NASDAQ$UPWK
Upwork Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Upwork's Q1 2023 earnings exceeded expectations with revenue growth, despite macroeconomic headwinds affecting client behavior, leading to cost reduction measures and a revised revenue outlook.
Upwork's Q1 2023 revenue grew by 14% year-over-year to $160.9 million, with GAAP net income of $17.2 million. The company saw some softness in client behavior due to macroeconomic uncertainty, leading to cost reduction measures and a revised revenue outlook for the year.
- Q1 2023 revenue grew 14% year-over-year to $160.9 million.
- GAAP net income was $17.2 million in Q1 2023.
- The company lowered its topline revenue growth expectations due to macroeconomic uncertainty.
- Cost reduction measures were proactively taken to increase profitability outlook.
Headline financials
Revenue & EPS history
Upwork · Revenue · Quarterly
$161M
Revenue by segment
Upwork · $159M total across 2 segments · Q1 2023
- Marketplace$148M+14.4%92.9%
- Enterprise$11.4M+5.6%7.1%
Forward guidance
Upwork provided guidance for Q2 2023 and updated its full-year 2023 outlook, reflecting adjustments due to macroeconomic conditions and cost-saving measures. Revenue for Q2 is expected to be between $161 million and $164 million, with full-year revenue guidance revised to $655 million - $670 million. Full-year adjusted EBITDA guidance was increased to $36 million - $40 million.
Tailwinds
- Q2 2023 revenue is projected to be between $161 million and $164 million.
- Full-year 2023 adjusted EBITDA guidance increased to between $36 million and $40 million.
- Cost-saving actions are expected to drive over $80 million of annualized net cost savings.
- Fourth-quarter 2023 adjusted EBITDA margin is expected to be approximately 15%.
- Q2 2023 non-GAAP diluted EPS to be between $0.00 and $0.02
Headwinds
- Full-year 2023 revenue guidance reduced to between $655 million and $670 million.
- Q2 2023 adjusted EBITDA includes approximately $4 million of non-recurring severance-related costs.
- Macroeconomic conditions are expected to continue impacting the business.
- Uncertainty in translating brand awareness to client conversion.
- Personnel changes to right-size Enterprise team.
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 2023
+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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