Looking back on gig economy stocks' Q2 earnings, we examine this quarter’s best and worst performers, including 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 mixed Q2; on average, revenues beat analyst consensus estimates by 3%, while on average next quarter revenue guidance was 6.8% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and gig economy stocks have not been spared, with share prices down 20.2% since the previous earnings results, on average.
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 $990.7 million, up 29.5% year on year, in line with analyst expectations. It was a solid quarter for the company, with a strong top line growth and growing number of users.
“We leaned in hard in Q2 and the team did fantastic work to drive strong results,” said Logan Green, co-founder and chief executive officer of Lyft.
The company reported 19.8 million paying users, up 15.8% year on year. The stock is down 23.3% since the results and currently trades at $13.35.
Is now the time to buy Lyft? Access our full analysis of the earnings results here, it's free.
Best Q2: 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 $8.07 billion, up 105% year on year, beating analyst expectations by 9.48%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.
Uber pulled off the strongest analyst estimates beat and fastest revenue growth among its peers. The company reported 122 million paying users, up 20.7% year on year. The stock is up 9.16% since the results and currently trades at $26.85.
Is now the time to buy Uber? Access our full analysis of the earnings results here, it's free.
Slowest Q2: Fiverr (NYSE:FVRR)
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $85 million, up 12.9% year on year, missing analyst expectations by 1.85%. It was a weak quarter for the company, with an underwhelming revenue guidance for both the next quarter and the full year.
Fiverr had the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 4.2 million active buyers, up 5% year on year. The stock is down 15% since the results and currently trades at $31.5.
Read our full analysis of Fiverr's results here.
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 $515.7 million, up 22.5% year on year, beating analyst expectations by 4.11%. It was a slower quarter for the company, with declining number of users.
The company reported 8.49 million service requests, down 9.78% year on year. The stock is down 51.8% since the results and currently trades at $2.95.
Read our full, actionable report on Angi here, it's free.
The author has no position in any of the stocks mentioned