Looking back on gig economy stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Angi (NASDAQ:ANGI) 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 mixed Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.6% below.
Luckily, gig economy stocks have performed well with share prices up 19.7% on average since the latest earnings results.
Best 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 $245.9 million, down 19.5% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ number of service requests estimates.
Angi achieved the biggest analyst estimates beat but had the slowest revenue growth of the whole group. The company reported 3.36 million service requests, down 18.5% year on year. Unsurprisingly, the stock is up 45.6% since reporting and currently trades at $16.38.
Is now the time to buy Angi? Access our full analysis of the earnings results here, it’s free.
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 $192.7 million, flat year on year, outperforming analysts’ expectations by 2.2%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ EBITDA estimates but a decline in its customers.
The market seems happy with the results as the stock is up 27.1% since reporting. It currently trades at $16.92.
Is now the time to buy Upwork? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: DoorDash (NASDAQ: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 $3.03 billion, up 20.7% year on year, falling short of analysts’ expectations by 2.1%. It was a slower quarter as it posted EBITDA guidance for next quarter missing analysts’ expectations and number of orders in line with analysts’ estimates.
DoorDash delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. The company reported 732 million service requests, up 18.1% year on year. As expected, the stock is down 3.1% since the results and currently trades at $199.
Read our full analysis of DoorDash’s results here.
Fiverr (NYSE:FVRR)
Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $107.2 million, up 14.6% year on year. This print surpassed analysts’ expectations by 1%. More broadly, it was a slower quarter as it recorded a decline in its buyers and a slight miss of analysts’ number of active buyers estimates.
Fiverr scored the highest full-year guidance raise among its peers. The company reported 3.54 million active buyers, down 11.6% year on year. The stock is up 17.6% since reporting and currently trades at $31.47.
Read our full, actionable report on Fiverr here, it’s free.
Uber (NYSE:UBER)
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE:UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Uber reported revenues of $11.53 billion, up 13.8% year on year. This result came in 0.5% below analysts' expectations. All in all, it was a mixed quarter for the company.
The company reported 170 million users, up 14.1% year on year. The stock is up 4.7% since reporting and currently trades at $89.90.
Read our full, actionable report on Uber here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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