Poshmark has raised $277 million in its IPO. This article looks at how the company plans to use the money to grow in the first three quarters of 2020 and how the company is competing with eBay, Etsy, and ThredUp. We’ll also discuss the company’s average order value. Hopefully, this information will help you make a decision about whether Poshmark is worth your investment.
Company’s Growth In First Three Quarters Of 2020
The Company’s first quarter results were a mixed bag, with revenue up just 2% on an organic basis. This was partly due to the disruption caused by the ongoing COVID-19 pandemic, which disrupted global trade, supply chains, and the capital markets. However, the Company continued to put emphasis on safety, continuity of operations, and meeting customer commitments.
The Company’s updated outlook is based on its current view of the economy, and it expects to provide another update once its second-quarter results are out. The company’s updated outlook assumes that the slowdown in economic activity will continue through the second quarter and improve gradually in the second half of 2020. It also assumes that its customers’ financial conditions will improve as government restrictions are eased.
Competition From Etsy, Ebay, Thredup
Poshmark ipo 277m has recently sold 6.6 million shares at $42 each, raising $277 million from investors. This is the first resale company to go public. The RealReal, which raised $300 million in June, is another competitor. ThredUp is a middleman between sellers and buyers, and holds inventory in four warehouses across the US. Both companies face challenges in growing and scaling.
Poshmark is competing against several players in the used apparel business, including ThredUP and eBay. eBay is a more established player, with more than 19 million sellers and 185 million total active buyers. eBay charges a 10% sales fee and 3% PayPal fee, and Poshmark can’t charge less than eBay. Poshmark, meanwhile, is trying to expand internationally and add new categories.
Although ThredUp isn’t growing at the same rate as the other platforms, the company is seeing positive numbers online. According to Accenture, which tracks resale platforms, the secondhand marketplace will grow to more than $64 billion in three years.
Average Order Value
Given the popularity of ecommerce, Poshmark’s IPO seems to make sense. The company’s asset-light business model and frictionless commerce technology make it an excellent choice for a public offering. In addition, putting social interaction back in ecommerce makes sense in the context of today’s accelerating e-commerce environment.
In a recent earnings report, Poshmark reported revenue of $192.8 million, up nearly 28 percent from the same period last year. The company reported a net profit of $20.9 million in its first three quarters. With more than 31.7 million active users and 6.2 million active buyers, Poshmark has managed to build a sustainable business model. Although it competes with Amazon, Poshmark has surpassed the online giant in the number of active users and buyers.
While the stock opened high and closed even higher the second day, its performance has been downhill ever since. This is not surprising, as many investors tend to shy away from IPOs and growth stocks during uncertain market conditions. However, if Poshmark is able to keep up with growing demand, this could help it gain more momentum.