As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the online marketplace industry, including eHealth (NASDAQ: EHTH) 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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% 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 4.2% 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 $53.87 million, down 7.8% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

eHealth delivered the slowest revenue growth and weakest full-year guidance update of the whole group. The company reported 1.12 million users, down 3.5% year on year. Unsurprisingly, the stock is down 17.2% since reporting and currently trades at $4.09.

Is now the time to buy eHealth? 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 an impressive 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 18.8% since reporting. It currently trades at $26.63.

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 highest full-year guidance raise but had the weakest performance against analyst estimates in the group. The company reported 218,065 units sold, up 9.9% year on year. As expected, the stock is down 4.4% since the results and currently trades at $7.79.

Read our full analysis of ACV Auctions’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 $238.7 million, up 3.2% year on year. This number beat analysts’ expectations by 1.6%. It was a strong quarter as it also logged EBITDA guidance for next quarter topping analysts’ expectations and a decent beat of analysts’ EBITDA estimates.

The company reported 33,673 users, up 6.3% year on year. The stock is up 6.8% since reporting and currently trades at $35.38.

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

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 $190.2 million, up 12.8% year on year. This print surpassed analysts’ expectations by 3.9%. Aside from that, it was a satisfactory quarter as it also logged revenue guidance for next quarter beating analysts’ expectations but a significant miss of analysts’ number of subscription units estimates.

The company reported 1.96 million users, up 14.1% year on year. The stock is down 8.4% since reporting and currently trades at $9.33.

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

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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