Fashion marketplace Poshmark achieved $326 million in net revenue in 2021, a 25% gain year-over-year versus 2020. Its gross merchandise value (GMV) was up by a similar 27% to $1.8 billion over the same timeframe.

By way of comparison, net revenue stood at $205 million in 2019, the last full year prior to the pandemic.

Poshmark’s adjusted EBITDA was $7.3 million, down from $36.0 million in 2020, while the adjusted EBITDA margin was 2.2% in 2021.

On a quarterly basis, total revenue climbed by 22% year-over-year to $84.2 million in Q4 2021, while GMV rose by 27% to $491 million.

The California-based company posted a Q4 adjusted EBITDA of -$4.7 million, with a -5.5% margin.

Poshmark cited investments in marketing and rising numbers of active buyers as positive factors behind its performance, helping counter the impact of Apple privacy changes.

“We had a strong finish to a historic year for Poshmark with record GMV and revenues. Despite a very unpredictable and volatile environment globally, we delivered our second year of adjusted EBITDA profitability and positive free cash flow during our first year as a public company,” said founder and CEO Manish Chandra.

“Throughout the year, consumers came to Poshmark to discover, shop the latest trends, and connect with our community. This culminated in our strongest-ever holiday performance and record trailing 12 months active buyers of 7.6 million.”

Announcing its results, the marketplace said that social interactions were up 47% year-over-year to 44.6 billion in 2020, while the stacked buyer cohort retention reached 104%, up from 102% in 2020, and stacked seller cohort retention stood at 112%, ticking up from 111% in 2020.

“Our cohorts continue to remain stable and the strong engagement from our users gives us the confidence to invest for the long term as we are still in the early stages of our growth cycle,” added Chandra.

“Our asset-light model, which is both adaptable and responsive to changing consumer demands and insulated from supply chain disruption, uniquely positions us to thrive in the current environment.”

Developments in Q4 included the acquisition of Suede One, a platform that Poshmark says combines machine learning, computer vision, and expert human review to virtually authenticate sneakers.

October saw the launch of its Brand Closets program, letting major brands directly connect with users, while two CRM programs for sellers, “My Shoppers” and “Closet Insights”, were created to drive engagement and improve communication with customers.

The company also introduced an electronics category and began rolling out “Shop by Trend” to give users a more personal experience. In an earnings call, the company told investors the new feature “strengthens searchability and engagement, contributing to the stickiness of our platform and user retention.”

“Poshmark is leading the way for a new model of sustainable commerce that resonates with today’s consumers, especially Gen Z and millennials,” Rodrigo Brumana, who joined the platform as CFO in December, told investors.

“I have spent my first 90 days doing deep dives into various aspects of our business, drawing upon my past experiences to increase the regrowth of our financial planning process and strengthening our business operations. I am excited by the many potential opportunities for future growth ahead. That’s why my key priorities for 2022 are focusing on execution, growing our core business, and ensuring that our initiatives are properly funded.”

Poshmark aims to combine “the human connection of physical shopping with the scale, ease, and selection benefits of e-commerce.” The site encourages users to connect through social network-style features.

With more than 80 million registered users to date, the California-based marketplace competes against sites including The RealReal, ThredUp, Grailed and Depop. It went public in January 2021.

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