The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Udemy (NASDAQ: UDMY) and the rest of the consumer subscription stocks fared in Q4.
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 mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18.6% since the latest earnings results.
Best Q4: 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 $199.9 million, up 5.5% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations.
The stock is up 9.1% since reporting and currently trades at $8.53.
Is now the time to buy Udemy? Access our full analysis of the earnings results here, it’s free.
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 $1.20 billion, up 22% year on year, outperforming analysts’ expectations by 4.4%. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates.
Roku delivered the biggest analyst estimates beat among its peers. The company reported 89.8 million monthly active users, up 12.3% year on year. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 15.7% since reporting. It currently trades at $73.25.
Is now the time to buy Roku? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Match Group (NASDAQ: MTCH)
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Match Group reported revenues of $860.2 million, flat year on year, in line with analysts’ expectations. It was a softer quarter as it posted a slight miss of analysts’ number of payers estimates and a decline in its users.
Match Group delivered the weakest full-year guidance update in the group. The company reported 14.61 million users, down 3.8% year on year. As expected, the stock is down 12.6% since the results and currently trades at $31.84.
Read our full analysis of Match Group’s results here.
Duolingo (NASDAQ: DUOL)
Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ: DUOL) is a mobile app helping people learn new languages.
Duolingo reported revenues of $209.6 million, up 38.8% year on year. This number topped analysts’ expectations by 2.1%. However, it was a slower quarter as it recorded EBITDA guidance for next quarter missing analysts’ expectations.
Duolingo delivered the fastest revenue growth among its peers. The company reported 116.7 million users, up 32% year on year. The stock is down 19.1% since reporting and currently trades at $303.
Read our full, actionable report on Duolingo here, it’s free.
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 $10.25 billion, up 16% year on year. This result surpassed analysts’ expectations by 1.1%. Zooming out, it was a slower quarter as it produced EPS guidance for next quarter missing analysts’ expectations.
Netflix achieved the highest full-year guidance raise among its peers. The company reported 301.6 million users, up 15.9% year on year. The stock is up 10.8% since reporting and currently trades at $965.73.
Read our full, actionable report on Netflix here, it’s free.
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