As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q3. Today we are looking at the gig economy stocks, starting with Fiverr (NYSE:FVRR).
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 Q3; on average, revenues beat analyst consensus estimates by 0.98%, while on average next quarter revenue guidance was 0.66% under consensus. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows, but gig economy stocks held their ground better than others, with the share prices up 17% since the previous earnings results, on average.
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $82.5 million, up 11% year on year, beating analyst expectations by 1.72%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and slow revenue growth.
“I am proud that our business has remained strong in a slowing macro economy. Our focus on driving the flywheel of our marketplace and investing in going upmarket is paying off as over 4.2 million businesses continue to make Fiverr the go-to place for digital services,” said Micha Kaufman, founder and CEO of Fiverr.
The company reported 4.2 million paying users, up 2.43% year on year. The stock is up 17% since the results and currently trades at $33.29.
Best Q3: 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 $8.34 billion, up 72.1% year on year, beating analyst expectations by 3.52%. It was a very strong quarter for the company, with exceptional revenue growth and a decent beat of analyst estimates.
Uber scored the strongest analyst estimates beat and fastest revenue growth among its peers. The company reported 124 million paying users, up 13.7% year on year. The stock is up 8.84% since the results and currently trades at $28.93.
Is now the time to buy Uber? Access our full analysis of the earnings results here, it's free.
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 $498 million, up 7.9% year on year, missing analyst expectations by 0.66%. It was a weak quarter for the company, with declining number of users and a miss of the top line analyst estimates.
Angi had the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 7.78 million service requests, down 10.6% year on year. The stock is up 40.9% since the results and currently trades at $2.7.
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 $1.05 billion, up 21.9% year on year, missing analyst expectations by 0.65%. It was a weaker quarter for the company, with a miss of the top line analyst estimates and an underwhelming revenue guidance for the next quarter.
The company reported 20.3 million paying users, up 7.23% year on year. The stock is up 1.2% since the results and currently trades at $14.32.
The author has no position in any of the stocks mentioned