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Mar 31, 2022
Upwork Q1 2022 Earnings Report
Upwork's business demonstrated resilience amidst global uncertainty, executing its strategy to innovate, evangelize, and scale the work marketplace.
Key Takeaways
Upwork's Q1 2022 saw GSV reach over $1 billion, a 27% year-over-year increase, and revenue grew by 24% to $141.3 million. New Enterprise Client deals increased by 33% year-over-year, with Enterprise Revenue growing 57% year-over-year. The company estimates a $1 million revenue loss due to the war in Ukraine and incurred $4.3 million in humanitarian expenses.
Gross Services Volume (GSV) grew 27% year-over-year to over $1 billion.
Revenue increased 24% year-over-year to $141.3 million.
New Enterprise Client deals were up 33% year-over-year, and Enterprise Revenue grew 57% year-over-year.
The company suspended operations in Russia and Belarus due to the invasion of Ukraine.
Revenue by Segment
Forward Guidance
Upwork is guiding for second-quarter 2022 revenue to be between $147 million and $151 million, representing 20% year-over-year growth at the midpoint. Full-year 2022 revenue guidance is between $590 million and $610 million. Second-quarter 2022 adjusted EBITDA is expected to be a loss of between $(6) million and $(10) million.
Positive Outlook
- Guidance for second-quarter 2022 revenue to be between $147 million and $151 million, representing 20% year-over-year growth at the midpoint.
- Full-year 2022 revenue guidance is between $590 million and $610 million.
- Confident in the right strategy to achieve long-term objectives, including delivering adjusted EBITDA margins of 30% to 35% in the long run.
- Expect second-quarter 2022 non-GAAP basic loss per share to be between $(0.06) and $(0.10).
- Continue to expect stock-based compensation to average slightly more than $20 million per quarter for 2022.
Challenges Ahead
- Expect a larger impact to revenue in the second quarter due to the winding down of all contracts with talent and clients in Russia and Belarus by May 1.
- Second-quarter 2022 adjusted EBITDA is expected to be a loss of between $(6) million and $(10) million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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