Unpacking Q3 Earnings: Match Group (NASDAQ:MTCH) In The Context Of Other Consumer Subscription Stocks

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at 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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 2.2% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Match Group (NASDAQ:MTCH)

Match Group reported revenues of $895.5 million, up 1.6% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations significantly and a decline in its users.

Match Group delivered the weakest performance against analyst estimates of the whole group. The company reported 15.21 million users, down 3.2% year on year. Unsurprisingly, the stock is down 16.1% since reporting and currently trades at $31.74.

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Best Q3: Duolingo (NASDAQ:DUOL)

Duolingo reported revenues of $192.6 million, up 39.9% year on year, outperforming analysts’ expectations by 1.8%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Duolingo scored the fastest revenue growth and highest full-year guidance raise among its peers. The company reported 113.1 million users, up 36.1% year on year. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2.3% since reporting. It currently trades at $311.80.

Weakest Q3: Chegg (NYSE:CHGG)

Chegg reported revenues of $136.6 million, down 13.5% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a slower quarter as it posted a decline in its users and a significant miss of analysts’ number of services subscribers estimates.

Chegg delivered the slowest revenue growth in the group. The company reported 3.83 million users, down 12.9% year on year. As expected, the stock is down 15.7% since the results and currently trades at $1.50.

Roku (NASDAQ:ROKU)

Roku reported revenues of $1.06 billion, up 16.5% year on year. This print surpassed analysts’ expectations by 4.5%. More broadly, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates.

Roku achieved the biggest analyst estimates beat among its peers. The company reported 85.5 million monthly active users, up 12.8% year on year. The stock is down 2.8% since reporting and currently trades at $75.38.

Netflix (NASDAQ:NFLX)

Netflix reported revenues of $9.82 billion, up 15% year on year. This result topped analysts’ expectations by 0.6%. It was a very strong quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

The company reported 282.7 million users, up 14.4% year on year. The stock is up 20.7% since reporting and currently trades at $829.91.

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This content was originally published on Stock Story