Online Marketplace Stocks Q2 Teardown: Sea (NYSE:SE) Vs The Rest

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Sea (NYSE:SE) and the rest of the online marketplace stocks fared in Q2.

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 decent Q2. As a group, revenues beat analysts’ consensus estimates by 4.9% while next quarter’s revenue guidance was 5.1% above.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some online marketplace stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results.

Sea (NYSE:SE)

Founded in 2009 and a publicly traded company since 2017, Sea (NYSE:SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.

Sea reported revenues of $3.96 billion, up 27.9% year on year. This print exceeded analysts’ expectations by 6.6%. Overall, it was a solid quarter for the company with an impressive beat of analysts’ user estimates and strong growth in its users.

“I’m happy to report that it has been a solid quarter for us, with our strong momentum from Q1 continuing into Q2. All three of our businesses have shown both strong growth and higher profitability,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.

Interestingly, the stock is up 14.2% since reporting and currently trades at $76.50.

Is now the time to buy Sea? Access our full analysis of the earnings results 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%. It was an incredible quarter for the company 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 14.9% since reporting. It currently trades at $20.41.

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 weak quarter for the company with slow revenue growth.

As expected, the stock is down 19.5% since the results and currently trades at $7.60.

Read our full analysis of Teladoc’s results here.

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 $218.7 million, down 8.8% year on year, surpassing analysts’ expectations by 1.4%. Overall, it was a mixed quarter for the company with in-line revenue guidance for the next quarter but slow revenue growth.

CarGurus had the slowest revenue growth among its peers. The company reported 31,352 users, up 0.8% year on year. The stock is up 20.5% since reporting and currently trades at $27.

Read our full, actionable report on CarGurus here, it’s free.

Coinbase (NASDAQ:COIN)

Regarded by many as the face of crypto, Coinbase (NASDAQ:COIN) is a digital exchange helping the world onboard into the blockchain ecosystem.

Coinbase reported revenues of $1.45 billion, up 105% year on year, surpassing analysts’ expectations by 6.2%. Taking a step back, it was a very strong quarter for the company with exceptional revenue growth and a solid beat of analysts’ user estimates.

Coinbase scored the fastest revenue growth among its peers. The company reported 8.2 million monthly active users, up 12.3% year on year. The stock is down 30.1% since reporting and currently trades at $148.75.

Read our full, actionable report on Coinbase here, it’s free.

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