Is Poshmark publicly traded?
Poshmark stock price IPO $42. Poshmark, the online marketplace for second-hand goods, filed to go public as early as September 14 and the latest social marketplace e-commerce site has applied to list the Class A common stock on the Nasdaq Global Select Market under Poshmark stock symbol POSH.
The filing provides the first look into Poshmark’s financials after the company confidentially filed to go public in September 2020. Poshmark has reported a profit of over $30 million in the past two quarters after consistently turning net losses.
Can I invest in Poshmark?
Online fashion platform Poshmark (stock symbol POSH) set terms for its initial public offering on Wednesday, September 13, with plans to offer 6.6 million shares, Poshmark stock price at $35 to $39 each, giving the company a valuation of roughly $2.7 billion at the midpoint of that range. Poshmark Stock Price IPO Above Marketed Range at $42 a Share. The company is selling the shares for $42 each, which will raise about $277 million.
Poshmark stock price filing is landing in investors’ laps after last week’s booming IPOs of DoorDash and Airbnb, which are also marketplace businesses, resulted in substantial first-day pops, potentially indicating the public market appetite for the business model. Eight banks are underwriting the deal, led by Goldman Sachs, Morgan Stanley, and Barclays.
Online thrift store Poshmark as of September 30 counts:
- 6.2 million active buyers, defined as those who have purchased at least one item over the past year and spent an average of 27 minutes a day on the site
- 31.7 million active users (defined as those who have logged on to the marketplace in the past 12 months), most of whom are female and are either millennials or Gen Z
- 4.5 million active sellers, people who have listed an item in the last 12 months
- Poshmark’s customers skew young, with 80% falling into the millennial or Gen Z demographic
How profitable is Poshmark?
Marketplace for secondhand goods targets $2.7 billion valuation in public debut. Poshmark’s e-commerce marketplace was valued at $1.25 billion in 2019 with $205.2 million in revenue, up from $148.3 million the previous year. After losing $14.5 million in 2018 and $48.7 million in 2019, Poshmark made $21.1 million in the June 30 quarter and $10.7 million in the September 30 quarter.
“We achieved our first quarter of profitability for the three months ended June 30, 2020,” the prospectus said. Revenue at Poshmark increased 28% in the first three-quarters of 2020 to $192.8 million from $150.5 million in the same period last year. Poshmark, according to its S-1 (SECURITIES AND EXCHANGE COMMISSION), enters the market a profitable firm with growing revenue, an increasing consumer base, and rising revenue.
Gross merchandise volume, a key metric measuring the total dollar value of merchandise sold online, was negatively impacted in the first quarter of 2020 because of the coronavirus pandemic. It increased by just 9% in the first 3 months of the year but rebounded to 42% growth in the 2nd quarter as seller and buyer activity resumed. Online thrift store Poshmark also cited its growing base of active buyers, which doubled in June from two years ago.
Online clothing reseller Poshmark’s marketplace includes both new and secondhand merchandise, with more than 201 million items on sale as of September 30, 2020. Poshmark uses only Priority rates of the U.S. Postal Service to ship items in the U.S. Poshmark thrift store sellers are charged a flat 20% fee on items sold for $15 or more or a flat rate of $2.95 for items sold for less than $15.
What company owns Poshmark?
Poshmark online marketplace launched in 2011 and is based in Redwood City, Calif., as an online marketplace for second-hand clothing, shoes, and accessories. Similar to eBay, Poshmark connects buyers with sellers, who often list items from their own closets. Online fashion platform Poshmark makes money by taking a cut of each transaction. Manish Chandra is a co-founder of the company and serves as its board chairman and chief executive.
How does Poshmark work?
Poshmark calls itself a “social marketplace,” one that uses features found on social media sites: “comments” and “likes” to foster engagement. E-Commerce company said there were more than 56 million social interactions on the marketplace each day last year, with social interactions per active user up 34% compared with 2018. Proprietary technology facilitates these social interactions.
The social media-focused platform company’s business model is simple: it’s a retail destination for consumers looking to sell their second-hand apparel and other goods or pick up desirable designer items for a fraction of the price. Poshmark doesn’t stock its own inventory and has positioned itself as a marketplace that connects buyers and sellers.
Unique to Poshmark are social media aspects like the ability to share “likes” on favored items. “In doing so, we bring the power of community to selling and buying online. We created Poshmark in 2011 to make buying and selling simple, social, and fun. Pairing technology with the inherent human desire to socialize, our marketplace creates passion and personal connections among users.”
Several online marketplaces, including Poshmark, reported more people selling their goods in spring 2020 as a way to make extra income and stave off boredom during widespread lockdowns. Poshmark sellers list everything from $5 used sneakers to $5,000 Louis Vuitton handbags. Poshmark became profitable for the first time in its 9-year history during the quarter that ended June 30.
It lists Amazon, Walmart, eBay, Etsy, Facebook, Shopify, and TJ Maxx among its competitors.
The resale marketplace is currently worth roughly $28 billion and is projected to reach $64 billion by 2025. Forecasts that shoppers will spend 53% more on second-hand items over the next 5 years, with internet resale expected to grow from $7 billion in 2019 to $37 billion by 2025. Bankruptcies in retail businesses in 2020 hit the highest levels in more than a decade, and experts say there are more to come.
Among those on the company’s board is Grand Slam tennis champion, Serena Williams.