Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Shutterstock (NYSE:SSTK) and the best and worst performers in the online marketplace industry.
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 13 online marketplace stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.
Luckily, online marketplace stocks have performed well with share prices up 35.4% on average since the latest earnings results.
Best Q3: 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. This print exceeded analysts’ expectations by 5.1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of paid downloads estimates.
Commenting on the Company's performance, Paul Hennessy, the Company's Chief Executive Officer, said, "Shutterstock generated record Revenue and Adjusted EBITDA during the third quarter, exceeding our expectations. With the Envato acquisition now closed, we could not be more pleased with the results we are seeing. With the unlimited multi-asset subscription now part of our overall product suite, we are now well positioned to fulfill our customer needs. Content performance improved yet again in the quarter, and Data, Distribution, and Services has grown 40% year to date. As a result of this business momentum, we are pleased to be able to raise our guidance for both revenue and Adjusted EBITDA for 2024."
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $29.50.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free.
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, outperforming analysts’ expectations by 2.9%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations.
EverQuote pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 25.6% since reporting. It currently trades at $21.77.
Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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, exceeding analysts’ expectations by 2.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 2.6% since the results and currently trades at $2,065.
Read our full analysis of MercadoLibre’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 $231.4 million, up 5.4% year on year. This print surpassed analysts’ expectations by 3.2%. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
The company reported 31,684 users, up 1.6% year on year. The stock is up 19% since reporting and currently trades at $39.72.
Read our full, actionable report on CarGurus here, it’s free.
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 $640.5 million, down 3% year on year. This number beat analysts’ expectations by 1.6%. It was a strong quarter as it also produced revenue guidance for next quarter beating analysts’ expectations.
The company reported 93.9 million users, up 4.1% year on year. The stock is up 59.9% since reporting and currently trades at $14.15.
Read our full, actionable report on Teladoc here, it’s free.
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