Upwork reported strong financial performance with significant revenue growth and record profit margins, driven by AI-related initiatives and cost-efficiency measures. However, challenging macroeconomic conditions and an expected decline in GSV growth in the next quarter temper the positive achievements.

Company Guidance

In the third quarter of 2024, Upwork reported a 10% year-over-year revenue growth, reaching $193.8 million. Their net income was $27.8 million, with an adjusted EBITDA of $43.2 million, setting record highs. The company's gross margin increased to 78% and adjusted EBITDA margin to 22%. Upwork achieved a Marketplace take rate of 18.3%, driven by growth in ads and monetization products, while Marketplace revenue rose to $167.3 million, a 12% increase. Managed Services revenue grew by 5%, reflecting steady demand, and their active client base expanded by 2% to 855,000. Organizational changes announced in October aim to generate $60 million in annualized cost savings, aligning with their strategic focus and efficiency goals. Upwork has introduced the Business Plus plan, which has already gained traction with hundreds of clients, and they signed 42 Enterprise deals in Q3. Additionally, they announced a new $100 million share repurchase authorization and anticipate a full-year revenue of $756 to $761 million, representing a 10% growth at the midpoint.

Revenue Growth and Record Profits

Third quarter revenue grew 10% year-over-year to $193.8 million. Net income reached $27.8 million and adjusted EBITDA was $43.2 million, both record highs.

AI-Driven Growth and Acquisitions

GSV from AI-related work grew 36% year-over-year. The acquisition of Objective, an AI-native search-as-a-service company, is expected to enhance Upwork's AI capabilities.

Cost Savings and Efficiency

Organizational changes are expected to generate $60 million in annualized cost savings, contributing to an adjusted EBITDA margin of 22.3% in Q3.

Launch of Business Plus Plan

The new Business Plus plan launched on October 16, with hundreds of clients enrolling, providing a more accessible offering for larger clients.

Strong Marketplace Metrics

Marketplace revenue increased 12% year-over-year to $167.3 million. The take rate reached a record high of 18.3%.

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Upwork (UPWK) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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UPWK Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 07, 2018	2018 (Q3)	- / -0.04	-0.003	-1233.33% (-0.04)	―	―
Feb 28, 2019	2018 (Q4)	- / 0.03	-0.1	130.00% (+0.13)	―	―
May 08, 2019	2019 (Q1)	- / <0.01	―	―	―	―
Aug 07, 2019	2019 (Q2)	- / 0.01	0	―	―	―
Nov 06, 2019	2019 (Q3)	- / 0.02	-0.04	150.00% (+0.06)	―	―
Feb 26, 2020	2019 (Q4)	- / 0.03	0.03	0.00% (0.00)	―	―
May 06, 2020	2020 (Q1)	- / -0.03	0.007	-528.57% (-0.04)	―	―
Aug 04, 2020	2020 (Q2)	- / -0.02	0.01	-330.00% (-0.03)	―	―
Nov 04, 2020	2020 (Q3)	- / 0.04	0.02	100.00% (+0.02)	―	―
Feb 23, 2021	2020 (Q4)	- / 0.06	0.03	100.00% (+0.03)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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UPWK Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 06, 2024	$14.58	$16.25	+11.45%
Aug 07, 2024	$10.46	$9.37	-10.42%
May 01, 2024	$11.96	$12.99	+8.61%
Feb 14, 2024	$15.24	$13.88	-8.92%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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