Poshmark, Inc. (NASDAQ: POSH), a leading social marketplace for new
and secondhand style, today announced financial results for the
first quarter ended March 31, 2021. The Company posted net revenues
of $81.0 million, which is a 42% year-over-year increase from the
first quarter of 2020. Gross Merchandise Value (“GMV”) grew 43%
year-over-year to $441.0 million, up from $309.3 million in the
same period last year.
“We reported another great quarter as a public
company and our fourth consecutive quarter of operating
profitability, despite headwinds from severe weather and the
ongoing pandemic, a testament to the strength of our cohorts and
social marketplace,'' said Manish Chandra, Founder and Chief
Executive Officer of Poshmark. “Our strong business results reflect
our ability to deliver a highly engaging, innovative, and simple
user experience that puts social connection at the center. We are
optimistic that as consumers begin to leave their homes and engage
in social activities once again, there will be pent-up demand for
apparel, which could drive more frequent and a wider range of
apparel and accessory purchases, benefiting our marketplace. We
will continue to execute our growth strategies to better serve our
sellers, support our community, and grow our business over the long
term.”
First Quarter 2021 Key Metrics and
Financial Highlights:
- GMV was $441.0 million, an increase
of 43% year-over-year from $309.3 million in the first quarter of
2020. Quarterly GMV has increased year-over-year for the past 12
quarters.
- Trailing 12 months Active Buyers
reached 6.7 million in the first quarter of 2021, an 18%
year-over-year increase from 5.7 million from the first quarter
2020.
- Net revenue was $81.0 million, a
42% increase year-over-year from $57.1 million in the first quarter
of 2020.
- Adjusted EBITDA for the first
quarter of 2021 was $4.2 million which increased from a loss of
($8.7) million in the first quarter of 2020. Adjusted EBITDA margin
was 5.2% in the first quarter of 2021.
- GAAP results from operations was a
($20.7) million loss in the first quarter of 2021, compared to a
loss of ($11.2) million in the first quarter of 2020 and includes
$24.1 million and $1.8 million in stock based compensation,
respectively.
- Non-GAAP results from operations
(excluding stock-based compensation) was income of $3.4 million,
compared to a loss of ($9.4) million in the first quarter of
2020.
- GAAP diluted net loss per share
attributable to common stockholders was ($1.19).
- Non-GAAP diluted net loss per share
attributable to common stockholders was ($0.33) a share and
excludes non-cash expenses related to convertible notes and
warrants due to the increase in the fair market value of our common
stock share price.
- Cash, cash equivalents, and
marketable securities were $574.7 million as of March 31,
2021.
- We raised $296.5 million from our
IPO on January 19, 2021 of 7.59 million Class A shares.
- During the first quarter, upon
completion of our IPO on January 19, 2021, our $50.0 million
three-year convertible note was converted into 1.4 million shares
of Class A Common Stock and all 52.3 million shares of our
convertible preferred stock were converted into 52.3 million Class
B shares.
First Quarter 2021 Business
Highlights:
- Launched the Pets category to
address the needs of millions of pet owners who are seeking a
simple, social, and sustainable way to shop and sell.
- Expanded our social marketplace
into Australia, our second international market, growing our
community and model beyond North America.
- Completed the full rollout of
“Video Listings,” our first in-listing video feature enabling
sellers to market, merchandise and sell their listings through
short videos.
- Released “Seller Shipping
Discounts,” a new feature that gives sellers the ability to list
items with different levels of discounted shipping.
Second Quarter 2021
Guidance:
- Expected Revenue range: $79.0
million - $81.0 million
- Adjusted EBITDA range:
$1.5 million - $2.5 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, May 12, 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 second 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.
Additional information will be provided in our Quarterly Report on
Form 10-Q for the three months ended March 31, 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), Non-GAAP Diluted Net (loss)
Income Per Share, 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.
Non-GAAP
diluted net (loss) income per share attributable
to common stockholders is a non-GAAP financial measure
that is calculated as GAAP net (loss) income plus the changes in
the fair value of the convertible notes, loss on extinguishment of
the convertible notes and the change in fair value of the
redeemable convertible preferred stock warrant liability, divided
by fully diluted shares. We believe that adding back change in fair
value of the convertible notes and the change in fair value of the
redeemable convertible preferred stock warrant liability, as
adjustments to our GAAP diluted net (loss) income, before
calculating per share amounts 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 March 31, |
|
|
|
2020 |
|
|
2021 |
|
Net revenue |
|
$ |
57,108 |
|
|
$ |
80,956 |
|
Costs and expenses(1): |
|
|
|
|
|
|
|
|
Cost of net revenue, exclusive of depreciation and
amortization |
|
|
9,897 |
|
|
|
12,970 |
|
Operations and support |
|
|
8,536 |
|
|
|
14,894 |
|
Research and development |
|
|
7,076 |
|
|
|
18,800 |
|
Marketing |
|
|
34,596 |
|
|
|
35,478 |
|
General and administrative |
|
|
7,458 |
|
|
|
18,743 |
|
Depreciation and amortization |
|
|
711 |
|
|
|
790 |
|
Total costs and expenses |
|
|
68,274 |
|
|
|
101,675 |
|
Loss from operations |
|
|
(11,166 |
) |
|
|
(20,719 |
) |
Interest income |
|
|
328 |
|
|
|
86 |
|
Other expense, net |
|
|
|
|
|
|
|
|
Change in fair value of redeemable convertible preferred stock
warrant liability |
|
|
(97 |
) |
|
|
(2,816 |
) |
Change in fair value of the convertible notes |
|
|
— |
|
|
|
(49,481 |
) |
Loss on extinguishment of the convertible notes |
|
|
— |
|
|
|
(1,620 |
) |
Other, net |
|
|
6 |
|
|
|
(42 |
) |
|
|
|
(91 |
) |
|
|
(53,959 |
) |
Loss before provision (benefit) for income taxes |
|
|
(10,929 |
) |
|
|
(74,592 |
) |
Provision (benefit) for income
taxes |
|
|
58 |
|
|
|
(70 |
) |
Net loss |
|
$ |
(10,987 |
) |
|
$ |
(74,522 |
) |
Net loss per share attributable
to common stockholders, basic and diluted |
|
$ |
(0.89 |
) |
|
$ |
(1.19 |
) |
Weighted-average shares used to
compute net loss per share attributable to common stockholders,
basic and diluted |
|
|
12,347 |
|
|
|
62,729 |
|
(1) Includes
stock-based compensation expense as follows: |
|
|
|
|
|
Operations and support |
|
$ |
163 |
|
|
$ |
2,218 |
|
Research and development |
|
|
536 |
|
|
|
10,641 |
|
Marketing |
|
|
307 |
|
|
|
3,289 |
|
General and administrative |
|
|
793 |
|
|
|
7,993 |
|
Total |
|
$ |
1,799 |
|
|
$ |
24,141 |
|
Poshmark, Inc.Condensed
Consolidated Balance Sheets(in thousands, except share and
per share amounts)(unaudited)
|
|
December 31, |
|
|
March 31, |
|
|
|
2020 |
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
235,834 |
|
|
$ |
551,412 |
|
Marketable securities |
|
|
26,238 |
|
|
|
23,251 |
|
Prepaid expenses and other current assets |
|
|
7,905 |
|
|
|
11,320 |
|
Total current assets |
|
|
269,977 |
|
|
|
585,983 |
|
Property and equipment, net |
|
|
8,447 |
|
|
|
8,318 |
|
Other assets |
|
|
7,010 |
|
|
|
3,207 |
|
Total assets |
|
$ |
285,434 |
|
|
$ |
597,508 |
|
Liabilities, Redeemable
Convertible Preferred Stock and Stockholders’
(Deficit) Equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
12,317 |
|
|
$ |
15,559 |
|
Funds payable to customers |
|
|
117,127 |
|
|
|
127,593 |
|
Accrued expenses and other current liabilities |
|
|
35,859 |
|
|
|
39,058 |
|
Total current liabilities |
|
|
165,303 |
|
|
|
182,210 |
|
Redeemable convertible preferred
stock warrant liability |
|
|
3,494 |
|
|
|
— |
|
Long-term portion of deferred
rent and other liabilities |
|
|
4,823 |
|
|
|
4,629 |
|
Convertible notes |
|
|
55,421 |
|
|
|
— |
|
Total liabilities |
|
|
229,041 |
|
|
|
186,839 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Redeemable convertible preferred
stock |
|
|
156,175 |
|
|
|
— |
|
Stockholders’ (deficit)
equity |
|
|
|
|
|
|
|
|
Preferred Stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
1 |
|
|
|
— |
|
Class A common stock |
|
|
— |
|
|
|
1 |
|
Class B common stock |
|
|
— |
|
|
|
7 |
|
Additional paid-in capital |
|
|
28,300 |
|
|
|
614,247 |
|
Treasury stock, at cost |
|
|
— |
|
|
|
(2,608 |
) |
Accumulated deficit |
|
|
(126,509 |
) |
|
|
(201,031 |
) |
Accumulated other comprehensive (loss) income |
|
|
(1,574 |
) |
|
|
53 |
|
Total stockholders’ (deficit) equity |
|
|
(99,782 |
) |
|
|
410,669 |
|
Total liabilities, redeemable convertible preferred stock and
stockholders’ equity |
|
$ |
285,434 |
|
|
$ |
597,508 |
|
Poshmark, Inc.Condensed
Consolidated Statements of Cash Flows(in
thousands)(unaudited)
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(10,987 |
) |
|
$ |
(74,522 |
) |
Adjustments to reconcile net loss
to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
711 |
|
|
|
790 |
|
Stock-based compensation |
|
|
1,799 |
|
|
|
24,141 |
|
Loss on disposal of property and equipment |
|
|
2 |
|
|
|
1 |
|
Change in fair value of redeemable convertible preferred stock
warrant liability |
|
|
97 |
|
|
|
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 |
|
|
(147 |
) |
|
|
88 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
|
(5,552 |
) |
|
|
(3,320 |
) |
Other assets |
|
|
566 |
|
|
|
3,803 |
|
Accounts payable |
|
|
18,688 |
|
|
|
3,138 |
|
Funds payable to customers |
|
|
(1,074 |
) |
|
|
10,466 |
|
Accrued expenses and other current liabilities |
|
|
(3,056 |
) |
|
|
1,569 |
|
Long-term deferred rent and other liabilities |
|
|
222 |
|
|
|
(194 |
) |
Net cash provided by operating activities |
|
|
1,269 |
|
|
|
19,877 |
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
Purchases of property and
equipment |
|
|
(348 |
) |
|
|
(439 |
) |
Purchases of marketable
securities |
|
|
(14,320 |
) |
|
|
— |
|
Maturities of marketable
securities |
|
|
35,157 |
|
|
|
2,900 |
|
Net cash provided by investing activities |
|
|
20,489 |
|
|
|
2,461 |
|
Cash flows from financing
activities |
|
|
|
|
|
|
|
|
Proceeds from initial public
offering, net of underwriting discounts and commissions and
offering costs |
|
|
— |
|
|
|
293,899 |
|
Proceeds from issuance of
redeemable convertible preferred stock warrants |
|
|
— |
|
|
|
100 |
|
Tax withholding related to
vesting of restricted stock units |
|
|
— |
|
|
|
(2,608 |
) |
Proceeds from exercise of stock
options |
|
14 |
|
|
|
1,843 |
|
Net cash provided by financing activities |
|
|
14 |
|
|
|
293,234 |
|
Effect of foreign exchange rate changes on cash and cash
equivalents |
|
|
43 |
|
|
|
6 |
|
Net increase in cash and cash equivalents |
|
|
21,815 |
|
|
|
315,578 |
|
Cash and cash
equivalents |
|
|
|
|
|
|
|
|
Beginning of year |
|
|
63,318 |
|
|
|
235,834 |
|
End of year |
|
$ |
85,133 |
|
|
$ |
551,412 |
|
The following table reflects the reconciliation of net loss to
Adjusted EBITDA for each of the periods indicated (in thousands;
unaudited):
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
2021 |
|
Net loss attributable to common stockholders |
|
$ |
(10,987 |
) |
|
$ |
(74,522 |
) |
Adjusted to exclude the
following: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
711 |
|
|
|
790 |
|
Stock-based compensation |
|
|
1,799 |
|
|
|
24,141 |
|
Interest income |
|
|
(328 |
) |
|
|
(86 |
) |
Other expense, net |
|
|
91 |
|
|
|
53,959 |
|
Provision (benefit) for income
taxes |
|
|
58 |
|
|
|
(70 |
) |
Adjusted EBITDA |
|
$ |
(8,656 |
) |
|
$ |
4,212 |
|
The following table reflects the reconciliation
of GAAP loss from operations to non-GAAP (loss) income from
operations for each of the periods indicated (in thousands;
unaudited):
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
2021 |
|
GAAP loss from operations |
|
$ |
(11,166 |
) |
|
$ |
(20,719 |
) |
Adjusted to exclude the
following: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
1,799 |
|
|
|
24,141 |
|
Non-GAAP (loss) income from
operations |
|
$ |
(9,367 |
) |
|
$ |
3,422 |
|
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):
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
2021 |
|
GAAP net cash provided by operating activities |
|
$ |
1,269 |
|
|
$ |
19,877 |
|
Less: purchases of property and
equipment |
|
|
(348 |
) |
|
|
(439 |
) |
Non-GAAP free cash flow |
|
$ |
921 |
|
|
$ |
19,438 |
|
A reconciliation of GAAP net loss attributable
to common stockholders to non-GAAP net loss attributable to common
stockholders, the most directly comparable GAAP financial measure,
in order to calculate non-GAAP net loss attributable to common
stockholders per share, diluted, is as follows (in thousands,
except per share data; unaudited):
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
2021 |
|
GAAP net loss attributable to common stockholders |
|
$ |
(10,987 |
) |
|
$ |
(74,522 |
) |
Adjusted to exclude the
following: |
|
|
|
|
|
|
|
|
Change in fair value of the convertible notes |
|
|
— |
|
|
|
49,481 |
|
Loss on extinguishment of the convertible notes |
|
|
— |
|
|
|
1,620 |
|
Change in fair value of the redeemable convertible preferred stock
warrant liability |
|
|
97 |
|
|
|
2,816 |
|
Non-GAAP net loss attributable to
common stockholders |
|
$ |
(10,890 |
) |
|
$ |
(20,605 |
) |
Non-GAAP net loss per share
attributable to common stockholders, basic and diluted |
|
$ |
(0.88 |
) |
|
$ |
(0.33 |
) |
Weighted-average number of shares
outstanding used to compute Non-GAAP net loss per share
attributable to common stockholders, basic and diluted |
|
|
12,347 |
|
|
|
62,729 |
|
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