Yahoo Finance A Look Back at Consumer Internet Stocks' Q1 Earnings: Revolve (NYSE:RVLV) Vs The Rest Of The Pack
Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Revolve (NYSE:RVLV) and its peers.
The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.
The 43 consumer internet stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 2.6%. while next quarter's revenue guidance was in line with consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the consumer internet stocks have fared somewhat better than others, they collectively declined, with share prices falling 2.4% on average since the previous earnings results.
Revolve (NYSE:RVLV)
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve Group (NASDAQ: RVLV) is a next generation fashion retailer that leverages social media and a community of fashion influencers to drive its merchandising strategy.
Revolve reported revenues of $270.6 million, down 3.2% year on year, falling short of analysts' expectations by 0.4%. It was a weak quarter for the company, with slow revenue growth and a miss of analysts' revenue estimates.
"We delivered significant expansion of our gross margin and year-over-year efficiency in our variable logistics costs in the first quarter of 2024, which contributed to strong profitability and cash flow generation that further strengthened our balance sheet," said co-founder and co-CEO Mike Karanikolas.
The stock is down 8.4% since the results and currently trades at $19.4.
Read our full report on Revolve here, it's free.
Best Q1: 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 $4.33 billion, up 36% year on year, outperforming analysts' expectations by 12.1%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue estimates and exceptional revenue growth.
The stock is up 12.4% since the results and currently trades at $1,693.57.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Skillz (NYSE:SKLZ)
Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Skillz reported revenues of $25.24 million, down 43.1% year on year, falling short of analysts' expectations by 12.6%. It was a weak quarter for the company, with a decline in its users and slow revenue growth.
Skillz had the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 121,000 monthly active users, down 43.5% year on year. The stock is down 1.7% since the results and currently trades at $6.3.
Read our full analysis of Skillz's results here.
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 $3.86 billion, up 26.9% year on year, surpassing analysts' expectations by 6.5%. It was a very strong quarter for the company, with impressive growth in its users and a solid beat of analysts' revenue estimates.
The company reported 48.9 million users, up 30.1% year on year. The stock is up 10.1% since the results and currently trades at $71.
Read our full, actionable report on Sea here, it's free.
ACV Auctions (NASDAQ: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 $145.7 million, up 21.8% year on year, surpassing analysts' expectations by 1.2%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.
The company reported 174,631 units sold, up 15.2% year on year. The stock is up 9% since the results and currently trades at $18.89.
Read our full, actionable report on ACV Auctions here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
