Second-hand retailer Poshmark Inc on Tuesday forecast third-quarter revenue largely below estimates and said its marketing efforts were taking a hit from Apple Inc’s new privacy controls over digital advertising tracking.
Poshmark, which went public earlier this year, felt the impact of Apple’s new policy in the second quarter and expects it to continue into the current quarter as well, Chief Executive Officer Manish Chandra told Reuters in a call.
Apple in April enforced a rule requiring developers to seek permission for gathering data that can be used to track users across other sites and apps. The policy attracted criticism from Facebook Inc, which said the rules could harm its customers.
But Chandra was confident the effects of Apple’s policy were only temporary, as Poshmark has been spending heavily on alternatives such as TV ads and tie-ups with celebrities like Marie Kondo.
“It will work itself out as we go through the quarter and the second half, largely because our channels are quite diversified and super adaptable,” Chandra said.
Poshmark said revenue rose 22% to $81.8 million in the second quarter ended June 30, beating Refinitiv IBES estimates of $80.3 million as it pulled in thrifty young buyers looking for more environmentally sustainable ways to buy clothes and home decor.
However, the company expects third-quarter fiscal 2021 revenue of $81 million to $83 million, with the mid-point slightly below estimates of $82.4 million.
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