Wrapping up Q3 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including Sea (NYSE:SE) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.
Luckily, online marketplace stocks have performed well with share prices up 34% on average since the latest earnings results.
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 $4.33 billion, up 36.7% year on year. This print exceeded analysts’ expectations by 6.3%. Overall, it was a strong quarter for the company with an solid beat of analysts’ EBITDA estimates and impressive growth in its users.
“I’m happy to report that it has been another solid quarter. We are seeing high growth across all our three businesses,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.
The stock is up 26.8% since reporting and currently trades at $123.55.
We think Sea is a good business, but is it a buy today? Read our full report here, it’s free.
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 $250.6 million, up 7.4% year on year, outperforming analysts’ expectations by 5.1%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of paid downloads estimates.
The market seems happy with the results as the stock is up 8.9% since reporting. It currently trades at $32.14.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free.
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
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