NASDAQ$UPWK
Upwork Inc · Q3 2021 earnings
Q3 2021 earnings · · Investor relations
Briefing
Upwork's innovations and strategic focus drove significant growth.
Upwork's Q3 2021 saw GSV reach $904.0 million, a 38% year-over-year increase, and revenue grew 32% year-over-year to $128.1 million, exceeding guidance. Active Clients increased by 25% year-over-year, and GSV per Active Client grew by 12% year-over-year.
- GSV grew 38% year-over-year reaching $904 million.
- Revenue increased 32% year-over-year to $128.1 million, surpassing the high end of guidance.
- Active Clients grew 25% year-over-year.
- New Enterprise plan customers were up 143% year-over-year.
Headline financials
Revenue & EPS history
Upwork · Revenue · Quarterly
$128M
Revenue by segment
Upwork · $128M total across 2 segments · Q3 2021
- Marketplace$118M+33.8%91.9%
- Enterprise$10.4M—8.1%
Forward guidance
Upwork is guiding for Q4 2021 revenue between $130 million and $132 million, representing 23% year-over-year growth. Full-year 2021 revenue is projected between $496 million and $498 million, a 33% year-over-year increase. The company anticipates investing up to $17 million in brand marketing in Q4. Q4 adjusted EBITDA is expected to be a loss between $(2) million and $(4) million, with full-year adjusted EBITDA between $18 million and $20 million.
Tailwinds
- Revenue is expected to grow 23% year-over-year in Q4 2021.
- Full-year 2021 revenue is projected to increase by 33% year-over-year.
- Upwork is increasing investment in brand marketing to drive awareness and shift perceptions.
- The company remains confident in delivering at least $1 billion of revenue in 2025.
- Aggressive investments in product development, marketing, and sales are expected to lay the foundation for long-term growth.
Headwinds
- Q4 2021 adjusted EBITDA is expected to be a loss between $(2) million and $(4) million due to increased brand marketing investments.
- Smaller quarter-over-quarter revenue growth is expected from Q3 to Q4 2021 compared to the previous year, reflecting a return to normal seasonality patterns.
- New sales hires traditionally take three to six months to ramp up, and a few years to reach the million-dollar target, delaying the materialization of benefits from these investments.
- The company has not reconciled adjusted EBITDA guidance to GAAP net income (loss) due to the uncertainty of certain items, such as stock-based compensation expense.
- The actual amount of expenses during 2021 will have a significant impact on 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 Q3 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
| 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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