13601

Online Marketplace Stocks Q1 Recap: Benchmarking The RealReal (NASDAQ:REAL)


Radek Strnad /
2024/07/09 3:42 am EDT

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the online marketplace industry, including The RealReal (NASDAQ:REAL) 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 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 4.6% on average since the previous earnings results.

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, topping analysts' expectations by 3.3%. It was a weaker quarter for the company, with a decline in its users and slow revenue growth.

“We continue to focus on the core consignment business and driving efficiencies to deliver results. In the first quarter of 2024 we grew profitable consignment supply, which resulted in a return to overall top-line growth and an all-time high gross margin rate,” said John Koryl, Chief Executive Officer of The RealReal.

The RealReal Total Revenue

The stock is down 7.5% since the results and currently trades at $3.49.

Read our full report on The RealReal 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 this quarter, driven by better-than-expected GMV on its e-commerce platform.

MercadoLibre Total Revenue

The stock is up 12.3% since the results and currently trades at $1,692.

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 12.2% since the results and currently trades at $24.99.

Read our full analysis of CarGurus's results here.

Remitly (NASDAQ:RELY)

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.

Remitly reported revenues of $269.1 million, up 32% year on year, falling short of analysts' expectations by 1.7%. It was a mixed quarter for the company, with full-year revenue guidance missing analysts' expectations.

Remitly had the weakest performance against analyst estimates among its peers. The company reported 6.2 million active buyers, up 34.8% year on year. The stock is down 27.6% since the results and currently trades at $12.68.

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

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 2.6% since the results and currently trades at $21.91.

Read our full, actionable report on EverQuote 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.