Online Marketplace Stocks Q4 Earnings: MercadoLibre (NASDAQ:MELI) Firing on All Cylinders
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 MercadoLibre (NASDAQ:MELI) and the rest of the online marketplace stocks fared in Q4.
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 11 online marketplace stocks we track reported a weaker Q4; on average, revenues beat analyst consensus estimates by 1.1%. while next quarter's revenue guidance was 3.7% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, though the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but online marketplace stocks have exhibited impressive performance, with the share prices up 10.6% on average since the previous earnings results.
Best Q4: 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 $4.26 billion, up 41.9% year on year, topping analyst expectations by 2.8%. It was an impressive quarter for the company. MercadoLibre's robust user growth enabled it to beat analysts' revenue, total payment volume (TPV), and gross merchandise volume (GMV) estimates.
MercadoLibre achieved the fastest revenue growth of the whole group. The company reported 145 million daily active users, up 49.5% year on year. The stock is down 18.8% since the results and currently trades at $1,478.
Remitly (NASDAQ:RELY)
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Remitly reported revenues of $264.8 million, up 38.6% year on year, outperforming analyst expectations by 1.3%. It was a very strong quarter for the company, with impressive growth in its user base and exceptional revenue growth.
Remitly scored the highest full-year guidance raise among its peers. The company reported 5.9 million active buyers, up 40.5% year on year. The stock is up 14.5% since the results and currently trades at $20.25.
Is now the time to buy Remitly? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $217.2 million, down 0.2% year on year, falling short of analyst expectations by 3%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and a decline in its user base.
Shutterstock had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 523,000 users, down 10.8% year on year. The stock is down 6.8% since the results and currently trades at $41.43.
Read our full analysis of Shutterstock'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 $143.4 million, down 10.2% year on year, in line with analyst expectations. It was a weak quarter for the company, with a decline in its user base and slow revenue growth.
The company reported 922,000 users, down 7.6% year on year. The stock is up 89.3% since the results and currently trades at $3.35.
Read our full, actionable report on The RealReal here, it's free.
LegalZoom (NASDAQ:LZ)
LegalZoom (NASDAQ:LZ) is an online platform that provides online legal services to individuals and small businesses. The company’s co-founders found it difficult and expensive to find lawyers and file paperwork when trying to start a business so they started LegalZoom instead to address this pain point.
LegalZoom reported revenues of $158.7 million, up 8.2% year on year, surpassing analyst expectations by 1.3%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year revenue guidance missing analysts' expectations.
The company reported 1.55 million users, up 7.2% year on year. The stock is up 26.9% since the results and currently trades at $12.46.
Read our full, actionable report on LegalZoom here, it's free.
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