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Q1 Consumer Subscription Earnings: Coursera (NYSE:COUR) Earns Top Marks

StockStory - Tue Jun 20, 2023

COUR Cover Image

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today we are looking at the consumer subscription stocks, starting with Coursera (NYSE:COUR).

Consumers today expect goods and services to be hyper-personalized and on demand. Whether it be what music they listen to or what movie they watch, or finding a date, online consumer businesses today are expected to delight their customers with simple user interfaces that magically fulfill demand. Subscription models have increased usage and stickiness of many online consumer services.

The 7 consumer subscription stocks we track reported a weaker Q1; on average, revenues beat analyst consensus estimates by 2.2%, while on average next quarter revenue guidance was 1.84% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, but consumer subscription stocks held their ground better than others, with the share prices up 11.6% since the previous earnings results, on average.

Best Q1: 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 $147.6 million, up 22.6% year on year, beating analyst expectations by 6.39%. It was a strong quarter for the company, with a solid beat of analyst estimates and a growing number of users.

“The transformation of higher education has never been more urgent. We believe emerging AI technologies will usher in a new era of skilling imperatives for individuals, businesses, and governments globally,” said Coursera CEO Jeff Maggioncalda.

Coursera Total Revenue

Coursera pulled off the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The company reported 124 million paying users, up 21.6% year on year. The stock is up 24.7% since the results and currently trades at $13.06.

Is now the time to buy Coursera? Access our full analysis of the earnings results here, it's free.

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 $741 million, flat year on year, beating analyst expectations by 4.72%. It was a strong quarter for the company, with a decent beat of analyst estimates but slow revenue growth.

Roku Total Revenue

The company reported 71.6 million active accounts, up 16.8% year on year. The stock is up 24.7% since the results and currently trades at $70.49.

Is now the time to buy Roku? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Match (NASDAQ:MTCH)

Match.com was an early innovator in dating apps and was actually launched as a dial-up service before widespread internet adoption. Match (NASDAQ:MTCH) today has a portfolio of apps including Tinder, OkCupid, Match.com, and Hinge.

Match reported revenues of $787.1 million, down 1.44% year on year, missing analyst expectations by 0.87%. It was a weak quarter for the company, with slow revenue growth and an underwhelming revenue guidance for the next quarter.

Match had the weakest performance against analyst estimates in the group. The company reported 15.9 million paying users, down 2.45% year on year. The stock is up 23.6% since the results and currently trades at $42.74.

Read our full analysis of Match's results here.

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 $242.9 million, up 15% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a growing number of users but slow revenue growth. Revenue and adjusted EBITDA guidance for the next quarter also came in below Consensus.

The company reported 3.46 million active buyers, up 15.1% year on year. The stock is up 1.36% since the results and currently trades at $17.88.

Read our full, actionable report on Bumble 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 $187.6 million, down 7.24% year on year, beating analyst expectations by 1.31%. It was a weak quarter for the company, with declining users and revenue. More importantly, full-year guidance given last quarter was pulled.

Chegg had the slowest revenue growth among the peers. The company reported 5.1 million paying users, down 5.56% year on year. The stock is down 44.3% since the results and currently trades at $9.79.

Read our full, actionable report on Chegg here, it's free.

The author has no position in any of the stocks mentioned