Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Airbnb (NASDAQ:ABNB), and the best and worst performers in the online marketplace group.
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 which feed back into further customer acquisition.
The 4 online marketplace stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 1.03%, while on average next quarter revenue guidance was 0.7% under consensus. Tech stocks have been under pressure since the end of last year and while some of the online marketplace stocks have fared somewhat better, they have not been spared, with share price declining 14.1% since earnings, on average.
Best Q1: Airbnb (NASDAQ:ABNB)
Founded by Joe Gebbia and Brian Chesky by renting out a blowup bed on the floor of their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Airbnb reported revenues of $1.5 billion, up 70.1% year on year, beating analyst expectations by 3.88%. It was a stunning quarter for the company, with an exceptional revenue growth and growing number of users.
Airbnb pulled off the fastest revenue growth of the whole group. The company reported 102.1 million nights booked, up 58.5% year on year. The stock is down 16.4% since the results and currently trades at $121.10.
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 $146.7 million, up 48.4% year on year, beating analyst expectations by 7.59%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.
The RealReal scored the strongest analyst estimates beat among its peers. The company reported 828 thousand paying users, up 20.5% year on year. The stock is down 33.5% since the results and currently trades at $2.93.
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Slowest Q1: 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 $514.8 million, up 6.12% year on year, missing analyst expectations by 8.11%. It was a weak quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth.
Farfetch had the weakest performance against analyst estimates in the group. The company reported 3.82 million active buyers, up 16.8% year on year. The stock is up 17% since the results and currently trades at $8.99.
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 $579.2 million, up 5.19% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.
Etsy had the slowest revenue growth among the peers. The company reported 95.1 million active buyers, up 4.9% year on year. The stock is down 23.5% since the results and currently trades at $83.80.
The author has no position in any of the stocks mentioned