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Gig Economy Stocks Q4 Earnings Review: Uber (NYSE:UBER) Shines

UBER Cover Image

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 Uber (NYSE: UBER) 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 softer Q4. As a group, revenues missed analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 0.7% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 21.6% since the latest earnings results.

Best Q4: 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 $14.37 billion, up 20.1% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with strong growth in its users.

“Uber accelerated into another record-breaking quarter, with more than 200 million monthly users completing more than 40 million trips every day—our largest and most engaged consumer base ever,” said Dara Khosrowshahi, CEO.

Uber Total Revenue

Unsurprisingly, the stock is down 6.3% since reporting and currently trades at $73.04.

Is now the time to buy Uber? Access our full analysis of the earnings results here, it’s free.

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 $198.4 million, up 3.6% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a slower quarter with a decline in its customers and revenue guidance for next quarter missing analysts’ expectations significantly.

Upwork Total Revenue

Upwork pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. On a dimmer note, the company reported 785,000 active customers, down 5.6% year on year. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 36.6% since reporting. It currently trades at $11.92.

Is now the time to buy Upwork? Access our full analysis of the earnings results here, it’s free.

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 $107.2 million, up 3.4% year on year, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

Fiverr delivered the weakest full-year guidance update in the group. The company reported 3.1 million active buyers, down 13.9% year on year. As expected, the stock is down 20.7% since the results and currently trades at $10.39.

Read our full analysis of Fiverr’s results here.

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 $240.8 million, down 10.1% year on year. This result came in 1.2% below analysts' expectations. It was a softer quarter as it also logged a slight miss of analysts’ revenue estimates and a slight miss of analysts’ EBITDA estimates.

Angi had the slowest revenue growth among its peers. The stock is down 36.8% since reporting and currently trades at $7.56.

Read our full, actionable report on Angi here, it’s free.

DoorDash (NASDAQ: DASH)

Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ: DASH) operates an on-demand food delivery platform.

DoorDash reported revenues of $3.96 billion, up 37.7% year on year. This number missed analysts’ expectations by 1.1%. Overall, it was a softer quarter as it also recorded a slight miss of analysts’ revenue estimates and EBITDA guidance for next quarter missing analysts’ expectations significantly.

DoorDash pulled off the fastest revenue growth among its peers. The company reported 903 million service requests, up 31.8% year on year. The stock is down 6.3% since reporting and currently trades at $162.51.

Read our full, actionable report on DoorDash here, it’s free.

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StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

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