Loading...
•
Mar 31, 2023
Upwork Q1 2023 Earnings Report
Upwork's Q1 2023 earnings exceeded expectations with revenue growth, despite macroeconomic headwinds affecting client behavior, leading to cost reduction measures and a revised revenue outlook.
Key Takeaways
Upwork's Q1 2023 revenue grew by 14% year-over-year to $160.9 million, with GAAP net income of $17.2 million. The company saw some softness in client behavior due to macroeconomic uncertainty, leading to cost reduction measures and a revised revenue outlook for the year.
Q1 2023 revenue grew 14% year-over-year to $160.9 million.
GAAP net income was $17.2 million in Q1 2023.
The company lowered its topline revenue growth expectations due to macroeconomic uncertainty.
Cost reduction measures were proactively taken to increase profitability outlook.
Revenue by Segment
Forward Guidance
Upwork provided guidance for Q2 2023 and updated its full-year 2023 outlook, reflecting adjustments due to macroeconomic conditions and cost-saving measures. Revenue for Q2 is expected to be between $161 million and $164 million, with full-year revenue guidance revised to $655 million - $670 million. Full-year adjusted EBITDA guidance was increased to $36 million - $40 million.
Positive Outlook
- Q2 2023 revenue is projected to be between $161 million and $164 million.
- Full-year 2023 adjusted EBITDA guidance increased to between $36 million and $40 million.
- Cost-saving actions are expected to drive over $80 million of annualized net cost savings.
- Fourth-quarter 2023 adjusted EBITDA margin is expected to be approximately 15%.
- Q2 2023 non-GAAP diluted EPS to be between $0.00 and $0.02
Challenges Ahead
- Full-year 2023 revenue guidance reduced to between $655 million and $670 million.
- Q2 2023 adjusted EBITDA includes approximately $4 million of non-recurring severance-related costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...