A number of stocks fell in the pre-market session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%. Markets reacted negatively to the announcement, reflecting deep concerns among investors about the broader economic implications. The tariffs were likely seen as a significant threat to global trade flows, with the potential to slow economic growth, drive up consumer prices, and spark retaliatory measures.
Small-cap stocks in the Russell 2000 can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the consumer subscription stocks, including Duolingo (NASDAQ:DUOL) and its peers.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Udemy (NASDAQ:UDMY) and the rest of the consumer subscription stocks fared in Q4.
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.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
Shares of online learning platform Udemy (NASDAQ:UDMY) jumped 32.6% in the afternoon session after the company reported strong fourth-quarter results, which beat across the key metrics we track, including sales, EBITDA, and earnings. It also provided optimistic EBITDA guidance for the next quarter, which outperformed analysts' expectations. Revenue grew year on year, driven by an 18% increase in the Enterprise segment, which offset a decline in the Consumer business.
Gross margin expanded significantly given the shift to large enterprise deals, helping adjusted EBITDA beat estimates. EPS benefited from these margin improvements, beating expectations by a noteworthy margin.
Online learning platform Udemy (NASDAQ:UDMY) reported revenue ahead of Wall Street’s expectations in Q4 CY2024, with sales up 5.5% year on year to $199.9 million. On the other hand, next quarter’s revenue guidance of $197 million was less impressive, coming in 2.7% below analysts’ estimates. Its non-GAAP profit of $0.10 per share was 53.4% above analysts’ consensus estimates.
Over the past six months, Udemy’s shares (currently trading at $7.44) have posted a disappointing 14.2% loss, well below the S&P 500’s 9.2% gain. This may have investors wondering how to approach the situation.
Looking back on consumer subscription stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Netflix (NASDAQ:NFLX) and its peers.
