Poshmark Q3 exceeds expectations despite 'tough' consumer outlook
Poshmark announced on Thursday revenues for the third quarter increased 11% to $88.4 million, on the back of single-digit growth in the resale platform's gross merchandise value (GMV) for the three months.
The Redwood City, California-based company said GMV for the third quarter ending September 30 increased 7% to $475.6 million, the 19th consecutive quarter of GMV growth at the second-hand marketplace.
Trailing 12 months active buyers also reached a record 8.2 million, up 13%.
During the quarter, the company's losses widened to $23.5 million, from a net loss of $6.9 million, in the prior-year quarter.
Net loss per share attributable to common stockholders was $0.30, compared to a loss of $0.09 in the third quarter of 2021.
"We reported another strong quarter and are pleased that our results exceeded our initial expectations, despite a tough consumer environment,” said Manish Chandra, founder and chief executive officer of Poshmark.
“Poshmark continues to be a top destination for fashion, as demonstrated by 13% trailing-twelve-months active buyer growth to a record 8.2 million in the third quarter. The power of Poshmark’s community combined with its robust marketplace platform continues to drive user engagement which grew 61% year over year to a record 62.6 billion social interactions during the trailing-twelve-months ended September 30, 2022.”
Poshmark's earnings update was the first from the online platform since it announced it had been acquired by South Korean tech firm Naver Corp for $1.6 billion last month.
"In October, we announced our acquisition by Naver Corp. and are excited to partner with them as we take Poshmark into its next phase of growth as we expand our platform, elevate our product and user experiences, and enter new and larger markets," added Chandra.
"Our industry continues to evolve at a rapid pace, and we are excited to continue to lead the future of shopping by providing our community with an unparalleled experience that is simple, social, fun and sustainable."
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