Shares of ThredUp Inc. (TDUP) continued their downward trajectory, plummeting 6.47% in pre-market trading on Tuesday. This decline follows a 5.88% drop in Monday's regular trading session, despite the company beating analyst estimates in its third-quarter earnings report released after Monday's market close.
ThredUp reported better-than-expected Q3 results, with a loss of $0.03 per share, outperforming the analyst consensus estimate of a $0.04 loss. This represents a significant improvement from the $0.22 loss per share in the same period last year. Revenue also exceeded expectations, coming in at $82.161 million, surpassing the analyst estimate of $77.600 million by 5.88% and marking a 12.52% increase year-over-year.
Despite these positive results, investors seem to be focused on ThredUp's future prospects. The company provided full-year 2025 revenue guidance of $307-309 million, which appears to have fallen short of market expectations. This outlook, combined with ongoing concerns about the company's growth trajectory and path to profitability in the competitive e-commerce landscape, seems to be driving the continued sell-off. As ThredUp navigates challenges such as changing consumer spending habits and economic uncertainties, investors will be closely monitoring its ability to scale operations and improve margins in the coming quarters.
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