As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the gig economy industry, including DoorDash (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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 0.6% below.
While some gig economy stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.9% since the latest earnings results.
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 $3.45 billion, up 27.3% year on year. This print exceeded analysts’ expectations by 2.6%. Despite the top-line beat, it was still a slower quarter for the company with EBITDA guidance for next quarter missing analysts’ expectations significantly.
DoorDash achieved the fastest revenue growth of the whole group. The company reported 776 million service requests, up 20.7% year on year. Still, the market seems discontent with the results. The stock is down 5.8% since reporting and currently trades at $197.81.
Is now the time to buy DoorDash? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: 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 $201.7 million, up 4.1% year on year, outperforming analysts’ expectations by 4.3%. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Upwork achieved the biggest analyst estimates beat among its peers. On a dimmer note, the company reported 794,000 active customers, down 7.1% year on year. The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $16.52.
Is now the time to buy Upwork? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest 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 $265.6 million, down 10.5% year on year, falling short of analysts’ expectations by 1.2%. It was a slower quarter as it posted a decline in its requests and a significant miss of analysts’ number of service requests estimates.
Angi delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 4.14 million service requests, down 7.7% year on year. As expected, the stock is down 10.4% since the results and currently trades at $11.53.
Read our full analysis of Angi’s results here.
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 $13.47 billion, up 20.4% year on year. This number beat analysts’ expectations by 1.5%. More broadly, it was a satisfactory quarter as it also produced strong growth in its users but a slight miss of analysts’ EBITDA estimates.
The company reported 189 million users, up 17.4% year on year. The stock is down 7.5% since reporting and currently trades at $92.35.
Read our full, actionable report on Uber here, it’s free for active Edge members.
Fiverr (NYSE: FVRR)
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $107.9 million, up 8.3% year on year. This print met analysts’ expectations. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a decline in its buyers.
Fiverr scored the highest full-year guidance raise among its peers. The company reported 3.3 million active buyers, down 12.6% year on year. The stock is down 6.3% since reporting and currently trades at $20.25.
Read our full, actionable report on Fiverr here, it’s free for active Edge members.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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