Let's dig into the relative performance of LegalZoom (NASDAQ:LZ) and its peers as we unravel the now-completed Q4 online marketplace earnings season.

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 12 online marketplace stocks we track reported a slower Q4; on average, revenues beat analyst consensus estimates by 1.4%. while next quarter's revenue guidance was 3% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but online marketplace stocks held their ground better than others, with the share prices up 11.9% on average since the previous earnings results.

LegalZoom (NASDAQ:LZ)

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 $158.7 million, up 8.2% year on year, topping analyst expectations by 1.3%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year revenue guidance missing analysts' expectations.

“I’m excited with the progress we made this quarter, including the rollout of our new Business License and Beneficial Ownership Information Report services. We are entering 2024 with a strong foundation to drive growth. Our investments in technology, a much broader ecosystem of services and an expanding base of more engaged subscribers put us in a strong position as we enter the year,” said Dan Wernikoff, LegalZoom’s Chief Executive Officer.

The stock is up 34.6% since the results and currently trades at $13.22.

Read our full report on LegalZoom 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 achieved 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 18.3% since the results and currently trades at $1,488.

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 5% since the results and currently trades at $42.25.

Read our full analysis of Shutterstock's results here.

Robinhood (NASDAQ:HOOD)

With a mission to “democratize finance”, Robinhood (NASDAQ:HOOD) is an online platform enabling the commission-free trading of stocks, exchange-traded funds, and cryptocurrencies.

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 56.6% since the results and currently trades at $18.56.

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

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