Heading into the new earnings season, here's a look back at some of the most exciting (and some less so) results from Q3. Today we are looking at the online marketplace stocks, starting with Etsy (NASDAQ:ETSY).
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 multiples have reverted to the historical mean after reaching all time levels in early 2021, but online marketplace stocks held their ground better than others, with the share prices up 14.3% since the previous earnings results, on average.
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 but slow revenue growth.
"We are pleased that Etsy's business has remained strong in a volatile environment and we believe our sustained performance is a testament to Etsy's unique position in e-commerce where, in a world of mass commodities supplied by companies obsessed with speed and scale, Etsy is the antidote," said Josh Silverman, Etsy, Inc. Chief Executive Officer.
Etsy pulled off the strongest analyst estimates beat of the whole group. The company reported 94.1 million active buyers, up 5.31% year on year. The stock is up 59.1% since the results and currently trades at $139.20.
Is now the time to buy Etsy? Access our full analysis of the earnings results here, it's free.
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 delivered the fastest revenue growth among its peers. The company reported 99.7 million nights booked, up 25% year on year. The stock is down 3.45% since the results and currently trades at $105.28.
Is now the time to buy Airbnb? 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 28.9% since the results and currently trades at $6.49.
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 up 30.6% since the results and currently trades at $1.60.
Read our full, actionable report on The RealReal here, it's free.
The author has no position in any of the stocks mentioned