The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s take a look at how Angi (NASDAQ:ANGI) and the rest of the gig economy stocks fared in Q3.
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 4 gig economy stocks we track reported a weak Q3; on average, revenues were in line with analyst consensus estimates while next quarter's revenue guidance was 1.8% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but gig economy stocks held their ground better than others, with the share prices up 22.5% on average since the previous earnings results.
Slowest Q3: 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 $371.8 million, down 25.3% year on year, falling short of analyst expectations by 1.7%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth. The company usually gives full year adjusted EBITDA guidance, and this quarter, Angi lowered this outlook from the previous.
Angi delivered the slowest revenue growth of the whole group. The company reported 6.07 million service requests, down 22.1% year on year. The stock is up 37% since the results and currently trades at $2.26.
Read our full report on Angi here, it's free.
Best Q3: 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 $1.16 billion, up 9.8% year on year, outperforming analyst expectations by 1.3%. It was a mixed quarter for the company, with solid growth in its user base but slow revenue growth. With regards to forward guidance, Q4 Gross Bookings guided was below expectations, although Adjusted EBITDA guidance outperformed Wall Street estimates.
The stock is up 16.3% since the results and currently trades at $12.47.
Is now the time to buy Lyft? Access our full analysis of the earnings results here, it's free.
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 $9.29 billion, up 11.4% year on year, falling short of analyst expectations by 2.6%. It was a mixed quarter for the company, with a miss of analysts' revenue estimates and slow revenue growth. On the other hand, Gross Bookings beat expectations. Additional positives include beats on the adjusted EBITDA and free cash flow lines.
Uber had the weakest performance against analyst estimates in the group. The company reported 142 million users, up 14.5% year on year. The stock is up 32.2% since the results and currently trades at $63.63.
Read our full analysis of Uber's results here.
Fiverr (NYSE:FVRR)
Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $92.53 million, up 12.1% year on year, surpassing analyst expectations by 1.5%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
Fiverr achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 4.4% since the results and currently trades at $25.16.
Read our full, actionable report on Fiverr here, it's free.
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The author has no position in any of the stocks mentioned