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 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 13 online marketplace stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.
Weakest Q1: 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 $160 million, up 11.3% 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.
"We are pleased to report strong first quarter results and our focus remains steadfast,” said Rati Levesque, Chief Executive Officer of The RealReal.
The RealReal delivered the weakest full-year guidance update of the whole group. The company reported 985,000 users, up 157% year on year. Unsurprisingly, the stock is down 29.2% since reporting and currently trades at $5.17.
Is now the time to buy The RealReal? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $113.1 million, up 21.7% year on year, outperforming analysts’ expectations by 13.4%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.
eHealth pulled off the biggest analyst estimates beat among its peers. On a dimmer note, the company reported 1.16 million users, down 1.8% year on year. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.9% since reporting. It currently trades at $4.21.
Is now the time to buy eHealth? Access our full analysis of the earnings results here, it’s free.
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 $629.4 million, down 2.6% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
Teladoc delivered the slowest revenue growth in the group. The company reported 102.5 million users, up 11.7% year on year. As expected, the stock is down 3.6% since the results and currently trades at $6.91.
Read our full analysis of Teladoc’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 $166.6 million, up 83% year on year. This print surpassed analysts’ expectations by 5.2%. It was an exceptional quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations.
EverQuote pulled off the fastest revenue growth among its peers. The stock is down 3.5% since reporting and currently trades at $25.42.
Read our full, actionable report on EverQuote here, it’s free.
Sea (NYSE: SE)
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE: SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Sea reported revenues of $4.84 billion, up 27.8% year on year. This number came in 1.2% below analysts' expectations. Aside from that, it was a strong quarter as it put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of paying users estimates.
The company reported 64.6 million users, up 32.1% year on year. The stock is up 10.6% since reporting and currently trades at $157.79.
Read our full, actionable report on Sea 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.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
