Analyst Note
| Jelena Sokolova, CFA |We don’t expect to significantly alter our fair value estimate for Farfetch as the company reported third-quarter results below its guidance. Digital platform gross merchandize value, or GMV, growth came in at 23% versus company guidance for a 30% increase; brand platform GMV was up by 47% slightly ahead of 45% guidance. Adjusted EBITDA came in at $5.3 million, short of $10 million guidance. While growing revenue continued to scale positively against operating costs, leading to profitability, gross margin declined year on year from 47.8% to 43.3%.