Wrapping up Q4 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including The RealReal (NASDAQ:REAL) 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 12 online marketplace stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.7% since the latest earnings results.
The RealReal (NASDAQ:REAL)
Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
The RealReal reported revenues of $164 million, up 14.4% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations and a slight miss of analysts’ number of active buyers estimates.
“We achieved strong fourth quarter and full year 2024 results, exiting the year from a position of strength," said Rati Levesque, President and Chief Executive Officer of The RealReal.
The RealReal achieved the highest full-year guidance raise of the whole group. The company reported 408,000 users, up 7.1% year on year. Still, the market seems discontent with the results. The stock is down 7.9% since reporting and currently trades at $5.15.
Is now the time to buy The RealReal? Access our full analysis of the earnings results 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 $6.06 billion, up 37.4% year on year, outperforming analysts’ expectations by 2.8%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ number of unique active users estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.9% since reporting. It currently trades at $1,951.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Teladoc (NYSE:TDOC)
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Teladoc reported revenues of $640.5 million, down 3% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
Teladoc delivered the slowest revenue growth in the group. The company reported 93.8 million users, up 4.7% year on year. As expected, the stock is down 18% since the results and currently trades at $9.02.
Read our full analysis of Teladoc’s results here.
eHealth (NASDAQ:EHTH)
Aiming to address a high-stakes and often confusing decision, eHealth (NASDAQ:EHTH) guides consumers through health insurance enrollment and related topics.
eHealth reported revenues of $315.2 million, up 27.3% year on year. This number surpassed analysts’ expectations by 11.4%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates.
eHealth achieved the biggest analyst estimates beat among its peers. The stock is down 18.9% since reporting and currently trades at $7.43.
Read our full, actionable report on eHealth here, it’s free.
LegalZoom (NASDAQ:LZ)
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses.
LegalZoom reported revenues of $161.7 million, up 1.9% year on year. This result beat analysts’ expectations by 0.6%. It was a strong quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ number of subscription units estimates.
The company reported 1.77 million users, up 14.3% year on year. The stock is up 4.5% since reporting and currently trades at $9.26.
Read our full, actionable report on LegalZoom here, it’s free.
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