Q124 UPWK earnings

First Quarter 2024 Revenue: $190.9 million, representing 19% growth year-over-year.
GAAP Net Income: $18.4 million for the first quarter.
Adjusted EBITDA: $33.3 million.
Gross Services Volume (GSV): Exceeded $1 billion for the quarter.
Active Clients: Grew 5% year-over-year to 872,000.
Freelancers Subscription Growth: 60% year-over-year with revenue from this offering growing 76%.
Enterprise Business Unit Revenue Growth: 10% year-over-year, with Enterprise Solutions growing 3% and Managed Services growing 17%.

Second Quarter Revenue Forecast: Expected to be in the range of $190 million to $195 million, indicating 14.2% year-over-year growth at the midpoint.
Second Quarter Adjusted EBITDA Guidance: Ranges from $32 million to $36 million, representing an approximately 17.7% margin at the midpoint.
Full Year 2024 Revenue Guidance: Increased to $770 million to $782 million, representing 12.6% year-over-year growth at the midpoint.
Adjusted EBITDA for Full Year 2024: Revised upwards to $140 million to $150 million from the previous guidance of $125 million to $135 million.
Non-GAAP Diluted EPS for Full Year 2024: Expected to be between $0.88 and $0.92, up from the previous guidance of $0.77 to $0.81.

Focus on Profitable Growth: Upwork emphasized its commitment to profitability alongside revenue growth.
Ad Monetization and Product Innovations: A key area of growth, particularly with the Freelancers subscription and the launch of AI-enabled products.
GSV and Client Engagement: Despite a slight impact from pricing structure adjustments, active client growth is seen as a positive leading indicator for GSV growth.
Emphasis on AI and Automation: Introduction of AI-powered features and automation across the platform to enhance efficiency and customer experience.
Enterprise Growth Strategy: Continued expansion through new client acquisitions and partnerships within the SaaS ecosystems.
Market Sentiment: Optimistic, based on consistent revenue growth, operational efficiencies, and strategic investments in innovation.

Hayden Brown: “Our commitment to running a profitable business continued in the first quarter… These results reflect the strength of our business and ability to deliver consistent results even in a fluid operating environment.”
Hayden Brown: “Our marketplace business continues to deliver steady GSV performance within a dynamic macro environment as GSV again exceeded $1 billion for the quarter.”
Erica Gessert: “We are committed to driving revenue growth and growing operating margins regardless of the macroeconomic backdrop we’re executing in.”
Erica Gessert: “We are now in a position to commit to hitting 35% adjusted EBITDA margin in the next 5 years, and I’m confident we can increase our operating leverage each and every year as we get there.”