Poshmark Reports First Quarter 2022 Financial Results – GMV Up 12% Year Over Year

Poshmark announced financial results for the first quarter ended March 31, 2022.

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The Company posted net revenues of $90.9 million in the first quarter of 2022, which is a 13% year-over-year increase from the first quarter of 2021.

Gross Merchandise Value (“GMV”) grew 12% year-over-year from the first quarter of 2021 to $493.4 million, up from $441.0 million in the same period last year.

“We continue to innovate for both buyers and sellers and completed the rollout of our Shop by Trend feature as well as a redesign of our feed and shop tabs during the first quarter.”

Manish Chandra, Founder and Chief Executive Officer of Poshmark

“Our investments in product innovation and marketing contributed to record Active Buyer growth to 7.8 million in the first quarter, up 16% from the same period last year,” added Chandra.

Poshmark’s social marketplace is defining a new, more human way to shop online by making the shopping and discovery experience interactive and social. Social interactions grew 59% year-over-year to a record 50.7 billion during the trailing-twelve-months ended March 31, 2022.

First Quarter 2022 Key Metrics and Financial Highlights:

• GMV was $493.4 million, an increase of 12% year-over-year from $441.0 million in the first quarter of 2021. Quarterly GMV has increased year-over-year for the past 17 quarters.
• Trailing 12 months Active Buyers reached a record 7.8 million, a 16% year-over-year increase from 6.7 million in the first quarter of 2021.
• Net revenue was $90.9 million, a 13% increase year-over-year from $80.7 million in the first quarter of 2021.
• Adjusted EBITDA was ($4.7) million which decreased from $4.8 million in the first quarter of 2021. Adjusted EBITDA margin was (5.2%) in the first quarter of 2022.
• GAAP results from operations was ($14.4) million in the first quarter of 2022, compared to ($20.1) million in the first quarter of 2021. This includes $8.7 million and $24.1 million in stock-based compensation, respectively.
• Non-GAAP results from operations (excluding stock-based compensation) was ($5.7) million, compared to $4.0 million in the first quarter of 2021.
• GAAP net loss per share attributable to common stockholders was ($0.18), compared to ($1.18) in the first quarter of 2021.
• Cash and cash equivalents were $596.6 million as of March 31, 2022 or $7.65 in cash per share.
• Free cash flow was $13.9 million compared to $19.8 million for the three months ended March 31, 2021.

Poshmark First Quarter 2022 Business Highlights

• In January, Poshmark launched a redesign of its Feed and Shop tabs, which modernized and refreshed the pages to emphasize descriptions, create more whitespace, and make it easier to shop.
• The company completed its rollout of “Shop by Trend,” a new merchandising engine that complements its existing brand merchandising capabilities.
• During February, Poshmark began rolling out a new Messaging Tool that allows buyers and sellers to communicate directly with each other once an order has been booked.
• The company also launched Posh Ambassador II, an extension of its Posh Ambassador program, which caters to its most active community members by highlighting them with a Gold Star badge in their profile and offering them additional benefits.
• Poshmark continued to welcome new brands to the platform. Brand Closets GMV during the first quarter 2022 grew 2.5x compared to the fourth quarter of 2021 and monthly GMV growth continued to accelerate.

Poshmark Second Quarter 2022 Guidance:

• Expected Revenue range:                $86 million – $88 million
• Adjusted EBITDA range:                  ($9) million – ($11) million

For full details on Poshmark’s first-quarter earnings report, please visit the Poshmark investor relations site here.