As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the online marketplace industry, including EverQuote (NASDAQ:EVER) 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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 1% above.
Luckily, online marketplace stocks have performed well with share prices up 13.4% on average since the latest earnings results.
Best Q3: 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 $144.5 million, up 163% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was a stunning quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations.
“We delivered record third quarter results for revenue, Variable Marketing Margin, or VMM, and Adjusted EBITDA that once again exceeded the high-end of our guidance range,” said Jayme Mendal, CEO of EverQuote.
EverQuote pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 11.3% since reporting and currently trades at $19.28.
Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free.
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 $250.6 million, up 7.4% year on year, outperforming analysts’ expectations by 4.1%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 3.2% since reporting. It currently trades at $30.46.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Robinhood (NASDAQ:HOOD)
With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Robinhood reported revenues of $637 million, up 36.4% year on year, falling short of analysts’ expectations by 3.2%. It was a softer quarter as it posted a slight miss of analysts’ number of funded customers estimates.
Interestingly, the stock is up 32% since the results and currently trades at $37.20.
Read our full analysis of Robinhood’s results here.
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 $147.8 million, up 11% year on year. This number topped analysts’ expectations by 3.2%. It was a strong quarter with full-year EBITDA guidance exceeding analysts’ expectations.
The RealReal delivered the highest full-year guidance raise among its peers. The company reported 389,000 users, up 6.9% year on year. The stock is up 47.3% since reporting and currently trades at $4.50.
Read our full, actionable report on The RealReal 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 $5.31 billion, up 35.3% year on year. This number topped analysts’ expectations by 0.6%. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ EBITDA estimates.
The company reported 61 million daily active users, up 21.3% year on year. The stock is down 9.1% since reporting and currently trades at $1,926.
Read our full, actionable report on MercadoLibre here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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