Core Insights - Upwork Inc. reported a 4% year-over-year increase in total revenue, with active clients reaching 832,000 at the end of the quarter [1] - The company anticipates first-quarter revenue between $186 million and $191 million, with adjusted earnings projected at 24 to 26 cents per share [1] Revenue and Client Metrics - Gross services volume (GSV) per active client increased by 1% year-over-year, reaching $4,815 [1] - Despite positive growth in Enterprise revenue and a 13% year-over-year increase in take rates, GSV is still declining [2] Analyst Perspectives - RBC Capital Markets noted that while there are improvements in key metrics, recovery in GSV may depend on macroeconomic factors, with other initiatives potentially not impacting until 2026 [2] - Erickson raised the FY25 adjusted EBITDA estimate to $187.5 million from $176.5 million but remains cautious about long-term growth signals [3] - Needham's analyst anticipates a slow macro environment in 2025, with lower take rate benefits and a decline in GSV and revenue year-over-year [3] Financial Adjustments - An 8% growth in adjusted EBITDA is modeled, driven by 250 basis points of margin expansion, despite lower GSV expectations [4] - Following better-than-expected fourth-quarter performance, revenue exceeded expectations by 6% and adjusted EBITDA by 25% [5] Strategic Focus - Upwork is concentrating on controllable factors, investing in AI, enterprise, and ads/monetization for growth [5] - Analysts expect estimates to rise, assuming no significant changes in the macro environment, with a target of 35% EBITDA margins over the next five years [6] Price Action and Ratings - UPWK shares increased by 7.08% to $16.63 [6] - RBC Capital Markets raised the price forecast to $18 from $16, while Needham raised it to $19 from $17, and Piper Sandler maintained an Overweight rating with a price forecast of $18 [8]

Core Insights - Upwork achieved record revenue of $769.3 million in 2024, marking a 12% year-over-year increase despite a 9% decline in the broader staffing industry [2] - The growth in revenue was significantly driven by AI-related work, which saw a 60% increase in gross services volume and a 42% rise in the number of clients engaging in AI projects [2][3] - Freelancers working on AI-related tasks earned 44% more per hour compared to their peers in other fields, indicating a strong demand for AI skills [3] Company Developments - Upwork has integrated AI innovations into its platform, including the introduction of an AI assistant named Uma, which aids freelancers in creating proposals and evaluating candidates [5] - The acquisition of AI-native search-as-a-service company Objective has enhanced Upwork's search and match capabilities, bolstering its AI and machine learning teams [6] - The company is adapting to the growing demand for AI talent, similar to past trends with social media managers and mobile developers [4] Market Trends - Organizations are increasingly seeking flexible talent models that incorporate AI technology alongside human workers to meet emerging skill demands [7] - Professionals across various sectors are looking for digitally powered work options that provide autonomy, flexibility, and enhanced earning potential [8]

Financial Data and Key Metrics Changes - Upwork achieved record revenue and profitability in 2024, with revenue growing 12% year-over-year to a record $769.3 million, and adjusted EBITDA reaching a record $167.6 million [28][36][46] - Gross margin was 77.7% for Q4 and 77.4% for the full year 2024, while adjusted EBITDA margin was 26.2% for Q4 and 21.8% for the full year, both representing all-time highs [28][36] - Free cash flow for Q4 was $34.7 million, and $139.1 million for the full year, indicating strong cash generation capabilities [38][39] Business Line Data and Key Metrics Changes - Marketplace revenue for Q4 was $163.7 million, a 4% increase from $157.5 million in Q4 2023, while enterprise revenue increased 5% year-over-year to $27.8 million in Q4 [31][32] - Managed services revenue grew 8% year-over-year in Q4 and 12% for the full year to $59.4 million, reflecting steady demand for outcome-based delivery [32][36] - The active client base at the end of 2024 was 832,000, with GSV per active client showing strength across all business segments [32] Market Data and Key Metrics Changes - Upwork's revenue growth of 12% outperformed the estimated 9% decline in the broader staffing industry, marking the sixth consecutive year of double-digit growth outperformance [12][28] - GSV from AI-related work grew 60% year-over-year in 2024, with prompt engineering specifically up 93% year-over-year in Q4 [14][57] - The enterprise business was valued at $107 million for 2024, growing 4% year-over-year despite a challenging macroeconomic environment [18][31] Company Strategy and Development Direction - Upwork is focusing on growth catalysts including AI, enterprise, and ads & monetization, with plans for accelerated execution in 2025 [13][22] - The launch of Business Plus aims to enhance enterprise offerings and improve client engagement, with over 1,000 active users acquired since its launch [19][20] - The company is investing in AI innovations to improve customer experiences and operational efficiency, with Uma, an AI-powered job post generator, driving better job post quality and fill rates [15][70] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment, noting that while some indicators showed signs of stabilization, they remain at multi-year lows [26][112] - Despite the challenges, Upwork's performance remains strong, with expectations for continued market share gains from traditional staffing firms [22][46] - The company anticipates revenue between $740 million and $760 million for the full year 2025, with a focus on maintaining profitability and expanding margins [41][43] Other Important Information - Stock-based compensation decreased by 8% in 2024, reflecting proactive measures to manage compensation costs [37] - The company plans to utilize free cash flow for strategic growth initiatives and share buybacks in 2025 [39][111] - Non-GAAP gross margin reached a record high of 78%, with disciplined cost management contributing to improved profitability [34][46] Q&A Session Summary Question: Revenue guidance and dynamics driving potential declines - Management acknowledged the record year in 2024 but noted ongoing macro headwinds affecting top-of-funnel dynamics, leading to cautious guidance for 2025 [51][52] Question: Impact of AI on business and GSV spend acceleration - Management highlighted the positive impact of AI advancements on the platform, with significant growth in AI-related work and improved matching capabilities through Uma [54][56][57] Question: Marketplace take rates and future trajectory - Management explained that the sequential decline in take rates was due to testing and expected modest growth in 2025, with ongoing strategies to enhance take rates [63][65] Question: Cost savings and investment areas for 2025 - Management detailed the operational realignment leading to cost reductions, focusing on enterprise and R&D, while also planning minor investments in growth catalysts [75][78] Question: GSV trends and factors driving increases - Management noted ongoing top-of-funnel weakness but highlighted positive signals in retained client engagement and GSV per active client growth [86][87] Question: Capital allocation strategy and guidance confidence - Management emphasized a judicious capital allocation strategy focused on organic growth opportunities and returning capital to shareholders through share repurchases [109][112]

Core Insights - Upwork reported revenue of $191.48 million for the quarter ended December 2024, reflecting a 4.1% increase year-over-year and a surprise of +6.24% over the Zacks Consensus Estimate of $180.24 million [1] - The company's EPS for the quarter was $0.30, up from $0.20 in the same quarter last year, resulting in a surprise of +20.00% compared to the consensus estimate of $0.25 [1] Financial Performance Metrics - Gross services volume reached $992.77 million, exceeding the average estimate of $916.52 million from two analysts [4] - Marketplace revenues were reported at $163.66 million, surpassing the average estimate of $153.72 million from three analysts [4] - Enterprise revenues amounted to $27.83 million, also exceeding the three-analyst average estimate of $26.53 million [4] Stock Performance - Over the past month, Upwork's shares have returned -4.6%, contrasting with the Zacks S&P 500 composite's +4.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Upwork surprised with strong earnings, yet GSV and active clients showed signs of decline.Online work marketplace Upwork (UPWK 1.97%) reported fourth-quarter earnings on Wednesday, Feb. 12, that topped analysts' consensus top- and bottom-line expectations. Record-breaking quarterly revenue of $191.5 million surpassed estimates of $180 million and were up 4.1% year over year. Adjusted diluted earnings per share (EPS) of $0.30 outpaced the $0.25 forecast. Although the financial results reflected strong earnin ...

Upwork (UPWK) came out with quarterly earnings of $0.30 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this online freelance marketplace operator would post earnings of $0.23 per share when it actually produced earnings of $0.29, delivering a surprise of 26.09%.Over the last four quar ...

Exhibit 99.1 Upwork Reports Fourth Quarter and Full Year 2024 Financial Results Achieves record revenue, GAAP net income and adjusted EBITDA for the fourth quarter and full year 2024 Fourth-quarter revenue of $191.5 million and GAAP net income of $147.2 million Fourth-quarter adjusted EBITDA of $50.2 million or 26% adjusted EBITDA margin, Upwork's highest ever Full-year revenue of $769.3 million, GAAP net income of $215.6 million, and adjusted EBITDA of $167.6 million 1 2,3 1 2,3 1 2,3 PALO ALTO, Calif. – F ...

Achieves record revenue, GAAP net income1 and adjusted EBITDA2,3 for the fourth quarter and full year 2024Fourth-quarter revenue of $191.5 million and GAAP net income1 of $147.2 millionFourth-quarter adjusted EBITDA2,3 of $50.2 million or 26% adjusted EBITDA margin, Upwork’s highest ever Full-year revenue of $769.3 million, GAAP net income1 of $215.6 million, and adjusted EBITDA2,3 of $167.6 million PALO ALTO, Calif., Feb. 12, 2025 (GLOBE NEWSWIRE) -- Upwork Inc. (Nasdaq: UPWK), the world’s largest work mar ...

Upwork (NASDAQ: UPWK ), the marketplace connecting clients to freelancers and a Covid-era darling, is up around 60% in the last six months - trading at around $16 per share, yet still far off its Covid highs of $59 per share. I think UPWK's model hasI'm in the last year of my law PhD on the topic of corporate wrongdoing. My main focus in equity research is following up on companies that have been targeted by activist short sellers. I have found these interesting because:i) they are typically undercovered - ...

PALO ALTO, Calif., Jan. 22, 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 fourth quarter and full year of 2024 on Wednesday, February 12, 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 wil ...