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Gig Economy Stocks Q1 Teardown: Angi (NASDAQ:ANGI) Vs The Rest


Max Juang /
2024/05/29 4:00 am EDT

As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the gig economy industry, including Angi (NASDAQ:ANGI) and its peers.

The iPhone changed the world, ushering in the era of the “always-on” internet and “on-demand” services - anything someone could want is just a few taps away. Likewise, the gig economy sprang up in a similar fashion, with a proliferation of tech-enabled freelance labor marketplaces, which work hand and hand with many on demand services. Individuals can now work on demand too. What began with tech enabled platforms that aggregated riders and drivers has expanded over the past decade to include food delivery, groceries, and now even a plumber or graphic designer are all just a few taps away.

The 5 gig economy stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 3.3%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the gig economy stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.9% on average since the previous earnings results.

Weakest Q1: Angi (NASDAQ:ANGI)

Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.

Angi reported revenues of $305.4 million, down 14.1% year on year, topping analysts' expectations by 2.5%. It was a mixed quarter for the company: Angi beat analysts' revenue expectations as its Ads and Leads segment outperformed. On the other hand, its number of service requests declined and missed Wall Street's estimates.

Angi Total Revenue

Angi delivered the slowest revenue growth of the whole group. The company reported 4.13 million service requests, down 31.3% year on year. The stock is down 14.5% since the results and currently trades at $2.24.

Read our full report on Angi here, it's free.

Best Q1: 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 $1.28 billion, up 27.7% year on year, outperforming analysts' expectations by 10.2%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and strong top-line growth.

Lyft Total Revenue

Lyft pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 21.9 million users, up 12% year on year. The stock is down 5.8% since the results and currently trades at $15.63.

Is now the time to buy Lyft? Access our full analysis of the earnings results here, it's free.

Fiverr (NYSE:FVRR)

Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.

Fiverr reported revenues of $93.52 million, up 6.3% year on year, exceeding analysts' expectations by 1.1%. It was a weaker quarter for the company, with a decline in its buyers and slow revenue growth.

The stock is up 22.5% since the results and currently trades at $24.9.

Read our full analysis of Fiverr's results here.

Uber (NYSE:UBER)

Born out of a winter night thought: "What if you could request a ride from your phone?" Uber (NYSE: UBER) operates a global network of on demand services, most prominently ride hailing and food delivery, and freight.

Uber reported revenues of $10.13 billion, up 14.8% year on year, in line with analysts' expectations. It was a mixed quarter for the company, with strong growth in its users but slow revenue growth.

Uber had the weakest performance against analyst estimates among its peers. The company reported 149 million users, up 14.6% year on year. The stock is down 9.8% since the results and currently trades at $63.49.

Read our full, actionable report on Uber here, it's free.

DoorDash (NYSE:DASH)

Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE:DASH) operates an on-demand food delivery platform.

DoorDash reported revenues of $2.51 billion, up 23.5% year on year, surpassing analysts' expectations by 2.5%. It was a strong quarter for the company, with a decent beat of analysts' revenue estimates and solid revenue growth.

The stock is down 12% since the results and currently trades at $112.1.

Read our full, actionable report on DoorDash here, it's free.

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