Poshmark (POSH, $43.78) stock drops, despite Q1 sales rising +42%

Poshmark  shares fell more than -12% in after-hours trading Wednesday , even after the social commerce marketplace reported a narrower-than-expected first-quarter loss per share on 42% higher revenue.

Adjusted for one-time items, Poshmark incurred a loss of -33 cents a share, compared to the -37 cents loss a share anticipated by analysts polled by FactSet.

Revenue increased to $81 million from the year-ago quarter’s $57.1 million. Analysts were expecting $77 million.

Poshmark Chief Executive Manish Chandra said the company had a “great quarter” despite challenges from severe weather and the COVID-19 pandemic.

“We are optimistic that as consumers begin to leave their homes and engage in social activities once again, there will be pent-up demand for apparel, which could drive more frequent and a wider range of apparel and accessory purchases, benefiting our marketplace,” Chandra said.

For the second quarter, Poshmark is expecting revenue between $79 million and $81 million, and adjusted EBITDA between $1.5 million and $2.5 million. The analysts surveyed by FactSet forecast around $81 million.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.