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Porch Soars, Peloton Sinks and CE 100 Index Barely Budges With 0.4% Gain

The CE 100 Index added 0.4% in a wild week where double-digit declines and gains were the norm — earnings season continued to dominate the headlines. 

Porch Group soared 53.2%, leading the Live pillar 3.2% higher.

In the company’s most recent earnings report, Porch noted that revenues of $129.6 million were up 67% year on year. The increase in consolidated revenues was driven by the insurance segment, which saw a 195% year-over-year growth.   

CEO Matt Ehrlichman said during the firm’s conference call that “we continue to focus on ongoing profitability, with underwriting actions including premium per policy increases, non-renewing policies where our data suggests they are higher risk and deductible increases in our insurance business, launching new software modules coupled with price increases in our software businesses, capital allocation toward businesses that are generating strong returns like our warranty business, and cost reduction initiatives across the company.”

The company expects revenue to reach approximately $415 million, representing a 50% year-over-year growth.

Adyen was the standout for the Pay and be Paid segment, which overall was up 3.7% and led all verticals that notched gains in the week. Adyen shares leaped 31.6% through the past five sessions.

As noted here, the company “evolved its financial objectives in order to specify timelines around growth expectations,” the FinTech platform said in statements released in tandem with its investor day.  

Adyen’s updated objectives include annual net revenue growth in percentages between the low 20s and high 20s through 2026. The company said that in the third quarter, year over year, its processed volume was up 21%, and its net revenue was up 22%. By business segments, its digital volumes were up 21%, its Unified Commerce processed volumes were up 25% and its platform volumes were up 15%. 

Roblox shares surged 10.5%, as the Have Fun group gained 1.4%. The company’s latest results showed that bookings increased 20% versus last year. Active users surged 20%. Average monthly unique payers were 14.7 million, up 14% year-over-year, and average bookings per monthly unique payer was $19.02, up 5% year-over-year. Hours engaged, the company said, were 16 billion, up 20% year-over-year.

Vroom Drops

But Vroom, which sank 28.1% and led the Shop Group 4.5% lower, helped offset those gains. 

Vroom reported this past year that it is working toward improving variable and fixed costs per unit. The company reduced its titling, registration and support costs by 15%, its marketing costs by 13% and its fixed costs by 15%, Vroom CEO Tom Shortt said Wednesday during its quarterly earnings call. 

“Our advanced analytics team, functional business teams and tech team continue to build data assets, analytical assets and tech assets that we believe in the long term will provide a competitive advantage across titling and registration, pricing, conversion unit and product margin, and supply chain costs,” Shortt said. 

Total eCommerce revenues slipped 33.5% to $149.8 million, while the eCommerce average days to sale were 202, up from 186. eCommerce units slipped 29% to a bit more than 4,500 in the quarter.

Olo saw its stock slip 18.3%. The company said this past week that card-present transactions will become a key growth driver for its Olo Pay service as restaurant brands transition away from their long-standing legacy payment processing partnerships. 

The fact that “non-digital transactions account for more than 80% of restaurant transactions today” makes the card-present opportunity even more appealing, Noah Glass, CEO of the restaurant technology platform, pointed out during the call. 

Total revenues increased 22% year-over-year to $57.8 million and total platform revenue surging 24% to about $57 million year on year.

Peloton’s stock slid 13% in the wake of quarterly results released earlier in the month.

During the quarter, Peloton’s numbers showed that the higher-than-expected membership churn continues. The quarter ended with 2.96 million connected fitness subscriptions, down by about 30,000 from the previous quarter, and a churn rate of 1.5%, surpassing projections.   

The quarter ended with 763,000 paying Peloton app subscribers, a decrease of 65,000 compared to the prior quarter. The churn rate for the paid app subscription stood at 6.3%, lower than the company’s initial expectations. Peloton reported a total revenue of $595.5 million, with a breakdown of $180.6 million from the connected fitness segment and $415 million from subscription revenue, falling within the company’s guidance range.