Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Robinhood (NASDAQ: HOOD) and the best and worst performers in the consumer internet industry.
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 50 consumer internet stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was 0.5% below.
Thankfully, share prices of the companies have been resilient as they are up 8.8% on average since the latest earnings results.
Robinhood (NASDAQ: HOOD)
With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Robinhood reported revenues of $989 million, up 45% year on year. This print exceeded analysts’ expectations by 7.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and solid growth in its users.
“We delivered strong business results in Q2 driven by relentless product velocity, and we launched tokenization—which I believe is the biggest innovation our industry has seen in the past decade,” said Vlad Tenev, Chairman and CEO of Robinhood.
Interestingly, the stock is up 7.9% since reporting and currently trades at $114.61.
Best Q2: Skillz (NYSE: SKLZ)
Taking a new twist at video gaming, Skillz (NYSE: SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Skillz reported revenues of $27.37 million, up 8.2% year on year, outperforming analysts’ expectations by 19.9%. The business had an incredible quarter with a solid beat of analysts’ EBITDA estimates and paying monthly active users estimates.
The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $7.19.
Is now the time to buy Skillz? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Coinbase (NASDAQ: COIN)
Widely regarded as the face of crypto, Coinbase (NASDAQ: COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Coinbase reported revenues of $1.50 billion, up 3.3% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted a significant miss of analysts’ monthly transacting users and EBITDA estimates.
Coinbase delivered the weakest performance against analyst estimates in the group. The company reported 8.7 million monthly active users, up 6.1% year on year. As expected, the stock is down 13.3% since the results and currently trades at $327.39.
Read our full analysis of Coinbase’s results here.
Lyft (NASDAQ: LYFT)
Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.
Lyft reported revenues of $1.59 billion, up 10.6% year on year. This print came in 1.5% below analysts' expectations. More broadly, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates.
The company reported 26.1 million users, up 10.1% year on year. The stock is up 45.2% since reporting and currently trades at $20.38.
Read our full, actionable report on Lyft here, it’s free.
Shutterstock (NYSE: SSTK)
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE: SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Shutterstock reported revenues of $267 million, up 21.3% year on year. This result topped analysts’ expectations by 7.5%. It was a stunning quarter as it also logged an impressive beat of analysts’ EBITDA and paid downloads estimates.
The company reported 112.6 million service requests, up 237% year on year. The stock is up 9.8% since reporting and currently trades at $21.76.
Read our full, actionable report on Shutterstock here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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