As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the gig economy industry, including DoorDash (NYSE:NASDAQ:DASH) 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.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. Luckily, gig economy stocks have performed well with share prices up 15.6% on average since the latest earnings results.
Best Q2: DoorDash (NYSE:DASH) Founded by Stanford students with the intent to build “the local, on-demand FedEx (NYSE:FDX)", DoorDash (NYSE:DASH) operates an on-demand food delivery platform.
DoorDash reported revenues of $2.63 billion, up 23.3% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a solid quarter for the company with a decent beat of analysts’ request estimates.
Interestingly, the stock is up 19.6% since reporting and currently trades at $129.53.
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Lyft (NASDAQ:LYFT) 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 $1.44 billion, up 40.6% year on year, outperforming analysts’ expectations by 3.6%. It was a strong quarter for the company with exceptional revenue growth and solid growth in its users.
Lyft delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 23.7 million users, up 10.3% year on year. The market seems happy with the results as the stock is up 6.6% since reporting. It currently trades at $11.69.
Slowest Q2: Fiverr (NYSE: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 20% since the results and currently trades at $26.30.
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. Taking a step back, it was a weak quarter for the company with underwhelming revenue guidance for the next quarter.
Upwork had the weakest full-year guidance update among its peers. The stock is down 6.2% since reporting and currently trades at $9.82.
Angi (NASDAQ: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 weaker quarter for the company with 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 33.5% since reporting and currently trades at $2.63.
This content was originally published on Stock Story
