As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the online marketplace industry, including eHealth (NASDAQ:EHTH) and its peers.
Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
The 13 online marketplace stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.
Luckily, online marketplace stocks have performed well with share prices up 32.8% on average since the latest earnings results.
eHealth (NASDAQ:EHTH)
Aiming to address a high-stakes and often confusing decision, eHealth (NASDAQ:EHTH) guides consumers through health insurance enrollment and related topics.
eHealth reported revenues of $58.41 million, down 9.7% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations.
eHealth delivered the slowest revenue growth of the whole group. The stock is up 96.1% since reporting and currently trades at $10.
Read our full report on eHealth here, it’s free.
Best Q3: Shutterstock (NYSE:SSTK)
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Shutterstock reported revenues of $250.6 million, up 7.4% year on year, outperforming analysts’ expectations by 5.1%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of paid downloads estimates.
The market seems happy with the results as the stock is up 8.7% since reporting. It currently trades at $32.09.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: MercadoLibre (NASDAQ:MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
MercadoLibre reported revenues of $5.31 billion, up 35.3% year on year, exceeding analysts’ expectations by 2.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 3.8% since the results and currently trades at $2,039.
Read our full analysis of MercadoLibre’s results here.
The RealReal (NASDAQ:REAL)
Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
The RealReal reported revenues of $147.8 million, up 11% year on year. This number surpassed analysts’ expectations by 4.5%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a slight miss of analysts’ number of active buyers estimates.
The RealReal pulled off the highest full-year guidance raise among its peers. The company reported 389,000 users, up 6.9%xx year on year. The stock is up 151% since reporting and currently trades at $7.67.
Read our full, actionable report on The RealReal here, it’s free.
ACV Auctions (NASDAQ:ACVA)
Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
ACV Auctions reported revenues of $171.3 million, up 44% year on year. This result beat analysts’ expectations by 7%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
ACV Auctions delivered the biggest analyst estimates beat among its peers. The company reported 198,354 units sold, up 32.2%xx year on year. The stock is up 12.7% since reporting and currently trades at $21.98.
Read our full, actionable report on ACV Auctions here, it’s free.
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