As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the online marketplace industry, including Coinbase (NASDAQ:COIN) 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 16 online marketplace stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 1% above.
Luckily, online marketplace stocks have performed well with share prices up 13.5% on average since the latest earnings results.
Coinbase (NASDAQ:COIN)
Regarded by many as the face of crypto, Coinbase (NASDAQ:COIN) is a digital exchange helping the world onboard into the blockchain ecosystem.Coinbase reported revenues of $1.21 billion, up 78.8% year on year. This print fell short of analysts’ expectations by 4%. Overall, it was a softer quarter for the company, with the number of monthly transacting users falling below analysts' estimates.
Coinbase delivered the weakest performance against analyst estimates of the whole group. The company reported 7.8 million monthly active users, up 16.4% year on year. Interestingly, the stock is up 40.2% since reporting and currently trades at $297.
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Best Q3: 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 providersEverQuote reported revenues of $144.5 million, up 163% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
EverQuote scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 14% since reporting. It currently trades at $19.76.
Weakest Q3: Robinhood (NASDAQ:HOOD)
With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.Robinhood reported revenues of $637 million, up 36.4% year on year, falling short of analysts’ expectations by 3.2%. It was a softer quarter as it posted a miss of analysts’ EBITDA estimates.
Interestingly, the stock is up 25.9% since the results and currently trades at $35.55.
Shutterstock (NYSE: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. This result beat analysts’ expectations by 4.1%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of paid downloads estimates.
The company reported 112.3 million service requests, up 209% year on year. The stock is up 1.6% since reporting and currently trades at $30.
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 3.2%. It was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates.
The RealReal pulled off the highest full-year guidance raise among its peers. The company reported 389,000 users, up 6.9% year on year. The stock is up 44.4% since reporting and currently trades at $4.41.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.Want to invest in winners with rock-solid fundamentals? Check out our and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
This content was originally published on Stock Story
