Upwork Announces the Suspension of Business in Russia and Belarus and Withdraws First-Quarter and Full-Year 2022 Guidance due to Uncertainties Related to Russian Invasion of Ukraine
Upwork (Nasdaq: UPWK) announced the suspension of all operations in Russia and Belarus, effective May 1, 2022, due to the ongoing geopolitical crisis. This decision follows a significant revenue impact, with 10% of 2021 revenue linked to the region. Upwork is also withdrawing its first-quarter and full-year 2022 guidance amid increased uncertainties. The company has allocated several million dollars to support team members in the affected areas and expects further unforeseen expenses that will impact financial results.
- Company prioritizing safety and well-being of team members in affected regions.
- Financial support initiatives for team members seeking relocation.
- Withdrawal of first-quarter and full-year 2022 revenue guidance.
- Approximately 10% revenue exposure to Russia and Belarus, with potential ongoing declines.
- Increased operational uncertainties and unforeseen expenses.
SAN FRANCISCO, March 07, 2022 (GLOBE NEWSWIRE) -- Upwork Inc. (Nasdaq: UPWK), the world’s largest work marketplace that connects businesses with independent talent, as measured by gross services volume (“GSV”), today announced the suspension of all business operations in Russia and Belarus, taking full effect by May 1, 2022 and starting with shutting down support for new business generation in each country. Over the coming days, customers in Russia and Belarus will no longer be able to sign up for new accounts, initiate new contracts, or be visible in search. Existing contracts with talent and clients in the region will remain open, with final billing due by May 1, 2022. The Company is also withdrawing its previously issued first-quarter and full-year 2022 guidance due to rapidly evolving, increased risks and uncertainties, as well as an untenable operational position and dire geopolitical situation associated with the ongoing Russian war against Ukraine.
Approximately
Upwork’s first priority is the safety and well-being of its team members and their families in the region, and the Company has undertaken extensive efforts to support them. Upwork has provided financial and other support, including paying certain expenses for team members seeking to relocate from the affected region. The Company has also already incurred or committed several million dollars of other unplanned expenses, including a donation of
Forward-Looking Statements
This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Those future events and trends may relate to, among other things, the ongoing Russian invasion of Ukraine and the effect that it may have on our business, operating results, financial condition, and access to capital. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in Upwork’s most recent Annual Report on Form 10-K, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to us. Upwork undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
About Upwork
Upwork is the world’s work marketplace. We serve everyone from one-person startups to over
Contacts:
Evan Barbosa
Investor Relations
investor@upwork.com
Aaron Motsinger
Communications
press@upwork.com
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