PALO ALTO, Calif., July 15, 2025 (GLOBE NEWSWIRE) -- Upwork Inc. (Nasdaq: UPWK), the world’s largest work marketplace that connects businesses with independent talent from across the globe, today announced that it will report its financial results for the second quarter of 2025 on Wednesday, August 6, 2025 after market close. The company will host a Q&A conference call to discuss these results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day. A live webcast of the call will be available on ...

Core Insights - Upwork, Inc. (NASDAQ: UPWK) is highlighted as a small-cap stock with potential investment opportunities in 2025, following previous attention from an activist investor [1]. Company Overview - Upwork is categorized as a small-cap company that has been public for 18 months to 6 years and is currently trading significantly below its initial offering price [1].

Core Insights - The study by Upwork Research Institute indicates that AI is transitioning from a tool to a teammate, enhancing productivity while emphasizing the importance of human connection in the workplace [1][4][6] Group 1: Productivity Gains - Employees utilizing AI report an average productivity boost of 40%, attributed to increased comfort with tools, product enhancements, self-directed upskilling, and employer-supported training [5] - 77% of C-suite leaders have observed productivity gains from AI adoption within their teams over the past year [5] Group 2: Emotional and Relational Costs - Workers experiencing the highest productivity gains due to AI also report significant burnout, with 88% indicating they feel burned out and are twice as likely to consider quitting compared to less productive workers [5] - 62% of high-performing AI users do not understand how their daily use of AI aligns with company goals, highlighting a disconnect that poses a risk for organizations [5] Group 3: Trust and Relationships - Over two-thirds of high-performing AI users trust AI more than their coworkers, with 64% stating they have a better relationship with AI than with human colleagues [5] - Nearly half of all workers use polite language when interacting with AI, indicating a trend towards anthropomorphizing AI and suggesting a need for organizations to rethink communication norms and team dynamics [5] Group 4: Freelancers vs. Full-time Employees - Freelancers report a more positive relationship with AI, with 90% stating it helps them acquire new skills faster, and 42% crediting AI for helping them specialize in a niche [5] - Freelancers are more likely than full-time employees to see a direct link between AI use, skill development, and tangible career outcomes [5] Group 5: Future Organizational Design - The findings suggest that organizations need to redesign work systems to support collaboration between humans and AI, prioritizing human connection and responsible AI design for sustainable growth [6]

Core Insights - The freelance economy is rapidly evolving, with Upwork Inc. (UPWK) and Fiverr International (FVRR) at the forefront, each adopting distinct strategies to leverage AI and cater to enterprise clients [1][5] Upwork Overview - Upwork reported record first-quarter results for 2025, with revenues of $193 million, a 1% year-over-year increase, and adjusted EBITDA of $56 million, reflecting a 29% margin [6] - The company is transitioning to an AI-native platform, utilizing its in-house AI assistant, Uma, which has seen a 52% increase in user engagement and a 58% rise in proposal-writing usage [7] - Upwork has access to over 80,000 AI specialists, addressing the talent gap as 63% of employers report a lack of skilled personnel [8] - For 2025, Upwork reaffirmed its revenue target of $740-$760 million and raised its adjusted EBITDA guidance to $190-$200 million, with EPS forecasted at $1.14-$1.18 [10] Fiverr Overview - Fiverr's first-quarter 2025 revenues increased by 15% year-over-year to $107.2 million, with an adjusted EBITDA margin of 18% [11] - The classic marketplace revenue declined by 0.8% to $77.7 million, while service revenues surged by 94% to $29.5 million, now representing 27.5% of total revenues [12] - Fiverr is evolving into a full-service work platform, focusing on larger clients and enhanced tools like Fiverr Pro and Fiverr Go, which are designed to improve buyer-seller interactions [13][15] - The company anticipates full-year revenues between $425-$438 million, with adjusted EBITDA margins expected to reach 20% in 2025 [11] Comparative Analysis - Upwork is positioned as a leader in AI integration within the freelance market, while Fiverr is gaining traction in high-margin services but faces challenges with a shrinking active buyer base [19][20] - Upwork's focus on AI and operational strength makes it a more compelling investment choice, currently rated as a Zacks Rank 1 (Strong Buy), compared to Fiverr's Zacks Rank 3 (Hold) [21]

Core Insights - Upwork Inc. has established the Upwork Economic Advisory Council to provide strategic guidance on AI-human workforce design and labor market shifts [1][2] - The council aims to ensure that Upwork's innovations in AI are based on rigorous research, addressing economic, social, and ethical implications [2][6] Group 1: Council Formation and Purpose - The Upwork Economic Advisory Council consists of leading economists, scientists, and researchers from prestigious institutions like MIT, Stanford, and Georgetown [1][4] - The council's mandate includes advising on productivity measurement, ethical principles in AI, and identifying labor market shifts driven by AI [5][6] Group 2: Council Members and Expertise - Notable members include Dr. Nicholas Bloom, Dr. John Horton, Dr. Kelly Monahan, Dr. Sendhil Mullainathan, Dr. Dewey Murdick, Dr. Andrew Rabinovich, and Dr. Melissa Valentine, each bringing expertise in economics, technology, and organizational behavior [5][6] - The diverse expertise of the council members spans labor economics, AI policy, organizational design, and machine learning [5][6] Group 3: Upwork's Market Position and Economic Impact - Upwork's platform recorded a gross services volume of $4 billion in 2024, indicating its significant role in the labor market [3] - The platform has facilitated over $25 billion in economic opportunity for talent globally, showcasing its impact on the workforce [8]

Core Insights - Upwork Inc. has reported a significant increase in Gross Services Volume (GSV), reaching $988 million in Q1 2025, exceeding management's expectations [1] - The GSV per active client has shown a year-over-year growth of 3%, marking the first increase in six quarters and the third consecutive sequential rise [1] Client Segmentation - Growth in GSV was observed across all client tiers, with large customers contributing an 11% increase [2] - The Business Plus plan is attracting larger clients who tend to spend more and remain on the platform longer, despite a reduction in broad marketing efforts [4] Product Enhancements and AI Integration - Product improvements, such as enhanced search and talent matching, are driving higher customer spending [2] - AI-related GSV has surged by 25% year over year, with prompt engineering jobs experiencing a 52% growth, leading to 40% higher freelancer earnings [3] Future Growth Potential - Rising GSV per client is more critical than raw user growth, indicating stronger network effects and better unit economics [6] - The early performance of Uma, Upwork's in-platform AI assistant, is promising, contributing to increased proposal volume and faster hiring [5] Market Position and Valuation - Upwork shares have declined over 18% year to date, compared to a 10.5% decline in the industry [7] - The forward price-to-sales ratio for Upwork is 2.29, lower than the industry average and its own five-year average, while Fiverr trades at 2.32 [8]

Group 1 - Upwork Inc. is evolving beyond a platform for quick freelance gigs with the introduction of its Business Plus plan, which targets larger clients and has seen the number of active clients more than double in the last quarter, with 40% being new to Upwork [1][3] - The Business Plus plan enhances the hiring experience by providing access to top-vetted talent, assistance with shortlisting, and Net-30 payment terms, facilitating faster onboarding and increased spending by new customers [2][3] - Upwork's Enterprise business is in a transition phase, but Business Plus is attracting larger, high-value customers who are actively utilizing the new features, indicating a strong market fit [3][4] Group 2 - The growth of Business Plus could lead to more stable revenue streams from larger clients, representing a significant shift for Upwork that may not be immediately newsworthy but could have long-term implications [4] - Competitors like Fiverr are also targeting larger clients with their Fiverr Pro offering, while LinkedIn continues to strengthen its position in the professional hiring space with tailored tools for enterprise clients [5][6][7] Group 3 - Upwork's shares have declined by 20% year to date, compared to a 10% decline in the industry [9] - The company trades at a forward price-to-sales ratio of 2.25, which is lower than both the industry average and its own 5-year average [11]

Core Insights - The freelance economy is rapidly growing, with more individuals opting for freelance work due to its flexibility and control over time and workspace [1] - The global freelance platforms market is expected to grow from $7.65 billion in 2025 to $16.54 billion by 2030, reflecting a CAGR of 16.66% [2] Company Performance - Upwork Inc. reported record first-quarter 2025 results with revenues of $193 million, exceeding both company guidance and Wall Street estimates [5] - Adjusted EBITDA reached $56 million with a margin of 29%, and net income was $37.7 million, marking a quarterly best for the company [5] - Key metrics showed improvement, with gross services volume per active client rising year over year for the first time in six quarters [6] Strategic Initiatives - Upwork is leveraging AI to enhance productivity and client engagement, with significant increases in user engagement with AI tools [9] - The company has made strategic acquisitions, including Headroom and Objective AI, to accelerate its AI roadmap and expand capabilities [10] - Upwork has positioned itself as a key resource for companies seeking AI talent, with access to over 80,000 AI specialists [11] Market Position - Upwork's strong execution and AI integration signal long-term potential, despite a year-to-date stock price decline [14] - The company has reaffirmed its revenue target of $740-$760 million and raised its adjusted EBITDA guidance to $190-$200 million for the full year [8] - Upwork's competitive landscape includes other platforms like Fiverr and Microsoft, which are also enhancing their AI capabilities [13]

Key Takeaways UPWK's AI features drove a 52% Q1 engagement jump, with proposal writing up 58% quarter over quarter. The Objective AI acquisition improved talent matching and expanded multi-modal platform capabilities. Q1 GSV per active client rose year over year, aided by AI-driven search and customer experience upgrades.As the freelance economy evolves and artificial intelligence (AI) gains traction, Upwork Inc. (UPWK) has been accelerating efforts to make its platform AI-native. At the center of this ef ...

Core Insights - The primary challenge for companies adopting AI is the lack of skilled talent, with 63% of employers identifying this as a significant barrier to progress [1] - Upwork Inc. is emerging as a vital resource in the AI transformation, connecting businesses with over 80,000 AI specialists [2][9] - Real-world applications of Upwork's talent include projects for social media platforms, pharmaceutical companies, and law firms, showcasing the platform's capability in advanced AI tasks [3] Company Overview - Upwork is positioned as a key player in the AI talent market, facilitating access to specialized skills that are increasingly in demand as enterprises seek flexible talent solutions [4] - The company's stock has experienced a decline of approximately 17% year to date, compared to a 6% decline in the industry [7] Competitive Landscape - Other competitors in the AI talent space include Fiverr, which is expanding its offerings to include vetted AI professionals, and Microsoft's LinkedIn, which is heavily investing in AI-driven talent discovery tools [5][6] - LinkedIn's integration with Microsoft's cloud and AI services enhances its ability to connect companies with AI experts [6] Valuation Metrics - Upwork's current forward price-to-sales ratio is 2.33, which is lower than both the industry average and its own 5-year average [10] - The stock is currently rated as a Strong Buy according to Zacks Rank [13]