Q3 Earnings Outperformers: Bumble (NASDAQ:BMBL) And The Rest Of The Consumer Subscription Stocks

BMBL Cover Image

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer subscription industry, including Bumble (NASDAQ: BMBL) 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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% 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 17.1% since the latest earnings results.

Weakest Q3: 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 $246.2 million, down 10% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a decline in its buyers and a significant miss of analysts’ number of paying users estimates.

Bumble Total Revenue

The stock is down 32.3% since reporting and currently trades at $3.68.

Read our full report on Bumble here, it’s free.

Best Q3: Roku (NASDAQ: ROKU)

With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.

Roku reported revenues of $1.21 billion, up 14% year on year, in line with analysts’ expectations. The business had a strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and full-year EBITDA guidance exceeding analysts’ expectations.

Roku Total Revenue

The market seems happy with the results as the stock is up 17.7% since reporting. It currently trades at $110.83.

Is now the time to buy Roku? Access our full analysis of the earnings results here, it’s free.

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 $914.3 million, up 2.1% year on year, in line with analysts’ expectations. It was a slower quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 1.9% since the results and currently trades at $31.61.

Read our full analysis of Match Group’s results here.

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 $77.74 million, down 43.1% year on year. This number surpassed analysts’ expectations by 2%. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations significantly.

Chegg had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $0.88.

Read our full, actionable report on Chegg 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 $11.51 billion, up 17.2% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.

Netflix had the weakest performance against analyst estimates among its peers. The company reported 317.2 million users, up 12.2% year on year. The stock is down 26.7% since reporting and currently trades at $91.06.

Read our full, actionable report on Netflix here, it’s free.

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StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

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