NASDAQ$UPWK
Upwork Inc · Q1 2022 earnings
Q1 2022 earnings · · Investor relations
Briefing
Upwork's business demonstrated resilience amidst global uncertainty, executing its strategy to innovate, evangelize, and scale the work marketplace.
Upwork's Q1 2022 saw GSV reach over $1 billion, a 27% year-over-year increase, and revenue grew by 24% to $141.3 million. New Enterprise Client deals increased by 33% year-over-year, with Enterprise Revenue growing 57% year-over-year. The company estimates a $1 million revenue loss due to the war in Ukraine and incurred $4.3 million in humanitarian expenses.
- Gross Services Volume (GSV) grew 27% year-over-year to over $1 billion.
- Revenue increased 24% year-over-year to $141.3 million.
- New Enterprise Client deals were up 33% year-over-year, and Enterprise Revenue grew 57% year-over-year.
- The company suspended operations in Russia and Belarus due to the invasion of Ukraine.
Headline financials
Revenue & EPS history
Upwork · Revenue · Quarterly
$141M
Revenue by segment
Upwork · $140M total across 2 segments · Q1 2022
- Marketplace$129M+23.6%92.3%
- Enterprise$10.8M—7.7%
Forward guidance
Upwork is guiding for second-quarter 2022 revenue to be between $147 million and $151 million, representing 20% year-over-year growth at the midpoint. Full-year 2022 revenue guidance is between $590 million and $610 million. Second-quarter 2022 adjusted EBITDA is expected to be a loss of between $(6) million and $(10) million.
Tailwinds
- Guidance for second-quarter 2022 revenue to be between $147 million and $151 million, representing 20% year-over-year growth at the midpoint.
- Full-year 2022 revenue guidance is between $590 million and $610 million.
- Confident in the right strategy to achieve long-term objectives, including delivering adjusted EBITDA margins of 30% to 35% in the long run.
- Expect second-quarter 2022 non-GAAP basic loss per share to be between $(0.06) and $(0.10).
- Continue to expect stock-based compensation to average slightly more than $20 million per quarter for 2022.
Headwinds
- Expect a larger impact to revenue in the second quarter due to the winding down of all contracts with talent and clients in Russia and Belarus by May 1.
- Second-quarter 2022 adjusted EBITDA is expected to be a loss of between $(6) million and $(10) million.
- Not providing full-year 2022 adjusted EBITDA guidance at this time due to uncertainty regarding the level of substitution after May 1.
- Uncertainty regarding how the situation in Ukraine will evolve.
- The actual amount of stock-based compensation expenses during 2022 will have a significant impact on future GAAP financial results.
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 2022
+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
| Quarter | Report date | Reaction (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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