The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how eHealth (NASDAQ: EHTH) and the rest of the online marketplace stocks fared in Q4.
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 8.9% since the latest earnings results.
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 print exceeded analysts’ expectations by 11.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates.
eHealth pulled off the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 21.2% since reporting and currently trades at $7.22.
Is now the time to buy eHealth? 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 an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of unique active users estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $2,137.
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 and a significant miss of analysts’ EBITDA estimates.
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 20.4% since the results and currently trades at $8.76.
Read our full analysis of Teladoc’s results here.
CarGurus (NASDAQ: CARG)
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ: CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
CarGurus reported revenues of $228.5 million, up 2.4% year on year. This result came in 1.8% below analysts' expectations. Overall, it was a slower quarter as it also logged revenue guidance for next quarter below analysts’ expectations.
The company reported 32,010 users, up 3.5% year on year. The stock is down 16.7% since reporting and currently trades at $31.34.
Read our full, actionable report on CarGurus here, it’s free.
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 number met analysts’ expectations. However, it was a slower quarter as it recorded full-year EBITDA guidance missing analysts’ expectations significantly and a slight miss of analysts’ number of active buyers estimates.
The RealReal scored the highest full-year guidance raise among its peers. The company reported 408,000 users, up 7.1% year on year. The stock is down 14.9% since reporting and currently trades at $6.77.
Read our full, actionable report on The RealReal here, it’s free.
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