Group 1 - In 2025, discussions around AI contributed to the stock market reaching new all-time highs, while in 2026, AI is negatively impacting stocks outside of "old economy" companies [1] Group 2 - Gary Alexander has extensive experience in technology companies, having worked on Wall Street and in Silicon Valley, and has been a contributor to Seeking Alpha since 2017 [2]

Core Viewpoint - Upwork Inc. has announced a new $300 million share repurchase program, contributing to a total of $600 million in share repurchase authorizations since November 2023 [1][2]. Financial Performance - 2025 was highlighted as a pivotal year for Upwork, achieving GSV growth and record financial results [2]. - The company deployed $136 million in cash to repurchase over 9 million shares in 2025, demonstrating its commitment to long-term shareholder value [2]. Share Repurchase Program - The new share repurchase authorization allows for purchases on the open market, through privately negotiated transactions, or other methods, with no expiration date [3]. - The timing and amount of repurchases will depend on market conditions and other considerations, and the authorization does not obligate Upwork to repurchase a specific dollar amount or number of shares [3]. Company Overview - Upwork connects businesses with global, AI-enabled talent across various work types, including freelance and payrolled solutions [4]. - The company has facilitated over $30 billion in total transactions since its founding, aiming to create opportunities in every work era [5].

Group 1 - Upwork Inc. will participate in a fireside chat at The Citizens Technology Conference on March 2, 2026, featuring President and CEO Hayden Brown and CFO Erica Gessert [1] - A live webcast of the event will be available on Upwork's Investor Relations website, with an archive accessible for 90 days post-event [2] - Upwork connects businesses with global, AI-enabled talent across various work types, including freelance and payrolled solutions [3] Group 2 - Upwork has facilitated over $30 billion in total transactions since its founding, aiming to create opportunities in every work era [4] - The company offers access to professionals with expertise in over 10,000 skills, including AI & machine learning, software development, and finance [3]

Revenue Generation and Business Model - Upwork generates Enterprise revenue through Lifted, offering workforce solutions including client subscriptions and managed services[23] - The Upwork Marketplace provides access to independent talent with verified work history, enhancing hiring efficiency for clients[25] - Lifted's Enterprise Solutions support contingent workforce management, including independent contractors and outsourcing services, aimed at driving cost-efficiency and compliance[27] - The Enterprise sales team focuses on a "Land and Expand" strategy to acquire new clients and increase usage of Enterprise offerings[53] Technology and Innovation - The company leverages advanced technology and AI to enhance security, trust, and user experience across its platforms[31] - Upwork's proprietary data repository enables improved matching of talent and projects, enhancing client and talent experiences[34] - The company has invested significantly in research and development to enhance its platforms and workforce solutions, focusing on reliability, security, AI capabilities, and scalability[59] - The company utilizes AI and machine learning models to create an adaptive experience for customers, optimizing the matching process between client project requirements and talent skill sets[61] Marketing and Client Engagement - The marketing strategy emphasizes brand awareness and the advantages of Upwork's direct-to-talent approach, highlighting cost efficiencies and flexibility[56] - Upwork engages in targeted marketing programs to drive client retention and growth through cross-selling and upselling opportunities[58] Operational and Financial Management - In 2025, Upwork paused new client acquisition efforts to improve operational capabilities ahead of Lifted's launch[55] - The company had $361.0 million in aggregate principal amount of borrowings outstanding under the Notes as of December 31, 2025[328] - The company’s cloud-based platform is designed to scale automatically with increased usage, supporting sudden traffic spikes and ensuring predictable cost management[65] Sustainability and Compliance - The company is committed to carbon-neutral operations and purchasing carbon-free electricity to match 100% of its office and remote work electricity consumption[67] - The company has a robust regulatory compliance program to navigate complex laws applicable to internet companies and online marketplaces[74] Currency and Economic Opportunities - The company offers clients the option to settle invoices in multiple currencies, including Euro, British Pound, and Japanese Yen, exposing it to foreign currency risk[331] - The company aims to create economic opportunities for diverse backgrounds, enabling workers to set their own rates and choose projects[66] Competitive Landscape - The competitive landscape includes traditional staffing firms and emerging AI tools, with the company focusing on platform features, customer satisfaction, and brand reputation as key competitive factors[70]

Core Insights - The article emphasizes the importance of value investing, highlighting the strategy of identifying undervalued companies in the market [2] Company Analysis - Upwork (UPWK) is identified as a strong value stock, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A [4] - UPWK has a Forward P/E ratio of 16.25, significantly lower than the industry average of 26.99, indicating potential undervaluation [4] - The stock's Forward P/E has fluctuated between a high of 18.34 and a low of 9.39 over the past 12 months, with a median of 12.61 [4] - UPWK's P/B ratio stands at 4.34, compared to the industry average of 7.81, suggesting a favorable valuation [5] - The P/B ratio has ranged from a high of 5.62 to a low of 2.54 in the past year, with a median of 3.51 [5] - The P/CF ratio for UPWK is 10.81, which is lower than the industry average of 21.40, further indicating undervaluation [6] - UPWK's P/CF has seen a high of 27.03 and a low of 6.33 over the last year, with a median of 9.44 [6] - Overall, the metrics suggest that Upwork is likely undervalued, making it an attractive investment opportunity [7]

Core Insights - The recent sell-off in Upwork's shares may be overdone, as the downturn is expected to be temporary [1] - Upwork reported a decline in active clients, leading to a significant drop in stock price [1] Financial Performance - Upwork's fourth-quarter revenue increased by 4% year over year to $198.4 million [3] - The company's gross services volume (GSV) rose by 3% to $1 billion [3] - GSV from the Upwork Business Plus offering for small and midsize businesses (SMBs) surged by 24% sequentially [3] AI Investments - Upwork is heavily investing in artificial intelligence (AI), with AI-powered search recommendations contributing over $100 million to GSV in 2025 [4] - Annualized GSV from AI-related work increased by more than 50% to over $300 million in the fourth quarter [4] Client Metrics - Active clients on Upwork's platform decreased by 6% to 785,000, which raised concerns among investors [6] - The company's churn rate improved throughout 2025, and it anticipates active client growth in the first quarter of 2026 [6] Future Guidance - Upwork's guidance for 2026 includes projected GSV growth of 4% to 6% and revenue growth of 6% to 8% [7] - Expected revenue for 2026 is between $835 million and $850 million, compared to $787.8 million in 2025 [7] - Adjusted earnings per share are forecasted to be between $1.43 and $1.48, compared to $1.41 [7]

Company Overview - Upwork Inc. (UPWK) experienced a significant decline of over 20% following the release of its quarterly earnings report, despite the earnings not being particularly poor in key areas [1] Market Trends - The article emphasizes the importance of observing megatrends and macrotrends, which can provide insights into societal advancements and potential investment opportunities [1] - The evolution of society and technology is highlighted as a critical factor for companies to seize advantages in the market [1] Investment Focus - The analysis stresses the necessity of focusing on fundamentals, quality of leadership, product pipeline, and other details when evaluating investment opportunities [1] - Recent attention has been directed towards marketing and business strategy, particularly for medium-sized companies and startups [1] Analyst Background - The analyst has a diverse background, including experience in international development and evaluating startups and emerging technologies [1]

Core Insights - Upwork Inc reported better-than-expected financial results for Q4 2025, with revenue of $198.41 million, surpassing analyst estimates of $197.52 million, and adjusted earnings of 36 cents per share, exceeding estimates of 31 cents per share [1][2] Financial Performance - For Q4 2025, Upwork's revenue was $198.41 million, beating analyst expectations [1] - Adjusted earnings for Q4 2025 were reported at 36 cents per share, higher than the anticipated 31 cents per share [1] - The company expects Q1 2026 revenue to be between $192 million and $197 million, below the estimate of $200.83 million, with adjusted earnings projected at 26 to 28 cents per share, compared to the estimate of 34 cents per share [2] - Full-year 2026 revenue is anticipated to be between $835 million and $850 million, slightly below the estimate of $836.15 million, while adjusted earnings are expected to range from $1.43 to $1.48 per share, compared to the estimate of $1.42 per share [3] Market Reaction - Following the earnings announcement, Upwork shares fell by 19.3%, trading at $15.16 [3] - Analysts have adjusted their price targets for Upwork in response to the earnings results [3]

Core Insights - Upwork Inc reported better-than-expected financial results for Q4 2025, with revenue of $198.41 million, surpassing analyst estimates of $197.52 million, and adjusted earnings of 36 cents per share, exceeding estimates of 31 cents per share [1][2] Financial Performance - For Q4 2025, Upwork's revenue was $198.41 million, beating analyst expectations [1] - Adjusted earnings for Q4 2025 were reported at 36 cents per share, higher than the anticipated 31 cents per share [1] - The company expects Q1 2026 revenue to be between $192 million and $197 million, below the estimate of $200.83 million, with adjusted earnings projected at 26 to 28 cents per share, compared to the estimate of 34 cents per share [2] - For the full year 2026, Upwork anticipates revenue between $835 million and $850 million, slightly below the estimate of $836.15 million, and adjusted earnings in the range of $1.43 to $1.48 per share, compared to the estimate of $1.42 per share [3] Market Reaction - Following the earnings announcement, Upwork shares fell by 19.3%, trading at $15.16 [3] - Analysts have adjusted their price targets for Upwork in response to the earnings results [3]

Core Viewpoint - Upwork Inc. experienced a significant drop in stock price during premarket trading due to a disappointing first-quarter guidance, despite exceeding Wall Street expectations for its fourth-quarter results [1]. Q4 Results - Upwork reported fourth-quarter revenue of $198.41 million, surpassing analyst estimates of $197.52 million [2]. - The company achieved adjusted earnings of 36 cents per share, exceeding estimates of 31 cents per share [2]. Q1 Outlook - For the first quarter, Upwork expects revenue between $192 million and $197 million, lower than analyst estimates of $200.83 million [3]. - The anticipated adjusted earnings for the first quarter are between 26 cents and 28 cents per share, compared to estimates of 34 cents per share [3]. - For the full year 2026, Upwork projects revenue of $835 million to $850 million, slightly below estimates of $836.15 million, with adjusted earnings expected between $1.43 and $1.48 per share, in line with estimates of $1.42 per share [3]. Technical Analysis - The stock is currently trading 28.1% below its 20-day simple moving average (SMA) and 24% below its 100-day SMA, indicating significant weakness in the short to medium term [4]. - Over the past 12 months, shares have decreased by 19.30% and are closer to their 52-week lows than highs [4]. - The Relative Strength Index (RSI) is at 44.50, indicating neutral territory, while the MACD is below its signal line, suggesting bearish pressure on the stock [5]. Analyst Consensus & Recent Actions - The stock carries a Buy Rating with an average price target of $21.22 [6]. - Recent analyst actions include Jefferies raising its target to $27.00 and UBS raising its target to $24.00 [6]. - During premarket trading, Upwork shares were down 23.68% at $14.34 [6].