A Look Back at Consumer Subscription Stocks’ Q2 Earnings: Coursera (NYSE:COUR) Vs The Rest Of The Pack

A Look Back at Consumer Subscription Stocks’ Q2 Earnings: Coursera (NYSE:COUR) Vs The Rest Of The Pack
COURROKUNFLXMTCH

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer subscription industry, including CourseraCOURand 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 7 consumer subscription stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 2.4% below

While some consumer subscription stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results

CourseraCOUR

Founded by two Stanford University computer science professors, CourseraCOURis an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world

Coursera reported revenues of $298.6 million, up 59.6% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance meeting analysts’ expectations

“Q2 marked an important milestone in Coursera’s next chapter of value creation. We closed the Udemy transaction, began operating as a combined company, and now expect to achieve at least $85 million of annual run-rate net synergies by the end of 2026, positioning us to finish the year with a meaningfully stronger financial profile,” said Greg Hart, Coursera CEO

Coursera scored the highest guidance raise, fastest revenue growth, and highest full-year guidance raise in the group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2.8% since reporting and currently trades at $6.01.

We think Coursera is a good business, but is it a buy today? Read our full report here, it’s free

Best Q2: RokuROKU

With a name meaning six in Japanese because it was the founder’s sixth company that he started, RokuROKUmakes hardware players that offer access to various online streaming TV services

Roku reported revenues of $1.35 billion, up 21.9% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and solid growth in its requests

The market seems content with the results as the stock is up 5% since reporting. It currently trades at $157.50

Weakest Q2: NetflixNFLX

Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, NetflixNFLXis a pioneering streaming content platform

Netflix reported revenues of $12.56 billion, up 13.4% year on year, in line with analysts’ expectations. It was a softer quarter as it posted EPS guidance for next quarter missing analysts’ expectations and full-year revenue guidance meeting analysts’ expectations

Netflix delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 7.1% since the results and currently trades at $79.64

Match GroupMTCH

Originally started as a dial-up service before widespread internet adoption, MatchMTCHwas an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid

Match Group reported revenues of $853.1 million, down 1.2% year on year. This number met analysts’ expectations. Zooming out, it was a mixed quarter as it also produced EBITDA guidance for next quarter topping analysts’ expectations but a decline in its users

Match Group had the weakest performance against analyst estimates among its peers. The company reported 13.3 million users, down 5.7% year on year. The stock is flat since reporting and currently trades at $40.93

Read our full, actionable report on Match Group here, it’s free

Duolingo
DUOL

Founded by a Carnegie Mellon computer science professor and his Ph.D. student, DuolingoDUOLis a mobile app helping people learn new languages

Duolingo reported revenues of $298.5 million, up 18.3% year on year. This print beat analysts’ expectations by 0.9%. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations

The stock is up 8.1% since reporting and currently trades at $146.25

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

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