Core Insights - Upwork Inc. has reported a significant increase in Gross Services Volume (GSV), reaching $988 million in Q1 2025, exceeding management's expectations [1] - The GSV per active client has shown a year-over-year growth of 3%, marking the first increase in six quarters and the third consecutive sequential rise [1] Client Segmentation - Growth in GSV was observed across all client tiers, with large customers contributing an 11% increase [2] - The Business Plus plan is attracting larger clients who tend to spend more and remain on the platform longer, despite a reduction in broad marketing efforts [4] Product Enhancements and AI Integration - Product improvements, such as enhanced search and talent matching, are driving higher customer spending [2] - AI-related GSV has surged by 25% year over year, with prompt engineering jobs experiencing a 52% growth, leading to 40% higher freelancer earnings [3] Future Growth Potential - Rising GSV per client is more critical than raw user growth, indicating stronger network effects and better unit economics [6] - The early performance of Uma, Upwork's in-platform AI assistant, is promising, contributing to increased proposal volume and faster hiring [5] Market Position and Valuation - Upwork shares have declined over 18% year to date, compared to a 10.5% decline in the industry [7] - The forward price-to-sales ratio for Upwork is 2.29, lower than the industry average and its own five-year average, while Fiverr trades at 2.32 [8]

Group 1 - Upwork Inc. is evolving beyond a platform for quick freelance gigs with the introduction of its Business Plus plan, which targets larger clients and has seen the number of active clients more than double in the last quarter, with 40% being new to Upwork [1][3] - The Business Plus plan enhances the hiring experience by providing access to top-vetted talent, assistance with shortlisting, and Net-30 payment terms, facilitating faster onboarding and increased spending by new customers [2][3] - Upwork's Enterprise business is in a transition phase, but Business Plus is attracting larger, high-value customers who are actively utilizing the new features, indicating a strong market fit [3][4] Group 2 - The growth of Business Plus could lead to more stable revenue streams from larger clients, representing a significant shift for Upwork that may not be immediately newsworthy but could have long-term implications [4] - Competitors like Fiverr are also targeting larger clients with their Fiverr Pro offering, while LinkedIn continues to strengthen its position in the professional hiring space with tailored tools for enterprise clients [5][6][7] Group 3 - Upwork's shares have declined by 20% year to date, compared to a 10% decline in the industry [9] - The company trades at a forward price-to-sales ratio of 2.25, which is lower than both the industry average and its own 5-year average [11]

Upwork (UPWK) Q1 2025 Earnings Call May 05, 2025 05:00 PM ET Company Participants Samuel Meehan - VP - IRHayden Brown - President & Chief Executive OfficerErica Gessert - Chief Financial OfficerAndrew Boone - Managing DirectorJohn Byun - Senior VPNat Schindler - Managing Director - Equity ResearchMarvin Fong - Director Conference Call Participants Eric Sheridan - AnalystBernie Mcternan - Senior Research AnalystRon Josey - AnalystBrad Erickson - Equity AnalystRohit Kulkarni - MD & Senior Research Analyst Ope ...

Upwork (UPWK) Q1 2025 Earnings Call May 05, 2025 05:00 PM ET Speaker0 Good day, thank you for standing by. Welcome to Upwork's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Samuel Meehan, Vice President of Investor Relations. Please go ahead. Spea ...

Achieves record first quarter with revenue of $192.7 million, GAAP net income of $37.7 million and adjusted EBITDA of $56.0 million, resulting in 20% profit margin and 29% adjusted EBITDA marginReiterates FY2025 revenue guidance and raises full-year adjusted EBITDA guidance PALO ALTO, Calif., May 05, 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 its financial results for the fi ...