The gig economy has become an integral part of our modern society, offering convenience and flexibility to both consumers and workers alike. With the rise of tech-enabled platforms, individuals can now access a wide range of services with just a few taps on their smartphones. As the Q1 earnings season comes to a close, it’s time to take a closer look at the performance of some of the key players in the gig economy industry, including DoorDash (NYSE:DASH) and its peers.
DoorDash, founded by Stanford students with the vision of creating a local, on-demand delivery service, has emerged as a leader in the food delivery space. In Q1, DoorDash reported revenues of $2.51 billion, marking a 23.5% year-on-year increase and surpassing analysts’ expectations by 2.5%. Despite strong revenue growth, the company’s next quarter’s Marketplace Gross Order Value (GOV) guidance was only in line with consensus, and its adjusted EBITDA guidance missed expectations. As a result, DoorDash’s stock is down 16.9% since reporting, currently trading at $105.81.
Lyft, a ridesharing network operating in the US and Canada, had a standout performance in Q1. The company reported revenues of $1.28 billion, up 27.7% year on year, exceeding analysts’ expectations by 10.2%. With strong top-line growth and solid user growth, Lyft outperformed its peers in terms of revenue growth. However, despite its impressive results, the market response has been negative, with Lyft’s stock down 25.5% since reporting, currently trading at $12.36.
On the other end of the spectrum, Angi, the largest online marketplace for home services in the US, had a challenging quarter. The company reported revenues of $305.4 million, down 14.1% year on year, exceeding analysts’ expectations by 2.5%. With a decline in service requests and slow revenue growth, Angi posted the slowest revenue growth among its peers. Unsurprisingly, the stock is down 14.1% since the results, currently trading at $2.25.
Fiverr, a global freelance marketplace for digital services, reported revenues of $93.52 million, up 6.3% year on year, surpassing analysts’ expectations by 1.1%. Despite revenue growth, the company experienced a decline in active buyers, down 7% year on year. Fiverr’s stock is up 13.2% since reporting, currently trading at $23.
Uber, a global network of on-demand services including ride-hailing and food delivery, reported revenues of $10.13 billion, up 14.8% year on year, in line with analysts’ expectations. With strong growth in users but slow revenue growth, Uber had the weakest performance against analyst estimates among its peers. The stock is down 4.4% since reporting, currently trading at $67.35.
Overall, the gig economy stocks we track had a mixed performance in Q1, with some companies exceeding expectations while others fell short. As the industry continues to evolve and adapt to changing market conditions, investors will need to closely monitor these companies to spot winners and make informed investment decisions.
