Group 1 - The article discusses the investment positions of Parkev Tatevosian, CFA, and mentions that he has no position in any of the stocks mentioned [1] - The Motley Fool has positions in and recommends Fiverr International and Upwork, indicating a positive outlook on these companies [1] - There is a disclosure policy in place by The Motley Fool, which highlights the potential for compensation related to promoting its services [1]

Core Insights - Upwork Inc. has announced the addition of Dana Evan and Glenn Kelman to its Board of Directors, aiming to enhance its operational excellence and market leadership in the AI talent and work sector [1][5][6] Group 1: Board Changes - Dana L. Evan and Glenn Kelman have officially joined Upwork's Board following the Annual Meeting of Stockholders on June 5, 2025 [2] - Gregory C. Gretsch and Elizabeth "Betsey" Nelson have concluded their service on the Board, with Gretsch retiring after being a founding investor since 2014 and Nelson not standing for re-election after serving since 2015 [2] Group 2: New Board Members' Backgrounds - Glenn Kelman, CEO of Redfin, has extensive experience in leading technology-powered marketplace businesses and will serve on the Compensation Committee [3] - Dana Evan, former CFO of VeriSign, has a strong background in financial leadership and governance, and will chair the Audit, Risk and Compliance Committee while also serving on the Compensation and Nominating and Governance Committees [4] Group 3: Strategic Focus - The additions of Evan and Kelman reflect Upwork's commitment to advancing its long-term strategy and growth, particularly in the context of AI-powered work solutions [5][6] - Upwork's leadership expresses confidence that the new board members will provide valuable insights and support the company's evolution and growth [6]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Core Viewpoint - The Zacks Internet-Services Industry is currently performing well, with Trivago (TRVG) and Upwork Software (UPWK) being highlighted as strong buy opportunities due to positive earnings estimate revisions and attractive stock prices [1][2]. Group 1: Trivago (TRVG) - Trivago is a hotel and accommodation search platform trading under $5 per share, making it an appealing penny stock [3]. - The company has made strategic moves, including acquiring a 30% stake in AI-driven hotel rate aggregator Holisto, which could position it as an attractive acquisition target for larger travel companies [4]. - Trivago's total sales are projected to increase by 18% in fiscal 2025 and by another 11% in fiscal 2026, reaching $655.77 million [4]. - The Zacks Consensus Estimate for Trivago's sales in fiscal 2025 is $590.98 million, with year-over-year growth estimates of 18.34% [5]. - Earnings per share (EPS) estimates for Trivago have increased, with expectations of $0.10 for this year and $0.20 for fiscal 2026 [6]. Group 2: Upwork (UPWK) - Upwork's stock has increased by 30% in the last month, currently trading around $16 per share, and has a forward earnings multiple of 14.4X, which is below industry and S&P 500 averages [7]. - The company has benefited from AI-powered solutions, significantly improving client engagement and leading to record quarterly revenue and net income [8]. - Upwork's EPS estimates for fiscal 2025 and fiscal 2026 have risen by 9% and 10% respectively, with projected earnings of $1.14 for fiscal 2025 and $1.33 for fiscal 2026 [9][10].

Core Insights - Upwork Inc. reported strong first-quarter 2025 financial results, exceeding analyst expectations, which led to a notable stock increase [1][2] - The company's performance raises questions about the long-term expansion of the freelance economy and Upwork's potential to benefit from changing work models [1] Financial Performance - Revenue for Q1 2025 rose 1% year-over-year (YOY) to $192.7 million, modestly surpassing estimates [2] - GAAP net income surged to $37.7 million ($0.27 per diluted share), up from $18.4 million ($0.13) a year earlier [3] - Adjusted EBITDA increased by 68% YOY to $56.0 million, with margins expanding from 17% to 29% [3] - Free cash flow more than doubled to $30.8 million [3] - Full-year adjusted EBITDA guidance was raised to $190–$200 million, while revenue forecast remained at $740–$760 million [3] Operational Metrics - Gross Services Volume (GSV) dipped 2.1% YOY to $987.7 million, but GSV per active client rose 3% to $4,912 [4] - Total client base declined 7% to 812,000, indicating deeper engagement and higher spending per user [4] Strategic Initiatives - Upwork's growth was driven by strategic initiatives in artificial intelligence (AI), enterprise solutions, and enhanced monetization [5] - The AI-powered work companion, Uma™, has seen significant user engagement growth, contributing to improved user experience and spending [6] - The Upwork Business Plus client base has grown significantly, with many clients being new to the platform [7] - Diverse monetization strategies, including revenue growth from ads, premium subscriptions, and the sale of "Connects," have yielded positive results [8] Industry Context - Upwork's success reflects a dynamic global labor market increasingly embracing flexible and independent work models [9] - The "Future Workforce Index" indicates that 28% of U.S. skilled knowledge workers operate independently, generating an estimated $1.5 trillion in earnings [9] - The company's mission aligns with the shift towards freelance arrangements, emphasizing the creation of economic opportunities [10] Future Outlook - Upwork's performance serves as an indicator of the broader acceptance of the freelance model among talent and businesses [11] - The positive market reaction to Upwork's earnings report suggests renewed confidence in its ability to capitalize on technological shifts [12] - Trends such as increased remote work adoption and demand for specialized skills provide a supportive macro environment for Upwork [13]

Core Insights - The Q1 2025 earnings cycle is progressing rapidly, with many S&P 500 companies already reporting results, and more reports expected in the coming weeks [1][13] Eaton - Eaton reported record Q1 adjusted EPS of $2.72, reflecting a 13% year-over-year increase [2] - The company achieved record Q1 sales of $6.4 billion, up 7% year-over-year, and record segment margins of 23.9%, an 80 basis points increase year-over-year [2] - Organic sales growth reached 9%, exceeding previous guidance [2] - Backlog growth in the Electrical segment improved by 6% year-over-year, while the Aerospace backlog surged by 16% [3] Cboe Global Markets - Cboe Global Markets posted record adjusted EPS of $2.37, a 21% increase year-over-year, and record net revenue of $562.5 million, up 13% year-over-year [4] - The company reported record Options net revenue of $352.4 million, a 15% year-over-year increase, and Global FX net revenue of $21.3 million, climbing 16% year-over-year [5] - Cboe raised its 2025 organic revenue growth guidance, indicating a positive outlook [4] Upwork - Upwork achieved record Q1 revenue of $193 million, with net income of $37.7 million, also a quarterly record [10] - The company increased its FY25 adjusted EBITDA guidance and reiterated its sales outlook [10] - Upwork's CEO highlighted the positive impact of AI investments on customer productivity and engagement, contributing to market share expansion and ongoing profitability [10] - The stock experienced a significant rise, with shares up 30% over the last month, outperforming the S&P 500 [10]

In the process of finalizing my law PhD on corporate wrongdoing. Research assistant for 5+ years prior, focusing on regulatory governance, corporate compliance.Longstanding interest in the stock-market, focusing primarily on US small to mid caps, both long and short.Whatever peaks my interest is what I will write about: value/growth/secular trends/accounting shenanigans. I typically strive to add some color to the analysis that goes beyond what prior SA authors have written on a particular ticket, and if I ...

Market Sentiment - The stock market is experiencing volatility during the Q1 earnings season, with investors cautious about potential downward revisions in company outlooks due to the impact of tariffs [1] Analyst Background - Gary Alexander has extensive experience in covering technology companies on Wall Street and has worked in Silicon Valley, providing insights into current industry themes [1] - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, with his articles reaching popular trading apps like Robinhood [1]

Financial Performance - Upwork achieved record gross margins of 78.3% in Q1 2025[17] - The company's adjusted EBITDA margin reached a record 29.1% in Q1 2025[17] - Upwork's free cash flow generation was strong at $30.8 million in Q1 2025[17], more than doubled from Q1 2024 levels[50] - The company's cash, cash equivalents, and marketable securities totaled approximately $622 million at the end of Q1 2025[17] AI Initiatives - GSV from AI-related work increased by 25% year-over-year in Q1 2025[27] - Hourly wages for AI-related work were 42% higher compared to non-AI related work on the platform in Q1 2025[27] - Upwork launched Uma, its Mindful AI, with Uma-powered Proposal Writer increasing engagement by 58% and Uma on Upwork's homepage increasing user engagement by 340%[32] Enterprise Growth - The global enterprise TAM for staffing is a greater than $650 billion opportunity[36] - Enterprise revenues reached $26.4 million in Q1 2025, benefiting from increased spend per contract[36] Ads & Monetization - Upwork is on a steady trajectory towards a 35% adjusted EBITDA margin target, driven by growth of ads & monetization products[43] - Upwork's platform has facilitated more than $25 billion in economic opportunity for talent around the world[16, 98]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $192.7 million, exceeding guidance and representing a 1% year-over-year growth [7][21] - Adjusted EBITDA reached a record high of $56 million, with an adjusted EBITDA margin of 29%, the highest ever for the company [8][23] - Gross margin was reported at 78.3%, reflecting disciplined cost management [18][22] - GAAP net income for Q1 was $37.7 million, a 105% increase compared to Q1 2024 [23] - Free cash flow for the quarter was $30.8 million, with $33.1 million used for share buybacks [23] Business Line Data and Key Metrics Changes - The core marketplace saw Gross Services Volume (GSV) of $988 million, with GSV per active client increasing by 3% year-over-year [19] - Enterprise revenue was $26.4 million, relatively flat year-over-year, while managed services revenue grew by 3% to $15.3 million [21] - Business Plus, a premium offering, saw active clients more than double quarter-over-quarter, with approximately 40% being new customers [14][15] Market Data and Key Metrics Changes - GSV per active client in the large client segment grew by 11% year-over-year [20] - The marketplace take rate increased to 18.3% in Q1 2025 from 17.7% in Q1 2024, driven by growth in ads and monetization [22] Company Strategy and Development Direction - The company is focusing on AI integration, with 80,000 AI specialists on the platform and investments in Ooma, an AI-driven tool to enhance customer experience [11][12] - The strategy includes unlocking spend from larger clients and enhancing the Business Plus offering to attract high-value customers [16][56] - The company is committed to achieving a 35% adjusted EBITDA margin target over five years and is increasing its full-year adjusted EBITDA guidance for 2025 [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite macroeconomic pressures, noting that customer spend dynamics improved in Q1 [32][34] - The company anticipates reacceleration of GSV growth in 2026, driven by AI-related investments and enterprise strategies [81] - Management acknowledged slight macro headwinds affecting customer activity but emphasized the essential nature of the work being done on the platform [70][96] Other Important Information - The company has a $100 million buyback authorization, with approximately $67 million remaining at the end of Q1 [26] - Stock-based compensation is expected to be between $60 million and $65 million for the year, with proactive steps taken to reduce expenses [26] Q&A Session Summary Question: Broader economy impact on guidance - Management noted that customer spend dynamics improved in Q1, driven by product enhancements, but slight macro headwinds were also observed [32][33] Question: AI as a driver for client growth and pricing - AI-related work is commanding a 40% premium in freelancer earnings, driving new client acquisition and increased volumes [35][36] Question: Growth in larger customers - The growth in larger customer spend is attributed to strategic efforts to unlock spending from this segment, with positive early signs from Business Plus [40][42] Question: Search and recommendation enhancements - New features in semantic search and client dashboard enhancements are positively impacting client metrics [49][51] Question: Business Plus client onboarding - Business Plus is attracting larger customers with features like enterprise-vetted talent and special shortlisting capabilities [56][57] Question: Top of funnel pressures - Active client numbers are affected by broader organic channels, with no significant impact from AI [65][66] Question: Tariff and macro impacts - No significant impact from tariffs or public sector job releases was observed, with a diverse client base contributing to resilience [75][76] Question: Ooma's impact on GSV growth - Early indicators show that Ooma is contributing to GSV gains, with confidence in its role for future acceleration [102] Question: Margin guidance and investments - Guidance reflects plans to invest in growth opportunities, particularly in AI and enterprise strategies [90][91]