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Investing.com -- Upwork Inc. (NASDAQ:UPWK) saw its shares surge 14.7% in after-hours trading Monday after the human and AI-powered work marketplace reported third-quarter earnings that significantly exceeded analyst expectations and raised its full-year guidance.
The company reported adjusted earnings per share of $0.36, beating analyst estimates of $0.28 by 29%. Revenue reached $201.7 million, an increase of 4% YoY and well above the consensus estimate of $193.35 million. The strong performance was driven by the company’s AI initiatives and growing monetization strategies, with revenue from ads and monetization increasing 19% YoY.
Upwork ’s stock jumped nearly 15% following the announcement as investors responded positively to both the earnings beat and raised guidance. For fiscal year 2025, the company now expects EPS of $1.35-$1.37, above the consensus of $1.24, and revenue of $782-787 million, exceeding analyst expectations of $773.2 million.
"The third quarter marked the start of the next chapter for Upwork," said Hayden Brown, president and CEO. "As we build the world’s human and AI-powered work marketplace, we’re driving phenomenal user productivity and engagement, resulting in a return to positive GSV growth."
Gross Services Value (GSV) grew 2% YoY to $1.02 billion, with GSV per active client increasing 5% YoY to $5,036. The company reported 794,000 active clients, down 7% from the same period last year.
Adjusted EBITDA reached a record $59.6 million, up 38% YoY, with a margin of 30% compared to 22% in the year-ago quarter. Net income rose 6% to $29.3 million, representing a 15% profit margin.
CFO Erica Gessert highlighted the company’s financial strength: "Our third quarter was exceptional, with record performance. We crossed the $200 million revenue milestone, with net income of $29.3 million and 15% profit margin."
The company’s AI-related work accelerated significantly, with GSV from AI-related work growing 53% YoY in Q3, compared to 30% YoY growth in the previous quarter.
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