Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at EverQuote (NASDAQ: EVER) and the best and worst performers in the online marketplace industry.
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 14 online marketplace stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.7% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 9.9% on average since the latest earnings results.
EverQuote (NASDAQ: EVER)
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
EverQuote reported revenues of $156.6 million, up 33.7% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
“We achieved strong results in the second quarter, growing revenue 34% year-over-year and achieving record operating cash flow,” said Jayme Mendal, CEO of EverQuote.
Unsurprisingly, the stock is down 8.6% since reporting and currently trades at $23.55.
Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $267 million, up 21.3% year on year, outperforming analysts’ expectations by 7.5%. The business had a stunning quarter with a solid beat of analysts’ EBITDA and number of paid downloads estimates.
The market seems content with the results as the stock is up 1.5% since reporting. It currently trades at $20.10.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: ACV Auctions (NYSE: ACVA)
Founded in 2014, ACV Auctions (NASDAQ: ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
ACV Auctions reported revenues of $193.7 million, up 20.6% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ number of marketplace units estimates and EBITDA guidance for next quarter missing analysts’ expectations significantly.
ACV Auctions delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 210,429 units sold, up 12.8% year on year. As expected, the stock is down 11.5% since the results and currently trades at $11.81.
Read our full analysis of ACV Auctions’s results here.
CarGurus (NASDAQ: CARG)
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ: CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
CarGurus reported revenues of $234 million, up 7% year on year. This print surpassed analysts’ expectations by 0.7%. More broadly, it was a satisfactory quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations but revenue guidance for next quarter missing analysts’ expectations significantly.
The company reported 33,095 users, up 5.6% year on year. The stock is up 15.2% since reporting and currently trades at $36.18.
Read our full, actionable report on CarGurus 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 $178.7 million, flat year on year. This result met analysts’ expectations. Taking a step back, it was a mixed quarter as its performance in some other areas of the business was disappointing.
The company reported 19,412 active buyers, up 0.1% year on year. The stock is up 3.4% since reporting and currently trades at $13.59.
Read our full, actionable report on Cars.com here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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