Online Marketplace Stocks Q4 In Review: Remitly (NASDAQ:RELY) Vs Peers
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including Remitly (NASDAQ:RELY) 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 12 online marketplace stocks we track reported a slower Q4; on average, revenues beat analyst consensus estimates by 1.2% while next quarter's revenue guidance was 3.7% 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 16% on average since the previous earnings results.
Remitly (NASDAQ:RELY)
With Amazon 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 $264.8 million, up 38.6% year on year, topping analyst expectations by 1.3%. It was a very strong quarter for the company, with impressive growth in its user base and exceptional revenue growth.
“Our strong fourth quarter and full year 2023 performance is the direct result of delighting our customers with a reliable and fast cross-border payments experience,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly.
Remitly pulled off the highest full-year guidance raise of the whole group. The company reported 5.9 million active buyers, up 40.5% year on year. The stock is up 18.3% since the results and currently trades at $20.92.
We think Remitly is a good business, but is it a buy today? Read our full report here, it's free.
Best Q4: 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 $4.26 billion, up 41.9% year on year, outperforming analyst expectations by 2.8%. It was an impressive quarter for the company. MercadoLibre's robust user growth enabled it to beat analysts' revenue, total payment volume (TPV), and gross merchandise volume (GMV) estimates.
MercadoLibre pulled off the fastest revenue growth among its peers. The company reported 145 million daily active users, up 49.5% year on year. The stock is down 15.5% since the results and currently trades at $1,539.51.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $217.2 million, down 0.2% year on year, falling short of analyst expectations by 3%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and a decline in its user base.
Shutterstock had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 523,000 users, down 10.8% year on year. The stock is up 3.8% since the results and currently trades at $46.15.
Read our full analysis of Shutterstock's results here.
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 $660.5 million, up 3.6% year on year, falling short of analyst expectations by 1.6%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
The company reported 89.6 million users, up 7.6% year on year. The stock is down 25.6% since the results and currently trades at $15.26.
Read our full, actionable report on Teladoc 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 $179.6 million, up 6.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with slow revenue growth. Its revenue guidance for next quarter also fell short, but it expects to generate higher adjusted EBITDA margins than expected (28% vs estimates of 27%).
The company reported 19,504 active buyers, flat year on year. The stock is down 3.5% since the results and currently trades at $17.41.
Read our full, actionable report on Cars.com here, it's free.
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