Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Uber (NYSE:UBER) and the best and worst performers in the gig economy industry.
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 Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 4.7% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.5% since the latest earnings results.
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 $13.2 billion, up 14.5% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a slower quarter for the company with some shareholders anticipating a better outcome.
The market seems disappointed with the results as the stock is down 2.1% since reporting and currently trades at $71.43.
Best Q1: Lyft (NASDAQ:LYFT)
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 $1.65 billion, up 13.8% year on year, outperforming analysts’ expectations by 1%. The business had a strong quarter with strong growth in its users and EBITDA guidance for next quarter topping analysts’ expectations.
Lyft scored the biggest analyst estimate beat among its peers. The company reported 28.3 million users, up 16.9% year on year. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $14.23.