Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q2 now behind us, let’s have a look at 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 Q2; on average, revenues beat analyst consensus estimates by 1.89%, while on average next quarter revenue guidance was 2.89% under consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again and online marketplace stocks have not been spared, with share prices down 17% since the previous earnings results, on average.
Slowest Q2: 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 $585.1 million, up 10.6% year on year, beating analyst expectations by 5.06%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.
"Our second quarter results once again reflect that Etsy has maintained most of our pandemic gains, and that we are able to deliver strong bottom line performance while simultaneously investing in key initiatives," said Josh Silverman, Etsy, Inc. Chief Executive Officer.
Etsy pulled off the strongest analyst estimates beat but had the slowest revenue growth of the whole group. The company reported 93.9 million active buyers, up 3.82% year on year. The stock is up 10.2% since the results and currently trades at $105.25.
Is now the time to buy Etsy? Access our full analysis of the earnings results here, it's free.
Best Q2: 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 $2.1 billion, up 57.5% year on year, in line with analyst expectations. Despite the stock dropping on the results, it was a very strong quarter for the company, with an exceptional revenue growth and growing number of users.
Airbnb delivered the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The company reported 103.7 million nights booked, up 24.7% year on year. The stock is down 9.87% since the results and currently trades at $105.
Is now the time to buy Airbnb? Access our full analysis of the earnings results 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 $154.4 million, up 47.2% year on year, in line with analyst expectations. Despite the strong topline results, it was a slower quarter for the company, with an underwhelming revenue guidance for both the next quarter and the full year.
The company reported 889 thousand active buyers, up 21.7% year on year.The stock is down 51.4% since the results and currently trades at $1.48.
Read our full analysis of The RealReal's results here.
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 $579.3 million, up 10.7% year on year, beating analyst expectations by 2.26%. It was a mixed quarter for the company, with growing number of users but slow revenue growth.
The company reported 3.84 million active buyers, up 13.2% year on year. The stock is down 17.1% since the results and currently trades at $7.90.
Read our full, actionable report on Farfetch here, it's free.
The author has no position in any of the stocks mentioned