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Q2 Earnings Highlights: Udemy (NASDAQ:UDMY) Vs The Rest Of The Consumer Subscription Stocks

StockStory - Thu Oct 12, 2023

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Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q2 now behind us, let’s have a look at 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 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 mixed Q2; on average, revenues beat analyst consensus estimates by 3.32%, while on average next quarter revenue guidance was 0.32% above consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but consumer subscription stocks held their ground better than others, with share prices down 4.38% since the previous earnings results, on average.

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 $178.2 million, up 16.4% year on year, beating analyst expectations by 2.93%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.

Udemy Total Revenue

Udemy delivered the weakest full year guidance update of the whole group. The company reported 1.34 million active buyers, up 3.88% year on year. The stock is down 11.9% since the results and currently trades at $9.95.

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

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 $153.7 million, up 23.2% year on year, beating analyst expectations by 5.13%. It was an impressive quarter for the company, with a solid beat of analysts' revenue estimates and strong growth in its user base.

Coursera Total Revenue

Coursera pulled off the fastest revenue growth and highest full year guidance raise among its peers. The company reported 129 million users, up 20.6% year on year. The stock is up 47.3% since the results and currently trades at $19.15.

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

Weakest Q2: 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 $8.19 billion, up 2.72% year on year, missing analyst expectations by 1.24%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Netflix had the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 238.4 million users, up 8.03% year on year. The stock is down 23% since the results and currently trades at $367.47.

Read our full analysis of Netflix'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 $259.7 million, up 19.1% year on year, beating analyst expectations by 1.22%. It was a decent quarter for the company, with strong growth in its user base.

The company reported 3.63 million active buyers, up 20.3% year on year. The stock is down 17.8% since the results and currently trades at $14.79.

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 $182.9 million, up 11% year on year, beating analyst expectations by 3.59%. It was a mixed quarter for the company, with a decline in its user base and slow revenue growth. On the other hand, the topline beat was impressive, given the very low expectations going into the quarter.

The company reported 4.8 million users, down 9.43% year on year. The stock is down 15.2% since the results and currently trades at $8.5.

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

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The author has no position in any of the stocks mentioned