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Investing.com -- Upwork Inc. (NASDAQ:UPWK), the world’s largest human and AI-powered work marketplace, saw its shares surge 17.1% after reporting second-quarter earnings that significantly exceeded analyst expectations, driven by strong AI-related growth and improved profitability.
The company reported adjusted earnings per share of $0.35 for the second quarter, handily beating the analyst estimate of $0.27. Revenue came in at $194.9 million, surpassing the consensus estimate of $187.56 million and representing a 1% increase YoY. Upwork also raised its full-year guidance, now expecting revenue between $765 million and $775 million, above the consensus of $755.3 million.
Shares jumped on the strong results and outlook, reflecting investor confidence in the company’s AI-driven strategy. The company’s adjusted EBITDA reached a record $57.1 million, up 40% YoY, representing a 29.3% margin.
"Upwork delivered an exceptional second quarter, significantly outperforming across all key financial metrics," said Hayden Brown, president and CEO of Upwork. "Our strong Marketplace performance was driven by AI features that delivered tremendous value to our full range of customers."
The company reported that GSV (Gross Services Value) from AI-related work accelerated to 30% YoY growth in the second quarter, up from 25% in the first quarter. Clients are increasingly turning to Upwork to hire AI specialists across more than 365 different skills, with the Prompt Engineering subcategory growing 51% YoY.
For the third quarter, Upwork expects revenue between $190 million and $195 million, above the consensus estimate of $187.5 million, with adjusted EBITDA projected between $47 million and $51 million.
The company also announced two strategic acquisitions to enhance its enterprise offerings: Bubty, a platform for managing contingent workforce models, and Ascen, a solution for contingent W-2 workers, positioning Upwork to capture more of the enterprise market.
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