Upwork (NASDAQ:UPWK) stock soared over 20% in extended trading yesterday after posting solid third-quarter Fiscal 2023 results. Adjusted earnings of $0.21 per share came in significantly higher than the consensus of $0.10 per share and better than the prior-year quarter adjusted loss of $0.03 per share. Also, revenues of $175.73 million grew 11% year-over-year and easily surpassed the Street’s estimates of $168.19 million.
Upwork attributed the solid results to new AI (artificial intelligence)-enabled features, rapid margin improvements, an improved ad products ecosystem, and a simplified freelancer pricing structure.
Based on the continued business momentum, the online marketplace for freelancers raised its full-year Fiscal 2023 outlook. Full-year revenue is now expected between $680 to $685 million, and adjusted earnings of $0.47 to $0.49 per share. Accordingly, for Q4FY23, revenues are expected to be in the range of $175 and $180 million, and adjusted earnings are pegged between $0.16 and $0.18 per share.
What’s more, Upwork’s board of directors approved a stock buyback program of up to $100 million.
Is Upwork a Good Stock to Buy?
With three unanimous buys, Upwork has a Hold consensus on TipRanks. Also, the average Upwork price target of $14.50 implies 20.6% upside potential from current levels. Meanwhile, UPWK stock has gained 11.5% year-to-date.
It is imperative to note here that all these three ratings were given before the Q3 results were announced. Analysts could change their views on the stock and the target price after analyzing the results.
