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 Q4, 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 Q4; on average, revenues beat analyst consensus estimates by 2.86%, while on average next quarter revenue guidance was 2.47% 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 9.98% since the previous earnings results, on average.
Slowest Q4: 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 $629.2 million, down 5.48% year on year, in line with analyst expectations. It was a weaker quarter for the company, with declining revenue.
José Neves, Farfetch Founder, Chairman and CEO, said: “I am proud to report Farfetch adeptly navigated unprecedented macro headwinds throughout 2022 to deliver growth on a constant currency basis, with full year GMV of $4.1 billion. Our performance also means we captured market share on a 3-year stack basis, with GMV nearly doubling since the onset of the COVID-19 pandemic - a truly remarkable accomplishment.
Farfetch delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The company reported 3.92 million active buyers, up 6.27% year on year. The stock is down 8.7% since the results and currently trades at $4.51.
Read our full report on Farfetch here, it's free.
Best Q4: 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 $807.2 million, up 12.6% year on year, beating analyst expectations by 7.33%. It was a decent quarter for the company, with a solid beat of analyst estimates but slow revenue growth.
Etsy delivered the strongest analyst estimates beat among its peers. The company reported 95.1 million active buyers, up 5.52% year on year. The stock is down 14.9% since the results and currently trades at $109.33.
Is now the time to buy Etsy? Access our full analysis of the earnings results here, it's free.
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 $159.7 million, up 10% year on year, beating analyst expectations by 1.53%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and slow revenue growth.
The company reported 1 million active buyers, up 25.2% year on year. The stock is down 14.7% since the results and currently trades at $1.16.
Read our full analysis of The RealReal's results here.
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 $1.9 billion, up 24.1% year on year, beating analyst expectations by 2.22%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter.
Airbnb achieved the fastest revenue growth among the peers. The company reported 88.2 million nights booked, up 20.2% year on year. The stock is down 1.55% since the results and currently trades at $119.
Read our full, actionable report on Airbnb here, it's free.
The author has no position in any of the stocks mentioned