Upwork Inc Reports Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Upwork Inc. Reports Q2 2024 Financial Results
Overview
Upwork Inc. (NASDAQ: UPWK), the world's largest work marketplace, reported its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Q1 2024 | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Revenue | $193.1M | $167.9M | +15% | $188.1M | +2.7% | $193.04M |
| Net Income | $22.2M | $(4.0)M | NM | $16.5M | +34.5% | N/A |
| EPS (GAAP) | $0.17 | $(0.03) | NM | $0.13 | +30.8% | $0.23 |
| Adjusted EBITDA | $40.8M | $14.4M | +183.3% | $36.2M | +12.7% | N/A |
Interpretation : Upwork demonstrated solid year-over-year (YoY) revenue growth of 15% and improved profitability, with its highest-ever net income. The quarterly growth figures show sustained progress despite challenging economic conditions, although the EPS fell short of the consensus estimate.
Segment Revenue Performance
Detailed segment revenue figures were not disclosed in the provided report. The robust overall revenue growth suggests that both the Marketplace and Enterprise segments performed well, despite lacking concrete breakdown figures.
Operational Highlights
No additional operational data was explicitly listed in numeric form.
Comments from Management
Hayden Brown, President and CEO: "We produced strong revenue growth of 15% year-over-year and our highest-ever net income amid a challenging and dynamic macroeconomic environment." Brown emphasized the company's ability to outperform traditional hiring industry incumbents while investing in marketplace quality.
Erica Gessert, CFO: "Our profit margin was 12% in the second quarter, and our adjusted EBITDA margin was 21%, more than double the margin from Q2 2023."
Dividends and Share Repurchase Program
During Q2 2024, Upwork repurchased 2.9 million shares, returning $33.1 million to shareholders, representing nearly 100% of the free cash flow generated during the quarter. No dividends were mentioned.
Forward Guidance
For Q3 2024: - Revenue: $179 million to $184 million - Adjusted EBITDA: $36 million to $39 million - Non-GAAP diluted EPS: $0.23 to $0.25
For Full-year 2024: - Revenue: $735 million to $745 million - Adjusted EBITDA: $140 million to $150 million - Non-GAAP diluted EPS: $0.90 to $0.94
Stock Price Movement
Following the earnings release, Upwork’s stock price declined by 3.06%.
Summary
Upwork Inc. reported strong financial results for Q2 2024, with significant revenue and profitability improvements. Exceptional performance in adjusting its business model to the dynamic economic environment and continued investment in AI-related initiatives were highlighted. Despite a slight miss on EPS relative to estimates, the company's strategic focus and robust forward guidance suggest promising future growth. The stock saw a minor drop post-release, likely reflecting investor expectations.
