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Consumer Subscription Q2 Earnings: Coursera (NYSE:COUR) is the Best in the Biz

StockStory - Fri Oct 13, 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 Coursera (NYSE:COUR) 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 multiples have reverted to the historical mean after reaching all time levels in early 2021 and while some of the consumer subscription stocks have fared somewhat better than others, they have not been spared, with share prices declining 7.71% since the previous earnings results, on average.

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 of the whole group. The company reported 129 million users, up 20.6% year on year. The stock is up 44.7% since the results and currently trades at $18.81.

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 $847.2 million, up 10.8% year on year, beating analyst expectations by 9.38%. It was a very good quarter for the company, with an impressive beat of analysts' revenue estimates and strong growth in its user base.

Roku Total Revenue

Roku scored the strongest analyst estimates beat among its peers. The company reported 73.5 million monthly active users, up 16.5% year on year. The stock is down 1.36% since the results and currently trades at $67.2.

Is now the time to buy Roku? 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 26.2% since the results and currently trades at $352.17.

Read our full analysis of Netflix's results here.

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 18.4% since the results and currently trades at $8.18.

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

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 $829.6 million, up 4.41% year on year, beating analyst expectations by 2.23%. It was a mixed quarter for the company, with a decline in its user base and slow revenue growth. On a positive note, revenue and EPS exceeded Wall Street's expectations during the quarter. Revenue guidance for the next quarter also exceeded consensus estimates.

The company reported 15.6 million users, down 4.88% year on year. The stock is down 19.7% since the results and currently trades at $37.05.

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

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The author has no position in any of the stocks mentioned