Zulily Reports Mixed 1Q15 Results



Highlights of Zulily’s first quarter financial results

Zulily (ZU) reported that 1Q15 net revenue increased by 29% YoY (year-over-year) to approximately $306 million and gross profit increased by 45% YoY to approximately $92 million. Even though the company reported a significant growth in revenue, it missed consensus estimates by $6.53 million. Zulily’s 1Q15 EPS of $0.01 surpassed consensus estimates by $0.04. Thus the company’s first quarter results were mixed.

Similarly, other peers in this space, namely Alibaba (BABA) and eBay (EBAY), also reported their earnings recently. Alibaba posted better-than-expected results beating consensus estimates on both earnings and revenue. eBay also managed to beat analyst estimates on both these metrics. For more detailed information about their earnings, read Market Realist’s article Alibaba’s Fiscal 4Q15 Results Were Driven by Mobile Devices and eBay’s Better-Than-Expected 1Q15 Results Please Investors.

After the results announcement, Zulily’s stock fell by 19% on account of a weaker Q2 outlook and mixed 1Q results. Not only this, in the month of February this year, Zulily’s stock dropped by 27% after the company announced its 4Q14 results. Since then, the company has been trading below the volatile price range.

During 1Q15, active customers increased by 35% YoY and total orders placed grew by 15% YoY. Around 55% of orders were placed from mobile devices in 1Q15 as compared to 50% in 4Q14.

Guidance for 2Q15 and full-year 2015

For the second quarter of 2015, Zulily expects revenue in the range of $285 million to $300 million. This is below the consensus estimates of $385 million. Also, the company expects revenue for full-year 2015 to be in the range of $1.3 billion to $1.4 billion, which is way below consensus estimates of $1.56 billion.

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