Poshmark Inc. shares soared 24.6% in Friday trading after the seller of new and secondhand items reported better-than-expected first-quarter results. Net loss totaled $14.0 million, or 18 cents per share, after a loss of $74.1 million, or $1.18 per share last year. Revenue of $90.9 million was up from $80.7 million last year. The FactSet consensus was for a loss of 25 cents and revenue of $87.6 million. “After giving very cautious guidance for Q1 (with just 2 weeks left in the quarter), Poshmark ultimately reported results that weren’t great, but also weren’t as bad as feared,” wrote Wedbush in a note. “Poshmark’s growth has been fairly modest of late, as they work to navigate the challenges presented by Apple’s IDFA privacy changes. For the P&L to ‘work,’ marketing costs have to come down substantially, as the model doesn’t have many other levers to pull.” Wedbush rates Poshmark outperform with a $16 price target. Poshmark Chief Executive Manish Chandra said on the earnings call that the company continues to examine its marketing plan amid uncertainties. Marketing expenses were $41.3 million for the quarter. Poshmark stock is down 29% for the year to date.
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