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 Q2, starting with The RealReal (NASDAQ:REAL).
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. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and while some of the online marketplace stocks have fared somewhat better that others, they have not been spared, with share prices declining 8.72% since the previous earnings results, on average.
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. It was a slower quarter for the company, with revenue guidance for both the next quarter and full year missing analysts' expectations.
“Overall, The RealReal delivered solid results in the second quarter of 2022. While top-line GMV growth was slightly lower than expected, we met our revenue projections and exceeded our guidance on Adjusted EBITDA. Our top-line growth experienced some pressure during the second quarter due to a sales labor-related supply shortfall and a mix of product sold more reflective of our pre-COVID mix.” said Rati Sahi Levesque, Co-Interim Chief Executive Officer (“CEO”), President, and Chief Operating Officer of The RealReal.
The company reported 889 thousand paying users, up 21.7% year on year. The stock is down 45.2% since the results and currently trades at $1.67.
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. It was a very strong quarter for the company, with an exceptional revenue growth and growing number of users.
Airbnb pulled off 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 3.6% since the results and currently trades at $112.30.
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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.
Etsy delivered the strongest analyst estimates beat but had the slowest revenue growth in the group. The company reported 93.9 million active buyers, up 3.82% year on year. The stock is up 18.1% since the results and currently trades at $112.79.
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 a slow revenue growth.
The company reported 3.84 million active buyers, up 13.2% year on year. The stock is down 6.82% since the results and currently trades at $8.88.
The author has no position in any of the stocks mentioned