Online Marketplace Stocks Q3 Highlights: Etsy (NASDAQ:ETSY)

Let’s dig into the relative performance of Etsy (NASDAQ:ETSY) and its peers as we unravel the now-completed Q3 online marketplace earnings season.

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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.

While some online marketplace stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.6% since the latest earnings results.

Etsy (NASDAQ:ETSY)

Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.

Etsy reported revenues of $678 million, up 2.4% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.

Unsurprisingly, the stock is down 26.7% since reporting and currently trades at $54.80.

Is now the time to buy Etsy? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $173.9 million, up 20.3% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 19.2% since reporting. It currently trades at $26.72.

Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: 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 $199.6 million, up 16.5% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and full-year EBITDA guidance missing analysts’ expectations significantly.

ACV Auctions delivered the weakest performance against analyst estimates in the group. The company reported 218,065 units sold, up 9.9% year on year. The stock is flat since the results and currently trades at $8.12.

Read our full analysis of ACV Auctions’s results here.

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 $260.1 million, up 3.8% year on year. This number surpassed analysts’ expectations by 1.6%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of paid downloads estimates.

The company reported 111.7 million service requests, down 0.5% year on year. The stock is down 13.2% since reporting and currently trades at $18.85.

Read our full, actionable report on Shutterstock here, it’s free for active Edge members.

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 $53.87 million, down 7.8% year on year. This result beat analysts’ expectations by 4.2%. It was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

eHealth had the slowest revenue growth and weakest full-year guidance update among its peers. The company reported 1.12 million users, down 3.5% year on year. The stock is down 25.7% since reporting and currently trades at $3.67.

Read our full, actionable report on eHealth here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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