Poshmark, Inc. (NASDAQ: POSH), a leading social marketplace for new
and secondhand style, today announced financial results for the
second quarter ended June 30, 2021. The Company posted net revenues
of $81.8 million, which is a 22% year-over-year increase from the
second quarter of 2020. Gross Merchandise Value (“GMV”) grew 25%
year-over-year to $449.6 million, up from $359.7 million in the
same period last year.
“We delivered another strong quarter and our
fifth consecutive quarter of operating profitability, despite
difficult comparisons, a testament to the strength of our cohorts
and our business,'' said Manish Chandra, Founder and Chief
Executive Officer of Poshmark. “Our dynamic, flexible, and social
marketplace continues to benefit from fast-moving apparel trends.
We are uniquely positioned to benefit from today's seismic shift in
fashion, the pent-up demand for purchases across a wider range of
apparel and accessories, and increased consumer interest in
sustainability. In addition, our marketplace is highly adaptable
and responsive to consumer demands for a refreshed wardrobe,
whether people are staying at home or returning to work and school
and engaging in more social activities. As we capitalize on
these emerging trends, we will continue to execute our growth
strategies to better serve our sellers, support our community, and
grow our business over the long term.”
Second Quarter 2021 Key Metrics and
Financial Highlights:
- GMV was $449.6 million, an increase
of 25% year-over-year from $359.7 million in the second quarter of
2020. Quarterly GMV has increased year-over-year for the past 14
quarters.
- Trailing 12 months Active Buyers
reached 7.0 million in the second quarter of 2021, a 16%
year-over-year increase from 6.0 million from the second quarter of
2020.
- Net revenue was $81.8 million, a
22% increase year-over-year from $66.9 million in the second
quarter of 2020.
- Adjusted EBITDA for the second
quarter of 2021 was $6.1 million which decreased from $23.7 million
in the second quarter of 2020. Adjusted EBITDA margin was 7.4% in
the second quarter of 2021.
- GAAP results from operations was a
($2.9) million loss in the second quarter of 2021, compared to
income of $21.3 million in the second quarter of 2020 and includes
$8.1 million and $1.7 million in stock-based compensation,
respectively.
- Non-GAAP results from operations
(excluding stock-based compensation) was income of $5.2 million,
compared to $23.0 million in the second quarter of 2020.
- GAAP diluted net income (loss) per
share attributable to common stockholders was ($0.04) compared to
$0.61 in the second quarter of 2020.
- Cash, cash equivalents, and
marketable securities were $579.5 million as of June 30, 2021.
Second Quarter 2021 Business
Highlights:
- Launched Art & Design as
sub-categories with our Home department.
- Introduced “Style Tags” to
personalize listings and enhance searchability and discovery.
- Released “Price Suggester” to help
sellers (especially new listers) list items more efficiently by
providing a suggested price range for their listing.
- Launched “Buyer Alerts” to improve
the shopping experience and keep buyers informed about items
they’re interested in.
- Announced a partnership with
Snapchat to launch Poshmark Mini, which went live on July 8 to all
U.S. Snapchat users.
- Released “Bulk Listing Actions,”
four powerful new high-volume social tools that allow sellers to
share any quantity of listings at once, make closet-wide changes to
prices, and execute multiple offers to likers at once, increasing
efficiency, closet exposure and sales conversion.
- Awarded $125,000 in grants to 142
inaugural recipients of Poshmark’s Heart & Hustle Community
Fund.
Third Quarter 2021
Guidance:
- Expected Revenue range: $81.0
million - $83.0 million
- Adjusted EBITDA range:
$1.0 million - $2.0 million
Webcast and Conference Call
Information: Poshmark, Inc. will host a conference call to
review these results at 1:45 p.m. Pacific Time today, August 10,
2021. Interested parties may listen to the conference call via live
webcast by accessing the Company’s Investor Relations website
(investors.poshmark.com) under the events section. A webcast replay
of the earnings conference call will also be available on the
Poshmark website through the same link following the conference
call this evening, for at least three months thereafter.
About Poshmark, Inc.: Poshmark
is a leading social marketplace for new and secondhand style for
women, men, kids, pets, home, and more. By combining the human
connection of physical shopping with the scale, ease, and selection
benefits of ecommerce, Poshmark makes buying and selling simple,
social, and sustainable. Its community of more than 80 million
registered users across the U.S., Canada, and Australia, is driving
the future of commerce while promoting more sustainable
consumption. For more information, please visit www.poshmark.com,
and for company news and announcements, please visit
investors.poshmark.com. You can also find Poshmark on Instagram,
Facebook, Twitter, TikTok, Pinterest, and YouTube.
Poshmark intends to
use its Investor Relations website and blog (blog.poshmark.com) to
disclose material, non-public information and to comply with its
disclosure obligations under Regulation FD. From time to time, we
will also disclose this information through our press releases, SEC
filings, or public conference calls and webcasts.
SOURCE: Poshmark, Inc.
Investor Relations Contact:
ir@poshmark.com
Media Relations Contact:
pr@poshmark.com
Forward-Looking Statements:
This press release contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
generally relate to future events or our future financial or
operating performance. In some cases, forward-looking statements
can be identified by words such as “may,” “will,” “shall,”
“should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“target,” “projects,” “contemplates,” “believes,” “estimates,”
“predicts,” “potential,” or “continue” or the negative of these
words or other similar terms or expressions that concern our
expectations, strategy, plans, or intentions. These statements
include, but are not limited to, statements that we make relating
to our future financial performance, including our guidance on
financial results for the third quarter of 2021.
Forward-looking statements are neither
historical facts nor assurances of future performance.
Forward-looking statements involve substantial risks and
uncertainties that may cause actual results to differ materially
from those that we expect. These risks and uncertainties include,
but are not limited to: our ability to attract new users and
convert users into active buyers and active sellers; our ability to
maintain profitability; the impact of COVID-19 on our business and
our consumers; the growth rates in the markets in which we compete;
our ability to manage growth effectively; our ability to maintain
the vibrancy of our community and trustworthiness of our
marketplace; our dependence on sellers to provide a fulfilling
experience to buyers; and our reliance on third-party shipping
partners such as the United States Postal Service. These risks and
uncertainties are more fully described in our filings with the
Securities and Exchange Commission (SEC), including in the sections
entitled “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in our Annual
Report on Form 10-K for the year ended December 31, 2020 and
Quarterly Report on Form 10-Q for the three months ended March 31,
2021. Additional information will be provided in our Quarterly
Report on Form 10-Q for the three months ended June 30, 2021 and
other filings we make from time to time with the SEC. Moreover, we
operate in a very competitive and rapidly changing environment. New
risks and uncertainties emerge from time to time, and it is not
possible for us to predict all risks and uncertainties that could
cause actual results to differ materially from those contained in
our forward-looking statements.
The forward-looking statements made in this
press release relate only to management’s beliefs and assumptions
as of this date. We undertake no obligation to update any
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect new information or the
occurrence of unanticipated events, except as required by law.
Non-GAAP Financial Measures:To
supplement our consolidated financial statements, which are
prepared and presented in accordance with United States generally
accepted accounting principles (GAAP), this press release and the
accompanying tables and the related earnings conference call
contain certain non-GAAP financial measures, including Adjusted
EBITDA, Adjusted EBITDA Margin, Non-GAAP results from operations
(excluding stock-based compensation) and Free Cash Flow. Our
management uses non-GAAP financial measures internally for
financial and operational decision-making and as a means to
evaluate period-to-period comparisons. Non-GAAP financial measures
are not recognized measures for financial statement presentation
under GAAP and do not have standardized meanings, and may not be
comparable to similar measures presented by other public companies.
Non-GAAP financial measures also have certain limitations. For
example, Adjusted EBITDA and Adjusted EBITDA Margin have certain
limitations in that it does not include the impact of certain
expenses that are reflected in our consolidated statements of
operations that are necessary to run our business. As such,
non-GAAP financial measures should be considered as a supplement
to, and not as a substitute for, or in isolation from, the
corresponding measures prepared in accordance with GAAP. We
encourage investors and others to review our financial information
in its entirety, not to rely on any single financial measure, and
to view the non-GAAP financial measures in conjunction with their
respective related GAAP financial measures. Please see the
financial tables below for a reconciliation of the non-GAAP
financial measures to their most directly comparable GAAP financial
measures.
Adjusted EBITDA is a non-GAAP
financial measure we define as net income (loss) attributable to
common stockholders, excluding depreciation and amortization,
stock-based compensation expense, interest income, other expense,
net, and provision for income taxes. Adjusted EBITDA
margin is a non-GAAP financial measure calculated by
dividing Adjusted EBITDA for a period by revenue for the same
period. We believe that Adjusted EBITDA and Adjusted EBITDA margin
provide useful information to investors and others in understanding
and evaluating our operating results, enhances the overall
understanding of our past performance and future prospects, and
allows for greater transparency with respect to key financial
metrics used by our management in its financial and operational
decision-making. We also believe that the exclusion of certain
expenses in calculating Adjusted EBITDA and Adjusted EBITDA Margin
facilitates operating performance comparisons on a period-to-period
basis and, in the case of exclusion of the impact of equity-based
compensation and related taxes, excludes an item that we do not
consider to be indicative of our core operating performance.
Non-GAAP
results from operations (excluding stock-based
compensation) is a non-GAAP financial measure that is
calculated as GAAP results from operations plus stock-based
compensation. We believe that adding back stock-based compensation,
as adjustments to our GAAP results from operations for all periods
presented provides a more meaningful comparison between our
operating results from period to period.
Free cash
flow is a non-GAAP financial measure that is calculated as
net cash (used in) provided by operating activities less net cash
used to purchase property and equipment. We believe free cash flow
is an important indicator of our business performance, as it
measures the amount of cash we generate. Accordingly, we believe
that free cash flow provides useful information to investors and
others in understanding and evaluating our operating results in the
same manner as our management.
Operating
Metrics:
GMV
(gross merchandise value) is the total dollar value of transactions
on our platform in a given period, prior to returns and
cancellations, and excluding shipping and sales taxes. GMV is a
measure of the total economic activity generated by our
marketplace, and an indicator of the scale and growth of our
marketplace and the health of our marketplace ecosystem.
Active
buyers are unique users who have purchased at least one
item on our platform in the trailing 12 months preceding the
measurement date, regardless of returns and cancellations.
Poshmark, Inc.Condensed
Consolidated Statements of Operations(in thousands, except
per share data)(unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
Net revenue |
|
$ |
66,870 |
|
|
$ |
81,757 |
|
|
$ |
123,978 |
|
|
$ |
162,713 |
|
Costs and expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of net revenue, exclusive of depreciation and
amortization |
|
|
10,668 |
|
|
|
12,746 |
|
|
|
20,565 |
|
|
|
25,716 |
|
Operations and support |
|
|
9,200 |
|
|
|
12,969 |
|
|
|
17,736 |
|
|
|
27,863 |
|
Research and development |
|
|
7,067 |
|
|
|
12,449 |
|
|
|
14,143 |
|
|
|
31,249 |
|
Marketing |
|
|
11,680 |
|
|
|
32,715 |
|
|
|
46,276 |
|
|
|
68,193 |
|
General and administrative |
|
|
6,243 |
|
|
|
12,893 |
|
|
|
13,701 |
|
|
|
31,636 |
|
Depreciation and amortization |
|
|
667 |
|
|
|
846 |
|
|
|
1,378 |
|
|
|
1,636 |
|
Total costs and expenses |
|
|
45,525 |
|
|
|
84,618 |
|
|
|
113,799 |
|
|
|
186,293 |
|
Income (loss) from
operations |
|
|
21,345 |
|
|
|
(2,861 |
) |
|
|
10,179 |
|
|
|
(23,580 |
) |
Interest income |
|
|
149 |
|
|
|
38 |
|
|
|
477 |
|
|
|
124 |
|
Other expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of redeemable convertible
preferred stock warrant liability |
|
|
(278 |
) |
|
|
— |
|
|
|
(375 |
) |
|
|
(2,816 |
) |
Change in fair value of the convertible notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(49,481 |
) |
Loss on extinguishment of the convertible notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,620 |
) |
Other, net |
|
|
(34 |
) |
|
|
(142 |
) |
|
|
(28 |
) |
|
|
(184 |
) |
|
|
|
(312 |
) |
|
|
(142 |
) |
|
|
(403 |
) |
|
|
(54,101 |
) |
Income (loss) before provision (benefit) for income
taxes |
|
|
21,182 |
|
|
|
(2,965 |
) |
|
|
10,253 |
|
|
|
(77,557 |
) |
Provision (benefit) for income
taxes |
|
|
62 |
|
|
|
40 |
|
|
|
120 |
|
|
|
(30 |
) |
Net income (loss) |
|
$ |
21,120 |
|
|
$ |
(3,005 |
) |
|
$ |
10,133 |
|
|
$ |
(77,527 |
) |
Undistributed earnings
attributable to participating securities |
|
|
(10,133 |
) |
|
|
— |
|
|
|
(10,133 |
) |
|
|
— |
|
Net income (loss) attributable to
common stockholders |
|
$ |
10,987 |
|
|
$ |
(3,005 |
) |
|
$ |
— |
|
|
$ |
(77,527 |
) |
Net income (loss) per share
attributable to common stockholders, basic |
|
$ |
0.89 |
|
|
$ |
(0.04 |
) |
|
$ |
— |
|
|
$ |
(1.12 |
) |
Net income (loss) per share
attributable to common stockholders, diluted |
|
$ |
0.61 |
|
|
$ |
(0.04 |
) |
|
$ |
— |
|
|
$ |
(1.12 |
) |
Weighted-average shares used to
compute net income (loss) per share attributable
to common stockholders, basic |
|
|
12,355 |
|
|
|
75,709 |
|
|
|
12,351 |
|
|
|
69,219 |
|
Weighted-average shares used to
compute net income (loss) per share attributable
to common stockholders, diluted |
|
|
17,945 |
|
|
|
75,709 |
|
|
|
17,690 |
|
|
|
69,219 |
|
(1) Includes
stock-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and support |
|
$ |
166 |
|
|
$ |
834 |
|
|
$ |
329 |
|
|
$ |
3,052 |
|
Research and development |
|
|
540 |
|
|
|
3,096 |
|
|
|
1,076 |
|
|
|
13,737 |
|
Marketing |
|
|
308 |
|
|
|
1,039 |
|
|
|
615 |
|
|
|
4,328 |
|
General and administrative |
|
|
649 |
|
|
|
3,134 |
|
|
|
1,442 |
|
|
|
11,127 |
|
Total |
|
$ |
1,663 |
|
|
$ |
8,103 |
|
|
$ |
3,462 |
|
|
$ |
32,244 |
|
Poshmark, Inc.Condensed
Consolidated Balance Sheets(in thousands, except share and
per share amounts)(unaudited)
|
|
December 31, |
|
|
June 30, |
|
|
|
2020 |
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
235,834 |
|
|
$ |
573,416 |
|
Marketable securities |
|
|
26,238 |
|
|
|
6,069 |
|
Prepaid expenses and other current assets |
|
|
7,905 |
|
|
|
9,420 |
|
Total current assets |
|
|
269,977 |
|
|
|
588,905 |
|
Property and equipment, net |
|
|
8,447 |
|
|
|
7,946 |
|
Other assets |
|
|
7,010 |
|
|
|
2,633 |
|
Total assets |
|
$ |
285,434 |
|
|
$ |
599,484 |
|
Liabilities, Redeemable
Convertible Preferred Stock and
Stockholders’ (Deficit)
Equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
12,317 |
|
|
$ |
15,124 |
|
Funds payable to customers |
|
|
117,127 |
|
|
|
127,130 |
|
Accrued expenses and other current liabilities |
|
|
35,859 |
|
|
|
36,806 |
|
Total current liabilities |
|
|
165,303 |
|
|
|
179,060 |
|
Redeemable convertible preferred
stock warrant liability |
|
|
3,494 |
|
|
|
— |
|
Long-term portion of deferred
rent and other liabilities |
|
|
4,823 |
|
|
|
4,359 |
|
Convertible notes |
|
|
55,421 |
|
|
|
— |
|
Total liabilities |
|
|
229,041 |
|
|
|
183,419 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Redeemable convertible preferred
stock |
|
|
156,175 |
|
|
|
— |
|
Stockholders’ (deficit)
equity |
|
|
|
|
|
|
|
|
Preferred Stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
1 |
|
|
|
— |
|
Class A and Class B common stock |
|
|
— |
|
|
|
8 |
|
Additional paid-in capital |
|
|
28,300 |
|
|
|
622,673 |
|
Treasury stock, at cost |
|
|
— |
|
|
|
(2,651 |
) |
Accumulated deficit |
|
|
(126,509 |
) |
|
|
(204,036 |
) |
Accumulated other comprehensive (loss) income |
|
|
(1,574 |
) |
|
|
71 |
|
Total stockholders’ (deficit) equity |
|
|
(99,782 |
) |
|
|
416,065 |
|
Total liabilities, redeemable convertible preferred stock and
stockholders’ equity |
|
$ |
285,434 |
|
|
$ |
599,484 |
|
Poshmark, Inc.Condensed
Consolidated Statements of Cash Flows(in
thousands)(unaudited)
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2021 |
|
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
10,133 |
|
|
$ |
(77,527 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,378 |
|
|
|
1,636 |
|
Stock-based compensation |
|
|
3,462 |
|
|
|
32,244 |
|
Change in fair value of redeemable convertible preferred
stock warrant liability |
|
|
375 |
|
|
|
2,816 |
|
Change in fair value of the convertible notes |
|
|
— |
|
|
|
49,481 |
|
Loss on extinguishment of the convertible notes |
|
|
— |
|
|
|
1,620 |
|
Accretion of discounts and amortization of premiums on
marketable securities, net |
|
|
(129 |
) |
|
|
169 |
|
Other |
|
|
2 |
|
|
|
3 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Prepaid expenses and other assets |
|
|
(4,892 |
) |
|
|
1,405 |
|
Accounts payable |
|
|
3,328 |
|
|
|
2,807 |
|
Funds payable to customers |
|
|
22,471 |
|
|
|
10,003 |
|
Accrued expenses and other liabilities |
|
|
(2,687 |
) |
|
|
483 |
|
Net cash provided by operating activities |
|
|
33,441 |
|
|
|
25,140 |
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
Purchases of property and
equipment |
|
|
(677 |
) |
|
|
(849 |
) |
Purchases of marketable
securities |
|
|
(36,695 |
) |
|
|
— |
|
Maturities of marketable
securities |
|
|
66,507 |
|
|
|
20,000 |
|
Net cash provided by investing activities |
|
|
29,135 |
|
|
|
19,151 |
|
Cash flows from financing
activities |
|
|
|
|
|
|
|
|
Proceeds from initial public
offering, net of underwriting discounts and commissions
and offering costs |
|
|
— |
|
|
|
293,692 |
|
Proceeds from issuance of common
stock warrants |
|
|
— |
|
|
|
100 |
|
Tax withholding related to
vesting of restricted stock units |
|
|
— |
|
|
|
(2,651 |
) |
Proceeds from exercise of stock
options |
|
|
54 |
|
|
|
2,125 |
|
Net cash provided by financing activities |
|
|
54 |
|
|
|
293,266 |
|
Effect of foreign exchange rate
changes on cash and cash equivalents |
|
|
42 |
|
|
|
25 |
|
Net increase in cash and cash equivalents |
|
|
62,672 |
|
|
|
337,582 |
|
Cash and cash
equivalents |
|
|
|
|
|
|
|
|
Beginning of year |
|
|
63,318 |
|
|
|
235,834 |
|
End of year |
|
$ |
125,990 |
|
|
$ |
573,416 |
|
The following table reflects the reconciliation of net income
(loss) to Adjusted EBITDA for each of the periods indicated (in
thousands; unaudited):
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
Net income (loss) attributable to
common stockholders |
|
$ |
10,987 |
|
|
$ |
(3,005 |
) |
|
$ |
— |
|
|
$ |
(77,527 |
) |
Adjusted to exclude the
following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
667 |
|
|
|
846 |
|
|
|
1,378 |
|
|
|
1,636 |
|
Stock-based compensation |
|
|
1,663 |
|
|
|
8,103 |
|
|
|
3,462 |
|
|
|
32,244 |
|
Interest income |
|
|
(149 |
) |
|
|
(38 |
) |
|
|
(477 |
) |
|
|
(124 |
) |
Other expense, net |
|
|
312 |
|
|
|
142 |
|
|
|
403 |
|
|
|
54,101 |
|
Provision (benefit) for income
taxes |
|
|
62 |
|
|
|
40 |
|
|
|
120 |
|
|
|
(30 |
) |
Undistributed earnings
attributable to participating securities |
|
|
10,133 |
|
|
|
— |
|
|
|
10,133 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
23,675 |
|
|
$ |
6,088 |
|
|
$ |
15,019 |
|
|
$ |
10,300 |
|
The following table reflects the reconciliation
of GAAP income (loss) from operations to non-GAAP income from
operations for each of the periods indicated (in thousands;
unaudited):
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
GAAP income (loss) from
operations |
|
$ |
21,345 |
|
|
$ |
(2,861 |
) |
|
$ |
10,179 |
|
|
$ |
(23,580 |
) |
Adjusted to exclude the
following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
1,663 |
|
|
|
8,103 |
|
|
|
3,462 |
|
|
|
32,244 |
|
Non-GAAP income from
operations |
|
$ |
23,008 |
|
|
$ |
5,242 |
|
|
$ |
13,641 |
|
|
$ |
8,664 |
|
The following table presents a reconciliation of net cash
provided by operating activities to free cash flow for each of the
periods indicated (in thousands; unaudited):
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2021 |
|
GAAP net cash provided by
operating activities |
|
$ |
33,441 |
|
|
$ |
25,140 |
|
Less: purchases of property and
equipment |
|
|
(677 |
) |
|
|
(849 |
) |
Non-GAAP free cash flow |
|
$ |
32,764 |
|
|
$ |
24,291 |
|
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