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 mixed Q2; on average, revenues beat analyst consensus estimates by 1.89%, while on average next quarter revenue guidance was 2.89% under consensus. There has been a stampede out of high valuation technology stocks, but online marketplace stocks held their ground better than others, with the share price up 1.21% since earnings, on average.
Best Q2: 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 $2.1 billion, up 57.5% year on year, missing analyst expectations by 0.04%. Despite the stock dropping on the results, it was a very strong quarter for the company, with an exceptional revenue growth and growing number of users.
![Airbnb Total Revenue](https://news-assets.stockstory.org/chart-images/Airbnb-Total-Revenue_2022-09-14-103721_jwiq.png)
Airbnb achieved the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. The company reported 103.7 million nights booked, up 24.7% year on year. The stock is up 4.73% since the results and currently trades at $122.02.
Read why we think that Airbnb is one of the best online marketplace stocks, our full report is free.
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 $579.3 million, up 10.7% year on year, beating analyst expectations by 2.26%. It was a mixed quarter for the company, with a growing number of users but a slow revenue growth.
![Farfetch Total Revenue](https://news-assets.stockstory.org/chart-images/Farfetch-Total-Revenue_2022-09-14-103724_rgsj.png)
The company reported 3.84 million active buyers, up 13.2% year on year. The stock is up 13.1% since the results and currently trades at $10.78.
Is now the time to buy Farfetch? Access our full analysis of the earnings results here, it's free.
Slowest Q2: Etsy (NASDAQ:ETSY)
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 $585.1 million, up 10.6% year on year, beating analyst expectations by 5.06%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.
Etsy delivered the strongest analyst estimates beat but had the slowest revenue growth in the group. The company reported 93.9 million active buyers, up 3.82% year on year. The stock is up 12.5% since the results and currently trades at $107.49.
Read our full analysis of Etsy's results here.
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 $154.4 million, up 47.2% year on year, in line with analyst expectations. Despite the solid topline growth, it was a slower quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' estimates.
The company reported 889 thousand paying users, up 21.7% year on year. The stock is down 25.5% since the results and currently trades at $2.27.
Read our full, actionable report on The RealReal here, it's free.
The author has no position in any of the stocks mentioned