Online Marketplace Stocks Q4 Recap: Benchmarking CarGurus (NASDAQ:CARG)
As online marketplace stocks’ Q4 earnings season wraps, let's dig into this quarter's best and worst performers, including CarGurus (NASDAQ:CARG) 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 12 online marketplace stocks we track reported a slower Q4; on average, revenues beat analyst consensus estimates by 1.2% while next quarter's revenue guidance was 3.7% below consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but online marketplace stocks held their ground better than others, with the share prices up 14.9% on average since the previous earnings results.
CarGurus (NASDAQ:CARG)
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ:CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
CarGurus reported revenues of $223.1 million, down 22.2% year on year, topping analyst expectations by 1.5%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.
"We are extremely pleased with our performance, as our Marketplace business continued to accelerate in the fourth quarter, achieving the fastest pace of growth in nearly three years," said Jason Trevisan, Chief Executive Officer at CarGurus.
CarGurus delivered the slowest revenue growth of the whole group. The company reported 30,935 users, down 1.2% year on year. The stock is down 3.6% since the results and currently trades at $23.
Is now the time to buy CarGurus? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $4.26 billion, up 41.9% year on year, outperforming analyst expectations by 2.8%. It was an impressive quarter for the company. MercadoLibre's robust user growth enabled it to beat analysts' revenue, total payment volume (TPV), and gross merchandise volume (GMV) estimates.
MercadoLibre delivered the fastest revenue growth among its peers. The company reported 145 million daily active users, up 49.5% year on year. The stock is down 16.3% since the results and currently trades at $1,525.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $217.2 million, down 0.2% year on year, falling short of analyst expectations by 3%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and a decline in its user base.
Shutterstock had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 523,000 users, down 10.8% year on year. The stock is up 1.7% since the results and currently trades at $45.21.
Read our full analysis of Shutterstock's results here.
Remitly (NASDAQ:RELY)
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Remitly reported revenues of $264.8 million, up 38.6% year on year, surpassing analyst expectations by 1.3%. It was a very strong quarter for the company, with impressive growth in its user base and exceptional revenue growth.
Remitly achieved the highest full-year guidance raise among its peers. The company reported 5.9 million active buyers, up 40.5% year on year. The stock is up 15.9% since the results and currently trades at $20.5.
Read our full, actionable report on Remitly here, it's free.
Robinhood (NASDAQ:HOOD)
With a mission to “democratize finance”, Robinhood (NASDAQ:HOOD) is an online platform enabling the commission-free trading of stocks, exchange-traded funds, and cryptocurrencies.
Robinhood reported revenues of $471 million, up 23.9% year on year, surpassing analyst expectations by 4%. It was a solid quarter for the company, with a decent beat of analysts' revenue and EPS estimates.
Robinhood delivered the biggest analyst estimates beat among its peers. The company reported 23.4 million users, up 1.7% year on year. The stock is up 60.8% since the results and currently trades at $19.05.
Read our full, actionable report on Robinhood here, it's free.
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