As online marketplace stocks’ Q4 earnings season wraps, let's dig into this quarter's best and worst performers, including Etsy (NASDAQ:ETSY) and its peers.
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 Q4; on average, revenues beat analyst consensus estimates by 2.86%, while on average next quarter revenue guidance was 2.47% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable and online marketplace stocks have not been spared, with share prices down 10.7% since the previous earnings results, 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 $807.2 million, up 12.6% year on year, beating analyst expectations by 7.33%. It was a decent quarter for the company, with a solid beat of analyst estimates but slow revenue growth.
"We are extremely proud of our team's ability to dramatically improve the Etsy customer experience over the course of 2022," said Josh Silverman,
Etsy achieved the strongest analyst estimates beat of the whole group. The company reported 95.1 million active buyers, up 5.52% year on year. The stock is down 16.4% since the results and currently trades at $107.4.
Is now the time to buy Etsy? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $1.9 billion, up 24.1% year on year, beating analyst expectations by 2.22%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and growing number of users.
Airbnb achieved the fastest revenue growth among its peers. The company reported 88.2 million nights booked, up 20.2% year on year. The stock is down 3.16% since the results and currently trades at $117.05.
Is now the time to buy Airbnb? Access our full analysis of the earnings results here, it's free.
Slowest Q4: 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 $629.2 million, down 5.48% year on year, in line with analyst expectations. It was a weaker quarter for the company, with declining revenue.
Farfetch had the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 3.92 million active buyers, up 6.27% year on year. The stock is down 9.92% since the results and currently trades at $4.45.
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 $159.7 million, up 10% year on year, beating analyst expectations by 1.53%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and slow revenue growth.
The company reported 1 million paying users, up 25.2% year on year. The stock is down 13.2% 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