Shares of social clothing marketplace Poshmark (NASDAQ: POSH) fell on Friday after the company's profitability in the second quarter of 2022 fell short of expectations. As of 1:45 p.m. ET, Poshmark stock was down 8% but had been down as much as 16.5% earlier in the session.
In Q2, Poshmark generated net revenue of $89.1 million, up 9% from the same quarter last year. Management had only guided for revenue of $88 million at best and analysts only expected about $87 million on average, so the top line beat expectations on both counts.
The bottom line was a slightly different story. Poshmark's management had guided for negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $9 million to $11 million. And its Q2 adjusted EBITDA loss of $9.8 million was within that range. However, analysts had expected a loss of only $0.27 per share according to generally accepted accounting principles (GAAP), whereas Poshmark reported a GAAP loss of $0.29 per share.
Source Fool.com