Report on Form 10-K, including the section titled " Management's Discussion and Analysis of Financial Condition and Results of Operations " and our consolidated financial statements and related notes. Our business, results of operations, financial condition, and prospects could also be harmed by risks and uncertainties not currently known to us or that we currently do not believe to be material. If any of the risks actually occur, our business, results of operations, financial condition and prospects could be harmed. In that event, the market price of our Class A common stock could decline, and you could lose part or all of your investment. 7 Table of Contents Risk Factor Summary Our business is subject to numerous risks and uncertainties, including those highlighted in this section titled "Risk Factors" and summarized below. We have various categories of ris

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View this 10-K filing on SEC EDGAR