INVESTOR PRESENTATION Fourth Quarter 2024 © THREDUP The following contains confidential information. Do not distribute without permission. Safe harbor This presentation and the accompanying oral commentary contains forward-looking statements within the meaning of the federal securities laws, 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 forwa ...

Financial Performance - As of December 31, 2024, the company had cash and cash equivalents of $31.9 million and marketable securities of $12.3 million, primarily consisting of money market funds and U.S. treasury securities[305]. - Inflation has significantly increased in recent months, affecting the company's gross margin and operating expenses, potentially slowing revenue growth[307]. - The Term Loan carries variable interest rates tied to the prime rate, with a floor of 4.75%, exposing the company to interest rate risk[306]. Competition - The company faces intense competition from various retailers, including secondhand marketplaces and large online retailers, impacting its market position[32]. Workforce and Diversity - The company employs 1,630 individuals, including 1,424 distribution center employees, and maintains good relations with its workforce[42]. - The company is committed to cultivating a diverse workforce and has a majority female and underrepresented minority staff[44]. Intellectual Property - The company has issued patents in the United States to protect its proprietary inventions and is actively pursuing additional patent protection[35]. - The company’s proprietary algorithm technologies are protected by trade secret laws, in addition to its patents and trademarks[34]. Compliance and Privacy - The company’s privacy policies are designed to comply with various laws regarding consumer information, which could pose compliance challenges[39]. Business Operations - On November 30, 2024, the company divested 91.0% of the common stock of Remix US Holdings Inc., resulting in the discontinuation of its European operations[31].

Revenue Projections - Preliminary total revenue for Q4 2024 is projected to be between $66.7 million and $67.2 million, exceeding previous guidance of $58.0 million to $60.0 million, representing an annual growth of 9%[3] - Combined revenue, including the European business until its divestiture, is projected to be between $74.5 million and $75.0 million, surpassing previous guidance of $67.2 million to $69.2 million[4] Gross Margin Expectations - Gross margin for Q4 2024 is expected to be between 80.2% and 80.4%, higher than the previous guidance of 78.5% to 79.5%[3] - Combined gross margin is expected to be between 75.9% and 76.1%, up from the previous guidance of 72.3% to 73.3%[4] EBITDA and Profitability - Adjusted EBITDA margin for Q4 2024 is anticipated to be between 6.4% and 6.9%, compared to the previous guidance of 0.0% to 2.0%[3] - The company anticipates sustaining its momentum into 2025, with a focus on profitability and positive adjusted EBITDA[15] Net Loss Projection - The net loss as a percentage of total revenue is projected to be between (12.6)% and (12.0)% for Q4 2024[3] Business Strategy and Market Position - Following the divestiture of Remix, ThredUp will no longer report combined results or provide a combined outlook going forward[5] - The company has processed over 200 million unique secondhand items from 60,000 brands across 100 categories, emphasizing its market position[14] - ThredUp's focus on U.S. operations and AI-driven enhancements contributed to solid growth in its core business[2]

Core Insights - ThredUp Inc. reported a return to growth in Q4 2024, with a focus on leveraging technology investments for future profitability [2][5][9] - The company divested 91% of its European business, Remix, which is now classified as a discontinued operation [2][5] Financial Highlights - Q4 2024 revenue reached $67.3 million, a 9% increase year-over-year, with a gross margin of 80.4% [5][6] - Full year 2024 revenue totaled $260.0 million, reflecting a 1% growth year-over-year, with a gross margin of 79.7% [5][6] - Active Buyers decreased by 6% to 1,274 thousand in Q4 2024, while Orders increased by 2% to 1,226 thousand [5][6] Profitability Metrics - Loss from continuing operations for Q4 2024 was $8.1 million, improving from a loss of $8.5 million in Q4 2023 [6] - Adjusted EBITDA from continuing operations was $5.0 million in Q4 2024, compared to $2.5 million in Q4 2023 [6] - For the full year 2024, the loss from continuing operations was $40.0 million, an improvement from $52.4 million in 2023 [6] Business Developments - The company achieved record gross margins for both Q4 and full year 2024, indicating improved operational efficiency [5][6] - Customer experience updates led to the strongest Q4 for new buyer acquisition in ThredUp's history, with new buyer conversion rates at all-time highs [10] Future Outlook - For Q1 2025, ThredUp expects revenue between $67.5 million and $69.5 million, and for the full year 2025, revenue is projected between $270.0 million and $280.0 million [9][10] - The company anticipates maintaining gross margins between 77.0% and 79.0% for both Q1 and full year 2025 [9][10]

Group 1 - ThredUp (TDUP) is currently outperforming its peers in the Consumer Staples group, with a year-to-date performance increase of approximately 82% compared to the average gain of 5.6% for the sector [4] - ThredUp holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 18.2% over the past 90 days [3] - The Consumer Products - Staples industry, which includes ThredUp, has gained an average of 5.3% this year, further highlighting ThredUp's strong performance within its specific industry [5] Group 2 - Turning Point Brands (TPB) is another stock in the Consumer Staples sector that has shown strong performance, with a year-to-date increase of 14% and a Zacks Rank of 2 (Buy) [4][5] - The Tobacco industry, to which Turning Point Brands belongs, has performed well with a year-to-date increase of 19.3%, ranking 79 among industries [6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: ThredUp (TDUP) Stock Analysis - ThredUp (TDUP) has shown a price increase of 18% over the past four weeks, indicating growing investor interest [3] - Over the past 12 weeks, TDUP's stock gained 48%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - TDUP has a high beta of 1.75, suggesting it moves 75% more than the market in either direction, indicating fast-paced momentum [4] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [5] - TDUP has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - The stock is trading at a Price-to-Sales ratio of 0.93, indicating it is reasonably valued at 93 cents for each dollar of sales [6] Group 3: Investment Opportunities - TDUP is highlighted as a strong candidate for investment, with potential for further price appreciation [7] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens to assist in identifying winning stock picks based on various investing styles [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: ThredUp (TDUP) - ThredUp currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3][4]. - The stock has shown significant price performance, with a 59.46% increase over the past month, compared to a flat performance in the Zacks Consumer Products - Staples industry [6]. - Over the last three months, ThredUp shares have risen by 151.84%, and by 22.92% over the past year, outperforming the S&P 500, which increased by 5.07% and 22.47% respectively [7]. Trading Volume - ThredUp's average 20-day trading volume is 1,505,121 shares, which is a useful indicator of market interest and can signal bullish or bearish trends [8]. Earnings Outlook - Recent earnings estimate revisions for ThredUp have been positive, with one estimate moving higher in the last two months, raising the consensus estimate from -$0.61 to -$0.56 [10]. - For the next fiscal year, there has been one upward revision with no downward revisions, indicating a stable earnings outlook [10]. Conclusion - Given the positive momentum indicators and earnings outlook, ThredUp is positioned as a strong candidate for investors seeking short-term gains [12].

Financial Results Announcement - ThredUp will release its financial results for Q4 and the full year ended December 31, 2024 on March 3, 2025 after U.S. market close [1] - A conference call and live webcast will be held on the same day at 1:30 p.m. PT / 4:30 p.m. ET [1] Company Overview - ThredUp is one of the largest online resale platforms for apparel, shoes, and accessories, focusing on transforming resale through technology [3] - The platform allows sellers to easily clean out their closets and unlock value, benefiting both themselves and charities while promoting sustainability [3] - Buyers can shop for premium and luxury brands at discounts of up to 90% off estimated retail prices [3] - ThredUp has processed over 200 million unique secondhand items from 60,000 brands across 100 categories, contributing to a more sustainable fashion industry [3]

Core Viewpoint - Momentum investing focuses on buying stocks that are trending upwards rather than undervalued stocks, with the belief that one can achieve higher returns in a shorter time frame [1] Group 1: Momentum Investing Strategy - Momentum investing is characterized by the approach of "buying high and selling higher," contrasting with the traditional "buy low and sell high" strategy [1] - Identifying the right entry point for momentum stocks can be challenging, as these stocks may lose momentum if their valuations exceed future growth potential [1] Group 2: ThredUp (TDUP) Analysis - ThredUp (TDUP) has shown significant price momentum, with a four-week price change of 40.4%, indicating growing investor interest [3] - Over the past 12 weeks, TDUP's stock price has increased by 134.7%, demonstrating its ability to deliver positive returns over a longer time frame [4] - TDUP has a beta of 1.75, suggesting that it moves 75% more than the market in either direction, indicating fast-paced momentum [4] Group 3: Valuation and Earnings Estimates - TDUP has a Momentum Score of B, suggesting it is an opportune time to invest in the stock to capitalize on its momentum [5] - The stock has a Zacks Rank 2 (Buy) due to an upward trend in earnings estimate revisions, which typically attracts more investors [6] - TDUP is trading at a Price-to-Sales ratio of 0.79, indicating it is relatively cheap, as investors pay only 79 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - Besides TDUP, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify potential winning stocks [8]

Core Insights - ThredUp Inc. (TDUP) has reported strong preliminary fourth-quarter 2024 results, driven by a U.S.-focused strategy and AI-powered operational improvements, reinforcing its growth trajectory in the resale apparel industry [1][3][4] - The company's stock has gained 55.9% in the past month, significantly outperforming the industry, which declined by 3.6% [1] Financial Performance - Preliminary revenues are estimated between $66.7 million and $67.2 million, reflecting a 9% year-over-year increase and surpassing earlier guidance of $58-$60 million [3] - Gross margin is projected to be between 80.2% and 80.4%, exceeding the forecasted range of 78.5%-79.5% [3] - Adjusted EBITDA margin is expected to be between 6.4% and 6.9%, well above the original estimate of flat to 2% [3] Strategic Focus - The company has shifted its focus solely to the U.S. market after divesting its European operations, which are now classified as discontinued [4] - Enhanced operational efficiency and improved customer engagement in the U.S. market are key drivers of growth [4] Analyst Sentiment - The Zacks Consensus Estimate for the current quarter has improved by 5 cents to a loss of 8 cents per share, indicating positive sentiment around ThredUp [5] - Analysts highlight strong new buyer growth, improved retention rates, and robust Lifetime Value-to-Customer Acquisition Cost ratios as factors contributing to optimism [7][8] Operational Improvements - Significant enhancements in sourcing strategy and pricing algorithms have led to attractive deals for customers, driving strong sales and improved contribution margins [8] - The integration of advanced AI tools is enhancing customer experience through features like Image Search and AI-driven style recommendations [9] Business Model Transition - ThredUp's transition to a consignment-based model has improved operational efficiency and cash flow, positioning the company well for scalability and growth opportunities in the resale market [10] Investment Outlook - With strong customer acquisition strategies and innovative use of AI, ThredUp is well-positioned for growth despite broader market challenges [11]