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Jun 30, 2022
Upwork Q2 2022 Earnings Report
Upwork's revenue increased driven by product innovation and focus on larger customers.
Key Takeaways
Upwork's Q2 2022 earnings report revealed a 26% year-over-year revenue increase, reaching $156.9 million. The company focused on product innovation, particularly in the Project Catalog™ area, and saw growth in Enterprise Revenue, which increased 45% year-over-year to $12.3 million.
Revenue grew 26% year-over-year to $156.9 million.
Enterprise Revenue increased 45% year-over-year to $12.3 million.
Signed a record 36 new Enterprise Clients, up 24% year-over-year.
Overall take rate was 15.0%, up from 14.2% in the second quarter of 2021.
Revenue by Segment
Forward Guidance
Upwork provided revenue guidance for Q3 2022 to be between $156 million and $158 million, representing 23% year-over-year growth. The full-year 2022 revenue guidance was increased to between $612 million and $617 million, which is 22% year-over-year growth at the midpoint.
Positive Outlook
- Increase in Ukraine-related revenue forecast in the second half of 2022
- Strong results in the second quarter
- Higher revenue forecast in the second half of 2022 from the changes to our pricing structure
- Targeting being adjusted EBITDA positive on an annual basis starting in 2023
- Aiming to increase adjusted EBITDA margin by a few hundred basis points per year as we progress toward our previously communicated long-term target of an adjusted EBITDA margin of 30%-35%
Challenges Ahead
- Some softening seasonal and macroeconomic trends that we observed in the second quarter
- Lower client acquisition and retention rates, particularly in Europe and from small- and medium-sized businesses
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
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