As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the online marketplace industry, including ACV Auctions (NASDAQ:ACVA) 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 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 3.1% on average since the previous earnings results.
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, exceeding analysts' expectations by 1.2%. Overall, it was a mixed quarter for the company with strong growth in its units.
“We are very pleased with our strong first quarter results with revenue at the high-end of our guidance range, strong year-over-year margin expansion, and Adjusted EBITDA at the high-end of guidance range, resulting in our first profitable quarter as a public company, on a non-GAAP basis,” said George Chamoun, CEO of ACV.
The stock is flat since reporting and currently trades at $17.37.
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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 with exceptional revenue growth.
The market seems happy with the results as the stock is up 16.7% since reporting. It currently trades at $1,758.
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, in line with analysts' expectations. It was a weak quarter for the company with slow revenue growth and underwhelming revenue guidance for the next quarter.
Interestingly, the stock is up 13.6% since the results and currently trades at $25.30.
Cars.com (NYSE:NYSE:CARS) Originally started as a joint venture between several media companies including The Washington Post (NYSE:POST) and The New York Times, Cars.com (NYSE:CARS) is a digital marketplace that connects new and used car buyers and sellers.
Cars.com reported revenues of $180.2 million, up 7.8% year on year, in line with analysts' expectations. Overall, it was a mixed quarter for the company.
The company reported 19,381 active buyers, up 1% year on year. The stock is up 11.9% since reporting and currently trades at $19.10.
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 $92.96 million, up 26.1% year on year, surpassing analysts' expectations by 15.3%. Revenue aside, it was an ok quarter for the company with solid revenue growth but a decline in its users.
eHealth scored the biggest analyst estimates beat among its peers. The company reported 1.18 billion users, down 4.7% year on year. The stock is down 1% since reporting and currently trades at $4.74.
This content was originally published on Stock Story
