Aug 10 (Reuters) – Second-hand retailer Poshmark Inc (POSH.O) forecast third-quarter revenue on Tuesday well below estimates and warned its marketing efforts were affected by Apple Inc’s new privacy controls on digital advertising tracking.
Poshmark shares fell 7% after-hours trading, poised to settle more than 25% below its initial public offering price in January.
Apple (AAPL.O) enforced a rule in April requiring developers to seek permission to collect data that can be used to track users on other sites and apps. Facebook Inc (FB.O) had criticized the policy, saying it could harm customers.
Poshmark, which relies on social media marketing to attract buyers, felt the impact of Apple’s new policy at the end of the second quarter and expects it to continue into the next quarter as well. current quarter, CEO Manish Chandra told Reuters on a call.
The company forecasts third-quarter revenue of $ 81 million to $ 83 million, with a midpoint slightly lower than estimates of $ 82.4 million.
But Chandra was convinced that the effects of Apple’s policy were only temporary, as Poshmark had spent a lot on alternatives such as TV commercials and partnerships with celebrities like Marie Kondo.
“This will work out throughout the quarter and the second half, largely because our channels are quite diverse and super adaptable,” Chandra said.
Poshmark said revenue rose 22% to $ 81.8 million in the second quarter, beating Refinitiv IBES estimates of $ 80.3 million as it attracted frugal young buyers looking for money. more eco-friendly to buy everything from used t-shirts to high-end. boutique dresses.
The Delta variant of the coronavirus was not a major concern for Poshmark in its earnings outlook, Chandra said.
Shares of little rival ThredUp Inc (TDUP.O) rose more than 7% on Tuesday after its second-quarter earnings beat estimates. He is also forecasting third quarter revenue above expectations.
Uday Sampath report in Bangalore; Editing by Devika Syamnath
Our Standards: Thomson Reuters Trust Principles.