Stitch Fix, a personal styling service powered by machine learning, delivered strong third quarter financial results on Thursday.
The San Francisco-based company reported net income of $9.5 million, or nine cents per share, on revenue of $$316.7 million, an increase of 29 percent from a year ago.
Wall Street was looking for earnings of just three cents per share on revenue of $306.4 million. Stitch Fix shares were up as much as six percent in after market trading.
Elsewhere on the balance sheet, Stitch Fix said it had 2.7 million active clients, up 30 percent from the same time last year. The customer increase is a testament to the Stitch Fix business model and its reliance on data science and machine learning algorithms.
Through these technologies, Stitch Fix has created a data-driven customer feedback loop that’s helping the company close the gap between customer information and experience.
“We continue to balance growth and profitability, demonstrated by our ability to consistently deliver top-line growth of over 20 percent even as we invest in category expansions, technology talent, and marketing,” said Stitch Fix CEO Katrina Lake. “Our third quarter results demonstrate continued positive momentum for Stitch Fix and the power of our unique ability to deliver personalized service at scale.”