Thredup Inc Intrinsic Stock Value – THREDUP INC Reports Second Quarter Earnings Results for FY2023
August 20, 2023
🌥️Earnings Overview
THREDUP ($NASDAQ:TDUP): ThredUp Inc reported financial results for the second quarter of FY2023, which ended on June 30 2023. The company’s total revenue was USD 82.7 million, an 8.2% increase from the same period in the previous year. However, net income decreased to USD -18.8 million, a difference of 28.4 million from the prior year.
Stock Price
The news caused the stock to open at $3.4, but soon after the market closed it had dropped by 9.0%, closing at $3.2. This was a decrease from the previous closing price of 3.5. Despite the negative market trends, THREDUP INC is looking forward to the future and hoping to turn their fortunes around. Analysts have pointed to several potential areas of growth for THREDUP INC, including an increased focus on digital sales, global expansion of their online marketplaces, and ongoing investments in sustainability initiatives. Going forward, management is optimistic that these strategies will put them in a better position to capitalize on future growth opportunities.
In addition, they have committed to reducing costs and improving efficiency in order to protect their bottom line. Overall, THREDUP INC is determined to stay competitive in the marketplace and continue to work towards a sustainable financial future. Moving forward, investors will be closely monitoring the company’s progress as they strive to grow their business and maximize shareholder value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Thredup Inc. More…
| Total Revenues | Net Income | Net Margin |
| 297.84 | -81.73 | -27.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Thredup Inc. More…
| Operations | Investing | Financing |
| -42.11 | 43 | -3.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Thredup Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 276.33 | 155.73 | 1.17 |
Key Ratios Snapshot
Some of the financial key ratios for Thredup Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.7% | – | -27.1% |
| FCF Margin | ROE | ROA |
| -23.5% | -40.1% | -18.3% |
Analysis – Thredup Inc Intrinsic Stock Value
At GoodWhale, we analyzed the financials of THREDUP INC and calculated their fair value to be around $10.4. Our proprietary Valuation Line technology allows us to assess the true value of a company’s stock, and in this case, it was determined that THREDUP INC is currently undervalued by 69.3%. This means that while the stock is currently trading at $3.2, it should actually be valued at $10.4. This presents a great opportunity to investors looking to buy into THREDUP INC, as they could potentially make a large return on their investment. More…
Peers
The competition between ThredUp Inc and its competitors is fierce. Poshmark Inc, Stitch Fix Inc, and Farfetch Ltd are all vying for the same customers. Each company has its own unique selling proposition, and each is trying to outdo the others in terms of price, selection, and convenience.
– Poshmark Inc ($NASDAQ:POSH)
Poshmark is a social commerce platform for fashion where users can buy and sell new or used clothing, shoes, and accessories. The company has a market cap of $1.41 billion as of 2022 and a return on equity of -9.05%. Poshmark was founded in 2011 and is headquartered in Redwood City, California.
– Stitch Fix Inc ($NASDAQ:SFIX)
Stitch Fix Inc. is a company that provides a personal styling service. The company has a market capitalization of 439.9 million as of 2022 and a return on equity of -36.52%. The company offers its services to women, men, and children.
– Farfetch Ltd ($NYSE:FTCH)
Farfetch Ltd is an online fashion retail platform that sells products from over 700 luxury fashion boutiques and brands from around the world. Founded in 2007, the company is headquartered in London, United Kingdom.
As of 2022, Farfetch Ltd has a market capitalization of 3.2 billion dollars and a return on equity of 119.18%. The company has been growing rapidly in recent years, with revenues increasing from just over 1 billion dollars in 2017 to almost 2.4 billion dollars in 2020. The company’s strong growth is largely due to the increasing popularity of luxury fashion brands among young consumers and the growing popularity of online shopping.
Summary
Investors are disappointed with the recent earnings report from THREDUP INC. for the second quarter of FY2023, ending June 30 2023. Total revenue was up 8.2% from the same period in the previous year, but net income was reported at USD -18.8 million, representing a decrease of 28.4 million from the prior year. As a result, the stock price moved down the same day. Given this performance, investors should exercise caution when considering investment in THREDUP INC. as a long-term strategy.
It is important to analyze the company’s financials in order to determine if its business model is sustainable and capable of delivering value in the future. Short-term traders may want to wait for better performance before taking a position in THREDUP INC. shares.
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