Q1 2024 Upwork Inc Earnings Call Transcript
Key Points
- Upwork Inc (UPWK) reported a strong first-quarter revenue of $190.9 million, marking a 19% growth year over year.
- GAAP net income for the quarter was $18.4 million, with adjusted EBITDA at $33.3 million, demonstrating profitable growth.
- The company raised its 2024 outlook for both revenue and adjusted EBITDA, reflecting confidence in continued financial performance improvement.
- Upwork Inc (UPWK) saw a 5% year-over-year growth in active clients, reaching 872,000 in the first quarter.
- The introduction of new AI-enabled products and features, such as Uma and Upwork Chat Pro, has been well received, showing early success in lifting GSV and enhancing user experience.
- GSV growth was relatively modest at approximately 1% year over year, partly due to headwinds from the transition to a new flat-fee pricing structure.
- Despite overall revenue growth, the enterprise business unit's revenue growth was slower at 10% year over year.
- The transition to the new pricing model created temporary disruptions, impacting GSV growth negatively by about 2%.
- While non-GAAP gross margin improved, there was a significant increase in non-GAAP R&D expenses by 23% year over year, reflecting higher investment in innovation which could pressure short-term profitability.
- The company faces ongoing macroeconomic uncertainties which could impact client budgets and spending behavior.
Good day and thank you for standing by. Welcome to the Upwork Q1 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, David Niederman, Vice President, Investor Relations. Please go ahead.
Thank you. Welcome to Upwork's discussion of its first-quarter 2024 financial results and joining me today are Hayden Brown, Upwork's President and Chief Executive Officer; and Erica Gessert, Upwork's Chief Financial Officer. Following management's prepared remarks, we will be happy to take your questions, but first, I'll review the safe harbor statement.
During this call, we may make statements related to our business that are forward-looking statements under federal securities laws. Forward-looking statements include all statements other than statements of historical facts. These statements are not guarantees of future performance but rather are subject to a variety of
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
