Wrapping up Q2 earnings, we look at the numbers and key takeaways for the gig economy stocks, including 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 6 gig economy stocks we track reported a slower Q2. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 4.3% below.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Luckily, gig economy stocks have performed well with share prices up 13.8% on average since the latest earnings results.
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 $10.7 billion, up 15.9% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a decent quarter for the company with strong growth in its users but slow revenue growth.
“Uber’s growth engine continues to hum, delivering our sixth consecutive quarter of trip growth above 20 percent, alongside record profitability,” said Dara Khosrowshahi, CEO.
Interestingly, the stock is up 23.2% since reporting and currently trades at $72.04.
Is now the time to buy Uber? Access our full analysis of the earnings results here, it’s free.
Best Q2: DoorDash (NYSE:DASH)
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE:DASH) operates an on-demand food delivery platform.
DoorDash reported revenues of $2.63 billion, up 23.3% year on year, outperforming analysts’ expectations by 3.6%. It was a solid quarter for the company with strong growth in its requests and a decent beat of analysts’ request estimates.
The market seems happy with the results as the stock is up 17% since reporting. It currently trades at $126.69.
Is now the time to buy DoorDash? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: Fiverr (NYSE:FVRR)
Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $94.66 million, up 5.9% year on year, in line with analysts’ expectations. It was a weak quarter for the company with a decline in its buyers and a miss of analysts’ buyer estimates.
Fiverr had the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. The company reported 3.89 million active buyers, down 7.9% year on year. Interestingly, the stock is up 4.9% since the results and currently trades at $23.
Read our full analysis of Fiverr’s results here.
Upwork (NASDAQ:UPWK)
Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ:UPWK) is an online platform where businesses and independent professionals connect to get work done.
Upwork reported revenues of $193.1 million, up 14.5% year on year, in line with analysts’ expectations. Zooming out, it was a weak quarter for the company with a miss of analysts’ gmv estimates and underwhelming revenue guidance for the next quarter.
Upwork had the weakest full-year guidance update among its peers. The company reported 868,000 gmv, up 5.6% year on year. The stock is down 8.3% since reporting and currently trades at $9.60.
Read our full, actionable report on Upwork here, it’s free.
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 $315.1 million, down 10.4% year on year, surpassing analysts’ expectations by 3.5%. Zooming out, it was a slower quarter for the company with a decline in its requests and slow revenue growth.
Angi had the slowest revenue growth among its peers. The company reported 4.94 million service requests, down 28% year on year. The stock is up 32.5% since reporting and currently trades at $2.61.
Read our full, actionable report on Angi here, it’s free.
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