The gig economy has become an integral part of our modern society, offering individuals the opportunity to work on demand through tech-enabled platforms. As the Q4 earnings season comes to a close, it’s time to review how some of the key players in the gig economy fared. One standout performer in Q4 was Angi (NASDAQ:ANGI), which operates the largest online marketplace for home services in the US.
Angi, created by IAC’s merger of Angie’s List and HomeAdvisor, reported revenues of $267.9 million in Q4, exceeding analysts’ expectations by 5.3%. Despite a 10.8% year-on-year decline in revenue, the company delivered a strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ service requests estimates. However, Angi did report the slowest revenue growth among the group, with 3.63 million service requests, down 16.1% year on year. As a result, the stock is down 11% since reporting and currently trades at $1.53.
On the other hand, Uber (NYSE:UBER) reported revenues of $11.96 billion, up 20.4% year on year, outperforming analysts’ expectations by 1.6%. The company, known for its platform of on-demand services such as ride-hailing and food delivery, had a satisfactory quarter with strong growth in its users. The stock is up 1% since reporting and currently trades at $70.47.
Fiverr (NYSE:FVRR), a fixed-price global freelance marketplace for digital services, reported revenues of $103.7 million, up 13.3% year on year, exceeding analysts’ expectations by 2.3%. However, the company posted a decline in buyers and EBITDA guidance for the next quarter, missing analysts’ expectations. As a result, the stock is down 21.5% since the results and currently trades at $25.99.
Upwork (NASDAQ:UPWK), an online platform connecting businesses and independent professionals, reported revenues of $191.5 million, up 4.1% year on year, beating analysts’ expectations by 5.8%. Despite this, the company had a mixed quarter with a significant miss of analysts’ gross services volume estimates. The stock is down 19.1% since reporting and currently trades at $12.58.
Lastly, DoorDash (NYSE:DASH), an on-demand food delivery platform, reported revenues of $2.87 billion, up 24.8% year on year, surpassing analysts’ expectations by 1.1%. The company saw strong growth in service requests but EBITDA guidance for the next quarter slightly missed analysts’ expectations. The stock is down 6.5% since reporting and currently trades at $180.50.
In conclusion, while the gig economy stocks had a mixed Q4, Angi emerged as a standout performer with a strong quarter despite a decline in revenue. Investors looking to capitalize on the gig economy should carefully consider the performance and outlook of each company before making investment decisions.
