Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at MercadoLibre (NASDAQ:MELI) and the best and worst performers in the online marketplace industry.
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 15 online marketplace stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 4.2%. while next quarter's revenue guidance was 2.4% above consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the online marketplace stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.5% on average since the previous earnings results.
Best Q1: 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 $4.33 billion, up 36% year on year, topping analysts' expectations by 12.1%. It was a stunning quarter for the company: MercadoLibre blew past analysts' revenue and EPS estimates this quarter, driven by better-than-expected GMV on its e-commerce platform.
The stock is up 5.5% since the results and currently trades at $1,590.15.
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EverQuote (NASDAQ:EVER) Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
EverQuote reported revenues of $91.07 million, down 16.6% year on year, outperforming analysts' expectations by 13.4%. It was a very strong quarter for the company, with optimistic revenue guidance for the next quarter.
EverQuote had the slowest revenue growth among its peers. The stock is up 0.6% since the results and currently trades at $21.47.
Slowest Q1: CarGurus (NASDAQ:CARG) Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ:CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
CarGurus reported revenues of $215.8 million, down 7% year on year, falling short of analysts' expectations by 0.5%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.
The stock is up 12.7% since the results and currently trades at $25.1.
Etsy (NASDAQ:ETSY) Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Etsy reported revenues of $646 million, flat year on year, falling short of analysts' expectations by 0.1%. It was a weaker quarter for the company, with slow revenue growth.
The company reported 96.39 million active buyers, up 0.9% year on year. The stock is down 16.2% since the results and currently trades at $58.49.
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 $145.7 million, up 21.8% year on year, surpassing analysts' expectations by 1.2%. It was a mixed quarter for the company, with some shareholders hoping for a better result.
The company reported 174,631 units sold, up 15.2% year on year. The stock is up 1% since the results and currently trades at $17.51.
This content was originally published on Stock Story
