As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer internet industry, including Remitly (NASDAQ:RELY) 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 49 consumer internet stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.3% while next quarter’s revenue guidance was 0.5% below.
Thankfully, share prices of the companies have been resilient as they are up 8.4% on average since the latest earnings results.
Remitly (NASDAQ:RELY)
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Remitly reported revenues of $411.9 million, up 34.4% year on year. This print exceeded analysts’ expectations by 7.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
“Q2 was a defining quarter for Remitly—we delivered exceptional financial performance, and achieved breakthrough innovation that positions us to shape the future of global financial services,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly.
Interestingly, the stock is up 20.7% since reporting and currently trades at $19.92.
Read why we think that Remitly is one of the best consumer internet stocks, our full report is free.
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 and paying monthly active users estimates.
The market seems happy with the results as the stock is up 13.3% since reporting. It currently trades at $7.52.
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’ 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 19.7% since the results and currently trades at $303.30.
Read our full analysis of Coinbase’s results here.
Reddit (NYSE:RDDT)
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
Reddit reported revenues of $499.6 million, up 77.7% year on year. This print surpassed analysts’ expectations by 17.2%. It was a very strong quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Reddit achieved the fastest revenue growth among its peers. The company reported 50.3 million daily active users, up 10.5% year on year. The stock is up 43.7% since reporting and currently trades at $231.53.
Read our full, actionable report on Reddit here, it’s free.
Airbnb (NASDAQ:ABNB)
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Airbnb reported revenues of $3.10 billion, up 12.7% year on year. This number beat analysts’ expectations by 2.1%. Taking a step back, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter meeting analysts’ expectations.
The company reported 134.4 million nights booked, up 7.4% year on year. The stock is down 4.5% since reporting and currently trades at $124.83.
Read our full, actionable report on Airbnb here, it’s free.
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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