As the Q2 earnings season comes to a close, it’s time to take stock of 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 decent Q2. As a group, revenues beat analysts’ consensus estimates by 4.9% while next quarter’s revenue guidance was 5.1% above.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, online marketplace stocks have held steady amidst all this with share prices up 1.7% on average since the latest earnings results.
Coinbase (NASDAQ:COIN) Regarded by many as the face of crypto, Coinbase (NASDAQ:COIN) is a digital platform helping the world onboard into the blockchain ecosystem.
Coinbase reported revenues of $1.45 billion, up 105% year on year. This print exceeded analysts’ expectations by 6.2%. Overall, it was a very strong quarter for the company with exceptional revenue growth and a solid beat of analysts’ user estimates.
Coinbase scored the fastest revenue growth of the whole group. The company reported 8.2 million monthly active users, up 12.3% year on year. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 4.9% since reporting and currently trades at $202.51.
Is now the time to buy Coinbase? Find out by reading the original article on StockStory, it’s free. Best Q2: 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 $117.1 million, up 72.3% year on year, outperforming analysts’ expectations by 13.9%. It was an incredible quarter for the company with optimistic revenue guidance for the next quarter and exceptional revenue growth.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.2% since reporting. It currently trades at $22.02.
Weakest Q2: 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 $178.9 million, up 6.4% year on year, falling short of analysts’ expectations by 1.6%. It was a weak quarter for the company with underwhelming revenue guidance for the next quarter and slow revenue growth.
Cars.com posted the weakest performance against analyst estimates in the group. The company reported 19,390 active buyers, up 3.2% year on year. As expected, the stock is down 1.8% since the results and currently trades at $17.56.
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 $218.7 million, down 8.8% year on year, surpassing analysts’ expectations by 1.4%. Zooming out, it was a mixed quarter for the company with in-line revenue guidance for the next quarter but slow revenue growth.
CarGurus had the slowest revenue growth among its peers. The company reported 31,352 users, up 0.8% year on year. The stock is up 22.7% since reporting and currently trades at $27.50.
Remitly (NASDAQ:RELY)With Amazon (NASDAQ:AMZN) founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Remitly reported revenues of $306.4 million, up 30.9% year on year, surpassing analysts’ expectations by 1.5%. Overall, it was a strong quarter for the company with impressive growth in its buyers and strong top-line growth.
The company reported 6.85 million active buyers, up 36.1% year on year. The stock is up 9.4% since reporting and currently trades at $14.48.
This content was originally published on Stock Story
