Q2 Earnings Review: Online Marketplace Stocks Led by EverQuote (NASDAQ:EVER)
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 EverQuote (NASDAQ:EVER) 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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.9% while next quarter’s revenue guidance was 5.1% above.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Thankfully, online marketplace stocks have been resilient with share prices up 5.4% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 13.9%. Overall, it was an incredible quarter for the company with optimistic revenue guidance for the next quarter and exceptional revenue growth.
“EverQuote continued building momentum in the second quarter, and our operating results once again exceeded the high-end of our guidance range and drove record results for revenue, Variable Marketing Margin, or VMM, and Adjusted EBITDA,” said Jayme Mendal, CEO of EverQuote.
The stock is down 5.8% since reporting and currently trades at $22.60.
Is now the time to buy EverQuote? Access our full analysis of the earnings results 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, outperforming analysts’ expectations by 8.3%. The business had a stunning quarter with impressive growth in its users and exceptional revenue growth.
The market seems happy with the results as the stock is up 32.1% since reporting. It currently trades at $2,119.
Is now the time to buy MercadoLibre? 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 13.7% since the results and currently trades at $8.15.
Read our full analysis of Teladoc’s results here.
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 $220.1 million, up 5.4% year on year. This result beat analysts’ expectations by 3.1%. However, it was an incredible quarter as it produced a decline in its requests and a miss of analysts’ request estimates.
The stock is down 11.8% since reporting and currently trades at $33.50.
Read our full, actionable report on Shutterstock 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. This result beat analysts’ expectations by 6.2%. It was a very strong quarter as it also recorded exceptional revenue growth and a solid beat of analysts’ user estimates.
Coinbase delivered 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 23.8% since reporting and currently trades at $162.15.
Read our full, actionable report on Coinbase here, it’s free.
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