The Top 5 Analyst Questions From Upwork’s Q3 Earnings Call

Core Insights - Upwork's third quarter results showed a significant positive market reaction, indicating successful growth strategies after previous challenges [1] - Key contributors to growth included new AI-powered platform features and increased adoption of Upwork Business Plus by small and midsize businesses [1] - CEO Hayden Brown described the quarter as a turning point, highlighting visible payoffs from the company's strategy [1] Financial Performance - Revenue reached $201.7 million, exceeding analyst estimates of $193.4 million, representing a 4.1% year-on-year growth [6] - Adjusted EPS was $0.36, beating analyst estimates of $0.29 by 25.9% [6] - Adjusted EBITDA was $59.63 million, surpassing analyst estimates of $50.12 million, with a margin of 29.6% [6] - Revenue guidance for Q4 CY2025 is set at $195.5 million, above analyst estimates of $192.2 million [6] - Full-year Adjusted EPS guidance was raised to $1.36, reflecting a 17.2% increase [6] - EBITDA guidance for the full year is $223.5 million, above analyst estimates of $212.7 million [6] - Operating margin improved to 14.8%, up from 10.7% in the same quarter last year [6] - Gross services volume was reported at 794,000, down 61,000 year on year [6] - Market capitalization stands at $2.28 billion [6] Analyst Insights - Eric Sheridan from Goldman Sachs inquired about the integration of enterprise acquisitions, with CEO Brown noting strong early demand but indicating that large deals will take several quarters to close [6] - Sang-Jin Byun from Jefferies asked about the acceleration of AI-related gross services volume, with Brown attributing it to platform improvements and new AI features [6] - Matthew Condon from Citizens sought clarity on freelancer demand trends, with Brown stating that GSV growth is due to internal execution and AI workflow expansion [6] - Marvin Fong from BTIG questioned the potential reduction of hours per contract due to AI efficiency gains, with Gessert noting that AI projects are typically more complex [6] - Ronald Josey from Citi asked about the impact of dynamic pricing and the Uma Proposal writer features, with Gessert reporting early results as limited but promising [6]