Let’s dig into the relative performance of Netflix (NASDAQ: NFLX) and its peers as we unravel the now-completed Q4 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 9 consumer subscription stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 19.9% since the latest earnings results.
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 $10.25 billion, up 16% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations significantly.
Netflix scored the highest full-year guidance raise of the whole group. The company reported 301.6 million users, up 15.9% year on year. The stock is up 6.7% since reporting and currently trades at $930.41.
Is now the time to buy Netflix? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $199.9 million, up 5.5% year on year, outperforming analysts’ expectations by 2.7%. The business had a strong quarter, with EBITDA guidance for the next quarter, exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 6.6% since reporting. It currently trades at $8.34.
Is now the time to buy Udemy? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $860.2 million, flat year on year, in line with analysts’ expectations. It was a softer quarter: Its full-year revenue guidance missed significantly as its number of payers (the key debate for the stock) continued declining.
Match Group delivered the weakest full-year guidance update in the group. The company reported 14.61 million users, down 3.8% year on year. As expected, the stock is down 15.6% since the results and currently trades at $30.74.
Read our full analysis of Match Group’s results here.
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 $179.2 million, up 6.1% year on year. This result topped analysts’ expectations by 1.6%. Zooming out, it was a decent quarter as it also produced a solid beat of analysts’ EBITDA estimates.
The company reported 168 million users, up 18.3% year on year. The stock is down 25.6% since reporting and currently trades at $7.12.
Read our full, actionable report on Coursera 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 $1.20 billion, up 22% year on year. This number surpassed analysts’ expectations by 4.4%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
Roku delivered the biggest analyst estimates beat among its peers. The company reported 89.8 million monthly active users, up 12.3% year on year. The stock is down 22.2% since reporting and currently trades at $67.56.
Read our full, actionable report on Roku here, it’s free.
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