Online Marketplace Stocks Q1 Highlights: Teladoc (NYSE:TDOC)
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the online marketplace industry, including Teladoc (NYSE:TDOC) 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 15 online marketplace stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 4.4%. while next quarter's revenue guidance was 2.4% above consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the online marketplace stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.3% on average since the previous earnings results.
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 $646.1 million, up 2.7% year on year, topping analysts' expectations by 1.4%. It was a weaker quarter for the company, with slow revenue growth.
“We are pleased to report a solid start to the year, with strength in both revenue and adjusted EBITDA in the first quarter,” said Mala Murthy, acting chief executive officer and chief financial officer of Teladoc Health.
The stock is down 18% since the results and currently trades at $10.93.
Read our full report on Teladoc here, it's free.
Best Q1: 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 $4.33 billion, up 36% year on year, outperforming analysts' expectations by 12.1%. It was a stunning quarter for the company. MercadoLibre blew past analysts' revenue and EPS estimates, driven by better-than-expected GMV on its e-commerce platform.
The stock is up 8.4% since the results and currently trades at $1,633.06.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Slowest Q1: 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 $215.8 million, down 7% year on year, falling short of analysts' expectations by 0.5%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.
The stock is up 8.9% since the results and currently trades at $24.25.
Read our full analysis of CarGurus's results here.
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 $180.2 million, up 7.8% year on year, in line with analysts' expectations. It was a mixed quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.
The company reported 19,381 active buyers, up 1% year on year. The stock is up 18.6% since the results and currently trades at $20.25.
Read our full, actionable report on Cars.com here, it's free.
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 $269.1 million, up 32% year on year, falling short of analysts' expectations by 1.7%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
Remitly had the weakest performance against analyst estimates among its peers. The company reported 6.2 million active buyers, up 34.8% year on year. The stock is down 26.2% since the results and currently trades at $12.93.
Read our full, actionable report on Remitly here, it's free.
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