Wrapping up Q3 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including Sea (NYSE:SE) 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 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 34% on average since the latest earnings results.
Sea (NYSE:SE)
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE:SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Sea reported revenues of $4.33 billion, up 36.7% year on year. This print exceeded analysts’ expectations by 6.3%. Overall, it was a strong quarter for the company with an solid beat of analysts’ EBITDA estimates and impressive growth in its users.
“I’m happy to report that it has been another solid quarter. We are seeing high growth across all our three businesses,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.
The stock is up 26.8% since reporting and currently trades at $123.55.
We think Sea is a good business, but is it a buy today? Read our full report here, it’s free.
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, outperforming analysts’ expectations by 5.1%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of paid downloads estimates.
The market seems happy with the results as the stock is up 8.9% since reporting. It currently trades at $32.14.
Is now the time to buy Shutterstock? 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.
The stock is down 6% since the results and currently trades at $1,993.
Read our full analysis of MercadoLibre’s results here.
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 $168.6 million, flat year on year. This number surpassed analysts’ expectations by 0.6%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
The company reported 1.72 million users, up 9.5% year on year. The stock is up 11.9% since reporting and currently trades at $9.10.
Read our full, actionable report on LegalZoom here, it’s free.
Etsy (NASDAQ:ETSY)
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Etsy reported revenues of $662.4 million, up 4.1% year on year. This result beat analysts’ expectations by 1.5%. Zooming out, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but number of active buyers in line with analysts’ estimates.
The company reported 96.71 million active buyers, down 0.7% year on year. The stock is up 13.6% since reporting and currently trades at $54.50.
Read our full, actionable report on Etsy here, it’s free.
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