Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Lyft (NASDAQ: LYFT) 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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
Luckily, gig economy stocks have performed well with share prices up 18.6% on average since the latest earnings results.
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 $1.59 billion, up 10.6% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter meeting analysts’ expectations.
“We delivered off-the-charts performance, resulting in our strongest quarter ever,” said Lyft CEO David Risher.
Lyft delivered the weakest performance against analyst estimates of the whole group. The company reported 26.1 million users, up 10.1% year on year. Interestingly, the stock is up 55.5% since reporting and currently trades at $21.82.
Is now the time to buy Lyft? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $278.2 million, down 11.7% year on year, outperforming analysts’ expectations by 6.5%. The business had an exceptional quarter with a solid beat of analysts’ service requests and EBITDA estimates.
Angi delivered the biggest analyst estimates beat among its peers. On a dimmer note, the company reported 4.56 million service requests, down 7.6% year on year. The market seems content with the results as the stock is up 1.3% since reporting. It currently trades at $15.86.
Is now the time to buy Angi? Access our full analysis of the earnings results here, it’s free.
Weakest 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 $108.6 million, up 14.8% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a slower quarter as it posted a decline in its buyers.
Fiverr delivered the weakest full-year guidance update in the group. The company reported 3.43 million active buyers, down 10.9% year on year. As expected, the stock is down 5.1% since the results and currently trades at $23.74.
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 $194.9 million, flat year on year. This result topped analysts’ expectations by 3.9%. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Upwork scored the highest full-year guidance raise among its peers. The company reported 796,000 active customers, down 8.3% year on year. The stock is up 47.5% since reporting and currently trades at $17.71.
Read our full, actionable report on Upwork here, it’s free.
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 $3.28 billion, up 24.9% year on year. This number beat analysts’ expectations by 3.8%. Overall, it was a strong quarter as it also recorded strong growth in its requests and a decent beat of analysts’ EBITDA estimates.
DoorDash achieved the fastest revenue growth among its peers. The company reported 761 million service requests, up 19.8% year on year. The stock is up 3.9% since reporting and currently trades at $268.18.
Read our full, actionable report on DoorDash 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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