Online Marketplace Q2 Earnings: MercadoLibre (NASDAQ:MELI) Simply the Best
Wrapping up Q2 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including MercadoLibre (NASDAQ:MELI) 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 which feed back into further customer acquisition.
The 11 online marketplace stocks we track reported a weaker Q2; on average, revenues missed analyst consensus estimates by 0.54%, while on average next quarter revenue guidance was 1.72% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and online marketplace stocks have not been spared, with share prices down 20.5% since the previous earnings results, on average.
Best Q2: MercadoLibre (NASDAQ:MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) today is a one-stop e-commerce marketplace in Latin America.
MercadoLibre reported revenues of $3.42 billion, up 31.5% year on year, beating analyst expectations by 4.4%. It was a very strong quarter for the company, with impressive growth in its user base and a decent beat of analysts' revenue estimates.
MercadoLibre pulled off the strongest analyst estimates beat and fastest revenue growth of the whole group. The company reported 109 million daily active users, up 29.8% year on year. The stock is up 9.41% since the results and currently trades at $1,275.
Founded by Joe Gebbia and Brian Chesky by renting out a blowup bed on the floor of their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Airbnb reported revenues of $2.48 billion, up 18.1% year on year, beating analyst expectations by 2.69%. It was a mixed quarter for the company, with Nights and Experiences Booked, a key volume measure for Airbnb, missing expectations, although Gross Bookings was in line with expectations. However, revenue came in ahead of expectations, as did revenue guidance for the next quarter.
The stock is down 5.31% since the results and currently trades at $133.4.
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Weakest Q2: Sea (NYSE:SE)
Founded in 2009 and a publicly-traded company since 2017, Sea Limited (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 $3.1 billion, up 5.2% year on year, missing analyst expectations by 4.68%. It was a weak quarter for the company, with a decline in its user base and a miss of analysts' revenue estimates.
The stock is down 29.8% since the results and currently trades at $39.85.
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 $208.8 million, flat year on year, missing analyst expectations by 2.6%. It was a mixed quarter for the company, with full-year revenue guidance coming in higher than Wall Street's expectations. On the other hand, revenue growth was quite weak. In addition, the company's gross margin also deteriorated.
Shutterstock pulled off the highest full year guidance raise among the peers. The company reported 0.56 million users, up 51.1% year on year. The stock is down 27.1% since the results and currently trades at $37.52.
LegalZoom (NASDAQ:LZ) is an online platform that provides online legal services to individuals and small businesses. The company’s co-founders found it difficult and expensive to find lawyers and file paperwork when trying to start a business so they started LegalZoom instead to address this pain point.
LegalZoom reported revenues of $168.9 million, up 3.04% year on year, beating analyst expectations by 1.1%. It was a mixed quarter for the company, with revenue coming in ahead of Wall Street's expectations, even if just narrowly. On the other hand, its weak revenue growth wasn't great. Also, while next quarter's revenue guidance was in line, adjusted EBITDA guidance was below.
The company reported 1.55 million users, up 11.4% year on year. The stock is down 29.6% since the results and currently trades at $10.8.
The author has no position in any of the stocks mentioned