NASDAQ$UPWK

Upwork Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Upwork's Q2 2024 financial performance was marked by strong revenue growth and record net income, demonstrating the strength of its business model.

Upwork reported a strong second quarter in 2024, with revenue up 15% year-over-year to $193.1 million and net income reaching a record $22.2 million. The company saw growth in active clients and significant increases in adjusted EBITDA and free cash flow.

  • Revenue grew 15% year-over-year, reaching $193.1 million.
  • Net income reached a record high of $22.2 million, compared to a net loss in the previous year.
  • Active clients increased by 6% year-over-year, exceeding 868,000.
  • Adjusted EBITDA significantly improved to $40.8 million, more than doubling from the previous year.

Headline financials

Total Revenue

$193M

Previous: $169M+14.5%
EPS (adj)

$0.26

Previous: $0.10+160.0%
Capital Expenditures

-$775K

Previous: -$135K-474.1%
Free Cash Flow

$21.4M

Previous: -$4.13M+619.8%
Net Income

$22.2M

Previous: -$3.99M+656.8%
Operating Income

$17.8M

Previous: -$6.12M+390.7%
Gross Profit

$149M

Previous: $128M+16.9%
Cash & Equivalents

$183M

Previous: $154M+18.6%
Total Assets

$1.01B

Previous: $931M+8.4%
R&D Expense

$52.5M

No prior period
Stock-Based Comp

$19.2M

Previous: $18.4M+4.3%

Revenue & EPS history

Upwork · Revenue · Quarterly

$193M

Q2 2024+14.5%vs Q2 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 third quarter of 2024 includes revenue between $179 million and $184 million, and adjusted EBITDA between $36 million and $39 million. For the full year 2024, Upwork anticipates revenue between $735 million and $745 million, and adjusted EBITDA between $140 million and $150 million.

Tailwinds

  • Revenue: $179 million to $184 million for Q3 2024
  • Adjusted EBITDA: $36 million to $39 million for Q3 2024
  • Revenue: $735 million to $745 million for full year 2024
  • Adjusted EBITDA: $140 million to $150 million for full year 2024
  • Non-GAAP diluted EPS: $0.23 to $0.25 for Q3 2024

Headwinds

  • Diluted weighted-average shares outstanding: 139 million to 141 million for Q3 2024
  • Non-GAAP diluted EPS: $0.90 to $0.94 for full year 2024
  • Diluted weighted-average shares outstanding: 139 million to 143 million for full year 2024
  • Stock-based compensation expense is expected to average slightly less than $20 million per quarter for 2024
  • Uncertainty in predicting stock-based compensation expense due to market conditions.

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 2024

Historical avgQ2 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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