Winners And Losers Of Q3: Skillz (NYSE:SKLZ) Vs The Rest Of The Consumer Internet Stocks

Looking back on consumer internet stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Expedia and its peers.

The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.

The 47 consumer internet stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.

While some consumer internet stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.3% since the latest earnings results.

Expedia

Originally founded as a part of Microsoft, Expedia is one of the world’s leading online travel agencies.

Expedia reported revenues of $4.41 billion, up 8.7% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter beating analysts’ expectations.

Interestingly, the stock is up 20.1% since reporting and currently trades at $263.77.

Is now the time to buy Expedia? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: EverQuote

Aiming to simplify a once complicated process, EverQuote is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers

EverQuote reported revenues of $173.9 million, up 20.3% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 21.2% since reporting. It currently trades at $27.15.

Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: ACV Auctions

Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.

ACV Auctions reported revenues of $199.6 million, up 16.5% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and full-year EBITDA guidance missing analysts’ expectations significantly.

As expected, the stock is down 7% since the results and currently trades at $7.58.

Read our full analysis of ACV Auctions’s results here.

Alphabet

Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.

Alphabet reported revenues of $102.3 billion, up 15.9% year on year. This number beat analysts’ expectations by 2.4%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 14.7% since reporting and currently trades at $316.37.

Read our full, actionable report on Alphabet here, it’s free for active Edge members.

Lyft

Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft operates a ridesharing network in the US and Canada.

Lyft reported revenues of $1.69 billion, up 10.7% year on year. This result came in 1.2% below analysts' expectations. It was a slower quarter as it also logged a slight miss of analysts’ revenue estimates and a slight miss of analysts’ EBITDA estimates.

The company reported 28.7 million users, up 17.6% year on year. The stock is up 10.6% since reporting and currently trades at $22.24.

Read our full, actionable report on Lyft here, it’s free for active Edge members.

Let’s dig into the relative performance of Remitly and its peers as we unravel the now-completed Q3 consumer internet earnings season.

The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.

The 47 consumer internet stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.

While some consumer internet stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.3% since the latest earnings results.

Remitly

With Amazon founder Jeff Bezos as an early investor, Remitly is an online platform that enables consumers to safely and quickly send money globally.

Remitly reported revenues of $419.5 million, up 24.7% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

“In Q3, we built on the momentum from last quarter, delivering innovation across the product portfolio,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly.

Unsurprisingly, the stock is down 22.9% since reporting and currently trades at $12.95.

Is now the time to buy Remitly? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: EverQuote

Aiming to simplify a once complicated process, EverQuote is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers

EverQuote reported revenues of $173.9 million, up 20.3% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 21.2% since reporting. It currently trades at $27.17.

Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: ACV Auctions

Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.

ACV Auctions reported revenues of $199.6 million, up 16.5% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and full-year EBITDA guidance missing analysts’ expectations significantly.

As expected, the stock is down 8% since the results and currently trades at $7.50.

Read our full analysis of ACV Auctions’s results here.

Uber

Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber operates a platform of on-demand services such as ride-hailing, food delivery, and freight.

Uber reported revenues of $13.47 billion, up 20.4% year on year. This number beat analysts’ expectations by 1.5%. More broadly, it was a satisfactory quarter as it also recorded strong growth in its users but a slight miss of analysts’ EBITDA estimates.

The company reported 189 million users, up 17.4% year on year. The stock is down 12.3% since reporting and currently trades at $87.75.

Read our full, actionable report on Uber here, it’s free for active Edge members.

Alphabet

Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.

Alphabet reported revenues of $102.3 billion, up 15.9% year on year. This print surpassed analysts’ expectations by 2.4%. It was a very strong quarter as it also produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 14.7% since reporting and currently trades at $316.30.

Read our full, actionable report on Alphabet here, it’s free for active Edge members.

Looking back on consumer subscription stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Coursera 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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% 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 15.5% since the latest earnings results.

Coursera

Founded by two Stanford University computer science professors, Coursera is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.

Coursera reported revenues of $194.2 million, up 10.3% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.

“We delivered a strong third quarter, driven by 13% year-over-year revenue growth in our Consumer segment. As individuals increasingly seek the skills necessary to adapt and thrive in today’s evolving job market, we are strengthening Coursera’s position as the world’s trusted source for verified learning,” said Coursera CEO Greg Hart.

Coursera pulled off the highest full-year guidance raise of the whole group. The company reported 191 million active customers, up 17.8% year on year. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 0.6% since reporting and currently trades at $7.88.

Is now the time to buy Coursera? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Roku

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

Roku reported revenues of $1.21 billion, up 14% year on year, in line with analysts’ expectations. The business had a strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and full-year EBITDA guidance exceeding analysts’ expectations.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $93.59.

Is now the time to buy Roku? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Bumble

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

Bumble reported revenues of $246.2 million, down 10% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a decline in its buyers and a significant miss of analysts’ number of paying users estimates.

As expected, the stock is down 36.3% since the results and currently trades at $3.46.

Read our full analysis of Bumble’s results here.

Duolingo

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

Duolingo reported revenues of $271.7 million, up 41.1% year on year. This result beat analysts’ expectations by 4.3%. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations.

Duolingo scored the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 135.3 million users, up 19.6% year on year. The stock is down 34% since reporting and currently trades at $172.58.

Read our full, actionable report on Duolingo here, it’s free for active Edge members.

Chegg

Started as a physical textbook rental service, Chegg is now a digital platform addressing student pain points by providing study and academic assistance.

Chegg reported revenues of $77.74 million, down 43.1% year on year. This number surpassed analysts’ expectations by 1.9%. Taking a step back, it was a slower quarter as it recorded a decline in its users and a significant miss of analysts’ number of services subscribers estimates.

Chegg had the slowest revenue growth among its peers. The company reported 2.18 million users, down 43% year on year. The stock is up 6.7% since reporting and currently trades at $0.95.

Read our full, actionable report on Chegg here, it’s free for active Edge members.