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.
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.
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.