As online marketplace stocks’ Q1 earnings season wraps, let's dig into this quarter's best and worst performers, including Airbnb (NASDAQ:ABNB) 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 which feed back into further customer acquisition.
The 11 online marketplace stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 3.34%, while on average next quarter revenue guidance was 1.51% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth , but online marketplace stocks held their ground better than others, with the share prices up 1.6% since the previous earnings results, on average.
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 $1.82 billion, up 20.5% year on year, beating analyst expectations by 1.72%. It was a mixed quarter for the company, with growing number of users but an underwhelming revenue guidance for the next quarter.
The stock is down 13.8% since the results and currently trades at $109.53.
Is now the time to buy Airbnb? Access our full analysis of the earnings results here, it's free.
Best Q1: MercadoLibre (NASDAQ:MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) today is a one-stop e-commerce marketplace in Latin America.
MercadoLibre reported revenues of $3.04 billion, up 35.1% year on year, beating analyst expectations by 5.22%. It was a very strong quarter for the company, with growing number of users and a solid beat of analyst estimates.
MercadoLibre delivered the fastest revenue growth among its peers. The company reported 101 million daily active users, up 24.7% year on year. The stock is up 4.69% since the results and currently trades at $1,343.9.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $141.9 million, down 3.27% year on year, missing analyst expectations by 0.36%. It was a weak quarter for the company, with underwhelming revenue guidance for the full year and slow revenue growth.
The RealReal had the weakest performance against analyst estimates and weakest full year guidance update in the group. The company reported 1.01 million paying users, up 22.5% year on year. The stock is up 10.6% since the results and currently trades at $1.46.
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 $640.9 million, up 10.6% year on year, beating analyst expectations by 3.21%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and slow revenue growth.
The company reported 95.5 million active buyers, up 0.45% year on year. The stock is down 9.21% since the results and currently trades at $89.88.
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 $556.4 million, up 8.08% year on year, beating analyst expectations by 7.96%. It was a decent quarter for the company, with an impressive beat of analyst estimates but slow revenue growth.
The company reported 3.99 million active buyers, up 4.45% year on year. The stock is up 30.1% since the results and currently trades at $5.66.
The author has no position in any of the stocks mentioned