June Investor Research Roundup

A mixed bag for EA’s 1Q23 Earnings: sub- publisher Glu, acquired in 2021 for $4bn, continues to underperform: per ST data, Glu 1Q23 IAP bookings were down ~27% YoY. On the bright side for EA, FIFA Soccer Mobile IAP bookings increased 87% QoQ (+20% YoY), becoming EA’s top earning mobile title for the second consecutive quarter.

Though revenue and active users continue to grow on the most popular dating apps (Tinder, Hinge, Bumble, and Grindr), ST Consumer Intelligence data indicates consumers are using each platform less often and switching between apps with increased frequency. Dating apps’ churn rates increased in 1Q23 YoY, per ST, with Bumble and Tinder each at 27%.

Netflix introduced paid password sharing in the US on May 23, an initiative the company hopes will drive long term subscription revenues. ST data shows a neutral-to- positive reaction with Netflix US downloads (+7% WoW) and WAUs (+4% WoW) increasing modestly in the first week it was introduced (week beginning May 22), while US user churn remained relatively flat MoM in May.

Per ST data, average time spent and session counts on the official Reddit app fell 17% and 7% DoD, respectively, on June 12, 2023 as multiple subreddits went dark in reaction to the company’s plan to hike API fees. Average time spent and session counts during the 3-day protest period (June 12-14) were down 14% and 8%, respectively, against the prior week’s average (June 5-11) for both metrics.

The consumer shift to value amidst persistent inflation has driven continued YoY MAU growth for retailers such as Shein. Shein’s 2Q23 QTD MAUs are up 11% YoY, while many of its peers have seen multiple quarters of declining YoY growth, with more discretionary retailers, such as H&M (-4% YoY), Zara (-8% YoY) and Kohl’s (-15% YoY) being hit the hardest in 2Q23 (QTD).