Yahoo Finance A Look Back at Consumer Subscription Stocks' Q1 Earnings: Duolingo (NASDAQ:DUOL) Vs The Rest Of The Pack
Let's dig into the relative performance of Duolingo (NASDAQ:DUOL) and its peers as we unravel the now-completed Q1 consumer subscription earnings season.
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 weaker Q1; on average, revenues beat analyst consensus estimates by 0.9%. while next quarter's revenue guidance was 2.8% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and consumer subscription stocks have had a rough stretch, with share prices down 16.7% on average since the previous earnings results.
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 $167.6 million, up 44.9% year on year, topping analysts' expectations by 1.1%. It was an ok quarter for the company, with exceptional revenue growth.
“We are pleased to report another quarter of stellar performance, with strong bookings and revenue growth, alongside record profitability,” said Luis von Ahn, Co-Founder and CEO of Duolingo.
Duolingo achieved the fastest revenue growth and highest full-year guidance raise of the whole group. The stock is down 20.8% since the results and currently trades at $193.79.
Is now the time to buy Duolingo? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $881.5 million, up 19% year on year, outperforming analysts' expectations by 3.7%. It was a decent quarter for the company, with strong growth in its users but slow revenue growth.
Roku scored the biggest analyst estimates beat among its peers. The company reported 81.6 million monthly active users, up 14% year on year. The stock is down 0.9% since the results and currently trades at $62.25.
Is now the time to buy Roku? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $174.4 million, down 7.1% year on year, in line with analysts' expectations. 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 4.7 million users, down 7.8% year on year. The stock is down 59.9% since the results and currently trades at $2.88.
Read our full analysis of Chegg's results here.
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 $196.8 million, up 11.6% year on year, in line with analysts' expectations. It was a weak quarter for the company, with slow revenue growth and full-year revenue guidance missing analysts' expectations.
The company reported 1.44 million active buyers, up 3.6% year on year. The stock is down 12.5% since the results and currently trades at $8.65.
Read our full, actionable report on Udemy here, it's free.
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 $9.37 billion, up 14.8% year on year, in line with analysts' expectations. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
The company reported 269.6 million users, up 16% year on year. The stock is up 11.7% since the results and currently trades at $682.
Read our full, actionable report on Netflix here, it's free.
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