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Poshmark, an online clothing retailer, filed its IPO prospectus on Thursday after making more than $ 30 million in profits in the past two quarters.
Founded in 2011, it is an Internet marketplace for poshmarks, second-hand wear, shoes and accessories. Like eBay, Poshmark connects buyers with sellers, who often list items from their closets. The company makes money by cutting every transaction.
After last week’s IPOs by Durdash and RBNB, which is also a marketplace business, the filing of poshmarks has landed investors, resulting in first-day PPS showing the public market appetite for the business model. Discount ret online retailer followed up with its IPO this week, although its share price has gone out of gate.
Poshmark’s revenue rose 28% to 192 192.8 million in the first quarter of 2020 from 150 150.5 million in the same period last year. It went on to make a profit of .9 20.9 million during the period after losing .933.9 million a year ago.
A key metric measuring the total dollar value of goods sold online was negatively impacted in the first quarter due to the coronavirus epidemic. It grew by only 9% in the first three months of the year, but turned to 42% in the second quarter as buyer and seller activity resumed. The company also cited the growing base of its active buyers, which doubled in June two years ago.
Like many ret online retailers, Poshmark said it has benefited from the flood of demand produced by coronavirus, as local governments have ordered people to close indoors and retail stores. The company added that Poshmark’s million in the market. It has also served as a source of additional revenue for millions of sellers.
However, Poshmark said the Covid-19 remains a risk due to uncertainties about the economic impact on consumers and the stability of the wider economy.
“COVID-19 epidemiological responses, such as long-term operational policies of the home, quarantine, closure and travel restrictions, can continuously reduce demand for products sold on our platform,” the company said in the prospectus.
The filing provides a first look at Poshmark’s finances after the company filed for disclosure in September. It plans to list on the Nasdaq under the “POSH” symbol.
Poshmark said it now has .2.5 million active buyers and .71. cou counts millions of active users, most of whom are female and is either Millennium or General Z. It lists its competitors Amazon, eBay, ATC, Facebook, Shopify, TJ Maxx and Walmart.
Morgan Stanley and Goldman Sachs are leading the offer.
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