Udemy Q2 Earnings: Revenue Up 2.8%, Active Buyers Up 3.1%

The Q2 earnings season for consumer subscription stocks has been mixed, with revenues beating analysts' estimates by 2.5% on average. Udemy reported revenues of $199.9 million, up 2.8% YoY, exceeding analysts' expectations. Roku reported revenues of $1.11 billion, up 14.8% YoY, outperforming analysts' expectations by 3.8%. However, the market seems unhappy with the results, with Roku's stock down 11.6% since reporting.

The second-quarter (Q2) earnings season for consumer subscription stocks has been a mixed bag, with revenues beating analysts' estimates by an average of 2.5%. Among the notable performers, Udemy reported revenues of $199.9 million, up 2.8% year-over-year (YoY), exceeding analysts' expectations by 1.5% [3]. Roku, on the other hand, reported revenues of $1.11 billion, up 14.8% YoY, outperforming analysts' expectations by 3.8% [3]. However, the market's reaction to Roku's results has been unfavorable, with the stock down 11.6% since reporting [3].

Udemy's Q2 performance was marked by a satisfactory quarter, with a solid beat of analysts' EBITDA estimates but a slight miss of analysts' number of monthly active buyers estimates [3]. The company reported 17,107 active buyers, up 3.1% YoY. Despite this, the stock has seen a 2.8% increase since reporting [3].

Roku's Q2 earnings report, however, was not well-received. The company reported a loss of 7 cents per share, compared to the Zacks Consensus Estimate of a loss of 16 cents, and revenues increased 15% from the year-ago quarter’s level to $1.11 billion [3]. The company's shares have plunged 15.1% since the earnings release [3]. The erosion of the high-growth platform business' gross margin by 230 basis points in the second quarter also weighed on investor sentiments [3]. Additionally, the potential impact of Trump's tariffs on Roku's hardware sales poses a further challenge to the company's financial outlook.

The broader market has shown mixed reactions to the Q2 earnings season. While the stock market has thrived in 2024 due to recent rate cuts and the surge following Donald Trump's presidential election win in November, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions [1]. The U.S. economy is "near stall speed," with job growth sharply declining, raising concerns about the sustainability of current economic conditions [2].

The path forward holds both optimism and caution as new policies take shape. Investors are increasingly betting on AI's potential to reshape the industry, as evidenced by the broader tech rally following Palantir Technologies Inc.'s (NASDAQ:PLTR) Q2 earnings report [2]. However, the long-term impact of President Trump's tariff policies and the potential market sell-off risks due to trade tensions remain significant concerns [2].

References:
[1] https://finance.yahoo.com/news/consumer-subscription-stocks-q2-earnings-033257945.html
[2] https://www.ainvest.com/news/palantir-q2-earnings-surge-50-revenue-144-net-income-sparks-tech-rally-2508/
[3] https://finance.yahoo.com/news/roku-q2-earnings-beat-estimates-173500418.html