The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Revolve (NYSE:RVLV) and the rest of the consumer internet stocks fared in Q1.
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. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again, but consumer internet stocks held their ground better than others, with the share prices up 12.5% since the previous earnings results, on average.
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve Group (NASDAQ: RVLV) is a next generation fashion retailer that leverages social media and a community of fashion influencers to drive its merchandising strategy.
Revolve reported revenues of $279.6 million, down 1.37% year on year, missing analyst expectations by 3.63%. It was a weak quarter for the company, with slow revenue growth and a miss of the top line analyst estimates.
"We achieved excellent progress on rebalancing our inventory position and generated exceptional cash flow in the first quarter, despite a macroeconomic environment that became increasingly challenging as the quarter progressed, leading to deceleration in our net sales momentum," said co-founder and co-CEO Mike Karanikolas.
Revolve delivered the weakest performance against analyst estimates of the whole group. The company reported 2.42 million active buyers, up 18.8% year on year. The stock is down 16.5% since the results and currently trades at $16.7.
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.
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 4.44% since the results and currently trades at $4.47.
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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 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 up 13.3% since the results and currently trades at $0.66.
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.
Booking delivered the fastest revenue growth among the peers. The company reported 274 million nights booked, up 38.4% year on year. The stock is up 0.28% since the results and currently trades at $2,609.79.
Founded by Joe Gebbia and Brian Chesky by renting out a blowup bed on the floor of their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Airbnb reported revenues of $1.82 billion, up 20.5% year on year, beating analyst expectations by 1.72%. It was a mixed quarter for the company, with a beat of topline estimates and a growing user base but underwhelming revenue guidance for the next quarter.
The company reported 121.1 million nights booked, up 18.6% year on year. The stock is down 1.61% since the results and currently trades at $124.96.
The author has no position in any of the stocks mentioned