Upwork Inc. - UPWK STOCK NEWS

Upwork (UPWK) reported strong Q3 2024 financial results with 10% year-over-year revenue growth to $193.8 million. The company achieved record GAAP net income of $27.8 million, up 70% from Q3 2023, and adjusted EBITDA of $43.2 million, up 38% year-over-year. Active clients grew 2% to 855,000. The company announced plans to acquire Objective AI to enhance its search capabilities and AI offerings, along with a new $100 million share repurchase program. AI-related developments showed significant growth, with GSV from AI-related work up 36% year-over-year and AI project clients increasing 30%. Upwork raised its FY 2024 guidance for revenue and adjusted EBITDA.

Upwork (NASDAQ: UPWK) announced organizational changes and preliminary Q3 2024 results exceeding guidance. The company is implementing cost-saving measures, including a 21% workforce reduction, expected to generate $60 million in annual savings. Preliminary Q3 2024 results show revenue of $194 million, GSV of $998 million, net income of $28 million, and adjusted EBITDA of $43 million, all surpassing original guidance. The company achieved a record-high 22% adjusted EBITDA margin, progressing toward its 5-year target of 35%. The restructuring includes streamlining operations, optimizing R&D spend, and sharpening Enterprise strategy under newly appointed general manager Ernesto Lamaina.

Upwork, the world's largest work marketplace connecting businesses with global independent talent, has announced its plan to report third quarter 2024 financial results on Wednesday, November 6, 2024 after market close. The company will host a Q&A conference call to discuss these results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day.

A live webcast of the call will be available on the Upwork Investor Relations website at investors.upwork.com. An audio replay of the conference call will be accessible for one week following the call, and the webcast will be archived on the Investor Relations website for approximately one year.

Upwork's latest Work Innovators Report reveals that companies integrating distributed work, flexible talent strategies, and advanced technology are achieving better financial results. These 'Work Innovators' are showing:

• 30% lower operating expenses
• 18% more likely to have positive free cash flow
• 13% lower debt-to-equity ratio

The study, based on a 2024 survey of 1,500 global business leaders, highlights that Work Innovators focus on overcoming cultural barriers, building trust, and upskilling their workforce for AI readiness. They also prioritize the use of freelancers and managed services partners. The report challenges the notion that companies need massive budgets to lead their industries and exhibit strong financial performance.

Upwork (Nasdaq: UPWK) has responded to a letter from Engine Capital addressed to its Board of Directors. The company affirms its commitment to enhancing shareholder value and maintaining open dialogues with investors. Upwork highlights its recent progress, including:

1. Focus on revenue and GSV growth levers
2. Improved profitability with adjusted EBITDA margins expanding from -2% to 21% over five quarters
3. $100 million in share repurchases in 2024 (7.5% of current market cap)
4. Cost optimization, including discontinuing brand marketing
5. Planned further expense reductions, particularly in R&D

Upwork is working with Goldman Sachs as financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel.

Engine Capital LP, owning 3.5% of Upwork Inc. (NASDAQ: UPWK), has sent a letter to the company's Board of Directors highlighting concerns and opportunities to enhance shareholder value. The letter criticizes Upwork's lack of strategic focus, poor execution, excessive spending, and significant management turnover under CEO Hayden Brown. Engine Capital argues that these issues have led to underperformance compared to relevant indexes and peers.

The letter outlines several recommendations, including improving the marketplace functionality, focusing on the Enterprise opportunity, optimizing costs, reducing stock-based compensation dilution, and initiating share buybacks. Engine Capital also calls for Board refreshment and improved corporate governance, suggesting the addition of new independent directors with relevant industry experience.

Upwork Inc. (Nasdaq: UPWK), the world's largest work marketplace connecting businesses with global independent talent, has announced its participation in the Goldman Sachs Communacopia + Technology Conference. President and CEO Hayden Brown and CFO Erica Gessert will engage in a fireside chat on September 9, 2024, at 8:50 a.m. PT/11:50 a.m. ET in San Francisco, CA.

A live webcast of the event will be available on Upwork's Investor Relations website, with an archive accessible for approximately 90 days afterward. The company may disclose material developments affecting its business and financial performance during these events.

Upwork (NASDAQ: UPWK) reported strong Q2 2024 financial results, with revenue growing 15% year-over-year to $193.1 million. The company achieved its highest-ever GAAP Net Income of $22.2 million, with GAAP Diluted EPS of $0.17. Adjusted EBITDA reached $40.8 million, more than doubling from Q2 2023. Active clients grew 6% to over 868,000. Upwork's AI-related work saw significant growth, with AI GSV increasing 67% year-over-year. The company's ads & monetization revenue grew 75% year-over-year. Upwork also expanded its partnerships and added 46 new Enterprise clients. For Q3 2024, Upwork expects revenue between $179-184 million and adjusted EBITDA of $36-39 million. The full-year 2024 guidance projects revenue of $735-745 million and adjusted EBITDA of $140-150 million.

Beeline and Upwork (Nasdaq: UPWK) have announced a strategic partnership to enhance hiring efficiency and centralize contingent workforce management. This collaboration combines Beeline's advanced workforce management solutions with Upwork's global talent marketplace, offering companies a streamlined end-to-end solution for sourcing, hiring, and collaborating with highly skilled independent professionals.

The partnership integrates Upwork's talent pool into Beeline's vendor management system (VMS), providing access to experts across 10,000+ skills and 125+ work categories. This integration aims to improve transparency, reduce hiring processes, and accelerate time-to-hire while maintaining quality and compliance standards. The collaboration is expected to deliver significant benefits to businesses, including improved visibility into total spend and substantial cost savings.