UPWK Earnings Prediction
The chart below shows how UPWK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, UPWK sees a +2.20% change in stock price 10 days leading up to the earnings, and a -0.08% change 10 days following the report. On the earnings day itself, the stock moves by +1.80%. This data can give you a slight idea of what to expect for the next quarter's release.
UPWK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
191.48M
4.10%
-1.18%
Gross Margin
77.73%
3.56%
0.17%
Operating Margin
7.09%
54.80%
-33.92%
Net Margin
76.86%
713.33%
436.73%
EPS
0.97
708.33%
385.00%
No Data Available
UPWK Earnings Analysis
Upwork Inc Corporation (UPWK.O) Earnings Conference Call
Positive
Strong Revenue Performance: Record revenue of $769.3 million for the full year 2024, representing a 12% year-over-year growth, significantly outperforming the estimated 9% decline in the broader staffing industry.
Record Adjusted EBITDA Performance: Adjusted EBITDA reached an all-time high of $167.6 million for the full year 2024, with an adjusted EBITDA margin of 21.8%, reflecting a strong commitment to profitability and cost management.
AI Workforce Expansion: AI-related work grew 60% year-over-year in 2024, with freelancers engaged in AI projects earning 44% more per hour compared to those in non-AI projects, indicating a robust demand for AI skills.
Enterprise Revenue Growth: Enterprise revenue increased 4% year-over-year to $107.2 million for the full year 2024, with managed services revenue growing 12% year-over-year, showcasing resilience in a challenging macroeconomic environment.
Free Cash Flow Highlights: Free cash flow for the full year 2024 was $139.1 million, with an all-time high of $51.8 million in Q4 alone, providing significant flexibility for future investments and shareholder returns.
Negative
GSV Decline Amid Revenue Growth: GSV declined 3.6% year over year in Q4, indicating a slowdown in overall growth despite a 12% revenue increase for the year.
Client Base Decline: Active client base at the end of 2024 was 832,000, reflecting top of funnel weakness experienced earlier in the year, which may hinder future growth.
EBITDA Margin Outlook: Adjusted EBITDA margin guidance for 2025 is set at 25%, suggesting a potential decrease from the 26.2% achieved in Q4 2024, indicating margin pressure ahead.
Expense Reduction Impact: Sales and marketing expenses saw a significant reduction in Q4, which may impact future customer acquisition and growth strategies.
Revenue Decline Anticipation: The company anticipates modest revenue declines after Q1 2025, reflecting ongoing macroeconomic challenges and uncertainty in the market.
UPWK FAQs
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UPWK Earning Call Sentiment
Earnings call transcript: Upwork's Q4 2024 earnings beat boosts stock
UPWK.O
2.08%Positive
The company shows strong financial performance with record revenues and margins, and positive shareholder returns through a share repurchase program. However, challenges like macroeconomic uncertainties, competitive pressures, and cautious revenue guidance due to top-of-funnel weakness balance the positives. The Q&A section reveals management's uncertainty in providing detailed future guidance, which could lead to investor caution. With a market cap of approximately $1.4 billion, the stock is likely to experience moderate volatility, resulting in a neutral sentiment with potential slight positive bias due to strong financials.
