Spotting Winners: ACV Auctions (NASDAQ:ACVA) And Online Marketplace Stocks In Q2

ACVA Cover Image — Spotting Winners: ACV Auctions (NASDAQ:ACVA) And Online Marketplace Stocks In Q2

Jabin Bastian

Mon, Oct 14, 2024, 1:55 AM 4 min read

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 a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.9% while next quarter’s revenue guidance was 5.1% above.

The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

Thankfully, online marketplace stocks have been resilient with share prices up 9.5% on average since the latest earnings results.

ACV Auctions (NASDAQ: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 $160.6 million, up 29.3% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations.

“We are very pleased with our second quarter results, delivering revenue above the high-end of our guidance range, continued margin expansion, and strong sequential growth in Adjusted EBITDA,” said George Chamoun, CEO of ACV.

Interestingly, the stock is up 26% since reporting and currently trades at $18.74.

Is now the time to buy ACV Auctions? Access our full analysis of the earnings results here, it’s free.

Best Q2: 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 $117.1 million, up 72.3% year on year, outperforming analysts’ expectations by 13.9%. The business had an incredible quarter with optimistic revenue guidance for the next quarter and exceptional revenue growth.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 18.3% since reporting. It currently trades at $19.60.

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

Weakest Q2: 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 $642.4 million, down 1.5% year on year, falling short of analysts’ expectations by 1.1%. It was a softer quarter as it posted slow revenue growth.

As expected, the stock is down 1.5% since the results and currently trades at $9.30.

Read our full analysis of Teladoc’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 $647.8 million, up 3% year on year. This result surpassed analysts’ expectations by 3%. However, it was a mixed quarter as it produced slow revenue growth.

The company reported 96.61 million active buyers, up 0.4% year on year. The stock is down 22.5% since reporting and currently trades at $50.50.

Read our full, actionable report on Etsy here, it’s free.

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 $220.1 million, up 5.4% year on year. This result beat analysts’ expectations by 3.1%. Taking a step back, it was a slower quarter as it recorded a miss of analysts’ request estimates.

Shutterstock had the weakest full-year guidance update among its peers. The company reported 33.4 million service requests, down 13.2% year on year. The stock is down 17.2% since reporting and currently trades at $31.46.

Read our full, actionable report on Shutterstock here, it’s free.

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