Upwork Q3 revenue beats estimates on AI demand, raises FY guidance
Overview
Freelance marketplace operator Upwork Q3 revenue rises 4% yr/yr, beating analyst expectations
Adjusted EBITDA for Q3 beats estimates, reaching a record $59.6 mln
Company raises FY2025 revenue and adjusted EBITDA guidance
Outlook
Upwork raises FY2025 revenue guidance to $782 mln-$787 mln
Upwork forecasts Q4 2025 revenue between $193 mln and $198 mln
Upwork expects FY2025 adjusted EBITDA of $222 mln-$225 mln
Result Drivers
AI GROWTH - GSV from AI-related work grew 53% yr/yr, driving overall GSV growth
BUSINESS PLUS EXPANSION - Business Plus offering for SMBs saw a 33% qtr/qtr increase in GSV
ADS & MONETIZATION - Revenue from Ads & Monetization grew 19% yr/yr, contributing to revenue growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $201.70 mln | $193.34 mln (11 Analysts) |
Q3 Net Income | $29.30 mln | ||
Q3 Adjusted EBITDA | Beat | $59.60 mln | $50.10 mln (11 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the employment services peer group is "buy"
Wall Street's median 12-month price target for Upwork Inc is $19.50, about 18.3% above its October 31 closing price of $15.94
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release:
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