US second-hand fashion platform Poshmark has reported a 22 percent increase in net revenue in the second quarter of the year.
For the three months to June 30, revenue increased to 81.76 million dollars compared to 66.87 million dollars a year earlier as its trailing 12 months active buyer numbers increased 16 percent to 7 million.
Gross merchandise value meanwhile grew 25 percent to 449.6 million dollars.
The company reported an adjusted EBITDA of 6.1 million dollars, down from 23.7 million dollars a year earlier, while it reported a net loss of 2.9 million dollars, compared to a net income of 21.3 million dollars a year ago.
Poshmark feels impact of Apple’s new privacy controls
“We delivered another strong quarter and our fifth consecutive quarter of operating profitability, despite difficult comparisons, a testament to the strength of our cohorts and our business,” said Poshmark founder and CEO Manish Chandra in a statement.
He said the company is “uniquely positioned” to benefit from pent-up demand for purchases across a wider range of apparel and accessories, and increased consumer interest in sustainability.
But he also warned that Poshmark's marketing efforts are taking a hit from Apple's new privacy controls, introduced in April, which allow users to block advertisers from tracking them across different sites and apps.
Chandra told Reuters that Poshmark, which relies on social media marketing to attract customers, began to feel the impact of Apple’s new privacy controls late in the second quarter and expects it to continue into the current quarter.
Poshmark expects third-quarter revenue of between 81 million dollars and 83 million dollars, and adjusted EBITDA of between 1 million dollars and 2 million dollars.