The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the gig economy stocks have fared in Q1, 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 Q1; on average, revenues beat analyst consensus estimates by 1.43%, while on average next quarter revenue guidance was 3% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but gig economy stocks held their ground better than others, with the share prices up 16.9% 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 $88 million, up 1.47% year on year, in line with analyst expectations. It was a mixed quarter for the company, with strong guidance for the next quarter but weak revenue growth.
“We started off the year with strong execution, which has successfully helped us navigate through the current macro environment while we continue to make progress towards our long-term vision for the future of work,“ said Micha Kaufman, founder and CEO of Fiverr.
Fiverr delivered the weakest performance against analyst estimates of the whole group. The company reported 4.3 million active buyers, up 2.38% year on year. The stock is up 6.81% since the results and currently trades at $30.59.
Is now the time to buy Fiverr? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $8.82 billion, up 28.7% year on year, beating analyst expectations by 1.41%. It was a solid quarter for the company, with strong top line growth and growing number of users.
Uber pulled off the fastest revenue growth among its peers. The company reported 130 million paying users, up 13% year on year. The stock is up 26.9% since the results and currently trades at $41.56.
Is now the time to buy Uber? Access our full analysis of the earnings results here, it's free.
Slowest 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 $392.4 million, down 10% year on year, beating analyst expectations by 2.11%. It was a weak quarter for the company, with declining number of users and revenue.
Angi scored the strongest analyst estimates beat but had the slowest revenue growth in the group. The company reported 6 million service requests, down 10.4% year on year. The stock is up 33.3% since the results and currently trades at $3.32.
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 billion, up 14.3% year on year, beating analyst expectations by 1.89%. It was a weaker quarter for the company, with an underwhelming revenue and adjusted EBITDA guidance for the next quarter.
The company reported 19.6 million paying users, up 9.82% year on year. The stock is up 0.52% since the results and currently trades at $10.73.
The author has no position in any of the stocks mentioned