Upwork Confirms Receipt and Comments on Shareholder Letter
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.
Upwork (Nasdaq: UPWK) ha risposto a una lettera di Engine Capital indirizzata al suo Consiglio di Amministrazione. L'azienda riafferma il suo impegno a migliorare il valore per gli azionisti e a mantenere dialoghi aperti con gli investitori. Upwork sottolinea i suoi recenti progressi, tra cui:
1. Focus sui fattori di crescita del fatturato e del GSV
2. Miglioramento della redditività con margini EBITDA rettificati che si sono espansi dal -2% al 21% in cinque trimestri
3. Riacquisto di azioni per 100 milioni di dollari nel 2024 (7,5% dell'attuale capitalizzazione di mercato)
4. Ottimizzazione dei costi, incluso l'interruzione del marketing di marca
5. Pianificazione di ulteriori riduzioni di spese, in particolare in R&S
Upwork sta collaborando con Goldman Sachs come consulente finanziario e Wachtell, Lipton, Rosen & Katz come consulente legale.
Upwork (Nasdaq: UPWK) ha respondido a una carta de Engine Capital dirigida a su Junta Directiva. La compañía reafirma su compromiso de aumentar el valor para los accionistas y mantener diálogos abiertos con los inversionistas. Upwork destaca su progreso reciente, incluyendo:
1. Enfoque en los factores de crecimiento de ingresos y GSV
2. Rentabilidad mejorada con márgenes EBITDA ajustados que se expandieron del -2% al 21% en cinco trimestres
3. Recompras de acciones por 100 millones de dólares en 2024 (7.5% de la capitalización de mercado actual)
4. Optimización de costos, incluyendo la suspensión del marketing de marca
5. Reducciones de gastos planificadas, particularmente en I+D
Upwork está trabajando con Goldman Sachs como asesor financiero y con Wachtell, Lipton, Rosen & Katz como asesor legal.
업워크(나스닥: UPWK)가 엔진 캐피탈의 이사회에 보낸 서한에 응답했습니다. 이 회사는 주주 가치를 증대하고 투자자와의 열린 대화를 유지하는 데 대한 의지를 재확인했습니다. 업워크는 최근 진행 상황을 강조하며, 그 내용은 다음과 같습니다:
1. 수익 및 GSV 성장 요소에 대한 집중
2. 조정된 EBITDA 마진이 5개 분기 동안 -2%에서 21%로 확대되어 수익성 개선
3. 2024년 1억 달러의 자사주 매입 (현재 시장 가치의 7.5%)
4. 브랜드 마케팅 중단을 포함한 비용 최적화
5. 연구 개발(R&D)에서 특히 더 많은 비용 절감을 계획
업워크는 재정 고문으로 골드만 삭스와 법률 자문으로 와흐텔, 리프톤, 로젠 & 카츠와 협력하고 있습니다.
Upwork (Nasdaq: UPWK) a répondu à une lettre d'Engine Capital adressée à son Conseil d'Administration. L'entreprise réaffirme son engagement à accroître la valeur pour les actionnaires et à maintenir des dialogues ouverts avec les investisseurs. Upwork souligne ses récents progrès, notamment :
1. Concentration sur les leviers de croissance du chiffre d'affaires et du GSV
2. Amélioration de la rentabilité avec des marges EBITDA ajustées qui passent de -2% à 21% sur cinq trimestres
3. 100 millions de dollars de rachats d'actions en 2024 (7,5 % de la capitalisation boursière actuelle)
4. Optimisation des coûts, y compris l'arrêt du marketing de marque
5. Réductions de dépenses prévues, en particulier en R&D
Upwork collabore avec Goldman Sachs en tant que conseiller financier et avec Wachtell, Lipton, Rosen & Katz en tant que conseiller juridique.
Upwork (Nasdaq: UPWK) hat auf einen Brief von Engine Capital an seinen Vorstand reagiert. Das Unternehmen bekräftigt sein Engagement zur Steigerung des Shareholder Value und zur Pflege offener Dialoge mit Investoren. Upwork hebt seinen jüngsten Fortschritt hervor, darunter:
1. Konzentration auf Umsatz- und GSV-Wachstumshebel
2. Verbesserte Rentabilität mit angepassten EBITDA-Margen, die sich von -2% auf 21% über fünf Quartale ausgeweitet haben
3. 100 Millionen Dollar an Aktienrückkäufen im Jahr 2024 (7,5% der aktuellen Marktkapitalisierung)
4. Kostenoptimierung, einschließlich der Einstellung des Markenmarketings
5. Geplante weitere Ausgabensenkungen, insbesondere in F&E
Upwork arbeitet mit Goldman Sachs als Finanzberater und Wachtell, Lipton, Rosen & Katz als rechtlichem Berater zusammen.
- Adjusted EBITDA margins improved from -2% to 21% over the past five quarters
- $100 million in share repurchases in 2024, representing 7.5% of current market capitalization
- Significant steps taken to optimize cost base, including discontinuing brand marketing
- Planned further reductions in expenses, particularly in R&D
- None.
Insights
Upwork's response to Engine Capital's letter reveals a company focused on financial discipline and shareholder value. The 21% adjusted EBITDA margin, up from -2%, demonstrates significant profitability improvement. The
Upwork's statement reflects broader trends in the gig economy and tech sector. The focus on profitability over growth aligns with current market demands, but may risk long-term market share. Key points to consider:
- Discontinuation of brand marketing could impact user acquisition in a competitive landscape
- Optimization of performance marketing suggests a shift towards efficiency
- Planned R&D reductions might affect platform innovation, important in the rapidly evolving gig economy
SAN FRANCISCO, Sept. 13, 2024 (GLOBE NEWSWIRE) -- Upwork Inc. (Nasdaq: UPWK), the world’s largest work marketplace that connects businesses with independent talent across the globe, today issued the following statement in response to a letter from Engine Capital to Upwork’s Board of Directors:
Upwork’s Board of Directors and management team maintain an open dialogue with and value constructive input from investors. We continually evaluate options to enhance value and are committed to acting in the best interests of all shareholders. Upwork has met with Engine Capital on multiple occasions over the course of our regular shareholder engagement and appreciates their perspectives, as we do those of all our shareholders.
We are focused on the right core value drivers of the business and are making demonstrable progress:
- We are maintaining focus on the critical set of revenue and GSV growth levers clearly articulated in our Q2 2024 earnings call.
- We have significantly improved profitability, with adjusted EBITDA margins expanding from (2)% to
21% over the past five quarters. - Upwork has returned meaningful capital to shareholders with
$100 million in share repurchases in 2024, representing approximately7.5% of current market capitalization1, and we will continue to be aggressive and opportunistic in our capital return program. - We have taken significant steps and are continuing to optimize our cost base, including discontinuing brand marketing and further optimizing performance marketing over the past five quarters.
- As communicated during our Q2 2024 earnings call, we are actively evaluating and planning further reductions to our expenses, notably R&D, as part of ongoing cost management.
As we execute against our strategic priorities and growth and profitability goals, we look forward to continuing to engage with all of our shareholders.
Goldman Sachs & Co. LLC is serving as financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to the Company.
ABOUT UPWORK
Upwork is the world’s largest work marketplace that connects businesses with independent talent from across the globe. We serve everyone from one-person startups to large, Fortune 100 enterprises with a powerful, trust-driven platform that enables companies and talent to work together in new ways that unlock their potential. Our talent community earned over
SAFE HARBOR
This press release of Upwork Inc. (the “Company,” “we,” “us,” or “our”) contains "forward-looking" statements within the meaning of the federal securities laws. Forward-looking statements include all statements other than statements of historical fact, including any statements regarding our future operating results and financial position, information or predictions concerning the future of our business or strategy, anticipated events and trends, potential growth or growth prospects, competitive position, technological and market trends, including artificial intelligence, industry environment, the economy, our plans with respect to share repurchases, and other future conditions.
We have based these forward-looking statements largely on our current expectations and projections as of the date hereof about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. As such, they are subject to inherent uncertainties, known and unknown risks, and changes in circumstances that are difficult to predict and in many cases outside our control, and you should not rely on such forward-looking statements as predictions of future events. We make no representation that the projected results will be achieved or that future events and circumstances will occur, and actual results may differ materially and adversely from our expectations. The forward-looking statements are made as of the date hereof, and we do not undertake, and expressly disclaim, any obligation to update or revise any forward-looking statements, to conform these statements to actual results, or to make changes in our expectations, except as required by law. Additional information regarding the risks and uncertainties that could cause actual results to differ materially from our expectations is included under the caption "Risk Factors" in our Quarterly Report on Form 10-Q filed with the SEC on August 7, 2024, and in our other SEC filings, which are available on our Investor Relations website at investors.upwork.com and on the SEC’s website at www.sec.gov.
Contacts:
Media:
Rachel Durfee, VP of Communications
press@upwork.com
Investors:
investor@upwork.com
_________________________________
1 Based on market capitalization at market close on September 12, 2024.
FAQ
What was Upwork's (UPWK) response to Engine Capital's letter?
How much did Upwork (UPWK) spend on share repurchases in 2024?
What improvement has Upwork (UPWK) seen in its adjusted EBITDA margins?
What cost optimization measures has Upwork (UPWK) implemented?
