NASDAQ$UPWK

Upwork Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Upwork reported record revenue, GAAP net income, and adjusted EBITDA for the fourth quarter and full year 2024.

Upwork achieved record financial results in Q4 2024, with revenue reaching $191.5 million, net income of $147.2 million, and adjusted EBITDA of $50.2 million, marking its most profitable quarter ever. The company's strong performance was driven by growth in AI-related work and strategic initiatives, positioning it for continued market share gains.

  • Fourth-quarter revenue increased 4% year-over-year to $191.5 million.
  • Net income for Q4 2024 was $147.2 million, significantly up from $17.4 million in Q4 2023, including a non-cash tax benefit of $140.3 million.
  • Adjusted EBITDA for Q4 2024 was $50.2 million, a 65% increase year-over-year, achieving a 26% adjusted EBITDA margin.
  • GSV from AI-related work grew 60% year-over-year in 2024, and the number of clients engaging in AI-related projects increased by 42%.

Headline financials

Total Revenue

$191M

Previous: $184M+4.1%
EPS (adj)

$1.03

Previous: $0.20+415.0%
Capital Expenditures

-$3.87M

Previous: -$6.61M+41.6%
Net Income

$147M

Previous: $17.4M+747.0%
Operating Income

$13.6M

Previous: $8.43M+61.2%
Gross Profit

$149M

Previous: $138M+7.8%
R&D Expense

$53.5M

Previous: $46.2M+15.7%

Revenue & EPS history

Upwork · Revenue · Quarterly

$191M

Q4 2024+4.1%vs Q4 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 provided guidance for the first quarter and full year 2025, anticipating continued revenue growth and increased profitability, with adjusted EBITDA margins expected to expand.

Tailwinds

  • Q1 2025 Revenue guidance: $186 million to $191 million.
  • Q1 2025 Adjusted EBITDA guidance: $46 million to $50 million.
  • FY 2025 Revenue guidance: $740 million to $760 million.
  • FY 2025 Adjusted EBITDA guidance: $180 million to $190 million.
  • Expectation to increase profitability and free cash flow each year towards a 35% adjusted EBITDA margin target.

Headwinds

  • Q1 2025 Diluted weighted-average shares outstanding: 143 million to 145 million.
  • Q1 2025 Non-GAAP diluted EPS: $0.24 to $0.26.
  • FY 2025 Diluted weighted-average shares outstanding: 138 million to 142 million.
  • FY 2025 Non-GAAP diluted EPS: $1.05 to $1.10.
  • Stock-based compensation expense is expected to be approximately $15 million per quarter in 2025.

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 Q4 2024

Historical avgQ4 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro