As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the online marketplace industry, including Shutterstock (NYSE:SSTK) 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 that feed back into further customer acquisition.
The 16 online marketplace stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.9% while next quarter’s revenue guidance was 5.1% above.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, online marketplace stocks have held steady amidst all this with share prices up 3.3% on average since the latest earnings results.
Shutterstock (NYSE:SSTK)
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Shutterstock reported revenues of $220.1 million, up 5.4% year on year. This print exceeded analysts’ expectations by 3.1%. Despite the top-line beat, it was still a softer quarter for the company with a miss of analysts’ request estimates.
Commenting on the Company's performance, Paul Hennessy, the Company's Chief Executive Officer, said, "Shutterstock's second quarter results exceeded our expectations for revenue and adjusted EBITDA driven by exceptional growth in Data, Distribution and Services. We are thrilled to have closed the Envato acquisition and added a value-packed unlimited subscription to enhance our Content business. And our innovation around GenAI continues with our launches of Gen3D and ImageAI models trained exclusively on Shutterstock data."
Unsurprisingly, the stock is down 13.5% since reporting and currently trades at $32.86.
Read our full report on Shutterstock here, it’s free.
Best Q2: EverQuote (NASDAQ:EVER)
Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
EverQuote reported revenues of $117.1 million, up 72.3% year on year, outperforming analysts’ expectations by 13.9%. The business had an incredible quarter with optimistic revenue guidance for the next quarter and exceptional revenue growth.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.2% since reporting. It currently trades at $22.51.
Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Teladoc (NYSE:TDOC)
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 $642.4 million, down 1.5% year on year, falling short of analysts’ expectations by 1.1%. It was a softer quarter as it posted slow revenue growth.
As expected, the stock is down 18.6% since the results and currently trades at $7.68.
Read our full analysis of Teladoc’s results here.
LegalZoom (NASDAQ:LZ)
LegalZoom (NASDAQ:LZ) is an online platform that provides online legal services to individuals and small businesses. The company’s co-founders found it difficult and expensive to find lawyers and file paperwork when trying to start a business so they started LegalZoom instead to address this pain point.
LegalZoom reported revenues of $177.4 million, up 5% year on year. This print beat analysts’ expectations by 2.6%. Taking a step back, it was a softer quarter as it recorded slow revenue growth and a miss of analysts’ user estimates.
The company reported 1.61 million users, up 3.6% year on year. The stock is up 14% since reporting and currently trades at $6.77.
Read our full, actionable report on LegalZoom here, it’s free.
MercadoLibre (NASDAQ:MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
MercadoLibre reported revenues of $5.07 billion, up 41.5% year on year. This result topped analysts’ expectations by 8.3%. Overall, it was a stunning quarter as it also logged impressive growth in its users and exceptional revenue growth.
The company reported 156.7 million daily active users, up 43.8% year on year. The stock is up 33.4% since reporting and currently trades at $2,141.
Read our full, actionable report on MercadoLibre here, it’s free.
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