Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Roku (NASDAQ:ROKU) and the best and worst performers in the consumer subscription industry.
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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Luckily, consumer subscription stocks have performed well with share prices up 26.2% on average since the latest earnings results.
Weakest Q1: Roku (NASDAQ:ROKU)
Spun out from Netflix, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Roku reported revenues of $1.02 billion, up 15.8% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a slower quarter for the company with a slight miss of analysts’ number of total hours streamed estimates and a significant miss of analysts’ EBITDA estimates.
The stock is up 8.2% since reporting and currently trades at $72.80.
Read our full report on Roku here, it’s free.
Best Q1: 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 $230.7 million, up 37.7% year on year, outperforming analysts’ expectations by 3.4%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Duolingo delivered the fastest revenue growth and highest full-year guidance raise among its peers. The company reported 130.2 million users, up 33.4% year on year. The market seems happy with the results as the stock is up 31.7% since reporting. It currently trades at $526.99.
Is now the time to buy Duolingo? Access our full analysis of the earnings results here, it’s free.
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 $831.2 million, down 3.3% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a decline in its users and a slight miss of analysts’ number of payers estimates.
The stock is flat since the results and currently trades at $30.40.
Read our full analysis of Match Group’s results here.
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 $200.3 million, up 1.8% year on year. This number beat analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Udemy had the weakest full-year guidance update among its peers. The company reported 17,216 active buyers, up 7.1% year on year. The stock is up 13.4% since reporting and currently trades at $7.80.
Read our full, actionable report on Udemy here, it’s free.
Bumble (NASDAQ:BMBL)
Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ:BMBL) is a leading dating app built with women at the center.
Bumble reported revenues of $247.1 million, down 7.7% year on year. This result met analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations.
Bumble had the weakest performance against analyst estimates among its peers. The company reported 4.01 million active buyers, down 0.2% year on year. The stock is up 31% since reporting and currently trades at $5.75.
Read our full, actionable report on Bumble here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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