Yahoo Finance Reflecting On Online Marketplace Stocks’ Q1 Earnings: Coinbase (NASDAQ:COIN)
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the online marketplace industry, including Coinbase (NASDAQ:COIN) 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 16 online marketplace stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 5.2%. while next quarter's revenue guidance was 2.4% 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 while some of the online marketplace stocks have fared somewhat better than others, they collectively declined, with share prices falling 2.8% on average since the previous earnings results.
Coinbase (NASDAQ:COIN)
Regarded by many as the face of crypto, Coinbase (NASDAQ:COIN) is a digital platform helping the world onboard into the blockchain ecosystem.
Coinbase reported revenues of $1.64 billion, up 112% year on year, exceeding analysts' expectations by 19.4%. Overall, it was a solid quarter for the company with exceptional revenue growth.
Coinbase scored the biggest analyst estimates beat and fastest revenue growth of the whole group. The company reported 8 million monthly active users, down 4.8% year on year. The stock is up 2.7% since reporting and currently trades at $235.50.
Best Q1: 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 $4.33 billion, up 36% year on year, outperforming analysts' expectations by 12.1%. It was a stunning quarter for the company with exceptional revenue growth.
The market seems happy with the results as the stock is up 7.8% since reporting. It currently trades at $1,625.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Slowest Q1: 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 $215.8 million, down 7% year on year, in line with analysts' expectations. It was a weak quarter for the company with slow revenue growth and underwhelming revenue guidance for the next quarter.
Interestingly, the stock is up 13.1% since the results and currently trades at $25.19.
Read our full analysis of CarGurus's results here.
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 $646 million, flat year on year, in line with analysts' expectations. More broadly, it was a weaker quarter for the company with slow revenue growth.
The company reported 96.39 million active buyers, up 0.9% year on year. The stock is down 13.4% since reporting and currently trades at $60.43.
Read our full, actionable report on Etsy here, it's free.
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 $174.2 million, up 5% year on year, in line with analysts' expectations. More broadly, it was a weak quarter for the company with slow revenue growth and full-year revenue guidance missing analysts' expectations.
LegalZoom had the weakest full-year guidance update among its peers. The company reported 1.61 million users, up 6.9% year on year. The stock is down 45.9% since reporting and currently trades at $6.60.
Read our full, actionable report on LegalZoom here, it's free.
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