Poshmark Inc. (POSH) shares plunged 26.42% in after-hours on Tuesday, November 9, 2021, and closed the daily trading at $18.05. However, in the regular trading session, POSH’s stock gained 6.19%. POSH shares have moved up 0.45% in the past week. Over the past three months, the stock has lost 10.34%, while over the past six months, it has declined 43.97%.
Let’s see why did it lose its momentum on Tuesday’s after-markets?
POSH latest announcement
On November 09, 2021, Poshmark, Inc. (POSH), released its financial results for the third quarter ended September 30, 2021.
Q3 2021 financial highlights
- POSH reported total revenue of $79.7 million in Q3 2021 compared to $68.78 million in Q3 2020.
- Total cost and expenses were $86.8million in Q3 2021 compared to $57.12 million in Q3 2020.
- It suffered a GAAP net loss of $7.2 million in the third quarter of 2021, compared to an income of $11.7 million in the third quarter of 2020.
- GAAP diluted net (loss) income per share was $0.09 compared to $0.44 income in the third quarter of 2020.
- Adjusted EBITDA was $0.3 million in Q3 2021 compared to $15.0 million in the third quarter of 2020.
- The company ended the quarter with cash, cash equivalents, and marketable securities totalled $589.0 million.
Q4 2021 financial outlook
For Q4 2021, Poshmark is expecting
- Revenue in the range of $0 million to $82.0 million.
- Adjusted EBITDA in the range of $7.0 million to $8.0 million.
POSH Brand Closet Program
On October 26, 2021, Poshmark, Inc. (POSH), launched its Brand Closet program, an expansion of its unique social commerce capabilities to support brands and retailers of all sizes. For the first time in the company’s history, large-scale brands can connect directly with Poshmark’s millions of shoppers and deliver the social-shopping experience that today’s consumers crave.
POSH acquired Suede One
On October 13, 2021, Poshmark, Inc. (POSH) acquired Suede One, a platform that combines machine learning, computer vision, and expert human review to virtually authenticate sneakers.
Suede One was founded in 2020 and its technology enables an inventory less approach to authentication by analyzing product images, running algorithms on consistencies to identify whether an item is real or counterfeit.
POSH unveiled Vision for Seller Growth
On October 8, 2021, Poshmark, Inc. (POSH) announced product innovations and a newly established team dedicated to supporting its millions of sellers across the U.S., Canada, Australia and India. Poshmark unveiled its vision for how it will become the number one destination for sellers around the world at its annual community conference, PoshFest.
The company also appointed co-founder, Tracy Sun, its Senior Vice President of Seller Experience, a new role dedicated to serving Poshmark’s diverse and engaged seller community.
Conclusion
Poshmark stock plummeted in the after-hours on Tuesday, after the company announced its Q3 financial results which missed the expectations. It can further slide down on Wednesday as well.
