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 Q4. Today, we are looking at consumer subscription stocks, starting with Bumble (NASDAQ:BMBL).
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 slower Q4; on average, revenues beat analyst consensus estimates by 1.3%, while next quarter's revenue guidance was 1% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. The beginning of 2024 saw mixed inflation data, however, leading to more volatile stock performance, and consumer subscription stocks have had a rough stretch, with share prices down 17% on average since the previous earnings results.
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 $273.6 million, up 13.2% year on year, falling short of analyst expectations by 0.6%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
“Today, we announced solid full-year results and a bold plan to transform Bumble and lead the company to its next phase of growth and innovation,” said Lidiane Jones, CEO of Bumble Inc.
Bumble delivered the weakest performance against analyst estimates of the whole group. The company reported 3.97 million active buyers, up 16.4% year on year. The stock is down 22.3% since the results and currently trades at $10.25.
Is now the time to buy Bumble? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $151 million, up 45.4% year on year, outperforming analyst expectations by 1.8%. It was a very good quarter for the company, with impressive growth in its users and exceptional revenue growth. Lastly, guidance for next quarter and the full year were ahead of expectations for both revenue and adjusted EBITDA.
Duolingo scored the fastest revenue growth and highest full-year guidance raise among its peers. The company reported 6.6 million users, up 57.1% year on year. The stock is down 2.9% since the results and currently trades at $190.
Is now the time to buy Duolingo? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $188 million, down 8.4% year on year, exceeding analyst expectations by 1.1%. 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 4.6 million users, down 8% year on year. The stock is down 26.3% since the results and currently trades at $6.85.
Read our full analysis of Chegg'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 $189.5 million, up 14.6% year on year, surpassing analyst expectations by 1.9%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.
Udemy had the weakest full-year guidance update among its peers. The company reported 1.37 million active buyers, up 0.7% year on year. The stock is down 29.4% since the results and currently trades at $9.89.
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 $8.83 billion, up 12.5% year on year, surpassing analyst expectations by 1.4%. It was a mixed quarter for the company, with solid growth in its users but slow revenue growth.
The company reported 260.3 million users, up 12.8% year on year. The stock is up 26% since the results and currently trades at $618.65.
Read our full, actionable report on Netflix here, it's free.
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