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Sep 30, 2021
Upwork Q3 2021 Earnings Report
Upwork's innovations and strategic focus drove significant growth.
Key Takeaways
Upwork's Q3 2021 saw GSV reach $904.0 million, a 38% year-over-year increase, and revenue grew 32% year-over-year to $128.1 million, exceeding guidance. Active Clients increased by 25% year-over-year, and GSV per Active Client grew by 12% year-over-year.
GSV grew 38% year-over-year reaching $904 million.
Revenue increased 32% year-over-year to $128.1 million, surpassing the high end of guidance.
Active Clients grew 25% year-over-year.
New Enterprise plan customers were up 143% year-over-year.
Revenue by Segment
Forward Guidance
Upwork is guiding for Q4 2021 revenue between $130 million and $132 million, representing 23% year-over-year growth. Full-year 2021 revenue is projected between $496 million and $498 million, a 33% year-over-year increase. The company anticipates investing up to $17 million in brand marketing in Q4. Q4 adjusted EBITDA is expected to be a loss between $(2) million and $(4) million, with full-year adjusted EBITDA between $18 million and $20 million.
Positive Outlook
- Revenue is expected to grow 23% year-over-year in Q4 2021.
- Full-year 2021 revenue is projected to increase by 33% year-over-year.
- Upwork is increasing investment in brand marketing to drive awareness and shift perceptions.
- The company remains confident in delivering at least $1 billion of revenue in 2025.
- Aggressive investments in product development, marketing, and sales are expected to lay the foundation for long-term growth.
Challenges Ahead
- Q4 2021 adjusted EBITDA is expected to be a loss between $(2) million and $(4) million due to increased brand marketing investments.
- Smaller quarter-over-quarter revenue growth is expected from Q3 to Q4 2021 compared to the previous year, reflecting a return to normal seasonality patterns.
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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