NASDAQ$UPWK

Upwork Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Achieved 10% year-over-year revenue growth and record GAAP net income.

Upwork reported a 10% year-over-year revenue increase and a record net income in Q3 2024. The company is raising its full-year 2024 revenue and adjusted EBITDA guidance and authorized a new $100 million share repurchase program.

  • Revenue grew 10% year-over-year to $193.8 million.
  • Net income reached an all-time high of $27.8 million, up 70% year-over-year.
  • Adjusted EBITDA was $43.2 million, up 38% year-over-year.
  • Active clients grew 2% year-over-year to 855,000.

Headline financials

Total Revenue

$194M

Previous: $176M+10.3%
EPS

$0.20

Previous: $0.21-4.8%
Gross services volume

$998M

Previous: $1B-0.2%
Active clients

855.0K

Previous: 836.0K+2.3%
GSV per active client

$4.8K

No prior period
Adjusted EBITDA

$43.2M

No prior period
Adjusted EBITDA margin

22.0%

No prior period
Gross profit margin

78.0%

No prior period
Profit margin

14.0%

No prior period
Capital Expenditures

-$1.98M

Previous: -$558K-254.7%
Free Cash Flow

$25.8M

Previous: $15.8M+63.4%
Net Income

$27.8M

Previous: $16.3M+69.9%
Operating Income

$20.8M

Previous: $11.5M+81.3%
Gross Profit

$150M

Previous: $132M+13.5%
Cash & Equivalents

$288M

Previous: $147M+96.5%
Total Assets

$1.06B

Previous: $961M+10.5%
R&D Expense

$50.4M

Previous: $43.4M+16.1%
Stock-Based Comp

$18.6M

Previous: $17.8M+4.3%

Revenue & EPS history

Upwork · Revenue · Quarterly

$194M

Q3 2024+10.3%vs Q3 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 revenue, adjusted EBITDA, diluted weighted-average shares outstanding, and non-GAAP diluted EPS for the fourth quarter of 2024 is: •Revenue: $178 million to $183 million •Adjusted EBITDA: $38 million to $42 million4 •Diluted weighted-average shares outstanding: 140 million to 142 million •Non-GAAP diluted EPS: $0.24 to $0.26

Tailwinds

  • Revenue: $178 million to $183 million
  • Adjusted EBITDA: $38 million to $42 million
  • Diluted weighted-average shares outstanding: 140 million to 142 million
  • Non-GAAP diluted EPS: $0.24 to $0.26

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 2024

Historical avgQ3 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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