Poshmark Inc (NASDAQ: POSH) late on Tuesday said it swung to a surprise profit in the fiscal third quarter. Shares of the eCommerce retailer, however, still opened about 30% down this morning as sales came in shy of Wall Street estimates due to Apple’s recent privacy changes.
Q3 financial performance
Poshmark said its earnings printed at $8.13 million in Q3 that translates to 44 cents per share. In the comparable quarter of last year, it had posted $7.2 million in net loss or 9 cents per share. The California-based company generated $79.7 million in revenue that represents a 16% annualised growth.
According to FactSet, experts had forecast 8 cents of per-share loss on $82.8 million in sales.
GMV and active buyers
Other notable figures in the earnings report include an 18% increase in gross merchandise value to $442.5 million. It was the 15th straight quarter for Poshmark to note a year-over-year increase in GMV.
The Nasdaq-listed firm had 7.3 million active buyers in Q3 versus 6.2 million in the same quarter of 2020. The majority of its shoppers are millennials or Gen Z.
For the fiscal fourth quarter, Poshmark now forecasts up to $82 million in revenue. In comparison, analysts are calling for a higher $85 million. It expects up to $8.0 million in adjusted EBITDA this quarter.
The U.S. company now has $589 million in cash, cash equivalents, and marketable securities.
CEO Chandra’s remarks
In the earnings press release, CEO Manish Chandra said:
Our asset-light model, which is both adaptable and responsive to changing consumer demands and insulated from supply chain disruption, is uniquely positioned to thrive in the current environment. We have a long runway of growth ahead, driven by strategic investments in product innovation, opening our platform to larger brands with Brand Closets, and expanding authentication services to cement our marketplace as the trusted choice for buyers.
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