NASDAQ$UPWK

Upwork Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Upwork's Q1 2021 financial results were reported, showing significant growth in GSV and revenue.

Upwork reported a strong start to 2021 with a 41% year-over-year increase in GSV to $786.8 million and a 37% increase in revenue to $113.6 million. The company's net loss was $7.8 million, or $(0.06) per share, while non-GAAP net income was $4.2 million, or $0.03 per share.

  • GSV increased by 41% year-over-year to $786.8 million.
  • Revenue grew 37% year-over-year to $113.6 million.
  • Marketplace revenue grew 40% year-over-year to $104.7 million.
  • Non-GAAP net income was $4.2 million, or $0.03 per share.

Headline financials

Total Revenue

$114M

Previous: $83.2M+36.6%
EPS (adj)

-$0.06

Previous: -$0.09+33.3%
Gross services volume

$787M

Previous: $558M+41.1%
Capital Expenditures

-$70K

Previous: -$1.29M+94.6%
Free Cash Flow

-$7.91M

Previous: -$11.3M+30.1%
Net Income

-$7.84M

Previous: -$10M+21.8%
Operating Income

-$7.7M

Previous: -$9.05M+15.0%
Gross Profit

$83.2M

Previous: $59.7M+39.3%
Cash & Equivalents

$104M

Previous: $65.6M+58.9%
Total Assets

$560M

Previous: $482M+16.2%
Stock-Based Comp

$11.2M

No prior period

Revenue & EPS history

Upwork · Revenue · Quarterly

$114M

Q1 2021+36.6%vs Q1 2020
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Upwork · $105M total across 1 segment · Q1 2021

  • Marketplace
    $105M+40.0%

Forward guidance

Upwork provided guidance for the second quarter and full year 2021, factoring in the expected impacts of the COVID-19 pandemic. For Q2 2021, Upwork expects revenue in the range of $119 million to $121 million and adjusted EBITDA in the range of $2 million to $3 million. For the full year 2021, Upwork expects revenue in the range of $480 million to $490 million and adjusted EBITDA in the range of $16 million to $20 million.

Tailwinds

  • Revenue in the range of $119 million to $121 million for Q2 2021
  • Adjusted EBITDA in the range of $2 million to $3 million for Q2 2021
  • Revenue in the range of $480 million to $490 million for full year 2021
  • Adjusted EBITDA in the range of $16 million to $20 million for full year 2021
  • Weighted average shares outstanding in the range of 128 million to 132 million for full year 2021

Headwinds

  • Impacts of the COVID-19 pandemic on business and industry
  • Impact, severity and duration of safety measures put in place to mitigate the impact of the COVID-19 pandemic
  • Ability to attract and retain a community of freelancers and clients
  • Limited operating history under current business strategy and pricing model
  • Focus on the long-term and investments in sustainable, profitable growth

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.3%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-5.1%

Avg return

30 days after

47%

14 / 30 earnings

Positive

+48.0%

Q3 2020

Best reaction

-19.1%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%-20.7%-17.2%
Q4 2025-19.1%-29.6%-36.9%
Q3 2025+13.2%+11.6%+25.3%
Q1 2025+18.0%+26.7%+13.3%
Q4 2024+6.6%+8.6%-18.9%
Q3 2024+12.9%+10.4%+17.9%
Q2 2024-13.2%-16.5%-11.9%
Q1 2024+11.0%+7.9%-9.7%
Q4 2023-0.3%-1.4%-14.1%
Q3 2023+17.3%+21.8%+21.4%
Q2 2023+43.5%+44.6%+49.3%
Q1 2023-9.2%-8.6%-0.2%
Q4 2022-10.3%-11.0%-23.8%
Q3 2022+1.4%+5.0%-8.0%
Q2 2022-14.2%-16.5%-20.8%
Q1 2022+10.0%+15.8%-3.5%
Q4 2021-6.0%-8.7%-16.7%
Q3 2021-15.5%-15.4%-35.1%
Q2 2021-10.8%-10.5%-23.8%
Q1 2021-6.5%-4.1%+3.8%
Q4 2020+3.8%+4.8%-15.5%
Q3 2020+48.0%+42.7%+63.0%
Q2 2020-10.3%-11.7%-13.0%
Q1 2020+4.3%+19.3%+40.0%
Q4 2019+5.0%+1.4%-21.9%
Q3 2019-15.9%-19.5%-26.0%
Q2 2019+10.0%-3.0%-9.0%
Q1 2019-18.6%-20.3%-30.5%
Q4 2018-6.1%-4.1%-19.9%
Q3 2018-6.9%-8.8%-11.9%
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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