The RealReal, eBay and Pinterest: Can Discovery Shopping Drive Profits?

Recent earnings show how interactive shopping is changing retail, but investors need to look beyond revenue and user growth.
The RealReal just reported record quarterly revenue. eBay is seeing growing demand for live shopping. Pinterest now has 661 million monthly users.

These companies operate different businesses, but they’re competing for something increasingly valuable: consumers’ attention before they know exactly what they want to buy.

For years, online shopping was about convenience. Customers searched for a product, compared prices and checked out. Now retailers are investing in artificial intelligence, live shopping and interactive experiences designed to make discovering products part of the attraction.

It’s a shift worth watching. But for investors, the question is whether these experiences can turn occasional shoppers into repeat customers while improving profitability.

Recent earnings offer some clues.

The RealReal’s Growth Comes With a Profitability Test

Luxury resale platform The RealReal (NASDAQ: REAL) reported third-quarter revenue of $206 million, up 19% from a year earlier, according to its .

Gross merchandise value, or GMV, increased 23% to $642 million, while orders climbed 15%. Active buyers rose 13% to approximately 1.15 million over the trailing 12 months.

Those figures suggest more consumers are participating in luxury resale.

Profitability also improved. The company reported $17 million in adjusted EBITDA, compared with $9.3 million a year earlier, and a gross margin of 74.9%.

Still, investors should examine what’s driving the bottom line.

The RealReal reported $16 million in net income, including a $21.2 million noncash gain related to warrant valuation. That accounting benefit shouldn’t be mistaken for recurring operating earnings.

Management raised its full-year revenue outlook to between $806 million and $810 million.

The next test is whether the company can maintain buyer growth while improving profitability in a business that requires authentication, inventory handling and fulfillment.

eBay Is Making Shopping More Interactive

eBay (NASDAQ: EBAY) is finding opportunities in recommerce, the buying and selling of previously owned merchandise.

The company reported third-quarter revenue of $3.2 billion, up 14%, and GMV of $23.2 billion, an increase of 15%, according to its Oct. 28 earnings announcement.

One development caught my attention: eBay Live.

The company’s interactive shopping platform delivered another record quarter, with GMV reaching a multibillion-dollar annualized run rate. Year-over-year growth remained in the triple digits, according to eBay.

Instead of simply searching for products, consumers can watch sellers demonstrate merchandise and participate in live events.

That approach makes sense for collectibles, where finding an unusual item can be part of the appeal.

But eBay’s financial results also illustrate the risks.

GAAP net income from continuing operations declined 16% to $501 million, despite higher revenue.

Investors should watch whether interactive shopping generates additional transactions and improves customer retention without increasing expenses faster than revenue.

What Makes Customers Come Back?

Andrea Miele, co-founder and CEO of Beezie, a privately held discovery-shopping platform, believes retailers are beginning to recognize that consumers want more from online shopping.

When I interviewed Miele about the changing retail landscape, she pointed to the growing use of interactive features designed to make shopping more engaging.

"They’re edging towards a more engaging and fun process for shopping," Miele said. "The consumers they’re targeting today want a bit more and they want to feel something on their shopping journey."

But attracting attention is only part of the challenge.

I asked Miele what turns that initial interest into repeat business.

"It’s all about customer experience. Is it simple to use?" she said.

Miele pointed to loyalty programs, including Sephora’s rewards system, as an example of how retailers encourage customers to return.

For investors, the distinction matters. An entertaining shopping experience isn’t necessarily profitable. Companies still need to demonstrate that engagement leads to repeat purchases and stronger customer economics.

Pinterest Has the Audience. Can It Monetize It?

Pinterest (NYSE: PINS) offers another perspective on product discovery.

Unlike eBay or The RealReal, Pinterest primarily generates revenue through advertising rather than merchandise transactions.

The company reported third-quarter revenue of $1.17 billion, up 12%, while monthly active users increased 10% to a record 661 million, according to its earnings announcement.

But attracting users and monetizing them are different challenges.

Pinterest reported net income of approximately $22 million, down from $92 million a year earlier.

The company continues investing in AI-powered visual search and shopping tools designed to connect consumers with products and advertisers.

Someone researching kitchen designs or planning a wardrobe purchase may already be considering spending money. The opportunity is turning that interest into advertising revenue.

For Pinterest investors, average revenue per user, advertising demand and operating margins deserve attention alongside user growth.

Shopify’s Next Earnings Will Offer Another Test

Shopify (NASDAQ: SHOP) provides a different investment angle.

Rather than operating a consumer discovery platform, Shopify supplies the technology merchants use to sell products across websites and other channels.

In its , Shopify reported revenue growth of 34% and a free cash flow margin of 18%.

The company is scheduled to report third-quarter earnings Nov. 3, providing another opportunity to evaluate its growth and profitability.

As retailers experiment with live shopping, social commerce and personalized experiences, they still need systems to manage payments, inventory and customer relationships.

For Shopify, the question is whether those investments translate into sustained revenue growth and healthy cash flow.

What Investors Should Watch Next

Discovery shopping could change how consumers interact with retailers, but the investment opportunity depends on execution.

The RealReal is attracting more buyers. eBay is expanding interactive commerce. Pinterest has a growing audience but faces pressure to improve monetization. Shopify provides infrastructure supporting merchants across different shopping channels.

I’d watch three measures closely: repeat customer activity, revenue generated from transactions and the cost of acquiring and retaining buyers.

Those numbers will help distinguish companies benefiting from lasting changes in consumer behavior from those simply spending more to attract attention.

Making shopping more entertaining may bring consumers through the door. Getting them to return, buy again and generate sustainable profits is what ultimately matters to investors.