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Q3 Rundown: Airbnb (NASDAQ:ABNB) Vs Other Online Marketplace Stocks


Adam Hejl /
2023/01/05 2:15 am EST
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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 weaker Q3; on average, revenues were in line with analyst consensus estimates, while on average next quarter revenue guidance was 4.17% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable and while some of the online marketplace stocks have fared somewhat better than others, they have not been spared, with share prices declining 8.95% since the previous earnings results, on average.

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 $2.88 billion, up 28.9% year on year, beating analyst expectations by 1.26%. It was a mixed quarter for the company, with growing number of users but an underwhelming revenue guidance for the next quarter.

Airbnb Total Revenue

Airbnb pulled off the fastest revenue growth of the whole group. The company reported 99.7 million nights booked, up 25% year on year. The stock is down 18.7% since the results and currently trades at $88.60.

Is now the time to buy Airbnb? Access our full analysis of the earnings results here, it's free.

Best Q3: 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 $594.4 million, up 11.6% year on year, beating analyst expectations by 5.4%. It was a decent quarter for the company, with a solid beat of analyst estimates and revenue guidance for the next quarter in line with analysts' expectations.

Etsy Total Revenue

Etsy scored the strongest analyst estimates beat among its peers. The company reported 94.1 million active buyers, up 5.31% year on year. The stock is up 33.5% since the results and currently trades at $116.82.

Is now the time to buy Etsy? Access our full analysis of the earnings results here, it's free.

Weakest Q3: 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 $593.3 million, up 1.85% year on year, missing analyst expectations by 0.53%. It was a weak quarter for the company, with slow revenue growth and a miss of the top line analyst estimates.

Farfetch had the slowest revenue growth in the group. The company reported 3.9 million active buyers, up 8.62% year on year. The stock is down 46.9% since the results and currently trades at $4.85.

Read our full analysis of Farfetch'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 $142.7 million, up 20% year on year, missing analyst expectations by 4.35%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.

The RealReal had the weakest performance against analyst estimates among the peers. The company reported 950 thousand paying users, up 23% year on year. The stock is down 3.67% since the results and currently trades at $1.18.

Read our full, actionable report on The RealReal here, it's free.

The author has no position in any of the stocks mentioned