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Consumer Subscription Stocks Q4 Recap: Benchmarking Coursera (NYSE:COUR)

StockStory - Tue Apr 16, 4:52AM CDT

COUR Cover Image

As the Q4 earnings season wraps, let's dig into this quarter's best and worst performers in the consumer subscription industry, including 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, 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 slower Q4; on average, revenues beat analyst consensus estimates by 1.3%. while next quarter's revenue guidance was 1% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and consumer subscription stocks have had a rough stretch, with share prices down 18.4% on average since the previous earnings results.

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 $168.9 million, up 18.8% year on year, topping analyst expectations by 2.5%. It was a mixed quarter for the company, with strong growth in its users but underwhelming revenue guidance for the next quarter.

“We believe generative AI will unleash the next wave of innovation and productivity, but individuals and institutions will require high-quality education and training to adopt the technology quickly and safely,” said Coursera CEO Jeff Maggioncalda.

Coursera Total Revenue

Coursera scored the biggest analyst estimates beat of the whole group. The company reported 142 million users, up 20.3% year on year. The stock is down 35.2% since the results and currently trades at $12.4.

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

Best Q4: Duolingo (NASDAQ:DUOL)

Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ:DUOL) is a mobile app helping people learn new languages.

Duolingo reported revenues of $151 million, up 45.4% year on year, outperforming analyst expectations by 1.8%. It was a very strong quarter for the company, with impressive growth in its users and exceptional revenue growth.

Duolingo Total Revenue

Duolingo scored the fastest revenue growth and highest full-year guidance raise among its peers. The company reported 6.6 million users, up 57.1% year on year. The stock is down 2.9% since the results and currently trades at $190.

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

Weakest Q4: 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 $188 million, down 8.4% year on year, exceeding analyst expectations by 1.1%. It was a weak quarter for the company, with a decline in its users and slow revenue growth.

Chegg had the slowest revenue growth in the group. The company reported 4.6 million users, down 8% year on year. The stock is down 26.3% since the results and currently trades at $6.85.

Read our full analysis of Chegg's results here.

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 $866.2 million, up 10.2% year on year, in line with analyst expectations. It was a weak quarter for the company, with a decline in its users and underwhelming revenue guidance for the next quarter.

The company reported 15.2 million users, down 5.6% year on year. The stock is down 15.2% since the results and currently trades at $32.

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

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 $189.5 million, up 14.6% year on year, surpassing analyst expectations by 1.9%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

Udemy had the weakest full-year guidance update among its peers. The company reported 1.37 million active buyers, up 0.7% year on year. The stock is down 29.4% since the results and currently trades at $9.89.

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

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