Forecasts GSV acceleration and double-digit compound annual growth rates for revenue, adjusted EBITDA through 2028 Growth strategy doubles down on strong AI tailwind, accelerating traction with SMBs, and unlocking Enterprise expansion PALO ALTO, Calif., Nov. 18, 2025 (GLOBE NEWSWIRE) -- Upwork Inc. (Nasdaq: UPWK), the world’s human and AI-powered work marketplace, today outlined its long-term growth strategy and financial outlook at its 2025 Investor Day. Upwork Inc. President and CEO Hayden Brown, CFO Eric ...

Investor Day November 18, 2025 Safe Harbor Statement This presentation and accompanying webcast of Upwork Inc. (together with its wholly owned subsidiaries, the "Company," "we," "us," or "our") contain "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 financial outlook and future growth targ ...

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 - The inaugural monthly analysis of the freelance economy by Upwork reveals significant shifts in the U.S. labor market, highlighting the increasing demand for human-centric skills such as fact-checking and video editing [1][2][8] - The freelance economy, generating approximately $1.5 trillion in annual earnings, serves as a leading indicator for broader labor market trends, reflecting how businesses are adapting to changes [1][10] Hiring Trends - High-value work among large businesses increased by 31%, indicating a strategic use of flexible talent to fill key gaps and drive growth despite a softer overall labor market [3] - Demand for AI and machine learning skills surged by 40% among small and medium-sized businesses (SMBs), with video and animation skills also growing by 27%, suggesting that SMBs are leveraging technology to innovate [4] - The rise of the creator economy is evident, with 15% of jobs on Upwork driven by content creator demand, and a notable increase in AI skills required for these roles [6] Skill Demand - Categories vulnerable to disruption, such as writing, are experiencing growth, with demand for content writing and language tutoring increasing by 15% and 162% respectively, driven by high-value work [5] - The top in-demand AI-related skills in August 2025 include machine learning and Python, reflecting the evolving needs of businesses [7] Future of Work - The collaboration between AI and human talent is emphasized, with businesses hiring for skills that complement AI capabilities, such as quality control and creativity [8] - The Upwork Monthly Hiring Report aims to provide real-time insights into hiring trends, focusing on the freelance economy as a vital sector of the workforce [10]

Core Insights - Upwork Inc. has launched Lifted, a subsidiary designed to provide a comprehensive solution for enterprises to source, contract, manage, and pay global contingent talent in a compliant manner [1][2] - Lifted aims to eliminate the trade-offs traditionally faced by businesses between flexibility and compliance, speed and scale, or digital ease and enterprise rigor [2] - The platform is built to address the complexities of modern workforce models, offering a tech-enabled solution that integrates with existing systems and supports various contingent workforce models [2][3] Company Overview - Upwork Inc. connects companies with global, AI-enabled talent across all contingent work models through its marketplace and Lifted subsidiary [4] - The Upwork Marketplace has facilitated over $25 billion in economic opportunities for talent worldwide, showcasing its significant impact on the labor market [6] Lifted's Features - Lifted provides a contract- and country-agnostic platform that unifies the management of independent contractors, agents of record, employers of record, staff augmentation, and statement of work engagements [2][3] - The platform is supported by acquisitions of Bubty and Ascen, enhancing its capabilities in workforce management and compliance [3] - Lifted enables enterprises to access a talent pool of over 250,000 AI experts, allowing for efficient management of extended workforces [3][8] Market Position - More than 25,000 hiring managers currently utilize Lifted for their contingent workforce needs, with over 500 new projects initiated weekly [8] - Lifted supports a wide range of contract types and work engagements, making it suitable for enterprise-grade workflows [8]

Executive Leadership Changes - Upwork has appointed Anthony Kappus as its first chief operating officer (COO), effective September 2, 2025, to lead various operational teams [1][2] - Andrew Rabinovich has expanded his role to chief technology officer (CTO), overseeing engineering, IT, and AI initiatives [1][3] - Jacob McQuown has been promoted to chief legal officer (CLO), focusing on legal, compliance, and policy programs [1][4] Strategic Vision and Growth - The leadership team is expected to drive excellence across Upwork's operations, enhancing the company's position in the human and AI-powered work marketplace [2] - Kappus brings over a decade of operational expertise from Redfin, where he led digital revenue and corporate development [2] - Rabinovich's leadership in AI and machine learning is pivotal as Upwork evolves into an AI-native platform, contributing to significant growth [3][4] AI Integration and Economic Impact - Upwork's AI initiatives, particularly the development of Uma™, have led to an increase of over $80 million in gross services volume (GSV) in 2025 [3] - The company has facilitated more than $25 billion in economic opportunity for talent globally, showcasing its impact on the workforce [6]

Financial Performance - Company achieved record revenue of $194.9 million in Q2 2025, representing a 1% year-over-year growth [6][26] - GAAP net income reached $32.7 million, up 47% year-over-year, with a diluted earnings per share of $0.24 compared to $0.17 in Q2 2024 [6][26] - Adjusted EBITDA was $57.1 million, reflecting a 40% year-over-year increase and a 29% adjusted EBITDA margin [6][26] Operational Highlights - Active clients totaled 796,000, with a Gross Services Volume (GSV) per active client of $5,002, which increased by 5% year-over-year [6][26] - The company announced the acquisition of Bubty and an agreement to acquire Ascen, enhancing its offerings for large enterprises [6][10] - AI-related work GSV accelerated to 30% year-over-year growth in Q2 2025, compared to 25% in Q1 2025 [10][6] Strategic Initiatives - The acquisitions of Bubty and Ascen are expected to position the company to capitalize on a $650 billion Enterprise Total Addressable Market (TAM) opportunity [6][10] - Continued strength in advertising and monetization strategies, with revenue increasing 17% year-over-year [10] - Investments in AI infrastructure are ramping up, with AI now contributing to over 35% of deployed engineering code [10][6] Financial Guidance - The company raised its full-year guidance for both revenue and adjusted EBITDA, projecting revenue between $765 million to $775 million and adjusted EBITDA between $206 million to $214 million for FY 2025 [10][6] - Guidance for Q3 2025 includes revenue of $190 million to $195 million and adjusted EBITDA of $47 million to $51 million [10][6]

Core Insights - Upwork Inc. reported strong first-quarter 2025 financial results, exceeding analyst expectations, which led to a notable stock increase [1][2] - The company's performance raises questions about the long-term expansion of the freelance economy and Upwork's potential to benefit from changing work models [1] Financial Performance - Revenue for Q1 2025 rose 1% year-over-year (YOY) to $192.7 million, modestly surpassing estimates [2] - GAAP net income surged to $37.7 million ($0.27 per diluted share), up from $18.4 million ($0.13) a year earlier [3] - Adjusted EBITDA increased by 68% YOY to $56.0 million, with margins expanding from 17% to 29% [3] - Free cash flow more than doubled to $30.8 million [3] - Full-year adjusted EBITDA guidance was raised to $190–$200 million, while revenue forecast remained at $740–$760 million [3] Operational Metrics - Gross Services Volume (GSV) dipped 2.1% YOY to $987.7 million, but GSV per active client rose 3% to $4,912 [4] - Total client base declined 7% to 812,000, indicating deeper engagement and higher spending per user [4] Strategic Initiatives - Upwork's growth was driven by strategic initiatives in artificial intelligence (AI), enterprise solutions, and enhanced monetization [5] - The AI-powered work companion, Uma™, has seen significant user engagement growth, contributing to improved user experience and spending [6] - The Upwork Business Plus client base has grown significantly, with many clients being new to the platform [7] - Diverse monetization strategies, including revenue growth from ads, premium subscriptions, and the sale of "Connects," have yielded positive results [8] Industry Context - Upwork's success reflects a dynamic global labor market increasingly embracing flexible and independent work models [9] - The "Future Workforce Index" indicates that 28% of U.S. skilled knowledge workers operate independently, generating an estimated $1.5 trillion in earnings [9] - The company's mission aligns with the shift towards freelance arrangements, emphasizing the creation of economic opportunities [10] Future Outlook - Upwork's performance serves as an indicator of the broader acceptance of the freelance model among talent and businesses [11] - The positive market reaction to Upwork's earnings report suggests renewed confidence in its ability to capitalize on technological shifts [12] - Trends such as increased remote work adoption and demand for specialized skills provide a supportive macro environment for Upwork [13]

Financial Performance - Upwork Inc. achieved record first-quarter revenue of $192.7 million, with a GAAP net income of $37.7 million and adjusted EBITDA of $56.0 million, resulting in a profit margin of 20% and an adjusted EBITDA margin of 29% [1][2][6] - Revenue grew by 1% year-over-year, while net income more than doubled from $18.4 million in Q1 2024 to $37.7 million in Q1 2025 [6][20] - Adjusted EBITDA increased by 68% year-over-year from $33.3 million in Q1 2024 to $56.0 million in Q1 2025 [6][33] Operational Highlights - Active clients reached 812,000, with Gross Services Volume (GSV) per active client increasing by 3% year-over-year to $4,912, marking positive growth for the first time in six quarters [6][10] - The company reported a 150% increase in cash provided by operating activities, totaling $37.0 million in Q1 2025 compared to $14.8 million in Q1 2024 [6][23] - Free cash flow also saw significant growth, rising to $30.8 million in Q1 2025 from $12.1 million in Q1 2024 [6][36] AI and Product Development - Upwork's strategic investments in AI are enhancing customer productivity and engagement, with Uma™, Upwork's Mindful AI, seeing a 52% increase in user engagement in Q1 2025 compared to Q4 2024 [4][6] - GSV from AI-related work grew by 25% year-over-year, while GSV from prompt engineering increased by 52% year-over-year [6][9] - The company plans to launch several high-impact features in Q2 2025 aimed at increasing engagement and revenue [6][9] Financial Guidance - Upwork reiterated its FY2025 revenue guidance and raised its full-year adjusted EBITDA guidance, reflecting confidence in ongoing profitability and market share expansion [1][2][9] - For Q2 2025, the revenue guidance is set between $184 million to $189 million, with adjusted EBITDA guidance of $45 million to $49 million [9][10]