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 Q1. 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 weaker Q1; on average, revenues beat analyst consensus estimates by 2.2%, while on average next quarter revenue guidance was 1.84% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but consumer subscription stocks held their ground better than others, with the share prices up 6.08% since the previous earnings results, on average.
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 delivered the weakest performance against analyst estimates of the whole group. The company reported 15.9 million paying users, down 2.45% year on year. The stock is up 12.8% since the results and currently trades at $39.
Is now the time to buy Match? 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 achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company reported 124 million paying users, up 21.6% year on year. The stock is up 27.8% since the results and currently trades at $13.38.
Is now the time to buy Coursera? Access our full analysis of the earnings results here, it's free.
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 $187.6 million, down 7.24% year on year, beating analyst expectations by 1.31%. It was a weak quarter for the company, with declining number of users and revenue.
Chegg had the slowest revenue growth in the group. The company reported 5.1 million paying users, down 5.56% year on year. The stock is down 46.2% since the results and currently trades at $9.47.
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 20.9% since the results and currently trades at $403.75.
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.
The company reported 3.46 million active buyers, up 15.1% year on year. The stock is down 9.41% since the results and currently trades at $15.98.
The author has no position in any of the stocks mentioned