2Q3http://fasb.org/us-gaap/2022#OperatingLeaseRightOfUseAsset0001825480--12-31false10001825480posh:OutstandingStockOptionsMemberposh:TwoThousandTwentyOneEmployeeStockPurchasePlanMember2021-12-310001825480posh:TwoThousandTwentyOneEmployeeStockPurchasePlanMemberus-gaap:CommonClassAMember2021-01-310001825480us-gaap:CommonClassBMember2022-11-010001825480posh:ComputerEquipmentAndSoftwareMember2021-12-310001825480us-gaap:AdditionalPaidInCapitalMember2022-06-300001825480us-gaap:SalesRevenueNetMember2021-01-012021-09-300001825480srt:RestatementAdjustmentMember2021-01-012021-09-300001825480us-gaap:CommonStockMember2020-12-310001825480posh:OutstandingStockOptionsMember2022-01-012022-09-300001825480posh:TwoThousandTwentyOneStockOptionAndIncentivePlanMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2021-01-012021-01-310001825480us-gaap:TreasuryStockMember2022-07-012022-09-300001825480posh:TwoThousandElevenStockOptionAndGrantPlanMember2022-01-012022-09-300001825480posh:RSUsIssuedAndOutstandingMemberposh:TwoThousandElevenStockOptionAndGrantPlanMember2021-12-310001825480us-gaap:CustomerRelationshipsMember2022-09-300001825480posh:TwoThousandTwentyOneEmployeeStockPurchasePlanMember2022-01-012022-09-300001825480srt:ScenarioPreviouslyReportedMember2021-01-012021-09-300001825480posh:MarketingMember2021-01-012021-09-300001825480posh:ShareBasedCompensationAwardTrancheTwoToFourMemberposh:TwoThousandElevenStockOptionAndGrantPlanMember2011-01-012011-12-310001825480us-gaap:RetainedEarningsMember2022-07-012022-09-300001825480srt:MinimumMemberposh:TwoThousandElevenStockOptionAndGrantPlanMember2011-01-012011-12-310001825480posh:OptionsIssuedAndOutstandingMemberposh:TwoThousandTwentyOneStockOptionAndGrantPlanMember2021-12-310001825480us-gaap:FurnitureAndFixturesMember2021-12-310001825480us-gaap:FairValueInputsLevel1Member2022-09-300001825480us-gaap:RedeemableConvertiblePreferredStockMember2021-01-012021-09-300001825480srt:RestatementAdjustmentMember2021-09-300001825480us-gaap:FairValueInputsLevel3Member2022-09-300001825480posh:EmployeeStockPurchasePlanMember2022-01-012022-09-3000018254802021-01-012021-09-300001825480us-gaap:RetainedEarningsMember2020-12-310001825480us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001825480posh:ResearchAndDevelopmentMember2021-07-012021-09-3000018254802020-12-310001825480srt:MinimumMemberposh:TwoThousandTwentyOneStockOptionAndIncentivePlanMember2021-01-012021-01-310001825480us-gaap:CommonClassBMember2022-09-300001825480us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001825480posh:TwoThousandTwentyOneEmployeeStockPurchasePlanMember2022-07-012022-09-300001825480posh:EmployeeStockPurchasePlanMember2022-07-012022-09-300001825480posh:GeneralAndAdministrativeMember2021-07-012021-09-300001825480posh:TwoThousandTwentyOneEmployeeStockPurchasePlanMember2021-01-012021-12-310001825480us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-12-310001825480us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2021-12-310001825480us-gaap:FairValueInputsLevel3Member2021-12-310001825480posh:GeneralAndAdministrativeMember2021-01-012021-09-3000018254802021-12-310001825480posh:SuedeOneIncMember2021-10-122021-10-120001825480us-gaap:TreasuryStockMember2021-07-012021-09-300001825480us-gaap:TreasuryStockMember2022-09-3000018254802022-07-012022-09-300001825480posh:ConversionOfConvertibleNotesMember2021-01-012021-09-300001825480us-gaap:MoneyMarketFundsMember2021-01-012021-12-310001825480us-gaap:RetainedEarningsMember2021-06-300001825480us-gaap:FairValueInputsLevel2Member2022-09-300001825480us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-09-300001825480us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001825480us-gaap:RedeemableConvertiblePreferredStockMember2021-09-300001825480srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMemberus-gaap:SubsequentEventMember2022-10-312022-10-310001825480posh:EmployeeStockPurchasePlanMember2021-01-012021-09-300001825480posh:TwoThousandTwentyOneStockOptionAndGrantPlanMemberposh:SharesAvailableForFutureGrantsMember2021-12-310001825480us-gaap:RetainedEarningsMember2022-09-300001825480posh:DevelopedWebsiteAndSoftwareMember2021-12-310001825480posh:OperationsAndSupportMember2021-01-012021-09-300001825480us-gaap:AdditionalPaidInCapitalMember2021-09-300001825480us-gaap:CommonClassAMember2022-09-300001825480us-gaap:CommonStockMember2021-06-300001825480us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2021-12-310001825480posh:ConversionOfConvertibleNotesMemberus-gaap:RetainedEarningsMember2021-01-012021-09-300001825480us-gaap:RetainedEarningsMember2022-06-300001825480us-gaap:CommonClassAMember2022-11-010001825480us-gaap:RestrictedStockUnitsRSUMemberposh:ShareBasedCompensationAwardTrancheTwoToFourMember2022-01-012022-09-300001825480us-gaap:DevelopedTechnologyRightsMember2021-12-310001825480us-gaap:SalesRevenueNetMember2021-07-012021-09-300001825480us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2022-09-300001825480srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001825480us-gaap:TreasuryStockMember2022-01-012022-09-300001825480us-gaap:RedeemableConvertiblePreferredStockMember2022-09-300001825480us-gaap:RestrictedStockUnitsRSUMemberus-gaap:IPOMember2021-01-192021-01-190001825480posh:SuedeOneIncMemberus-gaap:DevelopedTechnologyRightsMember2021-10-120001825480us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001825480us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001825480srt:MaximumMember2022-01-012022-09-300001825480us-gaap:RetainedEarningsMembersrt:RestatementAdjustmentMember2020-12-310001825480us-gaap:RedeemableConvertiblePreferredStockMember2022-01-012022-09-300001825480srt:ScenarioPreviouslyReportedMember2021-09-300001825480us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001825480posh:TwoThousandTwentyOneStockOptionAndIncentivePlanMember2022-01-012022-09-300001825480posh:SuedeOneIncMemberus-gaap:DevelopedTechnologyRightsMember2021-10-122021-10-120001825480posh:ResearchAndDevelopmentMember2022-01-012022-09-300001825480us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001825480us-gaap:RedeemableConvertiblePreferredStockMemberus-gaap:IPOMember2021-01-190001825480us-gaap:MoneyMarketFundsMember2021-12-310001825480us-gaap:FairValueInputsLevel2Member2021-12-310001825480posh:TwoThousandTwentyOneEmployeeStockPurchasePlanMemberposh:CommonClassAAndBMember2021-01-012021-01-310001825480posh:OperationsAndSupportMember2022-07-012022-09-300001825480us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001825480us-gaap:TreasuryStockMember2021-06-300001825480us-gaap:RetainedEarningsMembersrt:RestatementAdjustmentMember2021-09-300001825480us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2022-09-300001825480posh:TwoThousandTwentyOneStockOptionAndGrantPlanMemberposh:SharesAvailableForFutureGrantsMember2022-09-300001825480us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001825480posh:LeaseholdImprovementsAndIncentivesMember2021-12-310001825480srt:MaximumMemberposh:TwoThousandTwentyOneStockOptionAndIncentivePlanMember2021-01-012021-01-3100018254802021-09-300001825480us-gaap:RetainedEarningsMembersrt:ScenarioPreviouslyReportedMember2021-09-300001825480us-gaap:CustomerRelationshipsMemberposh:SuedeOneIncMember2021-10-122021-10-120001825480posh:RSUsIssuedAndOutstandingMemberposh:TwoThousandElevenStockOptionAndGrantPlanMember2022-09-300001825480us-gaap:IPOMemberus-gaap:CommonClassAMember2021-01-192021-01-190001825480us-gaap:MoneyMarketFundsMember2022-01-012022-09-300001825480posh:OptionsAndRestrictedStockUnitsMember2022-09-300001825480posh:MarketingMember2022-01-012022-09-300001825480us-gaap:SalesRevenueNetMember2022-07-012022-09-300001825480srt:MaximumMemberposh:TwoThousandElevenStockOptionAndGrantPlanMember2011-01-012011-12-310001825480posh:TwoThousandTwentyOneEmployeeStockPurchasePlanMemberus-gaap:CommonClassAMember2021-01-012021-01-310001825480us-gaap:CommonClassAMember2021-12-310001825480posh:SeniorUnsecuredConvertiblePromissoryNotesMemberus-gaap:IPOMemberus-gaap:CommonClassAMember2021-01-192021-01-190001825480posh:OptionsAndRestrictedStockUnitsMember2022-01-012022-09-300001825480us-gaap:EmployeeStockOptionMember2022-01-012022-09-3000018254802022-06-300001825480us-gaap:FairValueInputsLevel1Member2021-12-310001825480us-gaap:AdditionalPaidInCapitalMember2020-12-310001825480srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMemberus-gaap:SubsequentEventMember2022-10-312022-10-310001825480posh:ComputerEquipmentAndSoftwareMember2022-09-300001825480us-gaap:IPOMember2021-01-190001825480posh:TwoThousandTwentyOneStockOptionAndIncentivePlanMemberus-gaap:CommonClassAMember2021-01-3100018254802021-01-012021-12-310001825480us-gaap:RetainedEarningsMember2022-01-012022-09-3000018254802021-07-012021-09-300001825480posh:ConversionOfConvertibleNotesMemberus-gaap:CommonStockMember2021-01-012021-09-300001825480srt:ScenarioPreviouslyReportedMember2020-12-310001825480posh:OperationsAndSupportMember2022-01-012022-09-300001825480us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001825480us-gaap:CommonClassBMember2021-12-310001825480posh:SuedeOneIncMember2021-10-120001825480us-gaap:CommonStockMember2022-01-012022-09-300001825480posh:DevelopedWebsiteAndSoftwareMember2022-09-300001825480posh:ConversionOfConvertibleNotesMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001825480us-gaap:AccountingStandardsUpdate201602Member2022-01-010001825480us-gaap:RestrictedStockUnitsRSUMember2021-12-310001825480srt:ScenarioPreviouslyReportedMember2021-07-012021-09-300001825480us-gaap:AdditionalPaidInCapitalMemberus-gaap:IPOMember2021-01-190001825480us-gaap:TreasuryStockMember2021-01-012021-09-300001825480us-gaap:CustomerRelationshipsMemberposh:SuedeOneIncMember2021-10-120001825480posh:SeniorUnsecuredConvertiblePromissoryNotesMemberus-gaap:IPOMember2021-01-190001825480us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001825480posh:SeniorUnsecuredConvertiblePromissoryNotesMemberus-gaap:IPOMemberus-gaap:CommonClassAMember2021-01-190001825480posh:TwoThousandTwentyOneStockOptionAndGrantPlanMemberposh:RSUsIssuedAndOutstandingMember2022-09-300001825480us-gaap:AdditionalPaidInCapitalMember2022-09-300001825480us-gaap:DevelopedTechnologyRightsMember2022-01-012022-09-300001825480us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001825480us-gaap:RetainedEarningsMember2021-12-310001825480us-gaap:AdditionalPaidInCapitalMember2021-06-3000018254802022-01-012022-09-300001825480us-gaap:CustomerRelationshipsMembersrt:MaximumMember2022-01-012022-09-300001825480us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001825480posh:TwoThousandTwentyOneEmployeeStockPurchasePlanMember2022-09-300001825480posh:TwoThousandTwentyOneEmployeeStockPurchasePlanMemberposh:VestedAndExercisableOptionsMember2022-09-300001825480us-gaap:RedeemableConvertiblePreferredStockMember2020-12-310001825480us-gaap:MoneyMarketFundsMember2022-09-300001825480posh:VestedAndExpectedToVestOptionsMemberposh:TwoThousandTwentyOneEmployeeStockPurchasePlanMember2022-09-300001825480us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001825480us-gaap:AdditionalPaidInCapitalMember2021-12-310001825480us-gaap:CommonStockMember2021-09-300001825480us-gaap:CommonStockMember2022-06-3000018254802022-09-300001825480us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001825480us-gaap:ShareBasedCompensationAwardTrancheOneMemberposh:TwoThousandElevenStockOptionAndGrantPlanMember2011-01-012011-12-310001825480us-gaap:RetainedEarningsMember2021-09-300001825480us-gaap:RetainedEarningsMember2021-07-012021-09-300001825480us-gaap:CustomerRelationshipsMember2021-12-310001825480us-gaap:FairValueInputsLevel3Member2022-01-012022-09-300001825480srt:RestatementAdjustmentMember2021-07-012021-09-300001825480us-gaap:RestrictedStockUnitsRSUMember2022-09-300001825480us-gaap:CommonStockMember2022-09-300001825480us-gaap:FurnitureAndFixturesMember2022-09-300001825480us-gaap:CommonStockMember2021-12-310001825480posh:CommonClassAAndBMemberposh:TwoThousandTwentyOneStockOptionAndIncentivePlanMember2021-01-012021-01-3100018254802021-06-300001825480posh:MarketingMember2021-07-012021-09-300001825480us-gaap:IPOMemberus-gaap:CommonClassBMember2021-01-190001825480us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2021-12-310001825480us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001825480us-gaap:CommonStockMember2021-01-012021-09-300001825480posh:TwoThousandTwentyOneEmployeeStockPurchasePlanMember2021-12-310001825480us-gaap:AdditionalPaidInCapitalMemberposh:ConversionOfConvertibleNotesMember2021-01-012021-09-300001825480us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001825480posh:OptionsIssuedAndOutstandingMemberposh:TwoThousandElevenStockOptionAndGrantPlanMember2022-09-300001825480us-gaap:TreasuryStockMember2022-06-300001825480posh:EmployeeStockPurchasePlanMember2021-07-012021-09-300001825480us-gaap:IPOMemberus-gaap:CommonClassAMember2021-01-190001825480posh:OptionsIssuedAndOutstandingMemberposh:TwoThousandTwentyOneStockOptionAndGrantPlanMember2022-09-300001825480us-gaap:SalesRevenueNetMember2022-01-012022-09-300001825480posh:GeneralAndAdministrativeMember2022-01-012022-09-300001825480posh:OperationsAndSupportMember2021-07-012021-09-300001825480us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001825480us-gaap:RetainedEarningsMembersrt:ScenarioPreviouslyReportedMember2020-12-310001825480us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001825480us-gaap:CommonStockMember2021-07-012021-09-300001825480us-gaap:RedeemableConvertiblePreferredStockMember2021-12-310001825480us-gaap:TreasuryStockMember2021-12-310001825480us-gaap:TreasuryStockMemberposh:ConversionOfConvertibleNotesMember2021-01-012021-09-300001825480posh:LeaseholdImprovementsAndIncentivesMember2022-09-300001825480us-gaap:RetainedEarningsMember2021-01-012021-09-300001825480posh:ResearchAndDevelopmentMember2022-07-012022-09-300001825480us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001825480srt:RestatementAdjustmentMember2020-12-310001825480us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001825480srt:MinimumMember2022-01-012022-09-300001825480posh:GeneralAndAdministrativeMember2022-07-012022-09-300001825480us-gaap:IPOMember2021-01-192021-01-190001825480posh:OptionsIssuedAndOutstandingMemberposh:TwoThousandElevenStockOptionAndGrantPlanMember2021-12-310001825480posh:MarketingMember2022-07-012022-09-300001825480posh:OutstandingStockOptionsMember2022-09-300001825480us-gaap:RestrictedStockUnitsRSUMemberus-gaap:SubsequentEventMember2022-10-312022-10-310001825480us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001825480posh:ResearchAndDevelopmentMember2021-01-012021-09-300001825480us-gaap:CommonStockMember2022-07-012022-09-300001825480us-gaap:TreasuryStockMember2020-12-310001825480us-gaap:SubsequentEventMember2022-10-032022-10-030001825480posh:TwoThousandTwentyOneStockOptionAndGrantPlanMemberposh:RSUsIssuedAndOutstandingMember2021-12-310001825480us-gaap:TreasuryStockMember2021-09-300001825480us-gaap:DevelopedTechnologyRightsMember2022-09-300001825480posh:OutstandingStockOptionsMemberposh:TwoThousandTwentyOneEmployeeStockPurchasePlanMember2022-09-30posh:Customerxbrli:pureiso4217:USDxbrli:sharesxbrli:sharesposh:Voteiso4217:USD
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
10-Q
(Mark One)
|
|
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
For the quarterly period ended
September 30,
2022
OR
|
|
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
For the transition period from ______ to ______
Commission File Number:
001-39848
Poshmark, Inc.
(Exact Name of Registrant as Specified in its Charter)
|
|
|
Delaware
|
27-4827617
|
|
( State or other jurisdiction of incorporation or
organization)
|
(I.R.S. Employer Identification No.)
|
|
203 Redwood Shores Parkway,
8th Floor
Redwood City,
California
|
94065
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code:
(650)
262-4771
Securities registered pursuant to Section 12(b) of the
Act:
|
|
|
|
|
|
Title of each class
|
|
Trading
Symbol(s)
|
|
Name of each exchange on which registered
|
|
Class A Common Stock of $0.0001 par value per
share
|
|
POSH
|
|
The Nasdaq Global Select Market
|
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes
☒ No ☐
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files).
Yes
☒ No ☐
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer,
smaller reporting company, or an emerging growth company. See the
definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule
12b-2 of the Exchange Act.
|
|
|
|
|
|
|
|
Large accelerated filer
|
|
☐
|
|
Accelerated filer
|
|
☐
|
|
|
|
|
|
|
Non-accelerated filer
|
|
☒
|
|
Smaller reporting company
|
|
☐
|
|
|
|
|
|
|
|
|
|
Emerging growth company
|
|
☒
|
|
|
|
|
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange
Act.
☐
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes
☐
No
☒
As of November 1, 2022, the number of outstanding shares of the
registrant’s Class A common stock, par value $0.0001 per share,
was
54,626,374,
and the number of outstanding shares of the registrant’s Class B
common stock, par value $0.0001 per share, was
24,592,080.
Poshmark, Inc.
Table of Contents
2
NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking
statements within the meaning of the federal securities laws, which
are statements that involve substantial risks and uncertainties.
Forward-looking statements generally relate to future events or our
future financial or operating performance. In some cases, you can
identify forward-looking statements because they contain 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. Forward-looking statements contained in this Quarterly
Report on Form 10-Q include, but are not limited to, statements
about:
•
our proposed acquisition by NAVER Corporation, including our
expectations regarding the timing and completion
thereof;
•
our expectations regarding our revenue, expenses, profitability,
and other operating results;
•
the growth rates of the markets in which we compete;
•
our ability to acquire new users and successfully engage new and
existing users and convert them into Active Users, Active Buyers,
and sellers;
•
the costs and effectiveness of our marketing efforts through paid
advertising channels and otherwise, as well as our ability to
promote our brand;
•
our ability to continue to collect meaningful data, improve our
algorithms, and provide recommendations for our users;
•
our reliance on key personnel and our ability to identify, recruit,
and retain skilled personnel;
•
our ability to effectively manage our growth, including offering
new categories and any international expansion;
•
our ability to maintain our profitability;
•
our ability to maintain the security and availability of our
software;
•
our ability to protect our intellectual property rights and avoid
disputes in connection with the use of intellectual property rights
of others;
•
our ability to protect our users’ information and comply with
growing and evolving data privacy laws and
regulations;
•
impact of the COVID-19 pandemic on our business and
consumers;
•
future investments in our business, our anticipated capital
expenditures, and our estimates regarding our capital
requirements;
•
our ability to compete effectively with existing competitors and
new market entrants; and
•
our ability to remediate our material weakness in our internal
control over financial reporting.
You should not rely upon forward-looking statements as predictions
of future events. We have based the forward-looking statements
contained in this Quarterly Report on Form 10-Q primarily on our
current expectations and projections about future events and trends
that we believe may affect our business, financial condition,
results of operations, and prospects. The outcome of the events
described in these forward-looking statements is subject to risks,
uncertainties, and other factors described in the section titled
“Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q,
as well as in our other filings with the Securities and Exchange
Commission (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 have an impact on the
forward-looking statements contained in this Quarterly Report on
Form 10-Q. The results, events, and circumstances reflected in the
forward-looking statements may not be achieved or occur, and actual
results, events, or circumstances could differ materially from
those described in the forward-looking statements.
The forward-looking statements made in this Quarterly Report on
Form 10-Q relate only to events as of the date on which the
statements are made. We undertake no obligation to update any
forward-looking statements made in this Quarterly Report on Form
10-Q to reflect events or circumstances after the date of this
Quarterly Report on Form 10-Q or to reflect new information or the
occurrence of unanticipated events, except as required by law. We
may not actually achieve the plans, intentions, or expectations
disclosed in our forward-looking statements, and you should not
place undue reliance on our forward-looking statements. Our
forward-looking statements do not reflect the potential impact of
any future acquisitions, mergers, dispositions, joint ventures, or
investments we may make.
In addition, statements that “we believe” and similar statements
reflect our beliefs and opinions on the relevant subject. These
statements are based upon information available to us as of the
date of this Quarterly Report on Form 10-Q, and while we believe
such information forms a reasonable basis for such statements, such
information may be limited or incomplete, and our statements should
not be read to indicate that we have conducted an exhaustive
inquiry into, or review of, all potentially available relevant
information. These statements are inherently uncertain and you are
cautioned not to unduly rely upon these statements.
3
PART I—FINANCIAL
INFORMATION
Item 1. Financial
Statements.
Poshmark, Inc.
Condensed Consolidated
Balance Sheets
(in thousands, except shares data)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
588,816
|
|
|
$
|
581,538
|
|
|
Prepaid expenses and other current assets
|
|
|
8,267
|
|
|
|
9,737
|
|
|
Total current assets
|
|
|
597,083
|
|
|
|
591,275
|
|
|
Property and equipment, net
|
|
|
6,249
|
|
|
|
7,376
|
|
|
Operating lease right-of-use assets
|
|
|
6,739
|
|
|
|
—
|
|
|
Intangible assets, net
|
|
|
885
|
|
|
|
1,360
|
|
|
Goodwill
|
|
|
7,012
|
|
|
|
7,012
|
|
|
Other assets
|
|
|
1,629
|
|
|
|
1,650
|
|
|
Total assets
|
|
$
|
619,597
|
|
|
$
|
608,673
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
12,516
|
|
|
$
|
1,595
|
|
|
Funds payable to customers
|
|
|
153,212
|
|
|
|
145,290
|
|
|
Operating lease liabilities, current
|
|
|
5,918
|
|
|
|
—
|
|
|
Accrued expenses and other current liabilities
|
|
|
47,585
|
|
|
|
40,922
|
|
|
Total current liabilities
|
|
|
219,231
|
|
|
|
187,807
|
|
|
Operating lease liabilities, non-current
|
|
|
4,518
|
|
|
|
—
|
|
|
Long-term portion of deferred rent and other liabilities
|
|
|
—
|
|
|
|
3,247
|
|
|
Total liabilities
|
|
|
223,749
|
|
|
|
191,054
|
|
|
Commitments and
Contingencies (Note
6)
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
Preferred Stock, $0.0001 par
value,
100,000,000 shares
authorized as of
September 30, 2022 and December 31, 2021,
respectively;
zero shares
issued
and outstanding as of September 30, 2022 and December
31, 2021
|
|
|
—
|
|
|
|
—
|
|
|
Class A and Class B common stock, $0.0001 par
value;
5,000,000,000 Class
A shares
authorized as of September 30, 2022 and December 31,
2021;
54,472,825 and
52,503,819
Class A shares issued and outstanding as of September
30, 2022 and December 31, 2021,
respectively;
700,000,000 Class
B shares authorized as of September 30, 2022 and
December 31, 2021;
24,623,085 and
24,777,228 Class
B shares issued and outstanding
as of September 30, 2022 and December 31, 2021,
respectively
|
|
|
8
|
|
|
|
8
|
|
|
Additional paid-in capital
|
|
|
679,710
|
|
|
|
641,974
|
|
|
Treasury stock, at cost (50,595 shares
at September 30, 2022 and December 31, 2021)
|
|
|
(2,651
|
)
|
|
|
(2,651
|
)
|
|
Accumulated deficit
|
|
|
(282,276
|
)
|
|
|
(221,835
|
)
|
|
Accumulated other comprehensive income
|
|
|
1,057
|
|
|
|
123
|
|
|
Total stockholders’ equity
|
|
|
395,848
|
|
|
|
417,619
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
619,597
|
|
|
$
|
608,673
|
|
The accompanying notes are an integral part of the condensed
consolidated financial statements.
4
Poshmark, Inc.
Condensed Consolidated Statements
of Operations
(in thousands, except per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
Net revenue
|
|
$
|
88,428
|
|
|
$
|
79,463
|
|
|
$
|
268,430
|
|
|
$
|
241,806
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of net revenue, exclusive of depreciation and
amortization
|
|
|
14,915
|
|
|
|
12,082
|
|
|
|
44,915
|
|
|
|
37,798
|
|
|
Operations and support
|
|
|
15,513
|
|
|
|
13,199
|
|
|
|
46,770
|
|
|
|
41,062
|
|
|
Research and development
|
|
|
18,189
|
|
|
|
12,325
|
|
|
|
52,457
|
|
|
|
43,574
|
|
|
Marketing
|
|
|
42,613
|
|
|
|
36,198
|
|
|
|
129,606
|
|
|
|
104,021
|
|
|
General and administrative
|
|
|
20,473
|
|
|
|
11,729
|
|
|
|
53,281
|
|
|
|
42,317
|
|
|
Depreciation and amortization
|
|
|
1,000
|
|
|
|
827
|
|
|
|
3,033
|
|
|
|
2,463
|
|
|
Total costs and expenses
|
|
|
112,703
|
|
|
|
86,360
|
|
|
|
330,062
|
|
|
|
271,235
|
|
|
Loss from operations
|
|
|
(24,275
|
)
|
|
|
(6,897
|
)
|
|
|
(61,632
|
)
|
|
|
(29,429
|
)
|
|
Interest income
|
|
|
1,586
|
|
|
|
77
|
|
|
|
2,145
|
|
|
|
201
|
|
|
Other expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of redeemable convertible preferred stock
warrant liability
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,816
|
)
|
|
Change in fair value of the convertible notes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(49,481
|
)
|
|
Loss on extinguishment of the convertible notes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,620
|
)
|
|
Change in fair value of contingent consideration
|
|
|
(37
|
)
|
|
|
—
|
|
|
|
396
|
|
|
|
—
|
|
|
Foreign exchange loss, net
|
|
|
(694
|
)
|
|
|
(36
|
)
|
|
|
(969
|
)
|
|
|
(220
|
)
|
|
|
|
|
(731
|
)
|
|
|
(36
|
)
|
|
|
(573
|
)
|
|
|
(54,137
|
)
|
|
Loss before provision for income taxes
|
|
|
(23,420
|
)
|
|
|
(6,856
|
)
|
|
|
(60,060
|
)
|
|
|
(83,365
|
)
|
|
Provision for income taxes
|
|
|
120
|
|
|
|
—
|
|
|
|
381
|
|
|
|
180
|
|
|
Net loss
|
|
$
|
(23,540
|
)
|
|
$
|
(6,856
|
)
|
|
$
|
(60,441
|
)
|
|
$
|
(83,545
|
)
|
|
Net loss per share attributable to common stockholders,
basic and diluted
|
|
$
|
(0.30
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.77
|
)
|
|
$
|
(1.17
|
)
|
|
Weighted-average shares used to compute net loss per share
attributable to common stockholders, basic and
diluted
|
|
|
78,682
|
|
|
|
76,479
|
|
|
|
78,160
|
|
|
|
71,639
|
|
The accompanying notes are an integral part of the condensed
consolidated financial statements.
5
Poshmark, Inc.
Condensed Consolidated Statements
of Comprehensive Loss
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
Net loss
|
|
$
|
(23,540
|
)
|
|
$
|
(6,856
|
)
|
|
$
|
(60,441
|
)
|
|
$
|
(83,545
|
)
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification upon extinguishment of the fair value of the
convertible notes related to instrument-specific credit
risk
to statement of operations
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,620
|
|
|
Change in foreign currency translation adjustment
|
|
|
550
|
|
|
|
70
|
|
|
|
934
|
|
|
|
95
|
|
|
Change in unrealized gains on marketable securities,
net of tax
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
(1
|
)
|
|
Total other comprehensive income
|
|
|
550
|
|
|
|
69
|
|
|
|
934
|
|
|
|
1,714
|
|
|
Comprehensive loss
|
|
$
|
(22,990
|
)
|
|
$
|
(6,787
|
)
|
|
$
|
(59,507
|
)
|
|
$
|
(81,831
|
)
|
The accompanying notes are an integral part of the condensed
consolidated financial statements.
6
Poshmark, Inc.
Condensed Consolidated Statements of Redeemable
Convertible
Preferred Stock and Stockholders’ (Deficit) Equity
(in thousands, except share data)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2021
|
|
|
|
|
Class A and Class B
Common Stock
|
|
|
Additional
Paid-in
Capital
|
|
|
Treasury
Stock
|
|
|
Accumulated
Deficit
|
|
|
Accumulated
Other
Comprehensive
Income
|
|
|
Total
Stockholders’
Equity
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of June 30, 2021
|
|
|
75,917,867
|
|
|
$
|
8
|
|
|
$
|
622,673
|
|
|
$
|
(2,651
|
)
|
|
$
|
(200,195
|
)
|
|
$
|
71
|
|
|
$
|
419,906
|
|
|
Issuance of common stock upon vesting of
restricted stock units
|
|
|
193,724
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Tax withholding related to vesting of restricted stock
units
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Issuance of common stock upon exercise of stock options
|
|
|
787,045
|
|
|
|
—
|
|
|
|
2,580
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,580
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
6,718
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,718
|
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
69
|
|
|
|
69
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6,856
|
)
|
|
|
—
|
|
|
|
(6,856
|
)
|
|
Balance as of September 30, 2021
|
|
|
76,898,636
|
|
|
$
|
8
|
|
|
$
|
631,971
|
|
|
$
|
(2,651
|
)
|
|
$
|
(207,051
|
)
|
|
$
|
140
|
|
|
$
|
422,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2022
|
|
|
|
|
Class A and Class B
Common Stock
|
|
|
Additional
Paid-in
Capital
|
|
|
Treasury Stock
|
|
|
Accumulated
Deficit
|
|
|
Accumulated
Other
Comprehensive
Income
|
|
|
Total
Stockholders’
Equity
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of June 30, 2022
|
|
|
78,431,389
|
|
|
$
|
8
|
|
|
$
|
665,595
|
|
|
$
|
(2,651
|
)
|
|
$
|
(258,736
|
)
|
|
$
|
507
|
|
|
$
|
404,723
|
|
|
Issuance of common stock upon vesting of restricted stock
units
|
|
|
479,309
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Issuance of common stock upon exercise of stock options and
employee stock purchase plan
|
|
|
185,212
|
|
|
|
—
|
|
|
|
517
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
517
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
13,598
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,598
|
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
550
|
|
|
|
550
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(23,540
|
)
|
|
|
—
|
|
|
|
(23,540
|
)
|
|
Balance as of September 30, 2022
|
|
|
79,095,910
|
|
|
$
|
8
|
|
|
$
|
679,710
|
|
|
$
|
(2,651
|
)
|
|
$
|
(282,276
|
)
|
|
$
|
1,057
|
|
|
$
|
395,848
|
|
The accompanying notes are an integral part of the condensed
consolidated financial statements
7
Poshmark, Inc.
Condensed Consolidated Statements of Redeemable Convertible
Preferred Stock and Stockholders’ (Deficit) Equity
(in thousands, except share data)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2021
|
|
|
|
|
Redeemable
Convertible
Preferred Stock
|
|
|
|
Class A and Class B
Common Stock
|
|
|
Additional
Paid-in
Capital
|
|
|
Treasury
Stock
|
|
|
Accumulated
Deficit
|
|
|
Accumulated
Other
Comprehensive
(Loss) Income
|
|
|
Total
Stockholders’
(Deficit) Equity
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
|
Shares
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2020
|
|
|
52,286,631
|
|
|
$
|
156,175
|
|
|
|
|
13,093,065
|
|
|
$
|
1
|
|
|
$
|
28,300
|
|
|
$
|
—
|
|
|
$
|
(123,506
|
)
|
|
$
|
(1,574
|
)
|
|
$
|
(96,779
|
)
|
|
Conversion of redeemable convertible preferred stock to common
stock upon initial public offering
|
|
|
(52,286,631
|
)
|
|
|
(156,175
|
)
|
|
|
|
52,286,631
|
|
|
|
6
|
|
|
|
156,169
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
156,175
|
|
|
Issuance of common stock upon initial public offering, net of
underwriting discounts and commissions and offering
costs
|
|
|
—
|
|
|
|
—
|
|
|
|
|
7,590,000
|
|
|
|
1
|
|
|
|
292,234
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
292,235
|
|
|
Conversion of convertible notes to common stock upon initial public
offering
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1,400,560
|
|
|
|
—
|
|
|
|
104,902
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
104,902
|
|
|
Exercise of common stock warrants
|
|
|
—
|
|
|
|
—
|
|
|
|
|
85,583
|
|
|
|
—
|
|
|
|
100
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
100
|
|
|
Reclassification of warrant liability to additional paid-in capital
upon initial public offering
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,310
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,310
|
|
|
Issuance of common stock upon vesting of restricted stock
units
|
|
|
—
|
|
|
|
—
|
|
|
|
|
760,185
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Tax withholding related to vesting of restricted stock
units
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(50,595
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,651
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,651
|
)
|
|
Issuance of common stock upon exercise of stock options
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1,733,207
|
|
|
|
—
|
|
|
|
4,705
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,705
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
39,251
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
39,251
|
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,714
|
|
|
|
1,714
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(83,545
|
)
|
|
|
—
|
|
|
|
(83,545
|
)
|
|
Balance as of September 30, 2021
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
76,898,636
|
|
|
$
|
8
|
|
|
$
|
631,971
|
|
|
$
|
(2,651
|
)
|
|
$
|
(207,051
|
)
|
|
$
|
140
|
|
|
$
|
422,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2022
|
|
|
|
|
Redeemable
Convertible
Preferred Stock
|
|
|
|
Common Stock
|
|
|
Additional
Paid-in
Capital
|
|
|
Treasury
Stock
|
|
|
Accumulated
Deficit
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
|
Total
Stockholders’
Equity
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
|
Shares
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2021
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
77,281,047
|
|
|
$
|
8
|
|
|
$
|
641,974
|
|
|
$
|
(2,651
|
)
|
|
$
|
(221,835
|
)
|
|
$
|
123
|
|
|
$
|
417,619
|
|
|
Issuance of common stock upon vesting of restricted stock
units
|
|
|
—
|
|
|
|
—
|
|
|
|
|
880,940
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Issuance of common stock upon exercise of stock options and
employee stock purchase plan
|
|
|
—
|
|
|
|
—
|
|
|
|
|
933,923
|
|
|
|
—
|
|
|
|
3,223
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,223
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34,513
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34,513
|
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
934
|
|
|
|
934
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|