Let’s dig into the relative performance of Teladoc (NYSE:TDOC) and its peers as we unravel the now-completed Q2 online marketplace earnings season.
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.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
Thankfully, online marketplace stocks have been resilient with share prices up 8.6% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 1.1%. Overall, it was a softer quarter for the company with slow revenue growth.
“I am excited to have joined Teladoc Health and for the opportunity to lead the company going forward, building on our strengths while driving higher levels of performance. Our scaled position, core capabilities, and talented employees position us well in this regard,” said Chuck Divita, Chief Executive Officer of Teladoc Health.
Unsurprisingly, the stock is down 3.3% since reporting and currently trades at $9.13.
Read our full report on Teladoc 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 4.6% since reporting. It currently trades at $22.89.
Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free.
Cars.com (NYSE:CARS)
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 $178.9 million, up 6.4% year on year, falling short of analysts’ expectations by 1.6%. It was a softer quarter as it posted underwhelming revenue guidance for the next quarter and slow revenue growth.
Cars.com delivered the weakest performance against analyst estimates in the group. The company reported 19,390 active buyers, up 3.2% year on year. Interestingly, the stock is up 2.3% since the results and currently trades at $18.31.
Read our full analysis of Cars.com’s results here.
ACV Auctions (NASDAQ:ACVA)
Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
ACV Auctions reported revenues of $160.6 million, up 29.3% year on year. This result topped analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also produced solid growth in its units and strong top-line growth.
The company reported 186,526 units sold, up 21.8% year on year. The stock is up 39.1% since reporting and currently trades at $20.68.
Read our full, actionable report on ACV Auctions here, it’s free.
Robinhood (NASDAQ:HOOD)
With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Robinhood reported revenues of $682 million, up 40.3% year on year. This result topped analysts’ expectations by 6.1%. It was a strong quarter as it also produced exceptional revenue growth.
The company reported 24.2 million users, up 4.3% year on year. The stock is up 33% since reporting and currently trades at $22.77.
Read our full, actionable report on Robinhood here, it’s free.
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