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 Q2, starting with LegalZoom (NASDAQ: LZ).
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.
Luckily, online marketplace stocks have performed well with share prices up 11.9% on average since the latest earnings results.
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 $192.5 million, up 8.5% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was a satisfactory quarter for the company with strong growth in its users but a slight miss of analysts’ EBITDA estimates.
“Our second quarter results clearly demonstrate the advances we have made against our strategic priorities,” said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom.
Interestingly, the stock is up 34% since reporting and currently trades at $11.23.
Is now the time to buy LegalZoom? 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 paid downloads estimates.
The market seems content with the results as the stock is up 4.9% since reporting. It currently trades at $20.79.
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’ marketplace units estimates.
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 27.1% since the results and currently trades at $9.72.
Read our full analysis of ACV Auctions’s results here.
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 result met analysts’ expectations. Overall, it was a strong quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations.
The stock is down 8.4% since reporting and currently trades at $23.60.
Read our full, actionable report on EverQuote here, it’s free.
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 $6.79 billion, up 33.8% year on year. This print topped analysts’ expectations by 3.9%. Taking a step back, it was a mixed quarter as it also recorded impressive growth in its users but a miss of analysts’ EBITDA estimates.
MercadoLibre scored the fastest revenue growth among its peers. The company reported 70.8 million daily active users, up 25.1% year on year. The stock is up 2.7% since reporting and currently trades at $2,473.
Read our full, actionable report on MercadoLibre here, it’s free.
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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