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 the consumer subscription stocks, starting with Match (NASDAQ:MTCH).
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 mixed Q2; on average, revenues beat analyst consensus estimates by 3.32%, while on average next quarter revenue guidance was 0.32% above consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, but consumer subscription stocks held their ground better than others, with share prices down 4.68% since the previous earnings results, on average.
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 $829.6 million, up 4.41% year on year, beating analyst expectations by 2.23%. It was a decent quarter for the company, with strong revenue guidance for the next quarter, which topped analysts' expectations. On the other hand, there was a decline in its user base.
The stock is down 15.2% since the results and currently trades at $39.12.Is now the time to buy Match? Read our full report on Match here.
Best Q2: 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 $153.7 million, up 23.2% year on year, beating analyst expectations by 5.13%. It was an impressive quarter for the company, with a solid beat of analysts' revenue estimates and strong growth in its user base.
Coursera achieved the fastest revenue growth and highest full year guidance raise among its peers. The company reported 129 million users, up 20.6% year on year. The stock is up 43.5% since the results and currently trades at $18.65.
Is now the time to buy Coursera? Access our full analysis of the earnings results here, it's free.
Weakest Q2: 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 $8.19 billion, up 2.72% year on year, missing analyst expectations by 1.24%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
Netflix had the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 238.4 million users, up 8.03% year on year. The stock is down 20.8% since the results and currently trades at $377.81.
Spun out from Netflix, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Roku reported revenues of $847.2 million, up 10.8% year on year, beating analyst expectations by 9.38%. It was a very good quarter for the company, with an impressive beat of analysts' revenue estimates and strong growth in its user base.
Roku scored the strongest analyst estimates beat among the peers. The company reported 73.5 million monthly active users, up 16.5% year on year. The stock is up 4.12% since the results and currently trades at $71.
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 $259.7 million, up 19.1% year on year, beating analyst expectations by 1.22%. It was a decent quarter for the company, with strong growth in its user base.
The company reported 3.63 million active buyers, up 20.3% year on year. The stock is down 17.1% since the results and currently trades at $14.92.
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The author has no position in any of the stocks mentioned