Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Shutterstock (NYSE:SSTK) and the best and worst performers in the online marketplace industry.
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.
Thankfully, share prices of the companies have been resilient as they are up 9.9% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 7.5%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EBITDA estimates.
Commenting on the Company's performance, Paul Hennessy, the Company's Chief Executive Officer, said, "I am pleased to report that Shutterstock set new high water marks in the second quarter, achieving record levels in both Revenue and Adjusted EBITDA. Our complete suite of offerings, from creative content to custom creative solutions to AI model inputs to our GIPHY distribution is now more than ever enabling us to fuel great work for our customers."
Interestingly, the stock is up 1.5% since reporting and currently trades at $20.10.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free.
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 $60.78 million, down 7.7% year on year, outperforming analysts’ expectations by 31%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
eHealth pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. On a dimmer note, the company reported 1.15 million users, down 2.6% year on year. The market seems happy with the results as the stock is up 25.8% since reporting. It currently trades at $4.10.
Is now the time to buy eHealth? 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’ number of marketplace units estimates and EBITDA guidance for next quarter missing analysts’ expectations.
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 11.5% since the results and currently trades at $11.81.
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 $192.5 million, up 8.5% year on year. This number surpassed analysts’ expectations by 5.4%. More broadly, it was a satisfactory quarter as it also produced strong growth in its users but a slight miss of analysts’ EBITDA estimates.
The company reported 1.96 million users, up 21.5% year on year. The stock is up 22.9% since reporting and currently trades at $10.30.
Read our full, actionable report on LegalZoom 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 $5.26 billion, up 32.5% year on year. This print beat analysts’ expectations by 5%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ number of paying users estimates and a solid beat of analysts’ EBITDA estimates.
The company reported 61.8 million users, up 17.7% year on year. The stock is up 30.5% since reporting and currently trades at $191.08.
Read our full, actionable report on Sea here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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