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 Sea (NYSE:SE).
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 11 online marketplace stocks we track reported a weaker Q2; on average, revenues missed analyst consensus estimates by 0.54%, while on average next quarter revenue guidance was 1.72% under consensus. Technology stocks have been hit hard by fears of higher interest rates as investors search for near-term cash flows and online marketplace stocks have not been spared, with share prices down 21.6% since the previous earnings results, on average.
Weakest Q2: Sea (NYSE:SE)
Founded in 2009 and a publicly-traded company since 2017, Sea Limited (NYSE:SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Sea reported revenues of $3.1 billion, up 5.2% year on year, missing analyst expectations by 4.68%. It was a weak quarter for the company, with a decline in its user base and a miss of analysts' revenue estimates.
“In the second quarter of 2023, we delivered strong results, building upon many of the key initiatives we shared previously,” said Forrest Li, Sea’s Chairman and Group Chief Executive Officer.
The stock is down 29.7% since the results and currently trades at $39.89.Is now the time to buy Sea? Read our full report on Sea here.
Best Q2: MercadoLibre (NASDAQ:MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) today is a one-stop e-commerce marketplace in Latin America.
MercadoLibre reported revenues of $3.42 billion, up 31.5% year on year, beating analyst expectations by 4.4%. It was a very strong quarter for the company, with impressive growth in its user base and a decent beat of analysts' revenue estimates.
MercadoLibre achieved the strongest analyst estimates beat and fastest revenue growth among its peers. The company reported 109 million daily active users, up 29.8% year on year. The stock is up 9.84% since the results and currently trades at $1,279.94.
Is now the time to buy MercadoLibre? 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 $130.9 million, down 15.3% year on year, missing analyst expectations by 0.69%. It was a weak quarter for the company, with weak revenue growth and underwhelming revenue guidance for the next quarter. Also, GMV guidance for the next quarter and the full year both missed. On the other hand, Adjusted EBITDA in the quarter beat expectations, and full year guidance for adjusted EBITDA was also better than Wall Street analysts' expectations.
The RealReal had the weakest full year guidance update in the group. The company reported 0.99 million users, up 10.8% year on year. The stock is down 4.13% since the results and currently trades at $2.09.
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Teladoc reported revenues of $652.4 million, up 10.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with slow revenue growth. In addition, next quarter's revenue guidance came in slightly below Wall Street's expectations. On the other hand, Teladoc beat slightly on revenue and more convincingly for adjusted EBITDA. Another major positive was that the company raised full year guidance for revenue, adjusted EBITDA, and EPS.
The company reported 85.9 million users, up 6.58% year on year. The stock is down 15.8% since the results and currently trades at $19.17.
Originally started as a joint venture between several media companies including The Washington Post and The New York Times, Cars.com (NYSE:CARS) is a digital marketplace that connects new and used car buyers and sellers.
Cars.com reported revenues of $168.2 million, up 3.26% year on year, missing analyst expectations by 0.53%. It was a weak quarter for the company, with slow revenue growth and a decline in its user base. Additionally, while next quarter's revenue guidance was above Wall Street analysts' expectations, adjusted EBITDA guidance was below.
The company reported 18.8 thousand active buyers, down 3.75% year on year. The stock is down 26.1% since the results and currently trades at $16.56.
The author has no position in any of the stocks mentioned