As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at consumer subscription stocks, starting with Roku (NASDAQ:ROKU).
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 Q2. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 2.9% below.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, consumer subscription stocks have held steady amidst all this with share prices up 4.5% on average since the latest earnings results.
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 $968.2 million, up 14.3% year on year. This print exceeded analysts’ expectations by 3.2%. Overall, it was a mixed quarter for the company with solid growth in its users but slow revenue growth.
Interestingly, the stock is up 25.7% since reporting and currently trades at $69.49.
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Best Q2: Duolingo (NASDAQ:DUOL) Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ:DUOL) is a mobile app helping people learn new languages.
Duolingo reported revenues of $178.3 million, up 40.6% year on year, in line with analysts’ expectations. It was a strong quarter for the company with impressive growth in its users and exceptional revenue growth.
Duolingo pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The company reported 103.6 million users, up 39.8% year on year. The market seems happy with the results as the stock is up 31.4% since reporting. It currently trades at $212.57.
Weakest Q2: 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 $163.1 million, down 10.8% year on year, exceeding analysts’ expectations by 2%. It was a weak quarter for the company with a decline in its users and slow revenue growth.
Chegg had the slowest revenue growth in the group. The company reported 4.37 million users, down 9.1% year on year. As expected, the stock is down 24.5% since the results and currently trades at $2.22.
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 $170.3 million, up 10.8% year on year, surpassing analysts’ expectations by 3.5%. Taking a step back, it was a mixed quarter for the company with strong growth in its users but slow revenue growth.
Coursera pulled off the biggest analyst estimates beat among its peers. The company reported 155 million users, up 20.2% year on year. The stock is up 14.1% since reporting and currently trades at $8.44.
Netflix (NASDAQ:NFLX) Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Netflix reported revenues of $9.56 billion, up 16.8% year on year, in line with analysts’ expectations. Revenue aside, it was a weaker quarter for the company with underwhelming revenue guidance for the next quarter and slow revenue growth.
The company reported 277.6 million users, up 16.5% year on year. The stock is up 7% since reporting and currently trades at $687.99.
This content was originally published on Stock Story
