Looking back on online marketplace stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including eBay (NASDAQ:EBAY) 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 13 online marketplace stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.
Luckily, online marketplace stocks have performed well with share prices up 32.3% on average since the latest earnings results.
eBay (NASDAQ:EBAY)
Originally known as the first online auction site, eBay (NASDAQ:EBAY) is one of the world’s largest online marketplaces.
eBay reported revenues of $2.58 billion, up 3% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a slower quarter for the company with full-year revenue guidance slightly missing analysts’ expectations.
"We achieved another quarter of positive GMV growth and delivered strong results across our key metrics," said Jamie Iannone, Chief Executive Officer at eBay.
eBay delivered the weakest full-year guidance update of the whole group. The company reported 133 million active buyers, up 0.8% year on year. Interestingly, the stock is up 8.5% since reporting and currently trades at $67.95.
Read our full report on eBay here, it’s free.
Best Q3: 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 $250.6 million, up 7.4% year on year, outperforming analysts’ expectations by 5.1%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ number of paid downloads estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $29.49.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free.
Weakest 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 $5.31 billion, up 35.3% year on year, exceeding analysts’ expectations by 2.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 4.7% since the results and currently trades at $2,021.
Read our full analysis of MercadoLibre’s results here.
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 $144.5 million, up 163% year on year. This number beat analysts’ expectations by 2.9%. It was a very strong quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations.
EverQuote achieved the fastest revenue growth among its peers. The stock is up 20% since reporting and currently trades at $20.80.
Read our full, actionable report on EverQuote 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 $640.5 million, down 3% year on year. This result topped analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also produced revenue guidance for next quarter beating analysts’ expectations and a narrow beat of analysts’ EBITDA estimates.
The company reported 93.9 million users, up 4.1%xx year on year. The stock is up 42.4% since reporting and currently trades at $12.60.
Read our full, actionable report on Teladoc here, it’s free.
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