Despite high interest rates and spending cuts across the U.S. economy, Upwork seems to have pulled through:
- Q3 Non-GAAP EPS of $0.21 (vs $0.10 estimate)
- Revenue is also back to double digit growth with year-on-year growth at +10.8%
- The number of active clients have increased 2% year over year to approximately 836,000
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Gross Sales Volume is flat at around $1B.
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Adjusted EBITDA now stands at +$31M vs -$2.8M in Q3 2022, which is quite the improvement.
I have to say… Upwork could very well be one of the best run companies (in terms of its finances and profitability at least) from the last few years.
There is also the question of whether Upwork could emerge as a monopoly in its industry due to the strong network effects needed to set up a freelancing marketplace. For the longest time, we’ve had an Upwork / Fiverr duopoly, but Upwork (arguably) has the better package for both clients and freelancers.
It’s also unclear how much Fiverr will be affected by the war in Israel (Fiverr is an Israeli company).
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