Marie Olivier, the Chief Accounting Officer of Upwork Inc. (NASDAQ:UPWK), recently sold 9,153 shares of the company's common stock. The shares were sold at a weighted average price of $15.9196, totaling approximately $145,712. Following this transaction, Olivier now holds 1,294 shares directly. This sale was executed under a pre-established Rule 10b5-1 trading plan, which was adopted on May 3, 2024. The shares were sold in multiple transactions, with prices ranging from $15.60 to $16.03 per share.
In other recent news, Upwork Inc. reported a solid third-quarter growth despite market challenges. The company disclosed a 10% increase in revenue year-over-year, reaching $193.8 million, and a record net income of $27.8 million. Upwork also announced strategic organizational changes, including a 21% reduction in headcount, aimed at saving $60 million annually.
Upwork's marketplace and managed services both experienced growth, with marketplace revenue up 12% to $167.3 million and managed services revenue growing 5%. The company launched Upwork Business Plus to cater to larger clients and signed 42 Enterprise deals in Q3, including with Hunter Douglas and Bill.com. Upwork's active client base increased by 2% to 855,000, and the marketplace take rate achieved a record high of 18.3%.
The company plans to acquire the AI-native search company Objective to enhance AI capabilities, and AI-driven growth is evident, with GSV from AI work growing by 36% year-over-year. Upwork forecasts Q4 2024 revenue between $178 million and $183 million, with adjusted EBITDA of $38 million to $42 million. These are among the recent developments in the company.
InvestingPro Insights
While Marie Olivier's recent stock sale might raise questions, it's important to consider Upwork's overall financial health and market performance. According to InvestingPro data, Upwork's market capitalization stands at $2.11 billion, with a P/E ratio of 24.88, suggesting a moderate valuation relative to earnings.
InvestingPro Tips highlight some positive aspects of Upwork's financial position. The company holds more cash than debt on its balance sheet, indicating financial stability. Additionally, Upwork boasts impressive gross profit margins, with the latest data showing a gross profit margin of 76.72% for the last twelve months as of Q3 2024. This strong profitability metric aligns with the company's business model as a leading freelance marketplace platform.
Another encouraging sign is that net income is expected to grow this year, which could potentially support the stock price in the future. This expectation is further reinforced by the fact that 5 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in Upwork's financial performance.
It's worth noting that Upwork has shown strong recent market performance, with a 50.86% price return over the past month and a 66.35% return over the last three months. This positive momentum might explain why the RSI suggests the stock is in overbought territory, as indicated by one of the InvestingPro Tips.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Upwork, providing a deeper understanding of the company's financial health and market position.
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