Unpacking Q2 Earnings: Bumble (NASDAQ:BMBL) In The Context Of Other Consumer Subscription Stocks

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how consumer subscription stocks fared in Q2, starting with Bumble (NASDAQ:BMBL).

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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

Bumble (NASDAQ:BMBL)

Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ:BMBL) is a leading dating app built with women at the center.

Bumble reported revenues of $248.2 million, down 7.6% year on year. This print exceeded analysts’ expectations by 1.3%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but a decline in its buyers.

“Our second quarter results demonstrate how we are moving decisively and with conviction to build a durable foundation for Bumble’s future,” said Whitney Wolfe Herd, Founder & CEO of Bumble Inc.

Unsurprisingly, the stock is down 17.3% since reporting and currently trades at $6.33.

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

Best Q2: Roku (NASDAQ:ROKU)

With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.

Roku reported revenues of $1.11 billion, up 14.8% year on year, outperforming analysts’ expectations by 3.8%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

The market seems content with the results as the stock is up 3.7% since reporting. It currently trades at $97.78.

Is now the time to buy Roku? 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.

Match Group reported revenues of $863.7 million, flat year on year, exceeding analysts’ expectations by 1.2%. Still, it was a softer quarter as it posted a decline in its users and a slight miss of analysts’ number of payers estimates.

Interestingly, the stock is up 10.8% since the results and currently trades at $37.37.

Read our full analysis of Match Group’s results here.

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 $252.3 million, up 41.5% year on year. This result surpassed analysts’ expectations by 4.8%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Duolingo scored the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 128.3 million users, up 23.8% year on year. The stock is down 5.9% since reporting and currently trades at $323.95.

Read our full, actionable report on Duolingo 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 $199.9 million, up 2.8% year on year. This number beat analysts’ expectations by 1.5%. Aside from that, it was a satisfactory quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a slight miss of analysts’ number of monthly active buyers estimates.

Udemy had the weakest full-year guidance update among its peers. The company reported 17,107 active buyers, up 3.1% year on year. The stock is flat since reporting and currently trades at $6.99.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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