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Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

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Equity Bottom-Up

<ul><li>TDUP beat and raised top line outlook. Company reported $71M of revenue in 1Q, up 10.5% y/y, beating Street consensus of $67.5M and its guide of $67.5-$69.5M on the back of 95% y/y growth in new buyers, which was also the best quarter for new buyer acquisition in TDUP’s history.</li><li>On the call, management highlighted April has been the strongest month ever for new adds as the momentum has continued into 2Q.</li><li>Consequently, the company has raised its full year revenue guide to 8%-12% y/y growth from the prior 4%-8% y/y growth</li></ul>

TDUP beat and raised top line outlook. Company reported $71M of revenue in 1Q, up 10.5% y/y, beating Street consensus of $67.5M and its guide of $67.5-$69.5M on the back of 95% y/y growth in new buyers, which was also the best quarter for new buyer acquisition in TDUP’s history.On the call, management highlighted April has been the strongest month ever for new adds as the momentum has continued into 2Q.Consequently, the company has raised its full year revenue guide to 8%-12% y/y growth from the prior 4%-8% y/y growth

ThredUp, Inc. - Strong 1Q Momentum Continues... TDUP Ups Outlook