Online Marketplace Stocks Q3 Results: Benchmarking Teladoc (NYSE:TDOC)
As online marketplace stocks’ Q3 earnings season wraps, let's dig into this quarter's best and worst performers, including Teladoc (NYSE:TDOC) 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 11 online marketplace stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 1.8% while next quarter's revenue guidance was 1.7% below consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but online marketplace stocks held their ground better than others, with the share prices up 2.8% on average since the previous earnings results.
Teladoc (NYSE:TDOC)
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Teladoc reported revenues of $660.2 million, up 8% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year. Additionally, while EPS beat by a bit this quarter, EPS guidance for next quarter missed Wall Street's estimates.
Teladoc delivered the weakest full-year guidance update of the whole group. The company reported 90.2 million users, up 9.9% year on year. The stock is up 10.4% since the results and currently trades at $20.
Is now the time to buy Teladoc? Access our full analysis of the earnings results here, it's free.
Best Q3: 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 $3.76 billion, up 39.8% year on year, outperforming analyst expectations by 5.9%. It was a very good quarter for the company, with impressive growth in its user base and exceptional revenue growth.
MercadoLibre scored the fastest revenue growth among its peers. The company reported 120 million daily active users, up 36.4% year on year. The stock is up 28.9% since the results and currently trades at $1,673.06.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Farfetch (NYSE:FTCH)
Inspired by the idea of allowing anyone to buy clothes from landmark boutiques of cities like Paris or Milan without having to leave their couch, Farfetch (NYSE: FTCH) is a global marketplace for luxury fashion, connecting boutiques, brands and consumers.
Farfetch reported revenues of $572.1 million, down 1.3% year on year, falling short of analyst expectations by 12.1%. It was a weak quarter for the company. Farfetch missed on key metrics such as gross merchandise value (GMV), active consumers, revenue, and adjusted EBITDA. Its revenue missed by a significant margin and growth also slowed. Looking ahead, the company lowered its full year GMV guidance meaningfully and also cut adjusted EBITDA guidance for the same period.
Farfetch had the weakest performance against analyst estimates in the group. The company reported 4.13 million active buyers, up 7.5% year on year. The stock is down 91.2% since the results and currently trades at $0.42.
Read our full analysis of Farfetch's results here.
Sea (NYSE: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 $3.31 billion, up 4.9% year on year, surpassing analyst expectations by 3.1%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth. The company also stated that they will "prioritize investing in the business to increase our market share and further strengthen our market leadership", which is having a negative impact on profits.
The company reported 40.5 million users, down 21.4% year on year. The stock is down 22.9% since the results and currently trades at $35.51.
Read our full, actionable report on Sea here, it's free.
Cars.com (NYSE:CARS)
Originally started as a joint venture between several media companies including The Washington 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 $174.3 million, up 5.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with a decline in its user base and slow revenue growth.
The company reported 18,715 active buyers, down 4.4% year on year. The stock is up 11.6% since the results and currently trades at $16.79.
Read our full, actionable report on Cars.com here, it's free.
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The author has no position in any of the stocks mentioned
