Poshmark released its Q2 financial results and has shown strong growth which should not be surprising from a marketplace that is a specialist in ‘second-hand style’ or as eBay would call it ‘pre-loved’.
Whilst many Americans are feeling the economic downturn right now as the cost of living and inflation continues to rise, it has left the door of opportunity wide open for those savvy sellers who are looking to open their closets and liquidate some cash.
Similarly, bargain hunters are turning more and more to sights like Poshmark for their fashion needs rather than high-end department stores when looking to save a few dollars.
Poshmark’s Q2 Key Highlights
- Net revenue was $89.1 million, a 9% increase year-over-year from $81.6 million in the second quarter of 2021.
- GMV was $483.5 million, an increase of 8% year-over-year from $449.6 million in the second quarter of 2021. Quarterly GMV has increased year-over-year for the past 18 quarters.
- Trailing 12 months Active Buyers reached a record 8.0 million, a 14% year-over-year increase from 7.0 million in the second quarter of 2021.
- User engagement on Poshmark’s marketplace increased 70% year over year to a record 57.5 billion social interactions during the trailing twelve months ended June 30, 2022.
“We reported a strong quarter despite a tough consumer environment due to our focus on execution and are pleased that our results exceeded our initial expectations. We remain focused on product innovation to give sellers better ways to market and merchandise their closets and new ways for buyers to discover trends and engage with our marketplace to drive conversion,” said Manish Chandra, Founder and CEO, Poshmark.
“This continues to keep Poshmark a top destination for fashion, as demonstrated by 14% trailing-twelve-months Active Buyer growth to a record 8.0 million in the second quarter,” he added.
Poshmark’s Continued Innovation
Following the announcement of their Q2 earnings, some Wall St analysts were concerned about the lack of profitability which resulted in shares seeing an 8% drop. In the investor call, however, the CFO Rodrigo Brumana was keen to point out that the company has proved previously they can be profitable, and that they were focusing on investing in their long-term product innovation.
Right on cue the following day from the Q2 announcement, Poshmark released their August 2022 product features update.
This update features 4 new or updated functionality for the Poshmark app. Those updates are:
- Closet QR Codes
- Match Buyer’s Last Offer
- Select All Functionality
- Rotating Images on Your Phone
You can read more about Poshmark’s latest product updates here.
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