ThredUp Inc. (NASDAQ:TDUP) is one of the must-buy small-cap stocks to invest in. On August 4, the company delivered solid second-quarter results driven by strong customer and order growth. Revenue in the quarter increased 16% year-over-year to $77.7 million as Gross profit increased 17% to $61.7 million and gross margin expanded to 79.5% from 78.8% in the second quarter of last year.
A smartly dressed woman browsing a selection of designer clothing in an upscale retail store.
The robust revenue growth was driven by a 17% increase in active buyers to 1.47 million and a 21% rise in orders purchased to 1.54 million. Loss from continuing operations shrank to $5.2 million compared to a loss of $9.4 million in the second quarter of last year. The better-than-expected results came as ThredUp continues to benefit from AI investments that are driving buyer and seller acquisition.
ThredUp expects the growth achieved in the second quarter to continue in the third quarter. Therefore, it expects revenue to range between $76 million and $78 million, representing a 25% year-over-year increase. Gross margin is expected to range between 77% and 79%.
ThredUp Inc. (NASDAQ:TDUP) is an online consignment and thrift store specializing in buying and selling secondhand women’s and children’s clothing, shoes, and accessories. It also offers a “Resale-as-a-Service” platform that allows brands and retailers to integrate resale into their businesses.
While we acknowledge the potential of TDUP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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