Online thrift store Poshmark files to go public after consecutive profitable quarters

Online thrift store Poshmark files to go public after consecutive profitable quarters

Rafael Henrique | LightRocket | Getty ImagesOnline clothing reseller Poshmark filed its IPO prospectus on Thursday, after racking up over $30 million in profit over the past two quarters. Poshmark, founded in 2011, is an internet marketplace for second-hand clothing, shoes and accessories. Like eBay, Poshmark connects buyers with sellers, who often list items from their own closet. The company makes money by taking a cut of each transaction.Poshmark's filing is landing in investors' laps after last week's IPOs of DoorDash and Airbnb, which are also marketplace businesses, resulted in huge first-day pops, potentially indicating public market appetite for the business model. Discount online retailer Wish followed with its IPO this week, though its stock price fell out of the gate. Revenue at Poshmark increased 28% in the first three quarters of 2020 to $192.8 million from $150.5 million the same period last year. It swung to a profit of $20.9 million over that stretch, after losing $33.9 million a year ago.Gross merchandise volume, a key metric measuring total dollar value of merchandise sold online, was negatively impacted in the first quarter because of the coronavirus pandemic. It increased just 9% in the first three months of the year, but