Consumer Subscription Stocks Q4 In Review: Udemy (NASDAQ:UDMY) Vs Peers
Looking back on consumer subscription stocks' Q4 earnings, we examine this quarter's best and worst performers, including Udemy (NASDAQ:UDMY) 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 slower Q4; on average, revenues beat analyst consensus estimates by 1.3%. while next quarter's revenue guidance was 1% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, and consumer subscription stocks have not been spared, with share prices down 11% on average since the previous earnings results.
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 $189.5 million, up 14.6% year on year, topping analyst expectations by 1.9%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
“Udemy ended the year with solid fourth quarter and full year 2023 results that exceeded expectations as we executed on all of our strategic priorities,” said Greg Brown, Udemy’s President and CEO.
Udemy delivered the weakest full-year guidance update of the whole group. The company reported 1.37 million active buyers, up 0.7% year on year. The stock is down 25% since the results and currently trades at $10.51.
Read our full report on Udemy here, it's free.
Best Q4: 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 $151 million, up 45.4% year on year, outperforming analyst expectations by 1.8%. It was a very strong quarter for the company, with impressive growth in its user base and exceptional revenue growth.
Duolingo pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The company reported 6.6 million users, up 57.1% year on year. The stock is up 12.9% since the results and currently trades at $221.
Is now the time to buy Duolingo? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $188 million, down 8.4% year on year, exceeding analyst expectations by 1.1%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth.
Chegg had the slowest revenue growth in the group. The company reported 4.6 million users, down 8% year on year. The stock is down 18.2% since the results and currently trades at $7.6.
Read our full analysis of Chegg's results here.
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 $984.4 million, up 13.5% year on year, surpassing analyst expectations by 1.7%. It was a decent quarter for the company, with strong sales guidance for the next quarter but slow revenue growth.
The company reported 80 million monthly active users, up 14.3% year on year. The stock is down 33.4% since the results and currently trades at $62.99.
Read our full, actionable report on Roku here, it's free.
Bumble (NASDAQ:BMBL)
Founded 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 $273.6 million, up 13.2% year on year, falling short of analyst expectations by 0.6%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
Bumble had the weakest performance against analyst estimates among its peers. The company reported 3.97 million active buyers, up 16.4% year on year. The stock is down 15.8% since the results and currently trades at $11.1.
Read our full, actionable report on Bumble here, it's free.
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