Wrapping up Q4 earnings, we look at the numbers and key takeaways for the consumer subscription stocks, including Duolingo (NASDAQ:DUOL) 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 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 17.4% since the latest earnings results.
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 print exceeded analysts’ expectations by 2.1%. Despite the top-line beat, it was still a slower quarter for the company with EBITDA guidance for next quarter missing analysts’ expectations.
Duolingo achieved the fastest revenue growth of the whole group. The company reported 116.7 million users, up 32% year on year. Still, the market seems discontent with the results. The stock is down 8.3% since reporting and currently trades at $332.69.
Is now the time to buy Duolingo? Access our full analysis of the earnings results here, it’s free.
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, outperforming analysts’ expectations by 2.7%. The business had a strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $8.47.
Is now the time to buy Udemy? 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 12.7% since the results and currently trades at $31.83.
Read our full analysis of Match Group’s results here.
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 print beat analysts’ expectations by 1.1%. Aside from that, it was a slower quarter as it recorded EPS guidance for next quarter missing analysts’ expectations.
Netflix pulled off 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 11.1% since reporting and currently trades at $968.93.
Read our full, actionable report on Netflix here, it’s free.
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 $143.5 million, down 23.7% year on year. This number met analysts’ expectations. More broadly, 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 weakest performance against analyst estimates and slowest revenue growth among its peers. The company reported 3.64 million users, down 20.5% year on year. The stock is down 59.4% since reporting and currently trades at $0.64.
Read our full, actionable report on Chegg here, it’s free.
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