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Q3 Earnings Highlights: The RealReal (NASDAQ:REAL) Vs The Rest Of The Online Marketplace Stocks


Radek Strnad /
2023/01/25 4:19 am EST

As Q3 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the online marketplace stocks, 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 which feed back into further customer acquisition.

The 4 online marketplace stocks we track reported a weaker Q3; on average, revenues were in line with analyst consensus estimates, while on average next quarter revenue guidance was 4.17% under consensus. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows, but online marketplace stocks held their ground better than others, with the share prices up 8.91% 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 $142.7 million, up 20% year on year, missing analyst expectations by 4.35%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.

“As we continue to focus on profitable growth, our objective is to accelerate our timeline to profitability and demonstrate the efficacy of our business model.” said Rati Sahi Levesque, Co-Interim Chief Executive Officer (“CEO”) and President of The RealReal.

The RealReal Total Revenue

The RealReal delivered the weakest performance against analyst estimates of the whole group. The company reported 950 thousand paying users, up 23% year on year. The stock is up 19.1% since the results and currently trades at $1.46.

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

Best Q3: 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 $594.4 million, up 11.6% year on year, beating analyst expectations by 5.4%. It was a mixed quarter for the company, with a solid beat of analyst estimates but slow revenue growth.

Etsy Total Revenue

Etsy achieved the strongest analyst estimates beat among its peers. The company reported 94.1 million active buyers, up 5.31% year on year. The stock is up 55.5% since the results and currently trades at $136.1.

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

Weakest Q3: 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 $593.3 million, up 1.85% year on year, missing analyst expectations by 0.53%. It was a weak quarter for the company, with slow revenue growth and a miss of the top line analyst estimates.

Farfetch had the slowest revenue growth in the group. The company reported 3.9 million active buyers, up 8.62% year on year. The stock is down 32.8% since the results and currently trades at $6.14.

Read our full analysis of Farfetch's results here.

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 $2.88 billion, up 28.9% year on year, beating analyst expectations by 1.26%. It was a mixed quarter for the company, with growing number of users but an underwhelming revenue guidance for the next quarter.

Airbnb delivered the fastest revenue growth among the peers. The company reported 99.7 million nights booked, up 25% year on year. The stock is down 6.27% since the results and currently trades at $102.21.

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

The author has no position in any of the stocks mentioned