The gig economy has become a significant part of the modern workforce, offering individuals the flexibility to work on-demand through tech-enabled platforms. As the Q4 earnings season comes to a close, it’s essential to analyze the performance of key players in the gig economy industry, including Upwork (NASDAQ:UPWK) and its peers.
Upwork, formed through the merger of Elance and oDesk in 2013, is an online platform connecting businesses with independent professionals. In Q4, Upwork reported revenues of $191.5 million, a 4.1% increase year-on-year, surpassing analysts’ expectations by 5.8%. Despite this top-line beat, the company had a mixed quarter, with EBITDA guidance for the next quarter exceeding expectations but falling short on gross services volume estimates. The stock is currently down 8.7% since reporting, trading at $12.60.
On the other hand, Angi (NASDAQ: ANGI), created through IAC’s merger of Angie’s List and HomeAdvisor, operates the largest online marketplace for home services in the US. Angi reported revenues of $267.9 million, a 10.8% decrease year-on-year, outperforming analysts’ expectations by 5.3%. Despite a strong quarter, the market seems dissatisfied with the results, with the stock down 8.7% since reporting, trading at $1.57.
Fiverr (NYSE:FVRR), based in Tel Aviv, operates a fixed-price global freelance marketplace for digital services. In Q4, Fiverr reported revenues of $103.7 million, a 13.3% increase year-on-year, exceeding analysts’ expectations by 2.3%. However, the company experienced a decline in buyers and missed EBITDA guidance for the next quarter, leading to a 23.3% decrease in the stock price since reporting, now trading at $25.38.
DoorDash (NYSE:DASH), founded as an on-demand food delivery platform, reported revenues of $2.87 billion, a 24.8% increase year-on-year, surpassing analysts’ expectations by 1.1%. Despite strong growth in service requests, EBITDA guidance for the next quarter slightly missed expectations, resulting in a 5% decrease in the stock price since reporting, now trading at $183.50.
Lyft (NASDAQ: LYFT), founded as a ridesharing network in the US and Canada, reported revenues of $1.55 billion, a 26.6% increase year-on-year, falling 0.9% below analysts’ expectations. Despite an impressive beat in EBITDA estimates, Lyft had the weakest performance against analyst estimates among its peers, with the stock down 18% since reporting, trading at $11.83.
In conclusion, the gig economy stocks experienced a mixed Q4, with some companies exceeding revenue expectations but facing challenges in other areas. Investors should carefully analyze each company’s performance and outlook before making investment decisions in this dynamic and evolving industry.
