As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at online marketplace stocks, starting with Shutterstock (NYSE:SSTK).
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 4.3%. while next quarter's revenue guidance was 2.4% above consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and online marketplace stocks have held roughly steady amidst all this, with share prices up 0.9% on average since the previous earnings results.
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 $214.3 million, down 0.4% year on year, topping analysts' expectations by 2.8%. It was a mixed quarter for the company, with full-year revenue guidance exceeding analysts' expectations but a decline in its users.
Commenting on the Company's performance, Paul Hennessy, the Company's Chief Executive Officer, said, "Shutterstock delivered strong first quarter results beyond our expectations. Data, Distribution & Services benefited from increased demand from new and existing customers. In Content, we saw leading indicators of a turn that are extremely encouraging. I'm also pleased to report that Shutterstock has entered into a definitive agreement to acquire Envato, a leading provider of digital creative assets and templates. On our last earnings call, I laid out the long-term targets for Shutterstock 2027. Envato accelerates the path to Shutterstock 2027, expanding our reach into faster growing audiences while enhancing our Content breadth and depth. We look forward to welcoming the entire Envato team to Shutterstock."
Shutterstock pulled off the highest full-year guidance raise of the whole group. The company reported 499,000 users, down 10.7% year on year. The stock is down 5.5% since the results and currently trades at $40.1.
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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, outperforming analysts' expectations by 12.1%. It was a stunning quarter for the company: MercadoLibre blew past analysts' revenue and EPS estimates, driven by better-than-expected GMV on its e-commerce platform.
The stock is up 6% since the results and currently trades at $1,597.16.
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 20% since the results and currently trades at $26.72.
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, surpassing 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 down 2.4% since the results and currently trades at $20.83.
Sea (NYNYSE:SE:SE) Founded in 2009 and a publicly traded company since 2017, Sea (NYSE:SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Sea reported revenues of $3.83 billion, up 25.8% year on year, surpassing analysts' expectations by 5.6%. It was a very strong quarter for the company, with impressive growth in its users and solid revenue growth.
The company reported 48.9 million users, up 30.1% year on year. The stock is up 14.9% since the results and currently trades at $74.05.
