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Dec 31, 2024
Upwork Q4 2024 Earnings Report
Upwork reported record revenue, GAAP net income, and adjusted EBITDA for the fourth quarter and full year 2024.
Key Takeaways
Upwork achieved record financial results in Q4 2024, with revenue reaching $191.5 million, net income of $147.2 million, and adjusted EBITDA of $50.2 million, marking its most profitable quarter ever. The company's strong performance was driven by growth in AI-related work and strategic initiatives, positioning it for continued market share gains.
Fourth-quarter revenue increased 4% year-over-year to $191.5 million.
Net income for Q4 2024 was $147.2 million, significantly up from $17.4 million in Q4 2023, including a non-cash tax benefit of $140.3 million.
Adjusted EBITDA for Q4 2024 was $50.2 million, a 65% increase year-over-year, achieving a 26% adjusted EBITDA margin.
GSV from AI-related work grew 60% year-over-year in 2024, and the number of clients engaging in AI-related projects increased by 42%.
Revenue by Segment
Forward Guidance
Upwork provided guidance for the first quarter and full year 2025, anticipating continued revenue growth and increased profitability, with adjusted EBITDA margins expected to expand.
Positive Outlook
- Q1 2025 Revenue guidance: $186 million to $191 million.
- Q1 2025 Adjusted EBITDA guidance: $46 million to $50 million.
- FY 2025 Revenue guidance: $740 million to $760 million.
- FY 2025 Adjusted EBITDA guidance: $180 million to $190 million.
- Expectation to increase profitability and free cash flow each year towards a 35% adjusted EBITDA margin target.
Challenges Ahead
- Q1 2025 Diluted weighted-average shares outstanding: 143 million to 145 million.
- Q1 2025 Non-GAAP diluted EPS: $0.24 to $0.26.
- FY 2025 Diluted weighted-average shares outstanding: 138 million to 142 million.
- FY 2025 Non-GAAP diluted EPS: $1.05 to $1.10.
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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