Online Marketplace Stocks Q3 In Review: Etsy (NASDAQ:ETSY) Vs Peers
The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s take a look at how Etsy (NASDAQ:ETSY) and the rest of the online marketplace stocks fared in Q3.
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. Inflation (despite slowing) has investors prioritizing near-term cash flows, but online marketplace stocks held their ground better than others, with the share prices up 7.1% on average since the previous earnings results.
Etsy (NASDAQ:ETSY)
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Etsy reported revenues of $636.3 million, up 7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a narrow beat of analysts' revenue estimates but slow revenue growth.
The stock is up 26.3% since the results and currently trades at $76.76.
Is now the time to buy Etsy? 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 strong 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 21.2% since the results and currently trades at $1,573.2.
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, with slow revenue growth and a miss of analysts' revenue estimates.
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.
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 $219.4 million, down 48.5% year on year, surpassing analyst expectations by 1.6%. It was a mixed quarter for the company, with revenue exceeding expectations. Adjusted EBITDA and EPS beat by a more meaningful amount. On the other hand, its revenue growth regrettably slowed and its revenue guidance for next quarter and the full year missed Wall Street's estimates. However, adjusted EBITDA guidance for next quarter and the full year were ahead of expectations.
CarGurus had the slowest revenue growth among its peers. The company reported 31,191 users, down 0.3% year on year. The stock is up 25% since the results and currently trades at $22.97.
Read our full, actionable report on CarGurus here, it's free.
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 revenue guidance missing analysts' expectations.
Teladoc had the weakest full-year guidance update among its peers. The company reported 90.2 million users, up 9.9% year on year. The stock is up 20.3% since the results and currently trades at $21.8.
Read our full, actionable report on Teladoc here, it's free.
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The author has no position in any of the stocks mentioned
