NASDAQ$UPWK
Upwork Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Upwork's business and value proposition remained critical to customers amidst economic uncertainty, with revenue growing 24% year-over-year.
Upwork's Q3 2022 earnings showed revenue growth of 24% year-over-year, reaching $158.6 million. GSV grew 14% year-over-year, exceeding $1 billion. GAAP net loss was $(24.8) million, and adjusted EBITDA was $(2.9) million.
- Revenue increased by 24% year-over-year, reaching $158.6 million.
- Gross Services Volume (GSV) grew 14% year-over-year, exceeding $1 billion.
- GAAP net loss amounted to $(24.8) million.
- Adjusted EBITDA was $(2.9) million.
Headline financials
Revenue & EPS history
Upwork · Revenue · Quarterly
$159M
Revenue by segment
Upwork · $158M total across 2 segments · Q3 2022
- Marketplace$145M+23.2%92.1%
- Enterprise$12.5M+20.2%7.9%
Forward guidance
Upwork is guiding for Q4 2022 revenue to be between $158 million and $160 million, representing a 16% year-over-year increase at the midpoint. They are narrowing their full-year 2022 revenue guidance to between $615 million and $617 million, representing 23% year-over-year growth at the midpoint. Q4 2022 adjusted EBITDA is expected to be a loss between $(1) million and $(3) million.
Tailwinds
- Revenue guidance for Q4 2022 is between $158 million and $160 million, a 16% year-over-year increase at the midpoint.
- Full-year 2022 revenue guidance is narrowed to between $615 million and $617 million, a 23% year-over-year growth at the midpoint.
- Target to be adjusted EBITDA positive on an annual basis starting in 2023 is reiterated.
- Aim to increase adjusted EBITDA margin by a few hundred basis points per year.
- Long-term target of an adjusted EBITDA margin of 30%-35% is reaffirmed.
Headwinds
- Deceleration of quarter-over-quarter and year-over-year growth rates from Q3 to Q4 is expected.
- This deceleration reflects continued softness in seasonal and macroeconomic conditions.
- The lapping of a strong fourth quarter of 2021 is also contributing to the deceleration.
- Q4 2022 adjusted EBITDA is expected to be a loss between $(1) million and $(3) million.
- Expect to invest approximately $19 million in brand marketing in Q4 2022.
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 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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