Looking back on consumer subscription stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Roku (NASDAQ: ROKU) 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 Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q2: 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 $1.11 billion, up 14.8% year on year. This print exceeded analysts’ expectations by 3.8%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Unsurprisingly, the stock is down 12.1% since reporting and currently trades at $82.87.
Is now the time to buy Roku? Access our full analysis of the earnings results here, it’s free.
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 and a solid beat of analysts’ EBITDA estimates.
Coursera achieved the highest full-year guidance raise among its peers. The company reported 183 million active customers, up 18% year on year. The market seems happy with the results as the stock is up 33.2% since reporting. It currently trades at $12.09.
Is now the time to buy Coursera? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: 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, exceeding analysts’ expectations by 1.2%. Still, it was a softer quarter as it posted a decline in its users and a slight miss of analysts’ number of payers estimates.
Interestingly, the stock is up 3.8% since the results and currently trades at $35.
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 $105.1 million, down 35.6% year on year. This result beat analysts’ expectations by 3.8%. However, it was a slower quarter as it logged a decline in its users and a significant miss of analysts’ number of services subscribers estimates.
Chegg had the slowest revenue growth among its peers. The company reported 2.62 million users, down 39.9% year on year. The stock is down 13.3% since reporting and currently trades at $1.11.
Read our full, actionable report on Chegg here, it’s free.
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 2.8% year on year. This print surpassed analysts’ expectations by 1.5%. More broadly, it was a satisfactory quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a slight miss of analysts’ number of monthly active buyers estimates.
Udemy had the weakest full-year guidance update among its peers. The company reported 17,107 active buyers, up 3.1% year on year. The stock is up 2.8% since reporting and currently trades at $7.18.
Read our full, actionable report on Udemy here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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