Patricia Nakache, a director at ThredUp Inc. (NASDAQ:TDUP), recently sold shares in the online resale platform, according to a recent SEC filing. Over the course of three days, from November 29 to December 3, Nakache offloaded a total of 71,924 shares of ThredUp's Class A Common Stock. The transactions were executed at prices ranging from $1.77 to $1.78 per share, amounting to a total of $129,623. The stock, which InvestingPro analysis indicates is currently undervalued, has shown significant volatility with a 14% gain in the past week despite being down 23% year-to-date.
The sales were conducted through various funds associated with Trinity Ventures, where Nakache holds a management position. Notably, these transactions were carried out under a pre-arranged 10b5-1 trading plan, which allows insiders to sell a predetermined number of shares at a set time to avoid any accusations of insider trading.
Following these sales, Nakache retains indirect ownership of shares through several Trinity funds, with remaining holdings detailed in the filing. These transactions reflect a strategic financial decision by Nakache within the framework of regulatory compliance.
In other recent news, ThredUp, a prominent online resale platform, has reported robust financial results for the third quarter of 2024, surpassing expectations. The company's Gross Merchandise Value (GMV) saw a 7% year-over-year increase, reaching $457 million. This growth is largely driven by gains in new buyer acquisition and retention. ThredUp is shifting its focus to the U.S. market, transitioning to a consignment model that now accounts for over 90% of its revenue. Despite a decline in consolidated revenue and active U.S. buyers, the company's gross margin has improved.
In a strategic move, ThredUp has divested its European business, Remix, through a management buyout. This allows ThredUp to concentrate on its primary U.S. market, while Remix operates independently to grow within the European sector. The company's adjusted EBITDA has been positive for five consecutive quarters, with U.S. cash flow positivity anticipated for the full year. The fourth-quarter U.S. revenue outlook has been raised to between $58 million and $60 million, with full-year projections of $250.8 million to $252.8 million.
These are the recent developments, and ThredUp expects to continue its progress into 2025, projecting positive free cash flow and EBITDA margins similar to 2024. The company's focus is on enhancing the U.S. business post-EU divestiture, with investments in operational infrastructure and AI innovations aimed at improving buyer acquisition and retention.
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