Wrapping up Q1 earnings, we look at the numbers and key takeaways for the consumer subscription stocks, including Match Group (NASDAQ:MTCH) and its peers.
Consumers today expect goods and services to be hyper-personalized and on demand. Whether it be what music they listen to, what movie they watch, or even finding a date, online consumer businesses are expected to delight their customers with simple user interfaces that magically fulfill demand. Subscription models have further increased usage and stickiness of many online consumer services.
The 8 consumer subscription stocks we track reported a weaker Q1; on average, revenues beat analyst consensus estimates by 0.9%. while next quarter's revenue guidance was 2.8% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and consumer subscription stocks have had a rough stretch, with share prices down 17.7% on average since the previous earnings results.
Match Group (NASDAQ:MTCH) Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Match Group reported revenues of $859.6 million, up 9.2% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a decline in its users and underwhelming revenue guidance for the next quarter.
The stock is flat since reporting and currently trades at $31.71.
Is now the time to buy Match Group? Find out by reading the original article on StockStory, it's free. Best Q1: Roku (NASDAQ:ROKU)Spun out from Netflix (NASDAQ:NFLX), Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Roku reported revenues of $881.5 million, up 19% year on year, outperforming analysts' expectations by 3.7%. It was a decent quarter for the company with strong growth in its users but slow revenue growth.
Roku delivered the biggest analyst estimates beat among its peers. The company reported 81.6 million monthly active users, up 14% year on year. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 2.5% since reporting. It currently trades at $61.24.
Weakest Q1: Chegg (NYSE:CHGG)Started as a physical textbook rental service, Chegg (NYSE:CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.
Chegg reported revenues of $174.4 million, down 7.1% year on year, in line with analysts' expectations. It was a weak quarter for the company with a decline in its users and slow revenue growth.
Chegg posted the slowest revenue growth in the group. The company reported 4.7 million users, down 7.8% year on year. As expected, the stock is down 59.2% since the results and currently trades at $2.93.
Coursera (NYSE:NYSE:COUR)Founded by two Stanford University computer science professors, Coursera (NYSE:COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.
Coursera reported revenues of $169.1 million, up 14.5% year on year, in line with analysts' expectations. Zooming out, it was a weak quarter for the company with underwhelming revenue guidance for the next quarter and slow revenue growth.
Coursera had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The company reported 148 million users, up 19.4% year on year. The stock is down 38.8% since reporting and currently trades at $7.28.
Udemy (NASDAQ:UDMY)With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ:UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.
Udemy reported revenues of $196.8 million, up 11.6% year on year, in line with analysts' expectations. Zooming out, it was a weak quarter for the company with slow revenue growth and full-year revenue guidance missing analysts' expectations.
The company reported 1.44 million active buyers, up 3.6% year on year. The stock is down 16.4% since reporting and currently trades at $8.27.
This content was originally published on Stock Story
