Poshmark Declines 9.9% on Wider-Than-Expected Q4 Loss

Shares of Poshmark, Inc. (POSH) fell 9.9% during Tuesday’s extended trading session on a wider-than-expected Q4 loss. Also, the company’s first-quarter revenue outlook disappointed analysts’ expectations.

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POSH is an e-commerce portal for buying and selling new or used clothing, shoes and accessories. Shares of the company have lost 21.1% year-to-date.

Q4 Results

The company reported a quarterly loss of $0.19 per share, wider than the Street’s loss estimate of $0.18 per share. Poshmark had posted a loss of $0.25 per share in the same quarter last year.

Meanwhile, net revenue climbed 21.7% year-over-year to $84.2 million and surpassed the consensus estimate of $80.6 million.

During the quarter, Gross Merchandise Value (GMV) grew 27% year-over-year to $490.8 million. Similarly, trailing 12 months Active Buyers grew 17% year-over-year to 7.6 million.

Full-Year 2021 Performance

Net revenues for full-year 2021 stood at $326 million, up 25% year-over-year. Also, the figure surpassed analysts’ expectations of $322.9 million. Poshmark reported a yearly loss of $1.35 per share. It had posted earnings of $0.33 per share last year.

GMV increase 27% year-over-year to $1.8 billion in 2021.

Manish Chandra, the Founder and CEO of Poshmark, said, “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. 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.”

Guidance

Based on the current economic environment and business momentum, Poshmark forecasts first-quarter revenues in the range of $86 million to $88 million, lower than the consensus estimate of $90.6 million.

Stock Rating

Overall, the stock has a Hold consensus rating based on one Buy and three Holds. The average Poshmark price target of $16.75 implies 21.1% upside potential to current levels.

Website Traffic

TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Poshmark’s performance.

The POSH website traffic recorded a 14.5% monthly decline in visits in February against the same month last year. Meanwhile, the website traffic has fallen 18.2% year-to-date against the same period last year.

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