2451

Q1 Earnings Highlights: Etsy (NASDAQ:ETSY) Vs The Rest Of The Online Marketplace Stocks


Kayode Omotosho /
2024/07/05 6:09 am EDT

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 take a look at how online marketplace stocks 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 that feed back into further customer acquisition.

The 15 online marketplace stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 4.2%. while next quarter's revenue guidance was 2.4% above consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the online marketplace stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.5% on average since the previous earnings results.

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 $646 million, flat year on year, falling short of analysts' expectations by 0.1%. It was a weaker quarter for the company, with slow revenue growth.

"Our first quarter performance, while in line with our guidance, was pressured by the challenging environment for consumer discretionary products, which continues to be a headwind to Etsy marketplace growth," said Josh Silverman,

Etsy Total Revenue

The stock is down 16.2% since the results and currently trades at $58.49.

Is now the time to buy Etsy? 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) is a one-stop e-commerce marketplace and fintech platform in Latin America.

MercadoLibre reported revenues of $4.33 billion, up 36% year on year, outperforming analysts' expectations by 12.1%. It was a stunning quarter for the company. MercadoLibre blew past analysts' revenue and EPS estimates, driven by better-than-expected GMV on its e-commerce platform.

MercadoLibre Total Revenue

The stock is up 5.5% since the results and currently trades at $1,590.15.

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

Slowest Q1: CarGurus (NASDAQ:CARG)

Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ:CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.

CarGurus reported revenues of $215.8 million, down 7% year on year, falling short of analysts' expectations by 0.5%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.

The stock is up 12.7% since the results and currently trades at $25.1.

Read our full analysis of CarGurus's results here.

EverQuote (NASDAQ:EVER)

Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers

EverQuote reported revenues of $91.07 million, down 16.6% year on year, surpassing analysts' expectations by 13.4%. It was a very strong quarter for the company, with optimistic revenue guidance for the next quarter.

EverQuote had the slowest revenue growth among its peers. The stock is up 0.6% since the results and currently trades at $21.47.

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

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 $143.8 million, up 1.3% year on year, surpassing analysts' expectations by 3.3%. It was a weaker quarter for the company, with a decline in its users and slow revenue growth.

The company reported 922,000 users, down 9.1% year on year. The stock is down 13.6% since the results and currently trades at $3.26.

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

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.