Q1 Earnings Highlights: Roku (NASDAQ:ROKU) Vs The Rest Of The Consumer Subscription Stocks
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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Roku (NASDAQ:ROKU) and the best and worst performers in the consumer subscription industry.
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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Luckily, consumer subscription stocks have performed well with share prices up 26.2% on average since the latest earnings results.
Weakest 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 $1.02 billion, up 15.8% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a slower quarter for the company with a slight miss of analysts’ number of total hours streamed estimates and a significant miss of analysts’ EBITDA estimates.
The stock is up 8.2% since reporting and currently trades at $72.80.
Read our full report on Roku here, it’s free.
Best Q1: 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 $230.7 million, up 37.7% year on year, outperforming analysts’ expectations by 3.4%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Duolingo delivered the fastest revenue growth and highest full-year guidance raise among its peers. The company reported 130.2 million users, up 33.4% year on year. The market seems happy with the results as the stock is up 31.7% since reporting. It currently trades at $526.99.
Is now the time to buy Duolingo? Access our full analysis of the earnings results here, it’s free.
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.