NASDAQ$UPWK

Upwork Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported fourth consecutive quarter of accelerating year-over-year growth in GSV and revenue.

Upwork reported a 42% year-over-year increase in revenue to $124.2 million and a 50% year-over-year increase in GSV to $875.8 million. The company's net loss was $16.5 million, or $(0.13) per basic share. Non-GAAP net income was $4.6 million, or $0.03 per diluted share.

  • GSV increased by 50% year-over-year to $875.8 million.
  • Revenue grew 42% year-over-year to $124.2 million.
  • Marketplace revenue grew 46% year-over-year to $114.5 million.
  • Non-GAAP net income was $4.6 million, or $0.03 per diluted share.

Headline financials

Total Revenue

$124M

Previous: $87.5M+41.9%
EPS (adj)

$0.03

Previous: -$0.09+133.3%
Gross services volume

$876M

Previous: $584M+50.0%
Capital Expenditures

-$334K

Previous: -$5.63M+94.1%
Free Cash Flow

-$16.9M

Previous: -$16.7M-1.3%
Net Income

-$16.5M

Previous: -$11M-50.0%
Operating Income

-$16.4M

Previous: -$11M-49.3%
Gross Profit

$91.1M

Previous: $62.1M+46.6%
Cash & Equivalents

$131M

Previous: $76.8M+71.3%
Total Assets

$569M

Previous: $489M+16.4%
Stock-Based Comp

$13.5M

Previous: $7.13M+89.7%

Revenue & EPS history

Upwork · Revenue · Quarterly

$124M

Q2 2021+41.9%vs Q2 2020
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Upwork · $124M total across 2 segments · Q2 2021

  • Marketplace
    $115M+45.9%
  • Enterprise
    $9.72M+7.2%

Forward guidance

Upwork is providing the following guidance for its third quarter and full year 2021: For the third quarter of 2021, Upwork expects to report Revenue in the range of $125 million to $127 million, Adjusted EBITDA in the range of $4 million to $5 million, Diluted weighted-average shares outstanding in the range of 134 million to 136 million and Non-GAAP diluted EPS in the range of $0.01 to $0.03. For the full year 2021, Upwork expects to report Revenue in the range of $490 million to $494 million, Adjusted EBITDA in the range of $16 million to $20 million, Diluted weighted-average shares outstanding in the range of 133 million to 137 million and Non-GAAP diluted EPS in the range of $0.05 to $0.07.

Tailwinds

  • Revenue in the range of $125 million to $127 million for Q3 2021
  • Adjusted EBITDA in the range of $4 million to $5 million for Q3 2021
  • Diluted weighted-average shares outstanding in the range of 134 million to 136 million for Q3 2021
  • Non-GAAP diluted EPS in the range of $0.01 to $0.03 for Q3 2021
  • Revenue in the range of $490 million to $494 million for FY 2021

Headwinds

  • Adjusted EBITDA in the range of $16 million to $20 million for FY 2021
  • Diluted weighted-average shares outstanding in the range of 133 million to 137 million for FY 2021
  • Non-GAAP diluted EPS in the range of $0.05 to $0.07 for FY 2021
  • Impacts of the COVID-19 pandemic
  • 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.

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 Q2 2021

Historical avgQ2 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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