NASDAQ$UPWK
Upwork Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Upwork's Q2 2023 performance showed better-than-expected financial results, driven by cost savings and progress in generative AI and Enterprise growth.
Upwork's Q2 2023 saw revenue of $168.6 million, a 7% increase year-over-year, with GSV exceeding $1 billion. The company reported a GAAP net loss of $(4.0) million and adjusted EBITDA of $14.4 million. Upwork is raising its adjusted EBITDA guidance for 2023 to $50 million to $55 million.
- Upwork achieved better-than-expected results across financial goals, with revenue up 7% year-over-year.
- The company made significant strides in generative AI, with AI being the fastest-growing category on Upwork.
- Upwork grew its Enterprise customer base, with Enterprise Revenue increasing 16% year-over-year.
- Cost savings actions taken earlier in the second quarter, along with additional measures, are expected to yield incremental benefits.
Headline financials
Revenue & EPS history
Upwork · Revenue · Quarterly
$169M
Revenue by segment
Upwork · $171M total across 2 segments · Q2 2023
- Marketplace$157M+8.5%91.6%
- Enterprise$14.3M+16.3%8.4%
Forward guidance
Upwork is guiding for third-quarter 2023 revenue to be between $165 million and $170 million, and raising full-year 2023 revenue guidance to between $665 million and $675 million. Third-quarter adjusted EBITDA is expected to be between $14 million and $17 million, and full-year 2023 adjusted EBITDA guidance is increased to between $50 million and $55 million.
Tailwinds
- Revenue guidance for Q3 2023 is set between $165 million and $170 million, indicating a 6% year-over-year increase at the midpoint.
- Full-year 2023 revenue guidance has been raised to between $665 million and $675 million, reflecting an 8% year-over-year growth at the midpoint.
- Adjusted EBITDA for Q3 2023 is projected to be between $14 million and $17 million, with an adjusted EBITDA margin of 8.5% to 10.0%.
- Full-year 2023 adjusted EBITDA guidance has been increased to between $50 million and $55 million, representing an adjusted EBITDA margin of 7.5% to 8.1%.
- The company expects to generate positive free cash flow going forward.
Headwinds
- The guidance does not reconcile adjusted EBITDA to GAAP net income (loss).
- The guidance does not reconcile adjusted EBITDA margin guidance to GAAP net income (loss) margin.
- The guidance does not reconcile non-GAAP diluted EPS to GAAP diluted EPS.
- 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.
- The actual amount of these expenses during 2023 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 Q2 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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