The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Lyft (NASDAQ:LYFT) and the rest of the gig economy stocks fared in Q1.
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 an ok Q1; on average, revenues beat analyst consensus estimates by 3.3%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and gig economy stocks have had a rough stretch, with share prices down 12.6% on average since the previous earnings results.
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, exceeding analysts' expectations by 10.2%. Overall, it was an impressive quarter for the company with strong top-line growth and solid growth in its users.
“Lyft is off to a strong start in 2024. We are executing well and bringing much-needed innovation to the market. That’s why drivers and riders are choosing Lyft more often,” said CEO David Risher.
Lyft scored the biggest analyst estimates beat and fastest revenue growth of the whole group. The company reported 21.9 million users, up 12% year on year. The stock is down 25.8% since reporting and currently trades at $12.32.
Is now the time to buy Lyft? Access our full analysis of the earnings results 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, outperforming analysts' expectations by 2.5%. It was a strong quarter for the company with solid revenue growth.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 20.2% since reporting. It currently trades at $101.61.
Is now the time to buy DoorDash? Access our full analysis of the earnings results here, it's free.
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, exceeding analysts' expectations by 2.5%. It was a weak quarter for the company with a decline in its requests and slow revenue growth.
Angi had the slowest revenue growth in the group. The company reported 4.13 million service requests, down 31.3% year on year. As expected, the stock is down 20.2% since the results and currently trades at $2.09.
Read our full analysis of Angi'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. Taking a step back, it was an ok 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 6.1% since reporting and currently trades at $66.15.
Read our full, actionable report on Uber 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, surpassing analysts' expectations by 1.1%. More broadly, it was a weaker quarter for the company with a decline in its buyers and slow revenue growth.
The company reported 4 million active buyers, down 7% year on year. The stock is up 9.4% since reporting and currently trades at $22.24.
Read our full, actionable report on Fiverr here, it's free.
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