Upwork Inc ( (UPWK) ) has released its Q1 earnings. Here is a breakdown of the information Upwork Inc presented to its investors.
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Upwork Inc., the world’s largest work marketplace, connects businesses with independent talent globally, offering a platform for various skills including AI, software development, and marketing. In the first quarter of 2025, Upwork reported a record revenue of $192.7 million, with a GAAP net income of $37.7 million and an adjusted EBITDA of $56.0 million, showcasing a strong start to the year. The company highlighted the positive impact of its strategic investments in AI, which have enhanced customer productivity and engagement, contributing to a 20% profit margin and a 29% adjusted EBITDA margin.
Key financial metrics from the first quarter include a 1% year-over-year revenue growth, a significant increase in net income from $18.4 million in 2024 to $37.7 million in 2025, and a rise in diluted earnings per share from $0.13 to $0.27. The company also reported a 3% increase in GSV per active client and a 23% year-over-year growth in ad and monetization revenue. Upwork’s AI initiatives, such as the Uma-powered Proposal Writer, have driven user engagement and incremental spending, with AI-related work growing 25% year-over-year.
Operationally, Upwork’s Business Plus plan saw a 100% increase in active clients from Q4 2024 to Q1 2025, with 37% being new clients, indicating a strong value proposition. The company also experienced a 3% year-over-year growth in managed services revenue. Looking ahead, Upwork has reiterated its full-year 2025 revenue guidance and raised its adjusted EBITDA guidance, reflecting confidence in sustained profitability and market share expansion.
In conclusion, Upwork’s management remains optimistic about the company’s trajectory, driven by strategic AI investments and a focus on expanding profit margins. The company aims to continue leveraging its platform to drive meaningful business outcomes and maintain its leadership position in the talent and technology marketplace.