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Consumer Subscription Stocks Q1 Teardown: Bumble (NASDAQ:BMBL) Vs The Rest


Adam Hejl /
2023/06/05 3:31 am EDT

As Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the consumer subscription stocks, including Bumble (NASDAQ:BMBL) and its peers.

Consumers today expect goods and services to be hyper-personalized and on demand. Whether it be what music they listen to or what movie they watch, or finding a date, online consumer businesses today are expected to delight their customers with simple user interfaces that magically fulfill demand. Subscription models have increased usage and stickiness of many online consumer services.

The 7 consumer subscription stocks we track reported a weaker Q1; on average, revenues beat analyst consensus estimates by 2.2%, while on average next quarter revenue guidance was 1.84% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but consumer subscription stocks held their ground better than others, with the share prices up 5.12% since the previous earnings results, on average.

Bumble (NASDAQ:BMBL)

Founded 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 $242.9 million, up 15% year on year, in line with analyst expectations. It was a mixed quarter for the company, with growing number of users but slow revenue growth.

“In Q1, we delivered solid revenue growth and strong Bumble App paying user additions,” said Whitney Wolfe Herd, Founder and CEO of Bumble.

Bumble Total Revenue

The stock is down 6.97% since the results and currently trades at $16.41.

Is now the time to buy Bumble? Access our full analysis of the earnings results here, it's free.

Best Q1: Coursera (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 $147.6 million, up 22.6% year on year, beating analyst expectations by 6.39%. It was a strong quarter for the company, with a solid beat of analyst estimates and growing number of users.

Coursera Total Revenue

Coursera pulled off the strongest analyst estimates beat, and fastest revenue growth among its peers. The company reported 124 million paying users, up 21.6% year on year. The stock is up 24.3% since the results and currently trades at $13.01.

Is now the time to buy Coursera? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Match (NASDAQ:MTCH)

Match.com was an early innovator in dating apps and was actually launched as a dial-up service before widespread internet adoption. Match (NASDAQ:MTCH) today has a portfolio of apps including Tinder, OkCupid, Match.com, and Hinge.

Match reported revenues of $787.1 million, down 1.44% year on year, missing analyst expectations by 0.87%. It was a weak quarter for the company, with slow revenue growth and an underwhelming revenue guidance for the next quarter.

Match had the weakest performance against analyst estimates in the group. The company reported 15.9 million paying users, down 2.45% year on year. The stock is up 13.4% since the results and currently trades at $39.06.

Read our full analysis of Match'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 $176.4 million, up 15.9% year on year, beating analyst expectations by 3.21%. It was a weaker quarter for the company, with underwhelming revenue guidance for the full year and an underwhelming revenue guidance for the next quarter.

Udemy had the weakest full year guidance update among the peers. The company reported 1.39 million active buyers, up 0.51% year on year. The stock is up 24.5% since the results and currently trades at $10.78.

Read our full, actionable report on Udemy here, it's free.

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 $8.16 billion, up 3.73% year on year, missing analyst expectations by 0.2%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and slow revenue growth.

The company reported 232.5 million paying users, up 4.9% year on year. The stock is up 19.8% since the results and currently trades at $400.06.

Read our full, actionable report on Netflix here, it's free.

The author has no position in any of the stocks mentioned