Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Teladoc (NYSE:TDOC) 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 7.7% since the latest earnings results.
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 $626.4 million, down 2.2% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance beating analysts’ expectations.
“In the third quarter, we again delivered consolidated revenues and adjusted EBITDA in the upper half of our guidance ranges, reflecting consistent execution along with our steadfast commitment to serving our clients and members,” said Chuck Divita, Chief Executive Officer of Teladoc Health.
Unsurprisingly, the stock is down 13.2% since reporting and currently trades at $7.12.
Is now the time to buy Teladoc? Access our full analysis of the earnings results 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 a solid 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 6% since reporting. It currently trades at $23.76.
Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free for active Edge members.
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, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and full-year EBITDA guidance missing analysts’ expectations significantly.
ACV Auctions delivered the weakest performance against analyst estimates in the group. The company reported 218,065 units sold, up 9.9% year on year. As expected, the stock is down 18.5% since the results and currently trades at $6.64.
Read our full analysis of ACV Auctions’s results here.
Instacart (NASDAQ:CART)
Powering more than one billion grocery orders since its founding, Instacart (NASDAQ:CART) is an online grocery shopping and delivery platform that partners with retailers to help customers shop from local stores through its app or website.
Instacart reported revenues of $939 million, up 10.2% year on year. This number beat analysts’ expectations by 0.5%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and a narrow beat of analysts’ revenue estimates.
The stock is up 12.8% since reporting and currently trades at $41.46.
Read our full, actionable report on Instacart here, it’s free for active Edge members.
LegalZoom (NASDAQ:LZ)
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses.
LegalZoom reported revenues of $190.2 million, up 12.8% year on year. This result surpassed analysts’ expectations by 3.9%. Aside from that, it was a satisfactory quarter as it also logged revenue guidance for next quarter beating analysts’ expectations but a significant miss of analysts’ number of subscription units estimates.
LegalZoom pulled off the highest full-year guidance raise among its peers. The company reported 1.96 million users, up 14.1% year on year. The stock is down 5.2% since reporting and currently trades at $9.65.
Read our full, actionable report on LegalZoom here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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