Upwork(US:UPWK)2024-05-01 20:06Revenue Growth - First-quarter revenue grew 19% year-over-year to $190.9 million, with a marketplace take rate of 17.7% compared to 14.7% in the same quarter last year[3]. - Revenue from ads and monetization products grew 93% year-over-year, marking it as Upwork's fastest-growing revenue stream[8]. - The company raised its full-year revenue outlook to $770 million to $782 million, up from a previous range of $760 million to $780 million[10]. Profitability - First-quarter GAAP net income was $18.4 million, an increase from $17.2 million in the first quarter of 2023, with diluted EPS of $0.13 compared to a loss of $(0.15) in the prior year[3]. - Adjusted EBITDA for the first quarter was $33.3 million, a significant improvement from an adjusted EBITDA loss of $(2.9) million in the same quarter last year[3]. - Adjusted EBITDA for Q1 2024 reached $33.3 million, up from $30.5 million in Q1 2023, reflecting a growth of approximately 6.1%[36]. Cash Flow - Cash provided by operating activities was $5.7 million in the first quarter, compared to cash used of $(8.7) million in the same quarter last year[8]. - Free cash flow for Q1 2024 was $2.99 million, a significant improvement from a negative $11.56 million in Q1 2023[38]. - Adjusted free cash flow for Q1 2024 was $15.52 million, compared to a negative $11.56 million in Q1 2023, indicating a turnaround in cash generation[38]. Client Growth - Active clients increased by 5% year-over-year to over 872,000, with enterprise revenue growth accelerating to 10% year-over-year[3][8]. Expenses and Efficiency - Total operating expenses for Q1 2024 were $133.7 million, a decrease from $145.5 million in Q1 2023, representing a reduction of approximately 8.5%[34]. - Total revenue as a percentage of total operating expenses (GAAP) was 30% in Q1 2024, compared to 10% in Q1 2023, indicating improved operational efficiency[34]. Equity and Assets - Total assets decreased from $1,037,541 thousand as of December 31, 2023, to $1,000,819 thousand as of March 31, 2024, a decline of approximately 3.5%[23]. - Total stockholders' equity decreased from $381,075 thousand to $348,876 thousand, a decline of approximately 8.4%[23]. Research and Development - Research and development expenses increased to $52,916 thousand in Q1 2024 from $44,481 thousand in Q1 2023, an increase of 19%[33]. Stock and Debt - The company repurchased common stock amounting to $66,876 thousand during Q1 2024[25]. - The company recognized a gain of $38.9 million on the early extinguishment of debt during Q1 2023, which positively impacted net income[36]. Earnings Per Share - Basic earnings per share (GAAP) for Q1 2024 was $0.14, slightly up from $0.13 in Q1 2023[34]. - Diluted earnings per share (Non-GAAP) for Q1 2024 was $0.22, compared to a loss of $0.01 in Q1 2023, marking a significant recovery[34].