The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how online marketplace stocks fared in Q3, starting with EverQuote (NASDAQ: EVER).

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 13 online marketplace stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.

While some online marketplace stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.

Best Q3: 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 $173.9 million, up 20.3% year on year. This print exceeded analysts’ expectations by 4.3%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.

“In the third quarter, we achieved record top and bottom line performance and we are making steady progress towards our vision of becoming the leading growth partner to P&C insurance providers,” said Jayme Mendal, CEO of EverQuote.

Interestingly, the stock is up 23.4% since reporting and currently trades at $27.67.

Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 $260.1 million, up 3.8% year on year, outperforming analysts’ expectations by 1.6%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ number of paid downloads estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.2% since reporting. It currently trades at $19.08.

Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: 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 $199.6 million, up 16.5% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and full-year EBITDA guidance missing analysts’ expectations significantly.

ACV Auctions delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. The company reported 218,065 units sold, up 9.9% year on year. The stock is flat since the results and currently trades at $8.11.

Read our full analysis of ACV Auctions’s results here.

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 $190.2 million, up 12.8% year on year. This number topped analysts’ expectations by 3.9%. More broadly, it was a satisfactory quarter as it also recorded revenue guidance for next quarter beating analysts’ expectations but a significant miss of analysts’ number of subscription units estimates.

The company reported 1.96 million users, up 14.1% year on year. The stock is down 2.6% since reporting and currently trades at $9.92.

Read our full, actionable report on LegalZoom here, it’s free for active Edge members.

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 $678 million, up 2.4% year on year. This result beat analysts’ expectations by 3.3%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.

The company reported 93.16 million active buyers, down 3.7% year on year. The stock is down 28.5% since reporting and currently trades at $53.48.

Read our full, actionable report on Etsy here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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