As we reflect back on the just completed Q1 gig economy sector earnings season, we dig into the relative performance of Uber (NYSE:UBER) 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 decent Q1; on average, revenues beat analyst consensus estimates by 4.3%, while on average next quarter revenue guidance was 6.34% under consensus. Tech stocks have had a rocky start in 2022, but gig economy stocks held their ground better than others, with share price down 2.46% since earnings, on average.
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 $6.85 billion, up 136% year on year, beating analyst expectations by 12.3%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.
“Our results demonstrate just how much progress we’ve made navigating out of the pandemic and how the power of our platform is differentiating our business performance,” said Dara Khosrowshahi, CEO.
Uber pulled off the strongest analyst estimates beat and fastest revenue growth of the whole group. The company reported 115 million paying users, up 11.6% year on year. The stock is down 14.2% since the results and currently trades at $25.26.
Is now the time to buy Uber? Access our full analysis of the earnings results here, it's free.
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 $875.5 million, up 43.7% year on year, beating analyst expectations by 3.46%. Despite the stock dropping on the results, it was still a decent quarter for the company, with strong revenue growth and growing number of users.
The stock is down 44.6% since the results and currently trades at $16.97.
Is now the time to buy Lyft? 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 $436.1 million, up 12.6% year on year, beating analyst expectations by 1.38%. It was a weak quarter for the company, with a declining number of users and a slow revenue growth.
Angi had the slowest revenue growth in the group. The company reported 6.7 million service requests, down 13.1% year on year. The stock is up 49.4% since the results and currently trades at $5.35.
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $86.6 million, up 26.8% year on year, missing analyst expectations by 0.01%. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year below analysts' estimates.
Fiverr had the weakest performance against analyst estimates among the peers. The company reported 4.2 million active buyers, up 10.5% year on year. The stock is down 0.34% since the results and currently trades at $40.70.
The author has no position in any of the stocks mentioned