The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the online marketplace stocks have fared in Q1, 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 decent Q1; on average, revenues beat analyst consensus estimates by 0.99%, while on average next quarter revenue guidance was 0.7% under consensus. The technology sell-off has been putting pressure on stocks since November and while some of the online marketplace stocks have fared somewhat better, they have not been spared, with share price declining 17.6% since earnings, on average.
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.
"Despite continued uncertainty and macroeconomic headwinds, Etsy continues to rise to the occasion to deliver solid results that show us maintaining most of the gains reported during the extremely strong year-ago period," said Josh Silverman, Etsy, Inc. CEO.
Etsy delivered the slowest revenue growth of the whole group. The company reported 95.1 million active buyers, up 4.9% year on year. The stock is down 27% since the results and currently trades at $80.
Is now the time to buy Etsy? Access our full analysis of the earnings results here, it's free.
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 among its peers. The company reported 102.1 million nights booked, up 58.5% year on year. The stock is down 28.9% since the results and currently trades at $102.96.
Is now the time to buy Airbnb? Access our full analysis of the earnings results here, it's free.
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 12.2% since the results and currently trades at $8.62.
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 analysts' estimates.
The RealReal achieved the strongest analyst estimates beat among the peers. The company reported 828 thousand paying users, up 20.5% year on year. The stock is down 26.9% since the results and currently trades at $3.22.
The author has no position in any of the stocks mentioned