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Sep 30, 2022
Upwork Q3 2022 Earnings Report
Upwork's business and value proposition remained critical to customers amidst economic uncertainty, with revenue growing 24% year-over-year.
Key Takeaways
Upwork's Q3 2022 earnings showed revenue growth of 24% year-over-year, reaching $158.6 million. GSV grew 14% year-over-year, exceeding $1 billion. GAAP net loss was $(24.8) million, and adjusted EBITDA was $(2.9) million.
Revenue increased by 24% year-over-year, reaching $158.6 million.
Gross Services Volume (GSV) grew 14% year-over-year, exceeding $1 billion.
GAAP net loss amounted to $(24.8) million.
Adjusted EBITDA was $(2.9) million.
Revenue by Segment
Forward Guidance
Upwork is guiding for Q4 2022 revenue to be between $158 million and $160 million, representing a 16% year-over-year increase at the midpoint. They are narrowing their full-year 2022 revenue guidance to between $615 million and $617 million, representing 23% year-over-year growth at the midpoint. Q4 2022 adjusted EBITDA is expected to be a loss between $(1) million and $(3) million.
Positive Outlook
- Revenue guidance for Q4 2022 is between $158 million and $160 million, a 16% year-over-year increase at the midpoint.
- Full-year 2022 revenue guidance is narrowed to between $615 million and $617 million, a 23% year-over-year growth at the midpoint.
- Target to be adjusted EBITDA positive on an annual basis starting in 2023 is reiterated.
- Aim to increase adjusted EBITDA margin by a few hundred basis points per year.
- Long-term target of an adjusted EBITDA margin of 30%-35% is reaffirmed.
Challenges Ahead
- Deceleration of quarter-over-quarter and year-over-year growth rates from Q3 to Q4 is expected.
- This deceleration reflects continued softness in seasonal and macroeconomic conditions.
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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