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 consumer subscription stocks, starting with Udemy (NASDAQ:UDMY).
Consumers today expect goods and services to be hyper-personalized and on demand. Whether it be what music they listen to, what movie they watch, or even finding a date, online consumer businesses are expected to delight their customers with simple user interfaces that magically fulfill demand. Subscription models have further increased usage and stickiness of many online consumer services.
The 8 consumer subscription stocks we track reported a weaker Q1; on average, revenues beat analyst consensus estimates by 0.9%. while next quarter’s revenue guidance was 2.8% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and consumer subscription stocks have had a rough stretch, with share prices down 13.1% on average since the previous earnings results.
Udemy (NASDAQ:UDMY)
With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ:UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.
Udemy reported revenues of $196.8 million, up 11.6% year on year, in line with analysts’ expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
“Udemy delivered a strong start to the year, with first quarter results exceeding our guidance on the top and bottom line,” said Greg Brown, Udemy’s President and CEO.
The stock is down 4.2% since the results and currently trades at $9.47.
Read our full report on Udemy here, it’s free.
Best Q1: Roku (NASDAQ:ROKU)
Spun out from Netflix, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Roku reported revenues of $881.5 million, up 19% year on year, outperforming analysts’ expectations by 3.7%. It was a mixed quarter for the company, with a decent beat of analysts’ revenue estimates but slow revenue growth.
Roku delivered the biggest analyst estimates beat among its peers. The company reported 81.6 million monthly active users, up 14% year on year. The stock is down 9.6% since the results and currently trades at $56.8.
Is now the time to buy Roku? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Chegg (NYSE:CHGG)
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 $174.4 million, down 7.1% year on year, in line with analysts’ expectations. It was a weak quarter for the company, with a decline in its users and slow revenue growth.
Chegg had the slowest revenue growth in the group. The company reported 4.7 million users, down 7.8% year on year. The stock is down 48.3% since the results and currently trades at $3.71.
Read our full analysis of Chegg’s results here.
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 $169.1 million, up 14.5% year on year, falling short of analysts’ expectations by 0.8%. It was a weak quarter for the company, with full-year revenue guidance missing analysts’ expectations and underwhelming revenue guidance for the next quarter.
Coursera had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The company reported 148 million users, up 19.4% year on year. The stock is down 34.2% since the results and currently trades at $7.82.
Read our full, actionable report on Coursera here, it’s free.
Bumble (NASDAQ:BMBL)
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 $267.8 million, up 10.2% year on year, in line with analysts’ expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
The company reported 4.02 million active buyers, up 16.3% year on year. The stock is up 16.1% since the results and currently trades at $11.9.
Read our full, actionable report on Bumble here, it’s free.
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