Q2 Rundown: The RealReal (NASDAQ:REAL) Vs Other Online Marketplace Stocks
Looking back on online marketplace stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including The RealReal (NASDAQ:REAL) 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 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.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, online marketplace stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
The RealReal (NASDAQ:REAL)
Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
The RealReal reported revenues of $144.9 million, up 10.8% year on year. This print exceeded analysts’ expectations by 3.6%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ user estimates and slow revenue growth.
“We continue to build on our progress and momentum,” said John Koryl, Chief Executive Officer of The RealReal.
The RealReal delivered the weakest full-year guidance update of the whole group. The company reported 381,000 users, up 8.5% year on year. Unsurprisingly, the stock is down 24.3% since reporting and currently trades at $2.34.
Read our full report on The RealReal 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 4.8% since reporting. It currently trades at $22.84.
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 softer quarter as it posted slow revenue growth.
As expected, the stock is down 23.1% since the results and currently trades at $7.26.
Read our full analysis of Teladoc’s results here.
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 number topped analysts’ expectations by 6.6%. It was an exceptional quarter as it also logged an impressive beat of analysts’ user estimates and strong growth in its users.
The company reported 52.5 million users, up 21.8% year on year. The stock is up 15% since reporting and currently trades at $77.01.
Read our full, actionable report on Sea here, it’s free.
eHealth (NASDAQ:EHTH)
Aiming to address a high-stakes and often confusing decision, eHealth (NASDAQ:EHTH) guides consumers through health insurance enrollment and related topics.
eHealth reported revenues of $65.86 million, down 1.4% year on year. This number topped analysts’ expectations by 20.9%. Overall, it was a strong quarter as it also recorded full-year revenue guidance beating analysts’ expectations.
eHealth achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 20.9% since reporting and currently trades at $3.71.
Read our full, actionable report on eHealth here, it’s free.
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