Online resale platform ThredUp announced on Tuesday preliminary financial results for the fourth quarter above expectations. 

The Oakland California-based company reported total revenue of $66.7 million to $67.2 million for the quarter ending December 31, representing a 9% annual growth rate, exceeding its previous guidance of $58 to $60 million. 

Gross margin also surpassed expectations, reaching 80.2% to 80.4%, compared to the prior outlook of 78.5% to 79.5%. Adjusted EBITDA margin climbed to 6.4% to 6.9%, well above the prior guidance range of 0.0% to 2.0%.

“I am encouraged by our preliminary fourth quarter results that exceeded all elements of our guidance, and the return to solid growth in our core business,” said ThredUp co-founder and CEO, James Reinhart. 

“The exclusive focus on our U.S. business, along with the growing impact of the AI-driven enhancements to our product experience, helped to accelerate momentum throughout the quarter. At the same time, leverage on our many years of infrastructure and marketplace investments drove meaningfully higher margins. We look forward to sustaining this momentum as we turn the page to 2025.”

ThredUp is expected to release its full, audited fourth-quarter and year-end financial results in the coming weeks.