Wrapping up Q3 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including ACV Auctions (NYSE:ACVA) 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 13 online marketplace stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.9% since the latest earnings results.
Weakest Q3: ACV Auctions (NYSE:ACVA)
Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
ACV Auctions reported revenues of $199.6 million, up 16.5% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with full-year revenue guidance slightly missing analysts’ expectations and full-year EBITDA guidance missing analysts’ expectations.
ACV Auctions pulled off the highest full-year guidance raise but had the weakest performance against analyst estimates of the whole group. The company reported 218,065 units sold, up 9.9% year on year. Still, the market seems discontent with the results. The stock is down 12.5% since reporting and currently trades at $6.31.
Read our full report on ACV Auctions here, it’s free for active Edge members.
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 $173.9 million, up 20.3% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 12.5% since reporting. It currently trades at $25.23.
Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free for active Edge members.
eBay (NASDAQ:EBAY)
Originally known as the first online auction site, eBay (NASDAQ:EBAY) is one of the world’s largest online marketplaces.
eBay reported revenues of $2.82 billion, up 9.5% year on year, exceeding analysts’ expectations by 3.2%. Still, it was a mixed quarter as it posted a slight miss of analysts’ number of active buyers estimates.
As expected, the stock is down 15.1% since the results and currently trades at $84.55.
Read our full analysis of eBay’s results here.
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 $7.41 billion, up 39.5% year on year. This print beat analysts’ expectations by 2.9%. Zooming out, it was a mixed quarter as it also recorded impressive growth in its users but a miss of analysts’ EBITDA estimates.
MercadoLibre pulled off the fastest revenue growth among its peers. The company reported 76.8 million daily active users, up 26.3% year on year. The stock is down 11.7% since reporting and currently trades at $2,035.
Read our full, actionable report on MercadoLibre here, it’s free for active Edge members.
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 $238.7 million, up 3.2% year on year. This number topped analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also put up EBITDA guidance for next quarter topping analysts’ expectations and a decent beat of analysts’ EBITDA estimates.
The company reported 33,673 users, up 6.3% year on year. The stock is up 9.3% since reporting and currently trades at $36.23.
Read our full, actionable report on CarGurus here, it’s free for active Edge members.
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 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.
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