Secondhand eCommerce platform Poshmark filed for an initial public offering (IPO) after posting more than $30 million in profit across two consecutive quarters.
“We only recently became profitable and have experienced net losses. We may not be able to sustain our profitability and our revenue growth rate may decline,” wrote the company in the S1 filed with the U.S. Security and Exchange Commission (SEC).
The Silicon Valley startup posted a net loss of $14.5 million in 2018 and a net loss of 48.7 million last year. The first profitable quarter was for the three months ended June 30, according to the filing.
Poshmark has applied to list its Class A common stock on Nasdaq under the ticker symbol “POSH.” The price range and the number of shares being offered have not yet been determined. Morgan Stanley and Goldman Sachs are leading the offering.
The social commerce marketplace founded in 2011 connects sellers of used clothing, shoes and accessories to buyers looking for deals. Poshmark reports that it has transacted $1.1 billion in general merchandise volume (GMV) on its platform. The marketplace is currently only available in the U.S. but the company has plans to expand across the globe.
Although the company first became profitable during the pandemic, Poshmark said the overall economic impact of COVID-19 won’t be fully known until it’s history.
“Responses to the COVID-19 pandemic such as prolonged work-from-home policies, quarantines, closures, and travel restrictions could continue to depress demand for the products sold on our platform,” the company said in the prospectus.
There has been a rush of public filings in recent weeks, with DoorDash, Airbnb, BarkBox, Coinbase and ContextLogic (parent of Wish) among them. Coinbase is the first major crypto exchange to file an IPO.