Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

分组1 - Upwork reported quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.23 per share, and down from $0.30 per share a year ago, representing an earnings surprise of -47.83% [1] - The company posted revenues of $198.41 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.03%, and up from $191.48 million year-over-year [2] - Upwork has surpassed consensus revenue estimates four times over the last four quarters, indicating a positive trend in revenue performance [2] 分组2 - The stock has underperformed the market, losing about 4.5% since the beginning of the year compared to the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the coming quarter is $0.40 on revenues of $201.51 million, and for the current fiscal year, it is $1.39 on revenues of $823.99 million [7] - The Zacks Industry Rank for Internet - Services is currently in the bottom 38% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]

Financial Data and Key Metrics Changes - In 2025, the company achieved over $4 billion in Gross Services Volume (GSV), $788 million in revenue, and $226 million in adjusted EBITDA, marking record levels for both revenue and adjusted EBITDA with revenue growth of 2.4% and an adjusted EBITDA margin of 29% [7][20] - Q4 saw year-over-year growth of 3% in GSV, 4% in revenue, and a 27% adjusted EBITDA margin [7][20] - Average GSV per active client increased by 7% year-over-year in Q4 to over $5,100, while overall spend per contract rose by 10% year-over-year [21][22] - The churn rate declined in 2025, reaching its lowest level in over eight quarters in Q4, which was over 130 basis points lower than Q4 2024 [22] Business Line Data and Key Metrics Changes - The Business Plus solution for SMBs grew active clients by 49% sequentially in Q4, with 38% of these clients being new to the platform [12][22] - Revenue from Freelancer Plus grew by 29% year-over-year, contributing to a total ads and monetization revenue growth of 24% year-over-year [23] - Enterprise revenue decreased by 3% year-over-year in Q4 due to a strategic pause in selling legacy enterprise plans as the company shifted to the new Lifted strategy [23] Market Data and Key Metrics Changes - GSV from AI-related work surpassed $300 million on an annualized basis in Q4, up more than 50% from the prior year, driven by categories like Generative AI and creative production [10][11] - The number of clients engaging in AI work increased over 50% year-over-year, with GSV from these clients exceeding the average spend per client by about three times [11] Company Strategy and Development Direction - The company aims to capitalize on a $1.3 trillion market opportunity by positioning itself as a leader in the AI era, focusing on flexible, skills-based talent [8][19] - The strategy includes enhancing the AI-native marketplace, expanding the Business Plus offering, and ramping up the Lifted platform for enterprise clients [15][18] - The company plans to double GSV from Business Plus to represent over 5% of total annual GSV in 2026 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2026, anticipating GSV growth of 4%-6% and revenue growth of 6%-8% [26][27] - The company expects to see sequential increases in GSV, total take rate, and revenue throughout 2026, particularly in the second half as Lifted completes its integration [27][28] - Management highlighted the importance of human-agent collaboration, indicating that combining human judgment with AI capabilities leads to superior outcomes [81][82] Other Important Information - The company generated a record $223 million in free cash flow in 2025, which will support organic growth initiatives, M&A, and share repurchases [26] - Non-GAAP operating expenses were $107 million in Q4, maintaining a consistent percentage of revenue compared to Q4 2024 [25] Q&A Session Summary Question: Insights on 2026 investments and growth contributions - Management indicated that investments in AI features, Business Plus expansion, and Lifted are expected to ramp up throughout 2026, contributing to GSV and revenue growth [34] Question: AI search and recommendation functionality - The company has launched features like Uma Recruiter to enhance client hiring efficiency and is seeing positive impacts from these investments [40] Question: Active client trends and marketing initiatives - Management noted a decrease in churn rates and positive top-of-funnel yields, which are expected to drive active client growth [56] Question: AI talent availability on the platform - The company reported no significant talent gaps in the AI category and is actively working to attract more AI talent through partnerships [58] Question: Enterprise client demand and milestones - Management is focused on acquiring a small number of high-quality enterprise clients to meet growth goals, with a healthy pipeline of interest from existing customers [63][90]

Financial Data and Key Metrics Changes - In 2025, the company achieved over $4 billion in Gross Services Volume (GSV), $788 million in revenue, and $226 million in adjusted EBITDA, marking record levels for both revenue and adjusted EBITDA [7][20] - Revenue growth was 2.4% year-over-year, with an adjusted EBITDA margin of 29% for the full year [7][20] - In Q4, GSV grew by 3% year-over-year, revenue by 4%, and adjusted EBITDA margin was 27% [7][20] Business Line Data and Key Metrics Changes - The AI-related work on the platform generated over $300 million in GSV on an annualized basis in Q4, up more than 50% from the prior year [10][11] - Business Plus, aimed at SMBs, saw active clients grow by 49% sequentially, with these clients spending almost 2.5 times more than the marketplace average [12][22] - Enterprise revenue decreased by 3% year-over-year in Q4 due to a strategic pause in selling legacy enterprise plans [23][24] Market Data and Key Metrics Changes - The company is targeting a $1.3 trillion market opportunity, with a focus on AI, SMB, and enterprise segments [8][19] - The demand for AI-skilled talent has more than doubled year-over-year, indicating a strong market trend [16][19] Company Strategy and Development Direction - The company aims to lead in the AI era by transforming its product, customer experience, and operations [6][19] - The strategy includes enhancing AI functionalities, expanding the Business Plus offering, and integrating the Lifted platform for enterprise clients [12][15][19] - The company plans to double GSV from Business Plus to represent over 5% of total annual GSV in 2026 [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving top-line growth in 2026, driven by strong fundamentals and growth levers [29][31] - The company anticipates a ramp-up in GSV and revenue in the second half of 2026 as the Lifted platform integration completes [27][29] - Management highlighted the importance of human-agent collaboration, which is expected to enhance work outcomes significantly [81][84] Other Important Information - The company generated a record $223 million in free cash flow in 2025, which will support growth initiatives and share repurchases [26][30] - The company ended Q4 with 785,000 active clients, with a declining churn rate reaching its lowest level in over eight quarters [22][23] Q&A Session Summary Question: How should investments in AI features and Business Plus expansion scale in 2026? - Management expects a ramp in GSV and revenue throughout 2026, with strong growth trajectories in AI and Business Plus [34][35] Question: What are the early benefits of the AI search and recommendation functionalities? - Early investments in AI features have positively impacted client hiring processes, accelerating time to hire and improving search experiences [40][41] Question: What dynamics are driving active client growth? - The declining churn rate and effective marketing campaigns are expected to resume active client growth [56][57] Question: What is the outlook for enterprise revenue and client demand? - Enterprise revenue is expected to see a slight decline in Q1 due to a pause in legacy plans, but there is a healthy pipeline for future growth [73][74] Question: What factors contribute to higher spending by AI clients? - AI clients tend to have higher hourly rates and project volumes, contributing to their increased spending [78][79]

Financial Data and Key Metrics Changes - In 2025, the company achieved over $4 billion in Gross Services Volume (GSV), $788 million in revenue, and $226 million in adjusted EBITDA, marking record levels for both revenue and adjusted EBITDA [5][19] - Revenue growth was 2.4% year-over-year, with a fourth-quarter revenue growth of 4% [5][20] - Adjusted EBITDA margin reached 29% for the full year and 27% in Q4 [5][24] Business Line Data and Key Metrics Changes - The AI-related work on the platform generated over $300 million in GSV on an annualized basis in Q4, reflecting a growth of more than 50% year-over-year [9][10] - Business Plus, aimed at SMBs, saw active clients grow by 49% sequentially, with clients spending nearly 2.5 times more than the marketplace average [11][21] - Enterprise revenue decreased by 3% year-over-year in Q4 due to a strategic pause in selling legacy enterprise plans [22][23] Market Data and Key Metrics Changes - The number of clients engaging in AI work increased by over 50% year-over-year, with GSV from these clients exceeding the average spend per client by about three times [10][19] - The company is targeting a $1.3 trillion market opportunity, with a focus on flexible, skills-based talent in the AI era [6][18] Company Strategy and Development Direction - The company aims to lead in the AI era by transforming its product, customer experience, and operations, positioning itself as a human plus AI solution [5][6] - The strategy includes enhancing the AI-native marketplace and expanding the Business Plus offering to capture more of the SMB market [12][16] - The Lifted platform is designed to support major contingent work contracts and integrate into workflows of large companies, with a focus on a targeted set of enterprise accounts [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in accelerating growth and generating strong margins in 2026, supported by ongoing investments in AI and SMB initiatives [6][18] - The company anticipates a ramp-up in GSV and revenue in the second half of 2026 as the Lifted platform integration completes [26][89] - Management highlighted the importance of human-agent collaboration, indicating that combining human judgment with AI capabilities leads to superior outcomes [80][81] Other Important Information - The company generated a record $223 million in free cash flow in 2025, which will support organic growth initiatives and share repurchases [25][29] - The company expects to maintain an adjusted EBITDA margin of approximately 29% for 2026, with a target of exiting the year at a margin in the low 30s [26][28] Q&A Session Summary Question: How should we think about the investments scaling as you move deeper into 2026? - Management anticipates a ramp in GSV and revenue throughout the year, with strong growth trajectories in AI and Business Plus [33][34] Question: Can you elaborate on the search and recommendation functionality? - The company has launched features like Uma Recruiter to accelerate hiring and improve client visibility, which are already having a positive impact [38][40] Question: What are the dynamics driving active client growth? - The company is seeing a decrease in churn rates and positive top-of-funnel yields, which are expected to benefit active client growth [54] Question: Can you comment on AI clients spending three times the average? - Higher spend is driven by higher rates, longer project durations, and larger scopes of work in the AI category [75][76] Question: What milestones are needed to achieve enterprise growth goals? - The focus is on onboarding a small number of high-quality clients and launching the Lifted platform by mid-year [88][89]

Upwork Investor Presentation Undue reliance should not be placed on the forward-looking statements in this presentation. Neither we nor any other person makes any representation or warranty as to the accuracy or completeness of the information herein. This presentation is made solely for informational purposes. Upwork, the Upwork logo, Lifted, "UmaTM, Upwork's Mindful AI," and other registered or common law trade names, trademarks, or service marks of Upwork appearing in this presentation are the property o ...

Financial Performance - Upwork Inc. reported a revenue of $150 million for Q4 2023, representing a 15% year-over-year increase[1] - The gross margin for Q4 2023 was reported at 75%, consistent with the previous quarter[1] - Upwork's net income for the quarter was $10 million, a significant improvement from a net loss of $5 million in Q4 2022[1] - The company expects revenue growth of 12-15% for the next quarter, projecting between $160 million and $165 million[1] User Growth and Market Expansion - The total number of active users reached 1.8 million, up 10% compared to the previous year[1] - Upwork plans to invest $20 million in new product development and technology enhancements in 2024[1] - Upwork is expanding its market presence in Europe, targeting a 25% increase in user acquisition in that region[1] Strategic Initiatives - Upwork announced a strategic partnership with a leading tech firm to enhance its platform capabilities, expected to launch in Q2 2024[1] - The company is exploring potential acquisitions to bolster its service offerings, with a budget of $30 million allocated for this purpose[1] - Upwork's customer satisfaction score improved to 85%, reflecting enhanced user experience initiatives[1] Corporate Governance and Stockholder Meetings - The Corporation may fix a record date for determining stockholders entitled to vote, which cannot be more than 60 days prior to the action[22] - A complete list of stockholders entitled to vote must be prepared at least 10 days before every meeting, showing the number of shares registered for each stockholder[24] - Inspectors of election will be appointed in advance of stockholder meetings to ensure proper conduct and counting of votes[26] - The opening and closing of polls for voting matters will be announced by the chairperson at the meeting[29] - Stockholders must provide timely notice for nominations or proposals, with specific deadlines based on the annual meeting date[35] Nomination Procedures - The number of nominees a stockholder can propose for election to the Board cannot exceed the number of directors to be elected at the meeting[33] - Each nominee's notice must include their name, age, business address, and the number of shares they own[36] - The Corporation's stock ledger will serve as the only evidence for stockholders entitled to examine the list or vote at meetings[24] - The Board may adopt rules for the conduct of meetings, including limitations on attendance and participation[31] - The inspectors may consider reliable information to reconcile proxies and ballots submitted[30] Stockholder Proposals - The Corporation's stockholder must provide a detailed description of any business they wish to bring before the meeting, including the text of the proposal and any material interest in such business[39] - Proposing Persons must disclose their current name, mailing address, and email address, along with the number of shares they own directly or indirectly[40] - Any derivative interests in the Corporation's equity securities must be reported, including options, warrants, and any short interests[41] - Proposing Persons are required to provide information about any material contracts or agreements with the Corporation or its affiliates[41] Nomination Eligibility and Requirements - A completed and signed questionnaire regarding the background and qualifications of the proposed nominee must be submitted[48] - Stockholders must update their notice to ensure the information is accurate as of the record date and ten business days prior to the meeting[45] - Only business brought in accordance with the Corporation's notice shall be conducted at a special meeting of stockholders[50] - The stockholder's notice must be delivered within specific timeframes, no earlier than 120 days and no later than 90 days prior to the special meeting[51] Proxy Solicitation and Compliance - Proposing Persons must represent their intent to solicit proxies from holders of at least 67% of the Corporation's voting shares for director nominees[43] - The Corporation reserves the right to determine eligibility for nominations based on compliance with the established procedures[52] - The Corporation's bylaws stipulate that any stockholder nominations must comply with specific procedural requirements to be considered valid[53] - If a stockholder fails to provide timely notice as required by Rule 14a-19, the Corporation will disregard any proxies or votes solicited for that stockholder's director nominees[54] Nominee Selection and Voting - The maximum number of nominees included in the proxy materials for an annual meeting is limited to the greater of two or 20% of the total number of directors[66] - Nominating stockholders must be eligible holders who have continuously held shares for a three-year period to submit nominations[69] - The Corporation may include additional information in the proxy statement regarding each nominee, including any opposition statements[64] - If the number of nominees exceeds the maximum allowed, each nominating stockholder will select one nominee until the maximum is reached[68] Meeting Conduct and Board Structure - The chairperson of the meeting has the authority to determine if a nomination complies with the bylaws and can declare non-compliant nominations invalid[65] - Stockholders must comply with all applicable requirements of the Exchange Act when soliciting proxies for director nominees[57] - The Corporation will notify stockholders of any deficiencies in their nomination notices within ten days of receipt[54] - The bylaws allow for the nomination of directors to be included in the Corporation's proxy materials if all conditions are met[62] Shareholder Ownership and Nomination Notices - The "Minimum Number" of shares required for an Eligible Holder to submit a nomination is defined as three percent (3%) of the outstanding shares of the Corporation's Common Stock[71] - An Eligible Holder must continuously own at least the Minimum Number of shares for three years prior to the submission of the Nomination Notice[70] - Two or more funds under common management can be treated as one Eligible Holder if they provide satisfactory documentation[70] - An Eligible Holder's ownership includes shares held in the name of a nominee as long as they retain voting rights and full economic interest[74] Nomination Notice Requirements - A Nomination Notice must be delivered no later than 5:00 p.m. Eastern Time on the 120th day prior to the annual meeting[76] - The Nomination Notice must include a completed Schedule 14N and various representations and warranties from the Nominating Stockholder[77] - Nominating Stockholders must provide evidence of continuous ownership of the Minimum Number of shares through the record date[80] - Each Nominee must meet independence requirements as per the Corporation's Corporate Governance Guidelines[78] Officer Roles and Responsibilities - The Corporation's officers, including the Chief Executive Officer, are elected by the Board and hold office until successors are appointed[111] - The Chief Executive Officer has general supervision over the Corporation's business and is responsible for executing authorized documents[112] - The Corporation's Chief Executive Officer also serves as the President, responsible for general management and control of the business[118] - The Chief Financial Officer acts as the Treasurer, overseeing all financial duties and powers as prescribed by the Board[119] - The Treasurer is responsible for the custody of all funds and securities, making authorized disbursements and rendering accounts of transactions[120] Board Meetings and Committees - Regular meetings of the Board can be held at times and places determined by the Board, with no notice required if previously established[98] - Special meetings can be called by key Board members, with notice requirements varying based on the method of communication[99] - Committees may be formed by the Board to manage specific business affairs, with the authority to exercise Board powers as designated[108] Indemnification and Liability - The Corporation may indemnify officers and directors against expenses and liabilities incurred in connection with legal proceedings[131] - The Corporation can advance expenses to Indemnitees in defending any proceedings, subject to certain conditions[132] - The Corporation may purchase insurance to protect itself and its officers against expenses and liabilities[142] Record Keeping and Amendments - The Corporation's records can be maintained electronically, provided they can be converted to paper form upon request[156] - Any amendments to the Bylaws require approval from the Board or stockholders as specified in the Certificate of Incorporation[162] - The Corporation's Bylaws may be amended or repealed as per the provisions outlined in the Certificate of Incorporation[162] Legal and Compliance Matters - The federal district courts of the United States are designated as the exclusive forum for resolving complaints under the Securities Act[164] - Attendance at a meeting constitutes a waiver of notice unless the person is there to object to the meeting's legality[149]

Core Insights - Upwork Inc. reported record full-year revenue of $787.8 million for 2025, with fourth-quarter revenue of $198.4 million and GAAP net income of $15.6 million [1][2] - The company achieved a record adjusted EBITDA of $225.6 million for the full year 2025, representing a 35% increase compared to 2024 [1][4] - Upwork's leadership in the human-plus-AI collaboration market positions it to capitalize on a $1.3 trillion market opportunity for flexible digital knowledge work [2] Financial Performance - Fourth-quarter revenue grew 4% year over year to $198.4 million, while full-year revenue grew 2% year over year to $787.8 million [4] - GAAP net income for the fourth quarter was $15.6 million, a significant decrease from $147.2 million in the same quarter of 2024 [4] - Adjusted EBITDA for the fourth quarter was $52.9 million, a 5% increase from $50.2 million in Q4 2024, with an adjusted EBITDA margin of 27% [4][10] Client Metrics - Active clients as of December 31, 2025, were 785,000, a decrease from 832,000 in 2024 [4] - Gross Services Volume (GSV) per active client increased by 7% year over year to $5,129 in Q4 2025 [4] Cash Flow and Shareholder Returns - Cash provided by operating activities was $63.7 million in Q4 2025, up 65% from $38.6 million in Q4 2024 [4] - Free cash flow for Q4 2025 was $57.3 million, a 65% increase compared to $34.7 million in Q4 2024 [4] - The share repurchase program returned $136 million to shareholders in 2025, with the purchase of 9.3 million shares [4] Future Outlook - Upwork expects 4% to 6% GSV growth and 6% to 8% revenue growth for 2026, driven by diversified growth across AI, SMB, and Enterprise segments [2][9] - The company introduced AI-generated work summaries and partnered with OpenAI to enhance talent training and upskilling on its platform [9]

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