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Spotting Winners: The RealReal (NASDAQ:REAL) And Online Marketplace Stocks In Q1


Adam Hejl /
2022/06/30 4:04 am EDT
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Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q1 now behind us, let’s have a look at 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 decent Q1; on average, revenues beat analyst consensus estimates by 0.99%, while on average next quarter revenue guidance was 0.7% under consensus. The whole tech sector has been facing a sell-off since late last year and online marketplace stocks have not been spared, with share price down 26.7% since earnings, 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 $146.7 million, up 48.4% year on year, beating analyst expectations by 7.59%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.

“We are pleased with our financial results for the first quarter of 2022, which exceeded our expectations on both the top- and bottom-line. The strong growth is particularly noteworthy given the COVID-related staff absences in our Authentication Centers early in the year, which negatively impacted the time for processing and launching items on our website. During the first quarter, we also continued to deliver significant operating expense leverage on both our fixed and variable expenses,” said Julie Wainwright, founder and CEO of The RealReal.

The RealReal Total Revenue

The RealReal achieved the strongest analyst estimates beat of the whole group. The company reported 828 thousand paying users, up 20.5% year on year. The stock is down 37.1% since the results and currently trades at $2.77.

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

Best Q1: 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 $1.5 billion, up 70.1% year on year, beating analyst expectations by 3.88%. It was a stunning quarter for the company, with an exceptional revenue growth and growing number of users.

Airbnb Total Revenue

Airbnb delivered the fastest revenue growth among its peers. The company reported 102.1 million nights booked, up 58.5% year on year. The stock is down 36.2% since the results and currently trades at $92.48.

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

Slowest Q1: 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 $514.8 million, up 6.12% year on year, missing analyst expectations by 8.11%. It was a weak quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth.

Farfetch had the weakest performance against analyst estimates in the group. The company reported 3.82 million active buyers, up 16.8% year on year. The stock is down 1.04% since the results and currently trades at $7.60.

Read our full analysis of Farfetch's results here.

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 $579.2 million, up 5.19% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

Etsy had the slowest revenue growth among the peers. The company reported 95.1 million active buyers, up 4.9% year on year. The stock is down 32.5% since the results and currently trades at $73.98.

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

The author has no position in any of the stocks mentioned