NASDAQ$UPWK

Upwork Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Upwork's Q1 2024 financial results were released, revealing a strong start to the year.

Upwork reported a strong first quarter in 2024, with revenue growing 19% year-over-year to $190.9 million. Net income increased to $18.4 million, and adjusted EBITDA reached $33.3 million. The company is raising its revenue and Adjusted EBITDA outlook for 2024 and has established a five-year Adjusted EBITDA margin target of 35%.

  • Revenue grew 19% year-over-year to $190.9 million.
  • Net income was $18.4 million, compared to $17.2 million in the first quarter of 2023.
  • Adjusted EBITDA was $33.3 million, a significant increase from the $(2.9) million loss in the prior year.
  • Active clients increased by 5% year-over-year, reaching over 872,000.

Headline financials

Total Revenue

$191M

Previous: $161M+18.7%
EPS

$0.13

Previous: -$0.01+1400.0%
Gross services volume

$1.01B

Previous: $1B+0.9%
Active clients

872.0K

Previous: 827.0K+5.4%
Capital Expenditures

-$177K

Previous: -$158K-12.0%
Free Cash Flow

$18.3M

Previous: $17M+7.4%
Net Income

$18.4M

Previous: $17.2M+7.4%
Operating Income

$13M

Previous: -$25M+152.1%
Gross Profit

$147M

Previous: $120M+21.8%
Cash & Equivalents

$24.7M

Previous: $102M-75.8%
Total Assets

$1B

Previous: $918M+9.0%
R&D Expense

$52.9M

No prior period
Stock-Based Comp

$16.9M

Previous: $19.9M-14.9%

Revenue & EPS history

Upwork · Revenue · Quarterly

$191M

Q1 2024+18.7%vs Q1 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Upwork · $174M total across 2 segments · Q3 2023

  • Marketplace
    $162M+11.5%
  • Enterprise
    $12.1M-3.2%

Forward guidance

Upwork's guidance for the second quarter of 2024 includes revenue between $190 million and $195 million, and adjusted EBITDA between $32 million and $36 million. For the full year 2024, Upwork projects revenue between $770 million and $782 million, and adjusted EBITDA between $140 million and $150 million.

Tailwinds

  • Revenue: $190 million to $195 million, representing year-over-year growth of 14.2% at the midpoint
  • Adjusted EBITDA: $32 million to $36 million
  • Diluted weighted-average shares outstanding: 139 million to 141 million
  • Non-GAAP diluted EPS: $0.21 to $0.23
  • Revenue: $770 million to $782 million, up from $760 million to $780 million

Headwinds

  • Diluted weighted-average shares outstanding: 140 million to 144 million
  • Stock-based compensation expense is expected to average slightly more than $20 million per quarter for 2024
  • Certain items that impact GAAP net income and GAAP diluted EPS are uncertain or out of our control and cannot be reasonably predicted.
  • Stock-based compensation expense is impacted by the future fair market value of our common stock and other factors, all of which are difficult to predict, subject to frequent change, or not within our control.
  • The actual amount of these expenses during the second quarter of 2024 and fiscal year 2024 will have a significant impact on our 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 2024

Historical avgQ1 2024

+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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