Wrapping up Q4 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including Etsy (NASDAQ:ETSY) 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 15 online marketplace stocks we track reported a slower Q4; on average, revenues beat analyst consensus estimates by 1.8%, while next quarter's revenue guidance was 0.7% above consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and online marketplace stocks have held roughly steady amidst all this, with share prices up 4.1% on average since the previous earnings results.

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 $842.3 million, up 4.3% year on year, topping analyst expectations by 1.8%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but slow revenue growth.

"Etsy delivered over $13 billion in consolidated GMS and our highest-ever annual revenue," said Josh Silverman, Etsy's Chief Executive Officer.

The stock is down 13.5% since the results and currently trades at $66.76.

Is now the time to buy Etsy? 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, with revenue, total payment volume (TPV), and gross merchandise volume (GMV) exceeding analysts' estimates.

MercadoLibre delivered 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 25.9% since the results and currently trades at $1,350.01.

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 users.

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 8.8% since the results and currently trades at $40.55.

Read our full analysis of Shutterstock's results here.

eHealth (NASDAQ:EHTH)

Aiming to address a high-stakes and often confusing decision, eHealth (NASDAQ:EHTH) guides consumers through health insurance enrollment and related topics.

eHealth reported revenues of $247.7 million, up 26.2% year on year, surpassing analyst expectations by 1.1%. It was a weak quarter for the company, with a decline in its users.

The company reported 1.26 billion users, down 6% year on year. The stock is down 37.7% since the results and currently trades at $4.4.

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

Robinhood (NASDAQ:HOOD)

With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.

Robinhood reported revenues of $471 million, up 23.9% year on year, surpassing analyst expectations by 4%. It was a good quarter for the company, with a decent beat of analysts' revenue estimates.

The company reported 23.4 million users, up 1.7% year on year. The stock is up 40.3% since the results and currently trades at $16.63.

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

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