NASDAQ$UPWK
Upwork Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Upwork's revenue increased driven by product innovation and focus on larger customers.
Upwork's Q2 2022 earnings report revealed a 26% year-over-year revenue increase, reaching $156.9 million. The company focused on product innovation, particularly in the Project Catalog™ area, and saw growth in Enterprise Revenue, which increased 45% year-over-year to $12.3 million.
- Revenue grew 26% year-over-year to $156.9 million.
- Enterprise Revenue increased 45% year-over-year to $12.3 million.
- Signed a record 36 new Enterprise Clients, up 24% year-over-year.
- Overall take rate was 15.0%, up from 14.2% in the second quarter of 2021.
Headline financials
Revenue & EPS history
Upwork · Revenue · Quarterly
$157M
Revenue by segment
Upwork · $157M total across 2 segments · Q2 2022
- Marketplace$144M+26.0%92.1%
- Enterprise$12.3M+26.5%7.9%
Forward guidance
Upwork provided revenue guidance for Q3 2022 to be between $156 million and $158 million, representing 23% year-over-year growth. The full-year 2022 revenue guidance was increased to between $612 million and $617 million, which is 22% year-over-year growth at the midpoint.
Tailwinds
- Increase in Ukraine-related revenue forecast in the second half of 2022
- Strong results in the second quarter
- Higher revenue forecast in the second half of 2022 from the changes to our pricing structure
- Targeting being adjusted EBITDA positive on an annual basis starting in 2023
- Aiming to increase adjusted EBITDA margin by a few hundred basis points per year as we progress toward our previously communicated long-term target of an adjusted EBITDA margin of 30%-35%
Headwinds
- Some softening seasonal and macroeconomic trends that we observed in the second quarter
- Lower client acquisition and retention rates, particularly in Europe and from small- and medium-sized businesses
- Estimated $10-$15 million reduction in revenue due to the potential impact of the above-mentioned softening trends on our business in the second half of 2022
- Third-quarter 2022 adjusted EBITDA to be a loss of between $(7) million and $(9) million
- Full-year 2022 adjusted EBITDA guidance of a loss of between $(10) million and $(14) million
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 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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