It was a big day for ThredUp (NASDAQ:TDUP), an e-commerce-driven clothing reseller that brought out an earnings report anyone would be proud of. Wins all around gave the stock a real shine, as investors sent ThredUp rocketing up over 60% at the time of writing.
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ThredUp posted earnings and revenue figures that were ahead of analyst expectations. However, revenue was actually down a bit from the previous quarter. Plus, though ThredUp did post a better EBITDA than it did a year prior, it was still a loss. It dropped that loss from $10.5 million to just $5.8 million this time. Gross profit also slipped, but since ThredUp came out ahead of estimates, it still won.
One other big winner was in ThredUp’s resale-as-a-service operation, allowing entire brands to get a connection with markets for their secondhand clothing. The firm finished 2022 with 42 clients and expects to finish 2023 with even more. As a result, ThredUp is enjoying some analyst praise right now. Tom Nikic with Wedbush noted that “risk/reward is highly skewed to the upside.” He was hardly alone, as Needham’s Anna Andreeva noted that ThredUp was “controlling the controllables.”
Overall, analyst consensus calls ThredUp a Moderate Buy based on three Buys to two Holds assigned in the past three months. However, with an average price target of $3.50, ThredUp offers an upside potential of 36.72%.
