Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Match Group (NASDAQ: MTCH) and its peers.
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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
While some consumer subscription stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.3% since the latest earnings results.
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 $863.7 million, flat year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a slower quarter for the company with a decline in its users and a slight miss of analysts’ number of payers estimates.
"Six months ago, we took a hard look at how we work, what we build, and what users want from our apps," said CEO Spencer Rascoff.
Unsurprisingly, the stock is down 3.7% since reporting and currently trades at $32.47.
Is now the time to buy Match Group? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: 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 $187.1 million, up 9.8% year on year, outperforming analysts’ expectations by 3.7%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 12.7% since reporting. It currently trades at $10.23.
Is now the time to buy Coursera? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $105.1 million, down 35.6% year on year, exceeding analysts’ expectations by 3.8%. Still, it was a slower quarter as it posted a decline in its users and a significant miss of analysts’ number of services subscribers estimates.
Chegg delivered the slowest revenue growth in the group. The company reported 2.62 million users, down 39.9% year on year. Interestingly, the stock is up 13.3% since the results and currently trades at $1.45.
Read our full analysis of Chegg’s results here.
Bumble (NASDAQ: BMBL)
Started 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 $248.2 million, down 7.6% year on year. This print topped analysts’ expectations by 1.3%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates but a decline in its buyers.
The company reported 3.78 million active buyers, down 8.7% year on year. The stock is down 26.8% since reporting and currently trades at $5.60.
Read our full, actionable report on Bumble here, it’s free for active Edge members.
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 $252.3 million, up 41.5% year on year. This result surpassed analysts’ expectations by 4.8%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Duolingo pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 128.3 million users, up 23.8% year on year. The stock is down 1.3% since reporting and currently trades at $339.82.
Read our full, actionable report on Duolingo here, it’s free for active Edge members.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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