As we reflect back on the just completed Q4 gig economy sector earnings season, we dig into the relative performance of 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 weaker Q4; on average, revenues were in line with analyst consensus estimates, while on average next quarter revenue guidance was 5.17% under consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again and gig economy stocks have not been spared, with share prices down 18.1% since the previous earnings results, on average.
Fiverr (NYSE:FVRR)
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $83.1 million, up 4.23% year on year, missing analyst expectations by 0.39%. It was a weak quarter for the company, with underwhelming revenue guidance for the full year and slow revenue growth.
“We are proud to deliver a strong finish to a challenging year. With a shift in the macro environment and SMB spending sentiment, we quickly adjusted our business focus to drive efficiency, which is reflected in us delivering the most profitable quarter in the company’s history in terms of Adjusted EBITDA1,” said Micha Kaufman, founder and CEO of Fiverr.
Fiverr delivered the slowest revenue growth of the whole group. The company reported 4.3 million active buyers, up 2.38% year on year. The stock is down 9.98% since the results and currently trades at $34.
Read our full report on Fiverr here, it's free.
Best Q4: 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 $8.61 billion, up 49% year on year, beating analyst expectations by 1.18%. It was a strong quarter for the company, with exceptional revenue growth and growing number of users.
Uber scored the fastest revenue growth among its peers. The company reported 131 million paying users, up 11% year on year. The stock is down 6.21% since the results and currently trades at $32.8.
Is now the time to buy Uber? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $441.5 million, up 6.18% year on year, missing analyst expectations by 0.67%. It was a weak quarter for the company, with declining number of users and slow revenue growth.
Angi had the weakest performance against analyst estimates in the group. The company reported 6.02 million service requests, down 12.7% year on year. The stock is down 15.1% since the results and currently trades at $2.25.
Read our full analysis of Angi's results here.
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 $1.18 billion, up 21.1% year on year, beating analyst expectations by 1.77%. It was a slower quarter for the company, with an underwhelming revenue guidance for the next quarter.
Lyft pulled off the strongest analyst estimates beat among the peers. The company reported 20.4 million paying users, up 8.7% year on year. The stock is down 38.1% since the results and currently trades at $10.04.
Read our full, actionable report on Lyft here, it's free.
The author has no position in any of the stocks mentioned