Online Marketplace Stocks Q3 Teardown: Shutterstock (NYSE:SSTK) Vs The Rest
Let's dig into the relative performance of Shutterstock (NYSE:SSTK) and its peers as we unravel the now-completed Q3 online marketplace earnings season.
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 10 online marketplace stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 3.2% while next quarter's revenue guidance was 1.7% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but online marketplace stocks held their ground better than others, with the share prices up 18.4% on average since the previous earnings results.
Shutterstock (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 $233.2 million, up 14.3% year on year, topping analyst expectations by 8.8%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but a decline in its user base.
Commenting on the Company's performance, Paul Hennessy, the Company's Chief Executive Officer, said, "In the third quarter, Shutterstock's data and creative engines fueled faster growth and furthered the transformation of our business. Enterprise demand picked up, and we expect a further acceleration in the fourth quarter. We are seeing stabilization and expect a recovery in E-commerce over the next several quarters supported by marketing and product innovation. Based on our strong year to date performance, and improved confidence and visibility in our business, we are again raising both revenue and EBITDA guidance for 2023."
Shutterstock scored the biggest analyst estimates beat and highest full-year guidance raise of the whole group. The company reported 551,000 users, down 9.2% year on year. The stock is up 45.9% since the results and currently trades at $50.
Is now the time to buy Shutterstock? 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 36.5% since the results and currently trades at $1,771.91.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Weakest Q3: 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.
Teladoc had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 90.2 million users, up 9.9% year on year. The stock is up 16.7% since the results and currently trades at $21.15.
Read our full analysis of Teladoc'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 24.6% since the results and currently trades at $22.9.
Read our full, actionable report on CarGurus here, it's free.
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 $133.2 million, down 6.7% year on year, surpassing analyst expectations by 6.4%. It was a weaker quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.
The company reported 954,000 users, up 0.4% year on year. The stock is up 20.4% since the results and currently trades at $1.93.
Read our full, actionable report on The RealReal here, it's free.
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The author has no position in any of the stocks mentioned
