Zulily, the fast-growing e-commerce site, woke up to a major Wall Street migraine this morning.
Shares of Zulily continued to tank on Wednesday after the Seattle-based company disappointed with an earnings miss and a lackluster profit outlook in its first quarter financial report. Shares are now trading at about $32, down 30 percent on the day.
The company, which went public at $22 per share last November, has a market value just over $4 billion. The stock peaked at $72 in February.
Even though the company beat projections on revenue and boosted revenue guidance by $50 million for the year — to $1.15 billion to $1.2 billion — Wall Street was not amused with the Amazon-like approach to growth.
CEO Darrell Cavens says they are “investing aggressively.”
In fact, like Amazon, Zulily is spending heavily on building new fulfillment centers, and it is also boosting marketing efforts. It now has 1,380 employees, up from 1,110 at the end of 2013.
Zulily Chairmain Mark Vadon even channeled his inner Jeff Bezos in the analyst call yesterday, noting that Zulily is “very happy to be misunderstood for a long time.” (See earlier GeekWire story: Jeff Bezos on innovation: Amazon ‘willing to be misunderstood for long periods of time’) He also added the Zulily is doing “everything we can to make our customers happy.”
In fact, the word customers was used about 30 times in the company’s Q&A session with investors.
“We’ve built a company to a scale and at a pace which has not often been done before and I think it’s because we are doing something completely different,” said Vadon.