Q2 Rundown: Etsy (NASDAQ:ETSY) Vs Other Online Marketplace Stocks
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at online marketplace stocks, starting with Etsy (NASDAQ:ETSY).
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 5% on average since the latest earnings results.
Etsy (NASDAQ:ETSY)
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Etsy reported revenues of $647.8 million, up 3% year on year. This print exceeded analysts’ expectations by 3%. Despite the top-line beat, it was still a mixed quarter for the company.
"We are pleased that second quarter consolidated results included sequential acceleration of Etsy marketplace year-over-year GMS, higher consolidated revenue both year-over-year and sequentially, and strong adjusted EBITDA profitability," said Josh Silverman,
The stock is down 20.7% since reporting and currently trades at $51.68.
Read our full report on Etsy 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 18.1% since reporting. It currently trades at $19.65.
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 weaker quarter as it posted slow revenue growth.
As expected, the stock is down 8.9% since the results and currently trades at $8.60.
Read our full analysis of Teladoc’s results here.
LegalZoom (NASDAQ:LZ)
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses.
LegalZoom reported revenues of $177.4 million, up 5% year on year. This print beat analysts’ expectations by 2.6%. Aside from that, it was a weaker quarter as it recorded slow revenue growth and a miss of analysts’ user estimates.
The company reported 1.61 million users, up 3.6% year on year. The stock is up 9.4% since reporting and currently trades at $6.50.
Read our full, actionable report on LegalZoom here, it’s free.
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 $5.07 billion, up 41.5% year on year. This number topped analysts’ expectations by 8.3%. Overall, it was a stunning quarter as it also logged impressive growth in its users and exceptional revenue growth.
The company reported 156.7 million daily active users, up 43.8% year on year. The stock is up 22.4% since reporting and currently trades at $1,964.
Read our full, actionable report on MercadoLibre here, it’s free.
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