Poshmark posts record fourth-quarter GMV, revenues

By

Benjamin Fitzgerald

Published
Mar 23, 2022

U.S. marketplace Poshmark Inc. said on Tuesday both its fourth-quarter revenues and gross merchandise value (GMV) surpassed 20%, as the resale site narrowed quarterly losses with a record sales finish to its year 2021.

The Redwood City, California-based company said GMV for the fourth quarter ended December 31 grew 27% $490.8 million compared to the fourth quarter in the prior year, while net revenues totalled $84.2 million, a 22% increase year-over-year from $69.2 million.

​“We had a strong finish to a historic year for Poshmark with record GMV and revenues. Despite a very unpredictable and volatile environment globally, we delivered our second year of Adjusted EBITDA profitability and positive free cash flow during our first year as a public company,” said Manish Chandra, founder and chief executive officer of Poshmark.

“Throughout the year, consumers came to Poshmark to discover, shop the latest trends, and connect with our community. This culminated in our strongest-ever holiday performance and record trailing 12 months Active Buyers of 7.6 million.”

The company said adjusted loss before interest, taxes, depreciation, and amortization narrowed to $4.7 million from $4.8 million in the prior-year quarter, while net loss per share narrowed to $0.19, from $0.25.
 
For the full-year 2021, ​GMV reached $1.8 billion, an increase of 27% year-over-year, while net revenue hit $326 million, a 25% increase on 2020. Adjusted EBITDA was $7.3 million which decreased from $36 million in 2020.

Annual social interactions were up 47% year-over-year to 44.6 billion, while stacked buyer cohort retention was 104%, which accelerated from 102% in 2020. Stacked seller cohort retention was 112%, which accelerated from 111% in 2020, the company added.

"Our cohorts continue to remain stable and the strong engagement from our users gives us the confidence to invest for the long term as we are still in the early stages of our growth cycle,” said Chandra.

“Our asset-light model, which is both adaptable and responsive to changing consumer demands and insulated from supply chain disruption, uniquely positions us to thrive in the current environment.”
 
Looking ahead, Poshmark said it expects first-quarter revenues to gauge between $86 million and $88 million, while adjusted losses are forecast to be between $7 million and $9 million.