Gig Economy Stocks Q4 In Review: Fiverr (NYSE:FVRR) Vs Peers
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Fiverr (NYSE:FVRR) and the rest of the gig economy stocks fared in Q4.
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 Q4. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
While some gig economy stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.2% since the latest earnings results.
Weakest Q4: Fiverr (NYSE:FVRR)
Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $103.7 million, up 13.3% year on year. This print exceeded analysts’ expectations by 2.3%. Despite the top-line beat, it was still a slower quarter for the company with a decline in its buyers and EBITDA guidance for next quarter missing analysts’ expectations significantly.
“We delivered strong results for 2024, finishing the year well ahead of our initial targets, with double-digit revenue growth and robust margins. We continue to focus on our upmarket initiatives while strategically expanding Services revenue to drive further growth. It has been a year of significant innovation and investment in AI. Our latest launch, the revolutionary and unique human-centered AI platform Fiverr Go, allows our talent community to build their own creation models, control their creative rights, and take their business to the next level,” said Micha Kaufman, founder and CEO of Fiverr.
Fiverr Total Revenue
Fiverr scored the highest full-year guidance raise of the whole group. The company reported 3.63 million active buyers, down 9.9% year on year. Still, the market seems discontent with the results. The stock is down 1.2% since reporting and currently trades at $25.97.
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 $267.9 million, down 10.8% year on year, outperforming analysts’ expectations by 5.3%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of service requests estimates.
Angi Total Revenue
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $1.70.
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 $1.55 billion, up 26.6% year on year, falling short of analysts’ expectations by 0.9%. It was a mixed quarter as it posted a solid beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations.
Lyft delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. The company reported 24.7 million users, up 10.3% year on year. As expected, the stock is down 9.5% since the results and currently trades at $13.05.
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 $191.5 million, up 4.1% year on year. This number surpassed analysts’ expectations by 5.8%. More broadly, it was a mixed quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations but a significant miss of analysts’ number of gross services volume estimates.
Upwork delivered the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The company reported 832,000 active customers, down 2.2% year on year. The stock is flat since reporting and currently trades at $15.53.
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 $2.87 billion, up 24.8% year on year. This print topped analysts’ expectations by 1.1%. Aside from that, it was a mixed quarter as it also produced strong growth in its requests but EBITDA guidance for next quarter slightly missing analysts’ expectations.
The company reported 685 million service requests, up 19.3% year on year. The stock is up 1.2% since reporting and currently trades at $195.50.
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