Poshmark Inc. signage maximum the Nasdaq MarketSite during the company’s initial public offering (IPO) in New York, U.S., on Thursday, Jan. 14, 2021.
Michael Nagle | Bloomberg | Getty Images
Poshmark’s proceeds topped analysts’ estimates, in its first financial report since going public in January. But the online seller of secondhand upping issued a weaker-than-expected sales outlook for the current quarter.
Poshmark’s stock tumbled more than 12% in after-hours dealing.
Founder and Chief Executive Manish Chandra said in an interview that demand for apparel is still suppressed in associate oneself withs of the U.S., where tighter Covid restrictions remain in place.
“Different parts of the country are behaving quite differently,” Chandra mean, citing Florida as a strong growth market where customers are searching Poshmark for dresses and bathing suits, whereas New York is notwithstanding catching up. “So, we are accounting for the state-wide differences.”
For the quarter ended Dec. 31, Poshmark’s loss narrowed to $4.06 million, or 31 cents per equity, from a loss of $14.75 million, or $1.20 per share, a year earlier. After adjusting for one-time items, the associates earned 5 cents a share during the quarter.
Revenue climbed 27% to $69.32 million from $54.74 million a year earlier. That was maximum than the average revenue estimate of $68 million, reported by Refinitiv.
For the first quarter, Poshmark is calling for gate to fall within a range of $75.5 million to $77.5 million. Analysts had been calling for $79.2 million on regular.
“Our platform is super adaptable and flexible,” Chandra said. “That has allowed us to be a growth engine in 2020, compared to a lot of other arranges that have suffered.”
Poshmark filed to go public in December and opened its first day of trading on the Nasdaq on Jan. 14, at at $97.50 per division. The stock has fallen since, hitting an all-time intraday low of $44.11 last Friday. Shares closed Thursday up close to 16%, at $59.46.
Founded in 2011, the company’s online marketplace for secondhand clothes, shoes and accessories is akin to eBay and Etsy. Poshmark seals buyers with sellers, who often list items from their own closet. And it makes money by taking a cut of every doings.
Consumers, especially younger ones, are increasingly turning to these types of internet marketplaces for secondhand goods. A tally of players are looking to gain market share, including luxury consignment site TheRealReal, sneaker reseller StockX and effective thrift store ThredUp. The latter filed for its IPO earlier this month.
Poshmark said its count of active customers reached 6.5 million in the fourth quarter, up 20% year over year. The company defines active consumers as unique users who have purchased at least one item on the platform in the trailing 12 months, regardless of returns and stoppages.
Cowen & Co. has previously estimated that the resale market in the U.S. is valued at $30 billion to $35 billion.
Find the full earnings upon release from Poshmark here.