Revenues in 9M 2019 - 9M 2020
Invest in IPO Poshmark
Poshmark is a social marketplace that combines the human connection of a physical shopping experience with the scale, reach, ease, and selection benefits of eCommerce. In doing so, Poshmark brings the power of community to buying and selling online. Pairing technology with the inherent human desire to socialize, the company creates passion and personal connections among users. Poshmark was founded in 2011 in California, US.
As of September 30, 2020, there were over 201 million secondhand and new items for sale across 9,431 brands on the marketplace, facilitated by 31.7 million active users, 6.2 million active buyers, and 4.5 million active sellers.
Three key trends are driving the future of retail: the shift to online, the shift to social, and the shift to secondhand. Many of these trends are led by younger generations who continue to grow their spending power as they age. Secondhand and resale also continue to grow as consumers, particularly younger generations, adopt efforts to reduce overall consumption and support a more sustainable economy. According to that report, an estimated 16% of the Gen Z consumer closet is secondhand, compared to 10% of the Baby Boomer closet.
The retail industry is undergoing significant transformation as consumer preferences shift away from traditional, physical retail in favor of the selection and convenience of eCommerce. The online global apparel and footwear market is estimated at $422 billion in 2019 and is expected to grow at an 11% CAGR to $636 billion by 2023, according to Statista.
Poshmark faces intense competition from Pinterest, The Real Real, Amazon, eBay, Etsy, Facebook, Mercari, Shopify, T.J.Maxx, and Walmart. If Poshmark is unable to compete effectively, their business, financial condition, and results of operations would be adversely affected.
Poshmark has a short operating history in an evolving industry. As a result, its past results may not be indicative of future operating performance. Poshmark only recently became profitable and has experienced net losses. It may not be able to sustain profitability, and revenue growth rate may decline.
The vibrancy of the community and trustworthiness of the marketplace are important to the success of Poshmark. If it is unable to maintain them, the ability to attract, engage, and retain users could suffer.
Poshmark (POSH) plans to sell 6.6 million shares at a price range of $35 to $39. The company intends to raise as much as $250M in an IPO of its common stock at about $2.9B valuation.
The company booked $248M in revenue for the last 12 months. Gross margin is around 83%. The revenue grew by 28% YoY in the first 9 months of 2020. In the last 9 months Poshmark has shown positive net income and cash flows provided by operating activities.
Poshmark is asking investors to pay 11.7x sales, which is a premium to the industry valuation. The closest competitors include. The average P/S ratio for the public e-commerce companies listed in the US is 10x. Poshmark has a high gross margin and is profitable, though it is growing modestly. The expected return on investment is medium, up to 40%.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.