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 internet stocks, starting with SciPlay (NASDAQ:SCPL).
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. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021 , but consumer internet stocks held their ground better than others, with the share prices up 17.2% since the previous earnings results, on average.
Headquartered in Las Vegas, SciPlay (NASDAQ:SCPL) offers digital casino games that favor repetition over skill.
SciPlay reported revenues of $186.4 million, up 18% year on year, beating analyst expectations by 4.41%. It was a decent quarter for the company, with a beat of analyst estimates but slower revenue growth.
Josh Wilson, Chief Executive Officer of SciPlay, commented, “SciPlay continued its industry-leading performance in the first quarter of 2023, outpacing the social casino market for the fifth consecutive quarter. We continue to benefit from the investments that we've made in key growth drivers of our business and into the development of proprietary tools and systems. Our strong operating platform and industry-best team's innovation are providing our players with engaging entertainment experiences, resulting in more payers and increasing monetization per player. We are off to a great start in the first quarter and look forward to continuing on our path of sustainable and profitable growth.”
The stock is up 15.9% since the results and currently trades at $19.7.
Is now the time to buy SciPlay? Access our full analysis of the earnings results here, it's free.
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 a growing number of users and an impressive beat of analyst estimates.
PlayStudios achieved the strongest analyst estimates beat and highest full year guidance raise among its peers. The company reported 13.1 million monthly active users, up 89.2% year on year. The stock is up 16.6% since the results and currently trades at $4.99.
Is now the time to buy PlayStudios? 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 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 17.5% since the results and currently trades at $9.6.
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ:CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
CarGurus reported revenues of $232 million, down 46.1% year on year, beating analyst expectations by 8.22%. It was a solid quarter for the company, with an impressive beat of analyst estimates.
The company reported 31.3 thousand users, up 1.37% year on year. The stock is up 38.5% since the results and currently trades at $22.67.
LegalZoom (NASDAQ:LZ) is an online platform that provides online legal services to individuals and small businesses. The company’s co-founders found it difficult and expensive to find lawyers and file paperwork when trying to start a business so they started LegalZoom instead to address this pain point.
LegalZoom reported revenues of $165.9 million, up 7.6% year on year, beating analyst expectations by 6.94%. It was a strong quarter for the company, with a solid beat of analyst estimates. In addition, revenue and adjusted EBITDA guidance for the next quarter were above consensus, and the full-year revenue guidance was lifted.
The company reported 1.5 million users, up 10.2% year on year. The stock is up 45.3% since the results and currently trades at $12.12.
The author has no position in any of the stocks mentioned