As consumer internet stocks’ Q1 earnings season wraps, let's dig into this quarter's best and worst performers, including PlayStudios (NASDAQ:MYPS) and its peers.
The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.
The 34 consumer internet stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 2.57%, while on average next quarter revenue guidance was 1.22% under consensus. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows, but consumer internet stocks held their ground better than others, with the share prices up 15.7% since the previous earnings results, on average.
Best Q1: PlayStudios (NASDAQ:MYPS)
Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games.
PlayStudios reported revenues of $80.1 million, up 13.7% year on year, beating analyst expectations by 9.12%. It was a very strong quarter for the company, with growing number of users and an impressive beat of analyst estimates.
Andrew Pascal, Chairman and Chief Executive Officer of PLAYSTUDIOS, commented, “Our momentum exiting 2022 continued as we posted another terrific quarter. Revenue and AEBITDA exceeded year ago and fourth quarter results, continuing to validate our unique strategy and focus on execution. We’ve accomplished this despite numerous industry and economic headwinds that continue to make operating conditions challenging.”
PlayStudios scored the strongest analyst estimates beat and highest full year guidance raise of the whole group. The company reported 13.1 million monthly active users, up 89.2% year on year. The stock is up 5.37% since the results and currently trades at $4.51.
Is now the time to buy PlayStudios? Access our full analysis of the earnings results here, it's free.
Booking (NASDAQ:BKNG)
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Booking reported revenues of $3.78 billion, up 40.2% year on year, in line with analyst expectations. It was a very strong quarter for the company, with growing number of users and exceptional revenue growth.
Booking delivered the fastest revenue growth among its peers. The company reported 274 million nights booked, up 38.4% year on year. The stock is up 2.45% since the results and currently trades at $2,666.19.
Is now the time to buy Booking? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Skillz (NYSE:SKLZ)
Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Skillz reported revenues of $44.4 million, down 52.5% year on year, missing analyst expectations by 0.59%. It was a weak quarter for the company, with a declining number of users and revenue.
Skillz had the slowest revenue growth in the group. The company reported 214 thousand monthly active users, down 62.5% year on year. The stock is down 19.2% since the results and currently trades at $9.4.
Read our full analysis of Skillz's results here.
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 users, up 4.9% year on year. The stock is up 32.7% since the results and currently trades at $443.05.
Read our full, actionable report on Netflix here, it's free.
Meta (NASDAQ:META)
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META ) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Facebook Reality Labs.
Meta reported revenues of $28.6 billion, up 2.64% year on year, beating analyst expectations by 3.57%. It was a decent quarter for the company, with a very optimistic guidance for the next quarter but slow revenue growth.
The company reported 3.81 billion monthly active users, up 4.67% year on year. The stock is up 43.3% since the results and currently trades at $299.89.
Read our full, actionable report on Meta here, it's free.
The author has no position in any of the stocks mentioned