Upwork Inc ( (UPWK) ) has released its Q3 earnings. Here is a breakdown of the information Upwork Inc presented to its investors.
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Upwork Inc. is the world’s largest work marketplace, connecting businesses with independent talent globally across various fields such as website development, design, data science, and more. The company has reported a notable third quarter in 2024, achieving a 10% year-over-year revenue growth and a record GAAP net income of $27.8 million, alongside an adjusted EBITDA of $43.2 million. Upwork’s strategic initiatives include raising its full-year 2024 guidance for revenue and adjusted EBITDA, acquiring Objective AI to bolster its AI capabilities, and launching a $100 million share repurchase program.
Key financial highlights for the third quarter of 2024 include a revenue increase to $193.8 million, a significant rise in net income by 70% compared to the previous year, and a notable jump in adjusted EBITDA by 38%. The company’s enhancements in AI technology with Uma™, its Mindful AI, have improved client and freelancer interactions, evidenced by a 36% growth in gross services volume from AI-related work. Additionally, Upwork continues to expand its Enterprise and Managed Services offerings, securing new clients and increasing revenues.
The company also reported a strong performance in its ads and monetization sector, with a 35% revenue increase, and a 48% rise in Freelancer Plus subscription revenue year-over-year. Strategic partnerships with emerging tech providers have been established, enhancing Upwork’s service delivery and expanding its reach beyond its platform.
Looking ahead, Upwork remains optimistic about its growth prospects, with an updated revenue outlook for the year ranging from $756 million to $761 million and an adjusted EBITDA of $155 million to $159 million. The company is committed to achieving a 35% adjusted EBITDA margin target within the next five years, underscoring its focus on long-term profitability and shareholder value.
