Upwork (UPWK) closed down roughly 19% on Feb. 10, after its disappointing Q1 outlook eclipsed an otherwise strong fourth-quarter earnings report. UPWK now sits decisively below its 200-day moving average (MA), signaling a bearish technical setup and waning investor confidence in the near term. More News from Barchart Versus its year-to-date high, Upwork stock is now down more than 30%. www.barchart.com AI Tailwinds Could Help Upwork Stock Recover According to Upwork, its revenue will fall between $19 ...

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]

Upwork (NasdaqGS:UPWK) Q4 2025 Earnings call February 09, 2026 05:00 PM ET Company ParticipantsEric Sheridan - Managing DirectorErica Gessert - CFOGary Fuges - VP of Investor RelationsHayden Brown - President and CEOJohn Byun - SVP of Equity ResearchMatt Condon - Director of Equity ResearchRohit Kulkarni - Managing DirectorRon Josey - Managing DirectorConference Call ParticipantsBernie McTernan - Senior AnalystBrad Erickson - Equity AnalystJosh Chan - Executive Director and Equity Research AnalystMaria Ripp ...

Upwork (NasdaqGS:UPWK) Q4 2025 Earnings call February 09, 2026 05:00 PM ET Speaker11Hello and thank you for standing by. Welcome to Upwork Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask the question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, pl ...

Upwork 2025 Investor Day Summary Company Overview - **Company**: Upwork (NasdaqGS: UPWK) - **Event**: 2025 Investor Day held on November 18, 2025 - **Key Focus**: Overview of significant opportunities and strategies to create long-term shareholder value Core Industry Insights - **Industry**: Freelance and Gig Economy - **Market Dynamics**: The integration of AI is reshaping the workforce, creating new opportunities for talent and businesses alike Key Points and Arguments Business Transformation - Upwork has undergone a profound transformation over the last three years, focusing on speed, scale, and human-AI collaboration [7][10][33] - The company has achieved accelerated Gross Services Volume (GSV) growth two quarters ahead of schedule, with record profitability and margin expansion [4][10] AI Integration - AI is viewed as a significant tailwind for Upwork, with the platform seeing a 50% year-over-year growth in AI-related projects [18][41] - The company has launched an AI-native platform, enhancing the customer experience and operational efficiency [9][20] - Upwork's AI agent, Uma, is set to revolutionize the hiring process by automating job postings, candidate selection, and project management [40][56] Market Opportunities - Upwork identifies three major growth areas: AI, Small and Medium Businesses (SMBs), and Enterprise [11][38] - The global market for digital knowledge work is projected to reach $1.3 trillion by 2028, with SMBs accounting for $530 billion and enterprise spending at $650 billion [36][37] Client Engagement and Spend - Clients engaging in AI projects spend three times more than those not involved in AI [19] - The average GSV spend per client is $12,000, with SMBs hiring across multiple categories [66] Customer Experience - Upwork aims to shift customer mindsets from scarcity to abundance, enabling them to realize the potential of the platform [28] - The company has focused on enhancing client quality over quantity, attracting larger clients with bigger budgets [21][22] Financial Projections - Upwork expects a GSV CAGR of 7%-9% and revenue CAGR of 13%-15% over the next three years, alongside a 20% margin expansion CAGR [48][49] Competitive Advantage - Upwork's unique data asset, which tracks work across 130 categories, provides a competitive edge in the AI era [27][66] - The company is positioned to lead in the human and AI work marketplace, combining human expertise with AI capabilities [43][66] Additional Important Insights - The company has seen a shift in job types, with smaller jobs decreasing from 5% to 3.5% of GSV due to AI substitution in certain categories [13][14] - Upwork's operational changes included a 21% reduction in team size to enhance agility and efficiency [36] - The company has made significant acquisitions to bolster its enterprise offerings and enhance its AI capabilities [34][47] This summary encapsulates the key insights and strategic directions discussed during Upwork's 2025 Investor Day, highlighting the company's commitment to leveraging AI and expanding its market presence.

Core Insights - Upwork (UPWK) shares increased by 10.2% following the release of its second-quarter 2025 results, driven by better-than-expected performance and strong guidance for 2025 [1][10] Financial Performance - In Q2 2025, Upwork reported non-GAAP earnings of $0.35 per share, exceeding the Zacks Consensus Estimate by 34.62% and reflecting a 35% year-over-year increase [1][10] - Revenues for Q2 2025 reached $195 million, a 0.9% year-over-year growth, surpassing the consensus estimate by 4.58% [1][10] - For the full year 2025, Upwork anticipates revenues between $765 million and $775 million, with adjusted EBITDA expected between $206 million and $214 million [2][10] - The adjusted EBITDA margin target for 2025 is set at 35% [2] Client and Revenue Breakdown - Marketplace revenues, which constitute 87.5% of total revenues, grew by 2.3% year-over-year to $170.7 million, while enterprise revenues (12.5% of revenues) declined by 7.8% to $24.3 million [5] - Active clients reached 796,000, with Gross Services Volume (GSV) per client increasing by 5% year-over-year to $5,002 [6] - GSV from AI-related work grew by 30% year-over-year, with the Prompt Engineering subcategory seeing a significant 51% increase [6][10] Operational Efficiency - The non-GAAP gross margin for Q2 2025 expanded by 30 basis points to 77.8% [9] - Operating expenses as a percentage of revenues decreased by 740 basis points year-over-year to 50.7% [9] - The adjusted EBITDA margin improved by 810 basis points year-over-year to 29.3% [11] Balance Sheet and Cash Flow - As of June 30, 2025, Upwork had cash and cash equivalents totaling $635 million, with long-term debt at $359 million [12] - Cash provided by operating activities was $72.5 million, and free cash flow reached $65.6 million [12] Future Guidance - For Q3 2025, Upwork expects revenues between $190 million and $195 million, with earnings projected between $0.28 and $0.30 per share [14]

Core Insights - Upwork (UPWK) is set to announce its second-quarter 2025 results on August 6, with expected revenues between $184 million and $189 million and non-GAAP diluted EPS between 26 cents and 28 cents [1][9] - The Zacks Consensus Estimate for second-quarter revenues is currently at $186.41 million, reflecting a year-over-year decrease of 3.48% [1][2] Revenue and Earnings Expectations - The consensus for earnings is pegged at 26 cents per share, unchanged from the previous year [2] - Upwork has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 23.78% [2] Factors Influencing Performance - Continued investment in AI and product enhancements likely influenced Upwork's Q2 performance, with advancements in its AI agent Uma and tools like Proposal Writing and candidate evaluation contributing to marketplace growth [3][9] - Updates from late Q4 and Q1, such as semantic search and improved client dashboards, are expected to have positively impacted Q2 performance [4] Client Engagement and Market Dynamics - Marketing efforts have focused on attracting high-value clients, with a noted increase in client activations in Q1, which may have continued into Q2 despite overall pressure on total active clients [5][9] - The adjusted EBITDA margin is anticipated to have decreased from Q1 levels, as the company plans to increase investments in Enterprise growth and AI development [6] Earnings Model Insights - According to the Zacks model, Upwork currently has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating lower odds of an earnings beat [7]

Core Insights - Upwork has announced its Summer 2025 release, introducing over 75 new AI-driven innovations aimed at enhancing work outcomes and creating opportunities for businesses and freelancers in the AI era [1][5]. AI Innovations - The release features significant advancements to Uma, Upwork's Mindful AI, which is evolving into a more capable work agent, currently powering a majority of new client job posts and increasing successful matches for high-value projects by 8% [6]. - Instant interviews are a key feature, allowing clients to equip Uma with preferred interview questions, streamlining the hiring process and providing structured summaries of freelancer responses [7][13]. - Upwork video meetings are integrated into the messaging platform, offering AI-generated summaries, transcripts, and action items to enhance productivity and collaboration [12][14]. Enhanced Membership Plans - Upwork is enhancing its premium membership plans, Business Plus and Freelancer Plus, to provide faster hiring, smarter tools, and greater confidence in executing work [8]. - Business Plus now includes direct contracts, enabling businesses to manage and pay talent sourced beyond the Upwork platform seamlessly [14]. Economic Impact - Upwork's platform has facilitated over $25 billion in economic opportunities for talent globally, showcasing its significant role in the freelance economy [11].

Core Viewpoint - Upwork Inc. will report its financial results for Q2 2025 on August 6, 2025, and will host a Q&A conference call to discuss these results [1] Company Overview - Upwork is the world's largest work marketplace connecting businesses with highly skilled, AI-enabled independent talent globally [3] - The platform offers access to professionals across more than 10,000 skills, including AI & machine learning, software development, sales & marketing, customer support, and finance & accounting [3] - Upwork has facilitated over $25 billion in economic opportunity for talent worldwide [4] Investor Relations - A live webcast of the Q&A conference call will be available on Upwork's Investor Relations website [2] - An audio replay of the conference call will be accessible for one week following the call and archived for approximately one year [2]

Core Insights - The study by Upwork Research Institute indicates that AI is transitioning from a tool to a teammate, enhancing productivity while emphasizing the importance of human connection in the workplace [1][4][6] Group 1: Productivity Gains - Employees utilizing AI report an average productivity boost of 40%, attributed to increased comfort with tools, product enhancements, self-directed upskilling, and employer-supported training [5] - 77% of C-suite leaders have observed productivity gains from AI adoption within their teams over the past year [5] Group 2: Emotional and Relational Costs - Workers experiencing the highest productivity gains due to AI also report significant burnout, with 88% indicating they feel burned out and are twice as likely to consider quitting compared to less productive workers [5] - 62% of high-performing AI users do not understand how their daily use of AI aligns with company goals, highlighting a disconnect that poses a risk for organizations [5] Group 3: Trust and Relationships - Over two-thirds of high-performing AI users trust AI more than their coworkers, with 64% stating they have a better relationship with AI than with human colleagues [5] - Nearly half of all workers use polite language when interacting with AI, indicating a trend towards anthropomorphizing AI and suggesting a need for organizations to rethink communication norms and team dynamics [5] Group 4: Freelancers vs. Full-time Employees - Freelancers report a more positive relationship with AI, with 90% stating it helps them acquire new skills faster, and 42% crediting AI for helping them specialize in a niche [5] - Freelancers are more likely than full-time employees to see a direct link between AI use, skill development, and tangible career outcomes [5] Group 5: Future Organizational Design - The findings suggest that organizations need to redesign work systems to support collaboration between humans and AI, prioritizing human connection and responsible AI design for sustainable growth [6]