Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q1 now behind us, let’s have a look at Lyft (NASDAQ:LYFT) 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 4 gig economy stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.43%, while on average next quarter revenue guidance was 3% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, but gig economy stocks held their ground better than others, with the share prices up 4.09% since the previous earnings results, on average.
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 billion, up 14.3% year on year, beating analyst expectations by 1.89%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and slow revenue growth.
“We’re improving our rideshare service and are thrilled with the early results. Riders are taking more rides and drivers have the power to earn more,” said David Risher, chief executive officer of Lyft.
The stock is down 21.6% since the results and currently trades at $8.37.
Best Q1: 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 $8.82 billion, up 28.7% year on year, beating analyst expectations by 1.41%. It was a solid quarter for the company, with strong top line growth and growing number of users.
Uber pulled off the fastest revenue growth among its peers. The company reported 130 million paying users, up 13% year on year. The stock is up 17.5% since the results and currently trades at $38.46.
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Slowest 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 $392.4 million, down 10% year on year, beating analyst expectations by 2.11%. It was a weak quarter for the company, with declining number of users and revenue.
Angi pulled off the strongest analyst estimates beat but had the slowest revenue growth in the group. The company reported 6 million service requests, down 10.4% year on year. The stock is up 26.9% since the results and currently trades at $3.16.
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $88 million, up 1.47% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a beat of bottom line estimates but slow revenue growth.
Fiverr had the weakest performance against analyst estimates among the peers. The company reported 4.3 million active buyers, up 2.38% year on year. The stock is down 6.42% since the results and currently trades at $26.8.
The author has no position in any of the stocks mentioned