As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the online marketplace stocks, starting with Farfetch (NYSE:FTCH).
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. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021 and online marketplace stocks have not been spared, with share prices down 17.7% since the previous earnings results, on average.
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.
José Neves, Farfetch Founder, Chairman and CEO, said: "At Farfetch our mission is to be THE Global Platform for Luxury. This week we celebrated a major step towards that mission, with a transformational deal advancing our Luxury New Retail (LNR) partnership with Richemont.
The company reported 3.8 million active buyers, up 13.2% year on year. The stock is down 16.2% since the results and currently trades at $7.98.
Is now the time to buy Farfetch? 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, narrowly missing analyst expectations by 0.04%. Despite the stock dropping on the results, it was a very strong quarter for the company, with an exceptional revenue growth and a 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 8.18% since the results and currently trades at $106.96.
Is now the time to buy Airbnb? Access our full analysis of the earnings results here, it's free.
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 scored 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 1.31% since the results and currently trades at $96.74.
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 the full year below analysts' expectations.
The company reported 889 thousand paying users, up 21.7% year on year. The stock is down 47.8% since the results and currently trades at $1.59.
The author has no position in any of the stocks mentioned