As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the digital media & content platforms industry, including Vimeo (NASDAQ: VMEO) and its peers.
AI-driven content creation, personalized media experiences, and digital advertising are evolving, which could benefit companies investing in these themes. For example, companies with a portfolio of licensed visual content or platforms facilitating direct monetization models could see increased demand for years. On the other hand, headwinds include growing regulatory scrutiny on AI-generated content, with many publishers balking at anything that gets no human oversight. Additional areas to navigate include the phasing out of third-party cookies, which could make traditional ways of tracking the online behavior of consumers (a secret sauce in digital marketing) much less effective.
The 7 digital media & content platforms stocks we track reported a satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.6% above.
Luckily, digital media & content platforms stocks have performed well with share prices up 33.7% on average since the latest earnings results.
Vimeo (NASDAQ: VMEO)
Originally launched in 2004 as a platform for filmmakers seeking a high-quality alternative to YouTube, Vimeo (NASDAQ: VMEO) provides cloud-based video creation, editing, hosting, and distribution software that helps businesses and creators make, manage, and share professional-quality videos.
Vimeo reported revenues of $104.7 million, flat year on year. This print fell short of analysts’ expectations by 1%, but it was still a strong quarter for the company with a beat of analysts’ EPS estimates.
Interestingly, the stock is up 103% since reporting and currently trades at $7.80.
Is now the time to buy Vimeo? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: Stride (NYSE: LRN)
Formerly known as K12, Stride (NYSE: LRN) is an education technology company providing education solutions through digital platforms.
Stride reported revenues of $653.6 million, up 22.4% year on year, outperforming analysts’ expectations by 4.2%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
Stride achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 17.3% since reporting. It currently trades at $150.53.
Is now the time to buy Stride? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: IAC (NASDAQ: IAC)
Originally known as InterActiveCorp and built through Barry Diller's strategic acquisitions since the 1990s, IAC (NASDAQ: IAC) operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and Care.com, focusing on digital publishing, home services, and caregiving platforms.
IAC reported revenues of $586.9 million, down 7.5% year on year, falling short of analysts’ expectations by 2.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
IAC delivered the slowest revenue growth in the group. As expected, the stock is down 14.4% since the results and currently trades at $33.84.
Read our full analysis of IAC’s results here.
Getty Images (NYSE: GETY)
With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE: GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.
Getty Images reported revenues of $234.9 million, up 2.5% year on year. This result was in line with analysts’ expectations. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.
Getty Images delivered the highest full-year guidance raise among its peers. The stock is up 27.3% since reporting and currently trades at $2.19.
Read our full, actionable report on Getty Images here, it’s free for active Edge members.
Ziff Davis (NASDAQ: ZD)
Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ: ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.
Ziff Davis reported revenues of $352.2 million, up 9.8% year on year. This number surpassed analysts’ expectations by 4.5%. It was a very strong quarter as it also logged an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ full-year EPS guidance estimates.
Ziff Davis pulled off the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 22.9% since reporting and currently trades at $38.21.
Read our full, actionable report on Ziff Davis here, it’s free for active Edge members.
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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