Wrapping up Q3 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 4 gig economy stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 0.98%, while on average next quarter revenue guidance was 0.66% under consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but gig economy stocks held their ground better than others, with the share prices up 3.52% since the previous earnings results, on average.
Best Q3: 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 $8.34 billion, up 72.1% year on year, beating analyst expectations by 3.52%. It was a very strong quarter for the company, with exceptional revenue growth and a decent beat of analyst estimates.
“Our global scale and unique platform advantages are working together to drive more profitable growth, with Gross Bookings growth of 32% and record Adjusted EBITDA of $516 million,” said Dara Khosrowshahi, CEO.
Uber pulled off the strongest analyst estimates beat and fastest revenue growth of the whole group. The company reported 124 million paying users, up 13.7% year on year. The stock is down 3.61% since the results and currently trades at $25.62.
We think Uber is a good business, but is it a buy today? Read our full report 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 $1.05 billion, up 21.9% year on year, missing analyst expectations by 0.65%. It was a weaker quarter for the company, with a miss of the top line analyst estimates and an underwhelming revenue guidance for the next quarter.
The company reported 20.3 million paying users, up 7.23% year on year. The stock is down 15.5% since the results and currently trades at $11.95.
Is now the time to buy Lyft? Access our full analysis of the earnings results here, it's free.
Slowest Q3: 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 $498 million, up 7.9% year on year, missing analyst expectations by 0.66%. It was a weak quarter for the company, with declining number of users and a miss of the top line analyst estimates.
Angi had the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 7.78 million service requests, down 10.6% year on year. The stock is up 30% since the results and currently trades at $2.49.
Read our full analysis of Angi's results here.
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $82.5 million, up 11% year on year, beating analyst expectations by 1.72%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and slow revenue growth.
The company reported 4.2 million active buyers, up 2.43% year on year. The stock is up 2.03% since the results and currently trades at $29.02.
Read our full, actionable report on Fiverr here, it's free.
The author has no position in any of the stocks mentioned