Companies turn to independent professionals to power digital operations with human touch, but skill gaps loom as a top challenge for 39% of businesses heading into 20261 PALO ALTO, Calif., Dec. 04, 2025 (GLOBE NEWSWIRE) -- Upwork Inc. (Nasdaq: UPWK), the world’s human and AI-powered work marketplace, today released its Monthly Hiring Report for November, finding that amid the race to scale AI systems, demand is rising for human-centered skills to reinforce work quality, uplevel communication and creativity, ...

Upwork Conference Call Summary Company Overview - **Company**: Upwork (NasdaqGS: UPWK) - **Industry**: Online freelance marketplace connecting freelancers with SMB and enterprise clients globally - **Key Speaker**: Erica Gessert, CFO Key Points Company Introduction - Upwork is described as the world's human and AI work marketplace, connecting global talent with businesses of all sizes, offering over 130 job types and thousands of skills [7][8] GSV Growth Trajectory - Upwork experienced a return to Gross Services Volume (GSV) growth after a period of stagnation, attributed to investments in three key growth catalysts: AI, SMB growth, and enterprise strategy [8][9] - GSV growth was previously negative due to post-pandemic adjustments in the human capital industry, while Upwork remained relatively flat [8] AI Growth Opportunities - The AI category on Upwork's platform is currently at a run rate of approximately $300 million, growing over 50% annually [10] - AI is enhancing the hiring experience by automating job postings and proposals, leading to a $100 million GSV lift in 2025 [11] - Substitution effects from AI were noted in writing and translation jobs, with lower-value jobs ($300 and less) decreasing from 5% to 3.5% of total volume [14][15] SMB and Enterprise Strategy - Upwork is focusing on the SMB category, with a new Business Plus product that has seen a 36% year-over-year GSV growth [21] - The enterprise strategy aims to capture a larger share of the contingent labor market, previously accessing only 10% of enterprise spending [26] - Recent acquisitions (Ascend and Bubty) are expected to enhance Upwork's offerings in the enterprise market, targeting a $650 billion total addressable market (TAM) [27] Financial Guidance - Upwork guided for 4%-6% GSV growth in 2026, following a 2% growth in Q3 2025, indicating a positive inflection point [32][33] - The company anticipates 7%-9% GSV growth for the subsequent three years, driven by AI and enterprise strategies [33] Take Rate and Revenue Strategy - Upwork's current take rate is approximately 19.6%, which is lower than industry averages, indicating potential for growth [46] - The Business Plus product has a higher take rate of 10%, contributing to both volume and revenue growth [46] Margin Improvement - Upwork has improved its margins from 11% two years ago to just under 29% currently, with ongoing optimization efforts [57][58] - The business is characterized as having an 80% gross margin, with further cost optimization opportunities available [59] Competitive Landscape - Upwork differentiates itself by offering a global talent pool of 18 million freelancers, enabling labor arbitrage for enterprises [63][65] - The platform specializes in longer-term, complex projects, contrasting with competitors like Fiverr, which focus on lower-value transactions [76] Capital Allocation - Upwork is actively engaging in capital allocation strategies, including organic investments, acquisitions, and stock buybacks to reduce share count [78] Conclusion - Upwork is positioned for growth through strategic investments in AI, SMB, and enterprise markets, with a strong focus on improving GSV and margins while navigating macroeconomic challenges [31][66]

Core Insights - Upwork Inc. has outlined a long-term growth strategy and financial outlook, emphasizing its position to capture a larger share of the $1.3 trillion global digital knowledge work market through a focus on AI and SMBs [1][2] Financial Outlook - The company provided guidance for 2026 and growth targets for 2028, projecting a Gross Services Volume (GSV) growth rate of 4-6%, revenue growth rate of 6-8%, and an adjusted EBITDA margin of approximately 29% [4][5] - Long-term targets include a GSV CAGR of 7-9%, revenue CAGR of 13-15%, and adjusted EBITDA CAGR of around 20% [4][5] Strategic Building Blocks - **Transforming Human + AI Work**: The AI strategy includes expanding AI-powered workflows, accelerating AI categories of work, and integrating AI agents for better collaboration, with an expected $100 million in incremental GSV from these initiatives in 2025 [4] - **Accelerating SMB Growth**: Upwork is targeting the $530 billion SMB market with its Business Plus offering, designed to attract higher-spending SMB customers and improve retention rates [4] - **Unlocking Enterprise Expansion**: The launch of Lifted aims to tap into the $650 billion contingent labor market, providing a comprehensive solution for large organizations to manage contingent talent [4] Market Position - Upwork has facilitated over $30 billion in total transactions since its inception, positioning itself as a leader in connecting businesses with global, AI-enabled talent across various work types [7][8]

Core Insights - Upwork Inc. has introduced the Human+Agent Productivity Index (HAPI), which evaluates how human expertise enhances AI agent performance in real knowledge work [1][4] - The index is based on over 300 real client projects, focusing on simple, low-complexity tasks where AI agents can succeed [2][3] - The collaboration between humans and AI agents has been shown to increase project completion rates by up to 70% compared to AI agents working alone [2][4] Company Overview - Upwork Inc. connects businesses with global, AI-enabled talent across various contingent work types, including freelance and payrolled work [5] - The company has facilitated over $30 billion in total transactions since its inception, aiming to create opportunities in every work era [6] - Upwork's portfolio includes the Upwork Marketplace and Lifted, which provide solutions for sourcing, contracting, managing, and paying talent [5][6]

Core Insights - Upwork Inc. is expanding its operations by opening its first international hub in Lisbon, Portugal, marking a significant milestone in its growth strategy [1][4] - The new office is set to be fully operational by Q4 2026 and is located in the Alcântara district, known for its vibrant business and technology environment [2] - The expansion is part of Upwork's strategy to leverage AI-driven demand for skills that cannot be automated, with a notable 53% year-over-year growth in gross services volume (GSV) from AI-related work [3][4] Company Expansion - Upwork has begun hiring to support its new operational hub in Lisbon, which is expected to enhance its product development and technical hiring capabilities outside the U.S. [2] - The CEO of Upwork, Hayden Brown, emphasized the city's exceptional talent pool and the supportive local government as key factors in choosing Lisbon for expansion [4] Market Context - The announcement of the Lisbon hub follows a record-breaking Q3 for Upwork, driven by AI-powered product innovations and strong demand for AI skillsets [4] - Lisbon has become an attractive destination for tech companies, with Upwork being the 17th unicorn to establish an office there since the launch of the Unicorn Factory initiative [4] Strategic Importance - The Lisbon hub is expected to play a central role in advancing Upwork's AI infrastructure, which is a critical driver for the company's future growth [5] - Upwork's family of companies connects businesses with global talent across various work types, facilitating over $30 billion in total transactions since its founding [6]

Core Insights - 78% of businesses plan to hire independent talent in the next three months, indicating a shift towards flexible hiring practices to meet seasonal demands [1][8] - The freelance economy is generating an estimated $1.5 trillion in annual earnings, highlighting its significance in the labor market [1][8] Hiring Trends - Flexible hiring for customer-facing skills grew by 30% ahead of the holiday season, as companies seek to enhance customer support and optimize e-commerce performance [2][6] - Data mining and management roles increased by 26%, reflecting a focus on quality and reliability in digital operations [3][6] - High-value creative contracts surged, with game design and development seeing a 38% increase, driven by the need for original storytelling and brand strategy [4][6] In-Demand Skills - The top in-demand AI-enabled skills include customer service and tech support (30% growth), community management and tagging (29% growth), and e-commerce development (9% growth) [6] - Businesses are particularly looking for skills in AI proficiency (61%), digital marketing (53%), and strategic and creative thinking (44%) [6] AI Integration - The integration of AI in workflows is evolving from experimentation to execution, with companies focusing on building AI infrastructure [7] - The combination of creative and AI skills is fostering new forms of collaboration, as teams utilize AI for ideation and content refinement [7]

Upwork Investor Presentation November 2025 1 Safe Harbor Statement This presentation of Upwork Inc. (together with its wholly owned subsidiaries, the "Company," "we," "us," or "our") contains "forward-looking" statements within the meaning of the federal securities laws. Forward-looking statements include all statements other than statements of historical fact, including any statements regarding our future operating results and financial position, including expected financial results for the fourth quarter ...

Core Insights - Upwork Inc. achieved record quarterly revenue of $201.7 million in Q3 2025, with a GAAP net income of $29.3 million and an adjusted EBITDA of $59.6 million, resulting in a profit margin of 15% and an adjusted EBITDA margin of 30% [1][2][6] Financial Performance - Revenue grew by 4% year-over-year to $201.7 million, while net income increased by 6% year-over-year to $29.3 million [6][21] - Adjusted EBITDA rose by 38% year-over-year to $59.6 million, with a record adjusted EBITDA margin of 30% [6][34] - Free cash flow for the quarter was $69.4 million, up 22% from $56.8 million in Q3 2024 [6][10] Operational Highlights - Active clients reached 794,000, with a Gross Services Volume (GSV) of $1.018 billion, reflecting a 2% year-over-year growth [6][8] - GSV per active client increased by 5% year-over-year to $5,036 [6] - GSV from AI-related work accelerated to 53% year-over-year growth in Q3 2025, compared to 30% in Q2 2025 [6][9] Strategic Initiatives - The company launched Lifted, a new enterprise-focused subsidiary, aimed at providing comprehensive contingent work solutions for large enterprises [9][15] - Upwork's AI tool, Uma™, has evolved to enhance customer engagement and productivity, contributing to the overall growth in GSV from AI-related projects [6][9] Guidance and Outlook - Upwork raised its full-year guidance for both revenue and adjusted EBITDA, projecting revenue between $782 million to $787 million and adjusted EBITDA between $222 million to $225 million for FY2025 [9][10]

Core Insights - Upwork Inc. will report its financial results for Q3 2025 on November 3, 2025, after market close, followed by a Q&A conference call at 2:00 p.m. Pacific Time [1] - A live webcast of the call will be available on the Upwork Investor Relations website, with an audio replay accessible for one week and archived for approximately one year [2] Company Overview - Upwork Inc. connects businesses with global, AI-enabled talent across various contingent work types, including freelance, fractional, and payrolled [3] - The Upwork Marketplace provides on-demand access to highly skilled talent, while Lifted offers solutions for enterprise organizations to manage talent sourcing and payments [3] - The company has facilitated over $30 billion in total transactions since its founding, aiming to create opportunities in every era of work [4]

Core Insights - 58% of businesses will prioritize AI proficiency and understanding when hiring freelancers in the next three months [1] - The freelance economy generates an estimated $1.5 trillion in annual earnings, highlighting its significance in the U.S. labor market [1][11] - Companies are increasingly hiring for uniquely human skills to ensure AI investments yield quality outcomes and business value [2][9] Hiring Trends - Demand for translation and localization services grew by 29% as businesses seek human oversight to address AI "workslop" [3][6] - Digital marketing contracts increased by 9% as companies adapt their strategies in the age of AI and generative search [4][6] - Project management roles among small and medium-sized businesses (SMBs) surged by 102% as firms prepare for annual planning [5][6] Skills Demand - The top 10 most in-demand AI-related skills include virtual assistance, content writing, and video editing, indicating a shift towards leveraging AI to enhance human roles rather than replace them [9][15] - Quality assurance testing grew by 9%, reflecting the need for human involvement in validating AI outputs [6] - 39% of businesses cite a lack of trust in AI's accuracy as a barrier to implementing AI solutions [6] Future Outlook - 53% of businesses anticipate hiring freelance digital marketers in the next three months, indicating a strong demand for marketing expertise [6] - 35% of businesses expect to hire freelance project managers, further emphasizing the growing importance of project management in an AI-enabled economy [6][7]