Poshmark Says Results to Be Hurt by Marketing Costs, Shipping
(Bloomberg) -- Poshmark Inc. executives said the company’s projections for revenue and a measure of earnings for the fourth quarter came in lower than what many analysts expected because of higher investment in marketing and some disruptions with holiday shipping.
The resale platform said on Tuesday that it expects fourth-quarter revenue between $80 million to $82 million. That’s below analysts’ estimate of $85.3 million, according to a Bloomberg survey. The company also said it expected an adjusted earnings loss when excluding some items, a gauge known as Ebitda, in the period. Analysts had anticipated a profit.
On a call with analysts after the release of results, Poshmark executives including Chief Executive Officer Manish Chandra said the company has had to bolster spending on marketing in the fourth quarter in part to counter changes to Apple Inc.’s privacy controls. Poshmark also expects potential disruptions in the U.S. postal system due to an influx of online shipping that could elevate the cost of customer service.
The shares fell 25% on Tuesday in late trading in New York.
The results stood in contrast with those of competitor ThredUp Inc., whose stock soared on Monday after the company gave investors a better-than-expected outlook for the fourth quarter.
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