Looking back on consumer internet stocks' Q4 earnings, we examine this quarters’ best and worst performers, including Wayfair (NYSE:W) and its peers.
Consumers ever rising demand for convenience, selection, and speed are secular engines underpinning ecommerce adoption. For years prior to Covid, ecommerce penetration as a percentage of overall retail would grow 1-2% annually, but in 2020 adoption accelerated by 5%, reaching 25%, as increased emphasis on convenience drove consumers to structurally buy more online. The surge in buying caused many online retailers to rapidly grow their logistics infrastructures, preparing them for further growth in the years ahead as consumer shopping habits continue to shift online.
The 17 consumer internet stocks we track reported a decent Q4; on average, revenues beat analyst consensus estimates by 2.91%, while on average next quarter revenue guidance was 0.08% under consensus. The technology sell-off has been putting pressure on stocks since November , but consumer internet stocks held their ground better than others, with share price down 1.98% since earnings, on average.
Slowest Q4: Wayfair (NYSE:W)
Launched in 2002 by founder Niraj Shah, Wayfair (NYSE: W) is a leading online retailer for mass market home goods in the US, UK, Canada, and Germany.
Wayfair reported revenues of $3.25 billion, down 11.5% year on year, missing analyst expectations by 0.75%. It was a weak quarter for the company, with declining number of users and a slow revenue growth.
“As we celebrate Wayfair’s 20th anniversary and the company’s rapid growth to a $14 billion household brand, we are proud of our accomplishments and even more excited about what’s ahead,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.
Wayfair delivered the slowest revenue growth of the whole group. The company reported 27.3 million active buyers, down 12.5% year on year. The stock is down 8.79% since the results and currently trades at $110.71.
Best Q4: 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 $1.53 billion, up 78.3% year on year, beating analyst expectations by 5.02%. It was a stunning quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.
The company reported 73.4 million nights booked, up 58.5% year on year. The stock is down 3.81% since the results and currently trades at $173.20.
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Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.
Angi reported revenues of $415.8 million, up 15.7% year on year, in line with analyst expectations. It was a weak quarter for the company, with declining number of users and a slow revenue growth.
The company reported 6.89 million service requests, down 4.57% year on year. The stock is down 35.4% since the results and currently trades at $5.73.
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $79.7 million, up 42.7% year on year, beating analyst expectations by 3.81%. It was a strong quarter for the company, with an exceptional revenue growth and guidance for the next quarter slightly above analysts' estimates.
Fiverr had the weakest full year guidance update among the peers. The company reported 4.2 million active buyers, up 23.5% year on year. The stock is up 2.86% since the results and currently trades at $78.
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Pinterest reported revenues of $846.6 million, up 19.9% year on year, beating analyst expectations by 2.34%. It was a weaker quarter for the company, with declining number of users.
The company reported 431 million monthly active users, down 6.11% year on year. The stock is up 2.16% since the results and currently trades at $24.99.
The author has no position in any of the stocks mentioned