Consumer Internet Stocks Q2 Results: Benchmarking Booking (NASDAQ:BKNG)
Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q2 now behind us, let’s have a look at Booking (NASDAQ:BKNG) and its peers.
The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.
The 34 consumer internet stocks we track reported a slower Q2; on average, revenues beat analyst consensus estimates by 0.92%, while on average next quarter revenue guidance was 0.04% under consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021 and consumer internet stocks have not been spared, with share prices down 14.1% since the previous earnings results, on average.
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Booking reported revenues of $5.46 billion, up 27.2% year on year, beating analyst expectations by 5.55%. It was a strong quarter for the company, with a solid beat of analysts' revenue and EPS estimates. Unit economics are also moving in the right direction.
The stock is up 9.72% since the results and currently trades at $3,115.
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 delivered the fastest revenue growth among its peers. The company reported 109 million daily active users, up 29.8% year on year. The stock is up 18.7% since the results and currently trades at $1,382.9.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Weakest Q2: Skillz (NYSE:SKLZ)
Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Skillz reported revenues of $40.2 million, down 45.2% year on year, missing analyst expectations by 5.66%. It was a weak quarter for the company, with a declining user base and revenue. Also, there was a more meaningful miss on quarterly adjusted EBITDA.
The stock is down 42.7% since the results and currently trades at $6.2.
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 mixed quarter for the company, with a decline in its user base and a miss of analysts' revenue estimates. On the positive side, adjusted EBITDA beat and was much improved.
The company reported 43.1 million users, down 23.2% year on year. The stock is down 32.1% since the results and currently trades at $38.51.
Launched in 2002 by founder Niraj Shah, Wayfair (NYSE: W) is a leading online retailer for mass market home goods in the US, UK, Canada, and Germany.
Wayfair reported revenues of $3.17 billion, down 3.44% year on year, beating analyst expectations by 2.38%. It was a decent quarter for the company, with a beat on orders and a slight beat on active customers. It was even better to see Wayfair smash adjusted EBITDA and free cash flow expectations, showing that its focus on profitability is paying off.
The company reported 21.8 million active buyers, down 7.63% year on year. The stock is down 12.9% since the results and currently trades at $63.52.
The author has no position in any of the stocks mentioned