Wrapping up Q4 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 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. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but online marketplace stocks held their ground better than others, with the share prices up 12.4% on average since the previous 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 $3.64 billion, up 5.5% year on year, topping analyst expectations by 2.5%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth.

“I am happy to share that we have achieved our first full year of annual profit since our IPO,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.

The stock is up 5% since the results and currently trades at $53.6.

Is now the time to buy Sea? Access our full analysis of the earnings results here, it's free.

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, outperforming 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 pulled off the fastest revenue growth among its peers. The company reported 145 million daily active users, up 49.5% year on year. The stock is down 17.6% since the results and currently trades at $1,500.85.

Is now the time to buy MercadoLibre? 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 1.6% since the results and currently trades at $43.75.

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 100% since the results and currently trades at $3.54.

Read our full, actionable report on The RealReal here, it's free.

Cars.com (NYSE:CARS)

Originally started as a joint venture between several media companies including The Washington Post and The New York Times, Cars.com (NYSE:CARS) is a digital marketplace that connects new and used car buyers and sellers.

Cars.com reported revenues of $179.6 million, up 6.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with slow revenue growth. Its revenue guidance for next quarter was also underwhelming, but it expects to generate higher adjusted EBITDA margins than expected (28% vs estimates of 27%).

The company reported 19,504 active buyers, down 0% year on year. The stock is down 6% since the results and currently trades at $16.96.

Read our full, actionable report on Cars.com here, it's free.

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