Q3 2024 ThredUp Inc Earnings Call
Speaker Change: Good day everyone and welcome to the ThreadUp A 3rd Quarter 2020 for earnings call. At this time, I'll participate in our newest snowly mode.
Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask question at any time over the phone by pressing the star and one on your telephone keypad.
Please note today's call will be recorded and we will be standing by if you should need any assistance.
It is now my pleasure to turn today's conference over to Lauren Frasch. Please go out. Good afternoon and thank you for joining us on today's conference call. The discuss throughout its third quarter, 2024 financial results. With me, our James Reinhart, Threat up CEO and co-founder and Sean Sobers, T.F.
We posted our first release in supplemental financial information on our Investor Relations website at IR.threadup.com.
This call is being webcast on our IR website and it replay of this call will be available on the site shortly.
Before we begin, I'd like to remind you that we will make forward-looking statements during the course of this call, including the not limited to statements regarding our earnings guidance for the fourth fiscal quarter and full year of 2024.
Future Finance and Performance Market demand growth prospects business strategies and plans investments in AI technologies. The company's intention to exit the European market into seek strategic alternatives for a European business and our ability to cost effectively attracting buyers.
[inaudible]
These forward-looking statements are not guaranteed for future performance, involve known and unknown risks and uncertainties, including our ability to effectively deploy new and evolving technologies such as artificial intelligence and machine learning in our offerings.
Our ability to identify and execute a strategic alternative for the company's European business and the effects of inflation, increased interest rates, changing consumer habits, and general global economic uncertainty.
Our actual results could differ materially from any projections of future performance or results expressed or implied by such forward-looking statements.
Speaker Change: You can find more information about these risks, uncertainties, and other factors that could affect our operating results and our FEC filings, earning press release, and supplemental information posted on our IR website.
Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events.
In addition, during the call, we will present certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitution for, or in isolation from, GAAP measures.
Speaker Change: You can find additional disclosures regarding those non-GAP measures, including reconciliations with comparable GAP measures in our earnings press release and supplemental information posted on our IR website. Now I'd like to turn the call over to James Reinhart.
Speaker Change: Good afternoon, everyone. I'm James Reinhart, CEO and co-founder of ThredUP. Thank you for joining our third quarter 2024 earnings call.
We are pleased to share ThredUp's financial results for Q3, and our expectations for Q4 and into 2025. We will provide an update on growth, adjusted EBITDA margin expansion, expectations for free cash flow over the next year, and further developments in our new AI products.
Speaker Change: My remarks on performance will focus on our U.S. marketplace, and I will provide an update on the significant progress we've made with our EU divestiture.
Speaker Change: I will then hand it over to Sean Sobers, our Chief Financial Officer, to talk through our third quarter 2024 financials in more detail and provide our outlook for the fourth quarter and full year 2024. As always, we'll close out today's call with a question and answer session.
Speaker Change: Before I get into detail on U.S. performance and the balance of my remarks, let me provide some clarity on what's happening with our EU business, Remix. We've made substantial progress in the divestiture of our EU business, having agreed on material terms for a management buyout by Foreign Filote, Remix's current GM, and the Remix management team.
Speaker Change: While we continue to evaluate all strategic alternatives, under the proposed terms, ThredUp is expected to fund Remix with a final cash investment of approximately $2 million and to retain a minority interest in the Remix business.
Discussions are proceeding well and we are targeting to close this transaction by year-end.
Speaker Change: Now, turning back to the US marketplace, let me start by saying that we've made real progress in course correcting in the US since last quarter. While I won't belabor the challenges we mentioned in August, I will confirm our view that they were anomalies in our operating history.
Speaker Change: What gives me confidence in this view is threefold. First, we exceeded our own expectations for Q3 and are raising estimates for Q4 and the year.
Speaker Change: Second, typically secondhand shopping tends to be slower in Q4 as consumers shift their wallet share to new gifts and new goods for the holiday. Over the past three years on average, our marketplace has trended down seasonally 6% from Q3 to Q4. This year we are expecting just a 4% seasonal decline.
Speaker Change: Third, despite our customers facing a more challenging environment, they are still shopping regularly with us.
Speaker Change: Well, we don't typically report gross merchandise value. We thought it useful to add that our GMV is growing 7% year over year from 426 million in 2023 to 457 million in 2024 at our midpoint.
Speaker Change: But as we've noted on previous calls, we've had to be incrementally more promotional to drive that sale.
Speaker Change: We see opportunities, both in what we're doing at ThredUP, but also in the macro environment, to generate higher willingness to pay and more flow-through as we turn the page to 2025.
We know there's work to do in order to return to our more ambitious growth and profit targets, but I'm confident we are squarely back on that trajectory.
As such, here are five areas I'd like to highlight from the building blocks of that competence.
Speaker Change: First on customer acquisition and retention.
Speaker Change: Q3 was the strongest new buyer acquisition quarter we've had in more than two years. A combination of better ad targeting, as well as full funnel conversion.
Speaker Change: In addition, our new customer retention metrics are strengthening as we improve our product experience and dial in our revised email onboarding and push notification re-engagement strategies.
Speaker Change: Repeat rates for new customers are up 12% over the last few months.
with LTV to CAC ratios and payback strong.
Speaker Change: Year-to-date, our predicted paybacks are trending 15% better than they were last year over the same period. We now believe we are back in a position to invest more aggressively in growing new buyers while still achieving our free cash flow targets.
Speaker Change: As a reminder, active buyers is a lagging metric, so the full impacts of these improvements won't be seen for several quarters, but we expect active buyer growth to turn positive early next year.
Second, on sourcing strategy and our pricing algorithms.
Speaker Change: Continued refinements in our sourcing strategy and pricing algorithms have allowed us to delight customers with incredible deals, driving strong sell-through, and expanding our contribution margins despite the lower exit rate out of Q2.
Speaker Change: Despite our top-line contraction in Q3, we generated more cash flow from operations year-over-year and expanded Adjusted EBITDA by nearly 100 basis points.
Speaker Change: Our unit economics remain as strong as ever, with gross margins up 70 basis points year-over-year to 79.3%.
Speaker Change: We expect our cash flow from operations will be positive on a full year basis in the U.S. in 2024. And the U.S. will be roughly free cash flow break-even for the full year.
Speaker Change: Adjusted EBITDA on Q3 was positive for the fifth consecutive quarter and as such I'll stop speaking to this as a milestone as we turn our attention to driving net income and positive earnings per share in the future.
Speaker Change: Third, our consignment transition.
Speaker Change: Our marketplace is in the final stages of our transition to consignment in the U.S. Consignment revenue now makes up more than 90% of U.S. revenue, and it's expected to trend toward the mid-90s in 2025.
Speaker Change: While the accounting treatment of consignment goods has muted revenue growth in previous quarters, and will again in Q4, it should have minimal impact into 2025.
Speaker Change: With consignment rates in the mid-90s, our cash flow from operations, and by extension our negative working capital cycle, will continue to improve as our business grows. Our marketplace model can now really shine with our consignment mix at this level.
Speaker Change: Fourth, our operating infrastructure.
Speaker Change: We've built an operating infrastructure that continues to prove not just a source of durable competitive advantage, but a source of leverage and future profits.
Speaker Change: With continued improvements in automation and processing, our variable contribution margins are at record highs, meaning the flow-through from the incremental dollar revenue generates strong bottom-line returns.
Speaker Change: This leverage extends to our Resale as a Service business, or RAS.
Speaker Change: With RAS, we see more opportunities to double down on these competitive advantages and use our platform to serve not only our brand clients, but also to potentially partner with and to ultimately power the broader resale and sustainable apparel ecosystem.
Speaker Change: We are more ambitious than ever with our goal of ThredUP being the underlying infrastructure for the vast majority of resale, branded or otherwise, on the internet.
Speaker Change: With only maintenance and modest CapEx expenditures in front of us, our distribution centers are primed to continue providing additional leverage over time.
Speaker Change: Finally, our gender of AI, product, and technology investments.
Speaker Change: We have continued to improve the customer's experience in significant ways. We continue to believe that AI disproportionately benefits our marketplace relative to other marketplaces and retailers. And the generative AI can significantly enhance the second hand shopping experience.
Speaker Change: For years, our dream was to build a second-hand shopping experience that was indistinguishable from shopping new. Advancements in generative AI are quickly making that a reality.
Speaker Change: Let me double-click into a few areas that we introduced last quarter and provide a product update.
Speaker Change: First, our AI search functionality is now deployed across our platform, bringing a much more robust shopping experience to every journey. This technology is quickly becoming the foundation for all of our on-site merchandising, email, ad tech, and marketing campaigns.
Speaker Change: In fact, Time Magazine just last week recognized our new AI search technology in its prestigious 2024 Best Inventions list.
Speaker Change: Second, Style Chat helps customers shop intuitively by inspiration and occasion, bringing engagement and fun back to the second-hand shopping experience.
Speaker Change: This foundation will power new social commerce features launching in 2025, empowering creators, influencers, and affiliates to curate and showcase our 4 million plus items and build compelling secondhand destinations to celebrate the endless expression of thrift.
Speaker Change: Third, image search lets you import any photo into ThredUP's mobile experience to find premium looks that match your style.
Speaker Change: The adoption of image search has been rapid as customers have made it one of their go-to tools to find what they want on ThredUP for a fraction of what they would pay for it new. This experience is the powerful trifecta of combining image search tech, data infrastructure, and our vast assortment of available second-hand items.
Speaker Change: We know shifting consumer behavior takes time, but we're seeing these new tools unlocking that shift for us. We just concluded a launch of ImageSearch for Halloween costumes and saw a 16% bump in adoption, and usage remained sticky afterwards.
Speaker Change: We are now able to thematically capture cultural moments, emerging trends, or long-tail niche demand with scalable solutions that would not have been possible just 12 months ago. Up next, ugly holiday sweaters.
Speaker Change: Fourth, beginning this month, we will launch 360-degree high-definition photos for newly processed items in our DCs.
Speaker Change: giving customers richer information about every item.
Speaker Change: This will be coupled with new automated digital measurements rolling out by year-end and AI-based flaw detection coming in 2025.
Speaker Change: While these seem routine, photo quality, flaw detection, and measurement accuracy, they are critical friction points in shopping secondhand online. All three are getting a big upgrade on thredUP over the next few quarters. We should see this translate into improved conversion, lower returns, and increased customer retention.
Speaker Change: Finally, we introduced our premium selling service to 100% of sellers.
Speaker Change: While you can still get a standard clean-out kit or send items in for donation, our premium service is targeted for customers with high confidence in the quality and desirability of their items.
Speaker Change: Upon launch, demand for this service doubled overnight, demonstrating the need for premium options on ThredUP.
Speaker Change: The service is priced higher at $34.99 per bag, with more power tools for sellers, such as longer consignment windows, a floor on discount deductions from payouts, and more dedicated customer support.
Speaker Change: We are continuing to innovate on behalf of sellers. Whether you want us to do all the work, you want to do more of it yourself, or somewhere in between, we remain relentless in our pursuit of making thread up the leading choice to sell secondhand apparel online.
Speaker Change: We believe this will expand our TAM, and at the same time, our sustainability impact.
Speaker Change: Before I turn it over to Sean, I want to close with a celebration of my ThredUp teammates and all their hard work over the past quarter. It's been a tough few months, no doubt about it. But we're back on track with strong momentum in our marketplace and exciting opportunities in front of us. I can't wait to see what we invent next on behalf of our customers.
Speaker Change: Now over to you, Sean.
Sean Sobers: Thanks, James. I'll begin with an overview of our results and follow up with guidance for the fourth quarter and full year 2024. I will discuss non-GAAP results throughout my remarks. Our GAAP financials and a reconciliation between our GAAP and non-GAAP measures are found in our earnings release, supplemental financials, and our 10-Q filing.
Speaker Change: As James mentioned earlier, we've made significant progress in the divestiture of our EU business and are planning to close the transaction by year-end.
Speaker Change: For this reason, I will be primarily focused on our U.S. results this quarter. We are providing the U.S. P&L plus the last six quarters in our supplemental financials. I will briefly discuss our consolidated results, but I would encourage investors to focus on our U.S. results as they are representative of our go-forward business.
Speaker Change: For the third quarter of 2024, consolidated revenue totaled $73 million, a decrease of 11% year-over-year.
Speaker Change: In Q3, the U.S. achieved net revenue of $61.5 million, down 9.6% over last year. U.S. active buyers were 1.2 million, while orders were 1.2 million, a 7.3% and a 10.5% decline respectively.
Speaker Change: While our active buyers were impacted by our missteps earlier in the year, our revenue performance exceeded the midpoint of our guidance by $1.5 million.
Speaker Change: For the third quarter of 2024, consolidated gross margin was 71.2%, a 220 basis point increase over the same quarter last year.
Speaker Change: The U.S. achieved gross margin of 79.3%, a 70 basis point improvement over last year, and 80 basis points above the midpoint of our outlook.
Speaker Change: Despite a highly competitive consumer environment, we are pleased to deliver both sequential and year-over-year improvement, driven by the final phase of the consignment shift and improving union economics.
Speaker Change: For the third quarter of 2024, consolidated GAAP net loss was $25 million, while adjusted EBITDA loss was $2.5 million.
Speaker Change: In the U.S., we generated $700,000 of adjusted EBITDA in Q3, or 1.1% of revenue. This result is $500,000 higher versus last year, and our fifth consecutive quarter of positive adjusted EBITDA in the U.S.
Speaker Change: Turning to the balance sheet, we began the third quarter with $60.7 million in cash and securities and ended the quarter with $60.6 million, using $100,000 in cash in Q3. The U.S. generated $3.9 million in cash flow from operations.
Speaker Change: We are very proud of the strides we are making on our path to free cash flow. Year-to-date, on a consolidated basis, we've consumed $5.6 million, which is entirely attributable to the EU, compared to $28 million last year.
Speaker Change: Importantly, in the same period, the U.S. is breaking it.
Speaker Change: Now I'd like to turn to guidance. We are raising our U.S. revenue outlook to account for the favorable trends we are seeing in the U.S. business.
Speaker Change: We remain cautious on the outlook of our consumer in an uncertain post-election economy and anticipate a highly promotional Q4. However, we are seeing a return to our underlying fundamentals and are beginning to see the positive impact of customer experience improvements we've made throughout the year.
Speaker Change: Current trends provide us with the confidence to raise our Q4 revenue outlook and narrow our gross margin expectations.
Speaker Change: We are reiterating our Q4 EBITDA margin outlook as we invest in processing and marketing to fuel momentum into 2025.
Speaker Change: As we look into next year, our early planning process contemplates 2025 U.S. net revenue growth of flat to slightly up on similar EBITDA margins as in 2024.
Speaker Change: In addition, we expect to be free cash flow positive on an annual basis as we are planning our CapEx needs to remain at approximately $8 million in the U.S.
Speaker Change: With all this in mind, in the U.S., the fourth quarter, we now expect revenue in the range of 58 to 60 million dollars, representing a four percent decline at the midpoint, and one million dollars higher than our previous outlook.
Speaker Change: Narrowing gross margin range of 78.5 to 79.5 percent, 150 basis points higher over the last year at the midpoint.
Speaker Change: reiterating adjusted EBITDA of zero to a positive 2% of revenue and basic weighted average shares outstanding of approximately 114 million shares.
Speaker Change: For the full year of 2024 in the U.S., we now expect revenue in the range of approximately $250.8 to $252.8 million, $2.8 million higher at the midpoint, incorporating our Q3B and our higher Q4 outlook.
Speaker Change: Gross margin in the range of approximately 79.2% to 79.4%.
Speaker Change: 250 basis point higher over last year at the midpoint.
Speaker Change: positive adjusted EBITDA of 1.6 to 2.1 percent of revenue, a 10 million dollar improvement year-over-year at the midpoint, and basic weighted average shares outstanding of approximately 114 million shares.
Speaker Change: In closing, we are pleased to have a challenging two quarters behind us, but we know there is still work to do. We are excited to raise our revenue outlook for Q4, while still investing in revenue-driving processing power that should fuel momentum into 2025.
Speaker Change: We are making progress on our EU divestment and are looking forward to exiting the year as a U.S.-only business with gross margins approaching 80 percent. Positive adjusted EBITDA and improving free cash flow dynamics.
Speaker Change: James and I are now ready for your questions. Operator, please open the line.
Speaker Change: At this time, if you would like to ask a question, please press the star and one keys on your telephone keypad.
Speaker Change: Keep in mind, you may remove yourself from the question queue at any time by pressing star and 2. Again, it is star and 1 if you'd like to ask a question over the phone today.
Speaker Change: We'll take our first question from Ike Bruchow with Wells Fargo. Please go ahead, your line is open.
Ike Bruchow: Hey everyone, so two questions from me just I think James three months ago obviously we were taking down the US expectations there were some issues now now you're raising expectations for 4Q so just curious underlying that what exactly are you looking at what KPIs that give you that kind of confidence?
Speaker Change: And then just margins into next year.
Speaker Change: I think we expect to grow faster.
Speaker Change: I think we expect EBITDA to be better, really driven by better gross margins and better contribution margins. So, you know, a difficult couple of months in the last quarter, but I think we've really turned the corner.
Speaker Change: And the ability to focus really on the US business, I think, is the other piece. So I think the EU has been a distraction, as we've acknowledged. And I think once we turned all of our attention to the UX, you can really see those results start to materialize, so.
Speaker Change: I'd like to talk about some of the financials. Yeah, and I would add in just like a piece of color, but on a financial side is if you go back to the IPO on contribution margin, we talked about it when we went public, it was about 27%. Since then, we've improved it over a thousand bits.
Speaker Change: And we're taking that improvement, I think, as you go from 24 to 25 as we increase revenue to basically reinvest into the growth of the business. So that's why I think you're seeing similar to slightly better EBITDA rates as you get into 25 versus 24.
Speaker Change: Awesome, thank you.
Speaker Change: And we'll take our next question from Bernina Tiernan from Needham & Company. Please go ahead, your line is open.
Bernina Tiernan: Great, thanks for taking the questions. Maybe just to start talking about, you know, moving to a U.S.-only business.
Bernina Tiernan: Any incremental color you guys can provide in terms of how management will be spending their time and allocating resources, basically trying to get a sense in terms of where the incremental investments would be going and then just as a follow-up, we'd love just any additional color on some of the...
Bernina Tiernan: new AI or product initiatives like style chat, image search, is that driving new buyers to the platform? Is it, you know, increasing retention? Just trying to get a sense in terms of where, how we should be seeing these flow through the financials.
Speaker Change: Yeah, sure. Hey, Bernie.
Speaker Change: Yeah, I mean, I think, you know, if you go back, you know, before we had the European business, I mean, we spent a lot of time talking about the fundamentals in the U.S. business.
Speaker Change: really the competitive advantage being the marketplace model, our data advantage, and our infrastructure. And I think now as we are, you know, back to being US only, we're really doubling down on those three things. And so improvements,
Speaker Change: you know, across our operating infrastructure, whether it's innovation in our DCs, or AI, you know, in the product features, you know, I think all of our attention has really been, you know, focused back on the US. And I think you really started to see the fruits of that in Q3, across the product team,
Speaker Change: the ops team, the finance team, and so
Speaker Change: You know, I think there's a lot of optimism that now without some of the distraction and the challenges of the EU business, you know, we can make progress faster.
Speaker Change: But I think, you know, from a resource allocation perspective, one of the things that was challenging over the past few quarters was we didn't feel the freedom to invest in the U.S. business.
Speaker Change: And we still have to manage the cash consumption of the EU business. And I think now without that drag in overhead, I think there's a freeing feeling of OK, how do we get the US business to grow faster, to generate?
Speaker Change: you know, more contribution margin over time. So I think that's what you should see from us, you know, over the next few quarters, is really resources in the US driving growth. And I think that reflects why, you know, the EBITDA as we get into 2025, you know, it's
Speaker Change: We're not declaring victory through driving incremental EBITDA dollars. I think we're really focused on the underlying fundamentals of growth in the business, which is marketing and operations.
Speaker Change: As for your question about AI and its impact...
Speaker Change: Look, I think it's up and down the funnel.
Speaker Change: So I think from an ad tech and targeting...
Speaker Change: I think we're using AI to provide better photography, to provide better image tagging, whether we're using that on Google or Meta. I think once customers get onto the platform.
Speaker Change: The power of our new search product is helping customers find items they want more quickly. I think it's giving them confidence that the results are something that's attractive to them. And then just the re-targeting and re-marketing piece, really being able to use our image search technology. If you find an item that's sold out,
Speaker Change: The ability to say, hey, here's an item that's just like that one using a visual search. So all those little things, I think, have added up a few bits at a time to drive customer adoption and customer conversion. So I think you'll see more and more of that as we get into 2025.
Speaker Change: I think fundamentally the product is going to be better.
Speaker Change: Thanks guys. Thanks James.
Speaker Change: And once again, if you'd like to ask a question, please press the star and one keys. We'll take our next question from Dylan Curden with William Blair. Please go ahead. Your line is open.
Dylan Curden: Yeah, thanks. Just on the marketing lineup, you kind of touched on a little bit there, but you know, you've had some nice dollar declines on that item this year, including the third quarter, and then you're sort of speaking to improvement in buyer
Dylan Curden: Can you speak to efficiency, is this a big piece of that, stepping away from Europe, and into next year, would you expect to invest more in marketing, and I guess, hopefully, what will happen next?
Speaker Change: Yeah, hey, Dylan. Yeah, I mean, I think, thanks for pointing that out. I mean, look, I think we had a great acquisition quarter in Q3, and you're right.
Dylan Curden: that was with roughly the same or a little bit less marketing year over year. And I think that speaks to, you know, why the CACs have been strong and why our LTBs, our LTB to CAC ratios have improved. So again, I think, you know, the lessons in Q2 were painful.
Dylan Curden: But I think it did unlock some fresh thinking around the way we were going to approach acquisition, the way we're going to approach retention. And I think the team really delivered that in Q3. And so I think it gives us confidence as we get into Q4.
Speaker Change: And into 2025, you know, to not just take that playbook, but to improve upon it. You know, we want to continue to spend dollars on the marketing side to acquire customers.
Speaker Change: And I think if we can continue to have the same types of efficiency we've had in Q3 and into Q4, you know, despite dealing with a sort of rocky macro, you know, in a presidential election year, I think...
Speaker Change: You know the team has done a great job despite those challenges and so as you get into 25 without that You should see some opportunity and we need to combine the marketing investments, you know with strong
Speaker Change: merchandising. We have a new head of merchandising at ThredUP who I think will really improve the work we're doing and the operations team is continuing to
Speaker Change: improve kind of the product experience on the operations side. So things like 360 degree photos and automated measurements, these are dealing with all the little things that help the marketing dollars work harder. And I think when you line all those up together, really good things can happen.
Speaker Change: And I think that's what's giving us some confidence as we close out the year.
Speaker Change: And just to be clear, the 70-72 revenue guide for Fort Worth, that's still got Europe in it? Right.
Speaker Change: Yeah, yeah, we've given you both the U.S. guidance standalone as well as the total consolidated guidance too. So you can see that in the press release.
Speaker Change: as well as the supplemental financials.
Speaker Change: Sorry about that. And the deceleration in Europe, I guess, looking at those numbers, can you kind of
Speaker Change: to explain that a little bit and I guess the reasons for staying somewhat invested.
Speaker Change: I'll keep kind of what to do here, thank you.
Speaker Change: Yeah, no, I mean, I think this is, to some degree, by design, you know, they're reducing
Speaker Change: You know, some of their supply that had much lower margins, which is going to reduce revenue in the near term as they transition to consignment. So I think this is kind of what we expected. So you've seen revenue shrink, you've seen EBITDA dollars shrink, but I think they're well on their way to getting to the point and designing that business the way it should be designed and run. You know, 18 plus months out.
Speaker Change: I assume they'll be very successful, but in the near term, they're still going through the transition. It's just taking a little while.
Speaker Change: Yeah, and don't I just add I mean just be really clear, you know, we're raising the estimates for q4 in the US
Speaker Change: I think those guys will be successful, but I didn't want anything to get lost in translation. We're really focused on the U.S. business, and I think we want investors and the community to really focus on the U.S. guidance and what we've been doing here.
Speaker Change: Thank you very much.
Speaker Change: And once again, if you'd like to ask a question, please press the star and one keys on your telephone keypad.
Speaker Change: And we can pause for a moment to allow any further questions to queue.
Speaker Change: And there are no further questions on the line. I will return the program to our speakers for any closing remarks.
Speaker Change: Well, thank you everyone for joining our Q3 earnings call. Really great to be able to share kind of the positive news coming out of this quarter and sort of the confidence we feel, you know, as we turn the page. And want to thank all the FredUp teammates for all their hard work over the past quarter. We know it's been difficult at moments, but it's really exciting to see the progress and the momentum and we look forward to.
Speaker Change: Keep being posted on what's next, our next call in March. So thanks.
Speaker Change: This does conclude today's program. Thank you for your participation and you may now disconnect.
Speaker Change: Everyone out.
Speaker Change: [music]
Speaker Change: Buenos Aires, New Mexico