POSHMARK, INC. Q2 Gross Merchandise Value Increased 25% Year over Year to
Q2 Total Revenue Grew 22% Year over Year to
Q2 Adjusted EBITDA was
“We delivered another strong quarter and our fifth consecutive quarter of operating profitability, despite difficult comparisons, a testament to the strength of our cohorts and our business,'' said
Second Quarter 2021 Key Metrics and Financial Highlights:
- GMV was
$449.6 million , an increase of 25% year-over-year from$359.7 million in the second quarter of 2020. Quarterly GMV has increased year-over-year for the past 14 quarters. - Trailing 12 months Active Buyers reached 7.0 million in the second quarter of 2021, a 16% year-over-year increase from 6.0 million from the second quarter of 2020.
- Net revenue was
$81.8 million , a 22% increase year-over-year from$66.9 million in the second quarter of 2020. - Adjusted EBITDA for the second quarter of 2021 was
$6.1 million which decreased from$23.7 million in the second quarter of 2020. Adjusted EBITDA margin was 7.4% in the second quarter of 2021. - GAAP results from operations was a
($2.9) million loss in the second quarter of 2021, compared to income of$21.3 million in the second quarter of 2020 and includes$8.1 million and$1.7 million in stock-based compensation, respectively. - Non-GAAP results from operations (excluding stock-based compensation) was income of
$5.2 million , compared to$23.0 million in the second quarter of 2020. - GAAP diluted net income (loss) per share attributable to common stockholders was (
$0.04 ) compared to$0.61 in the second quarter of 2020. - Cash, cash equivalents, and marketable securities were
$579.5 million as ofJune 30, 2021 .
Second Quarter 2021 Business Highlights:
- Launched Art & Design as sub-categories with our Home department.
- Introduced “Style Tags” to personalize listings and enhance searchability and discovery.
- Released “Price Suggester” to help sellers (especially new listers) list items more efficiently by providing a suggested price range for their listing.
- Launched “Buyer Alerts” to improve the shopping experience and keep buyers informed about items they’re interested in.
- Announced a partnership with
Snapchat to launch Poshmark Mini, which went live onJuly 8 to allU.S. Snapchat users. - Released “Bulk Listing Actions,” four powerful new high-volume social tools that allow sellers to share any quantity of listings at once, make closet-wide changes to prices, and execute multiple offers to likers at once, increasing efficiency, closet exposure and sales conversion.
- Awarded
$125,000 in grants to 142 inaugural recipients of Poshmark’sHeart & Hustle Community Fund .
Third Quarter 2021 Guidance:
- Expected Revenue range:
$81.0 million -$83.0 million - Adjusted EBITDA range: $1.0 million -
$2.0 million
Webcast and Conference Call Information:
About
SOURCE:
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 third 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
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
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.
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.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2020 | 2021 | 2020 | 2021 | |||||||||||||
| Net revenue | $ | 66,870 | $ | 81,757 | $ | 123,978 | $ | 162,713 | ||||||||
| Costs and expenses(1): | ||||||||||||||||
| Cost of net revenue, exclusive of depreciation and amortization | 10,668 | 12,746 | 20,565 | 25,716 | ||||||||||||
| Operations and support | 9,200 | 12,969 | 17,736 | 27,863 | ||||||||||||
| Research and development | 7,067 | 12,449 | 14,143 | 31,249 | ||||||||||||
| Marketing | 11,680 | 32,715 | 46,276 | 68,193 | ||||||||||||
| General and administrative | 6,243 | 12,893 | 13,701 | 31,636 | ||||||||||||
| Depreciation and amortization | 667 | 846 | 1,378 | 1,636 | ||||||||||||
| Total costs and expenses | 45,525 | 84,618 | 113,799 | 186,293 | ||||||||||||
| Income (loss) from operations | 21,345 | (2,861 | ) | 10,179 | (23,580 | ) | ||||||||||
| Interest income | 149 | 38 | 477 | 124 | ||||||||||||
| Other expense, net | ||||||||||||||||
| Change in fair value of redeemable convertible preferred stock warrant liability | (278 | ) | — | (375 | ) | (2,816 | ) | |||||||||
| Change in fair value of the convertible notes | — | — | — | (49,481 | ) | |||||||||||
| Loss on extinguishment of the convertible notes | — | — | — | (1,620 | ) | |||||||||||
| Other, net | (34 | ) | (142 | ) | (28 | ) | (184 | ) | ||||||||
| (312 | ) | (142 | ) | (403 | ) | (54,101 | ) | |||||||||
| Income (loss) before provision (benefit) for income taxes | 21,182 | (2,965 | ) | 10,253 | (77,557 | ) | ||||||||||
| Provision (benefit) for income taxes | 62 | 40 | 120 | (30 | ) | |||||||||||
| Net income (loss) | $ | 21,120 | $ | (3,005 | ) | $ | 10,133 | $ | (77,527 | ) | ||||||
| Undistributed earnings attributable to participating securities | (10,133 | ) | — | (10,133 | ) | — | ||||||||||
| Net income (loss) attributable to common stockholders | $ | 10,987 | $ | (3,005 | ) | $ | — | $ | (77,527 | ) | ||||||
| Net income (loss) per share attributable to common stockholders, basic | $ | 0.89 | $ | (0.04 | ) | $ | — | $ | (1.12 | ) | ||||||
| Net income (loss) per share attributable to common stockholders, diluted | $ | 0.61 | $ | (0.04 | ) | $ | — | $ | (1.12 | ) | ||||||
| Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, basic | 12,355 | 75,709 | 12,351 | 69,219 | ||||||||||||
| Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, diluted | 17,945 | 75,709 | 17,690 | 69,219 | ||||||||||||
| (1) Includes stock-based compensation expense as follows: | ||||||||||||||||
| Operations and support | $ | 166 | $ | 834 | $ | 329 | $ | 3,052 | ||||||||
| Research and development | 540 | 3,096 | 1,076 | 13,737 | ||||||||||||
| Marketing | 308 | 1,039 | 615 | 4,328 | ||||||||||||
| General and administrative | 649 | 3,134 | 1,442 | 11,127 | ||||||||||||
| Total | $ | 1,663 | $ | 8,103 | $ | 3,462 | $ | 32,244 | ||||||||
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(unaudited)
| 2020 | 2021 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 235,834 | $ | 573,416 | ||||
| Marketable securities | 26,238 | 6,069 | ||||||
| Prepaid expenses and other current assets | 7,905 | 9,420 | ||||||
| Total current assets | 269,977 | 588,905 | ||||||
| Property and equipment, net | 8,447 | 7,946 | ||||||
| Other assets | 7,010 | 2,633 | ||||||
| Total assets | $ | 285,434 | $ | 599,484 | ||||
| Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ (Deficit) Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 12,317 | $ | 15,124 | ||||
| Funds payable to customers | 117,127 | 127,130 | ||||||
| Accrued expenses and other current liabilities | 35,859 | 36,806 | ||||||
| Total current liabilities | 165,303 | 179,060 | ||||||
| Redeemable convertible preferred stock warrant liability | 3,494 | — | ||||||
| Long-term portion of deferred rent and other liabilities | 4,823 | 4,359 | ||||||
| Convertible notes | 55,421 | — | ||||||
| Total liabilities | 229,041 | 183,419 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable convertible preferred stock | 156,175 | — | ||||||
| Stockholders’ (deficit) equity | ||||||||
| Preferred Stock | — | — | ||||||
| Common stock | 1 | — | ||||||
| Class A and Class B common stock | — | 8 | ||||||
| Additional paid-in capital | 28,300 | 622,673 | ||||||
| — | (2,651 | ) | ||||||
| Accumulated deficit | (126,509 | ) | (204,036 | ) | ||||
| Accumulated other comprehensive (loss) income | (1,574 | ) | 71 | |||||
| Total stockholders’ (deficit) equity | (99,782 | ) | 416,065 | |||||
| Total liabilities, redeemable convertible preferred stock and stockholders’ equity | $ | 285,434 | $ | 599,484 | ||||
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Six Months Ended | ||||||||
| 2020 | 2021 | |||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | 10,133 | $ | (77,527 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 1,378 | 1,636 | ||||||
| Stock-based compensation | 3,462 | 32,244 | ||||||
| Change in fair value of redeemable convertible preferred stock warrant liability | 375 | 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 | (129 | ) | 169 | |||||
| Other | 2 | 3 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaid expenses and other assets | (4,892 | ) | 1,405 | |||||
| Accounts payable | 3,328 | 2,807 | ||||||
| Funds payable to customers | 22,471 | 10,003 | ||||||
| Accrued expenses and other liabilities | (2,687 | ) | 483 | |||||
| Net cash provided by operating activities | 33,441 | 25,140 | ||||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (677 | ) | (849 | ) | ||||
| Purchases of marketable securities | (36,695 | ) | — | |||||
| Maturities of marketable securities | 66,507 | 20,000 | ||||||
| Net cash provided by investing activities | 29,135 | 19,151 | ||||||
| Cash flows from financing activities | ||||||||
| Proceeds from initial public offering, net of underwriting discounts and commissions and offering costs | — | 293,692 | ||||||
| Proceeds from issuance of common stock warrants | — | 100 | ||||||
| Tax withholding related to vesting of restricted stock units | — | (2,651 | ) | |||||
| Proceeds from exercise of stock options | 54 | 2,125 | ||||||
| Net cash provided by financing activities | 54 | 293,266 | ||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | 42 | 25 | ||||||
| Net increase in cash and cash equivalents | 62,672 | 337,582 | ||||||
| Cash and cash equivalents | ||||||||
| Beginning of year | 63,318 | 235,834 | ||||||
| End of year | $ | 125,990 | $ | 573,416 | ||||
The following table reflects the reconciliation of net income (loss) to Adjusted EBITDA for each of the periods indicated (in thousands; unaudited):
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2020 | 2021 | 2020 | 2021 | |||||||||||||
| Net income (loss) attributable to common stockholders | $ | 10,987 | $ | (3,005 | ) | $ | — | $ | (77,527 | ) | ||||||
| Adjusted to exclude the following: | ||||||||||||||||
| Depreciation and amortization | 667 | 846 | 1,378 | 1,636 | ||||||||||||
| Stock-based compensation | 1,663 | 8,103 | 3,462 | 32,244 | ||||||||||||
| Interest income | (149 | ) | (38 | ) | (477 | ) | (124 | ) | ||||||||
| Other expense, net | 312 | 142 | 403 | 54,101 | ||||||||||||
| Provision (benefit) for income taxes | 62 | 40 | 120 | (30 | ) | |||||||||||
| Undistributed earnings attributable to participating securities | 10,133 | — | 10,133 | — | ||||||||||||
| Adjusted EBITDA | $ | 23,675 | $ | 6,088 | $ | 15,019 | $ | 10,300 | ||||||||
The following table reflects the reconciliation of GAAP income (loss) from operations to non-GAAP income from operations for each of the periods indicated (in thousands; unaudited):
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2020 | 2021 | 2020 | 2021 | |||||||||||||
| GAAP income (loss) from operations | $ | 21,345 | $ | (2,861 | ) | $ | 10,179 | $ | (23,580 | ) | ||||||
| Adjusted to exclude the following: | ||||||||||||||||
| Stock-based compensation | 1,663 | 8,103 | 3,462 | 32,244 | ||||||||||||
| Non-GAAP income from operations | $ | 23,008 | $ | 5,242 | $ | 13,641 | $ | 8,664 | ||||||||
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):
| Six Months Ended | ||||||||
| 2020 | 2021 | |||||||
| GAAP net cash provided by operating activities | $ | 33,441 | $ | 25,140 | ||||
| Less: purchases of property and equipment | (677 | ) | (849 | ) | ||||
| Non-GAAP free cash flow | $ | 32,764 | $ | 24,291 | ||||
2021 GlobeNewswire, Inc., source
