Wrapping up Q2 earnings, we look at the numbers and key takeaways for the gig economy stocks, including Fiverr (NYSE:FVRR) 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 weak Q2; on average, revenues missed analyst consensus estimates by 2%, while on average next quarter revenue guidance was 2.44% above consensus. Technology stocks have been hit hard by fears of higher interest rates as investors search for near-term cash flows and gig economy stocks have not been spared, with share prices down 19.8% 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 $89.4 million, up 5.15% year on year, in line with analyst expectations. It was a weak quarter for the company, with slow revenue growth. In addition, the total number of active buyers was flat year on year.
“We continue to push forward towards executing our long-term strategy and are excited about our recent product launches that we believe will create a step function change in how businesses can engage with freelancers,” said Micha Kaufman, founder and CEO of Fiverr.
Fiverr achieved the strongest analyst estimates beat of the whole group. The stock is down 13.6% since the results and currently trades at $24.64.Is now the time to buy Fiverr? Read our full report on Fiverr here.
Best Q2: 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 $1.02 billion, up 3.04% year on year, missing analyst expectations by 0.17%. It was a mixed quarter for the company, with optimistic revenue guidance for the next quarter but slow revenue growth.
The stock is down 9.25% since the results and currently trades at $10.5.
Is now the time to buy Lyft? Access our full analysis of the earnings results here, it's free.
Weakest Q2: 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 $375.1 million, down 27.3% year on year, missing analyst expectations by 6.79%. It was a weak quarter for the company, with declining revenue and users.
Angi had the weakest performance against analyst estimates. The company reported 6.86 million service requests, down 19.3% year on year. The stock is down 49% since the results and currently trades at $1.98.
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 $9.23 billion, up 14.3% year on year, missing analyst expectations by 1.16%. It was a mixed quarter for the company, with a miss of analysts' revenue estimates and slow revenue growth. On the other hand, free cash flow was solid, and so was profit guidance for the next quarter.
Uber pulled off the fastest revenue growth among its peers. The company reported 137 million users, up 12.3% year on year. The stock is down 7.5% since the results and currently trades at $45.75.
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The author has no position in any of the stocks mentioned