Core Insights - Upwork Inc reported better-than-expected financial results for Q4 2025, with revenue of $198.41 million, surpassing analyst estimates of $197.52 million, and adjusted earnings of 36 cents per share, exceeding estimates of 31 cents per share [1][2] Financial Performance - For Q4 2025, Upwork's revenue was $198.41 million, beating analyst expectations [1] - Adjusted earnings for Q4 2025 were reported at 36 cents per share, higher than the anticipated 31 cents per share [1] - The company expects Q1 2026 revenue to be between $192 million and $197 million, below the estimate of $200.83 million, with adjusted earnings projected at 26 to 28 cents per share, compared to the estimate of 34 cents per share [2] - Full-year 2026 revenue is anticipated to be between $835 million and $850 million, slightly below the estimate of $836.15 million, while adjusted earnings are expected to range from $1.43 to $1.48 per share, compared to the estimate of $1.42 per share [3] Market Reaction - Following the earnings announcement, Upwork shares fell by 19.3%, trading at $15.16 [3] - Analysts have adjusted their price targets for Upwork in response to the earnings results [3]

Core Insights - Upwork Inc reported better-than-expected financial results for Q4 2025, with revenue of $198.41 million, surpassing analyst estimates of $197.52 million, and adjusted earnings of 36 cents per share, exceeding estimates of 31 cents per share [1][2] Financial Performance - For Q4 2025, Upwork's revenue was $198.41 million, beating analyst expectations [1] - Adjusted earnings for Q4 2025 were reported at 36 cents per share, higher than the anticipated 31 cents per share [1] - The company expects Q1 2026 revenue to be between $192 million and $197 million, below the estimate of $200.83 million, with adjusted earnings projected at 26 to 28 cents per share, compared to the estimate of 34 cents per share [2] - For the full year 2026, Upwork anticipates revenue between $835 million and $850 million, slightly below the estimate of $836.15 million, and adjusted earnings in the range of $1.43 to $1.48 per share, compared to the estimate of $1.42 per share [3] Market Reaction - Following the earnings announcement, Upwork shares fell by 19.3%, trading at $15.16 [3] - Analysts have adjusted their price targets for Upwork in response to the earnings results [3]

Core Viewpoint - Upwork Inc. experienced a significant drop in stock price during premarket trading due to a disappointing first-quarter guidance, despite exceeding Wall Street expectations for its fourth-quarter results [1]. Q4 Results - Upwork reported fourth-quarter revenue of $198.41 million, surpassing analyst estimates of $197.52 million [2]. - The company achieved adjusted earnings of 36 cents per share, exceeding estimates of 31 cents per share [2]. Q1 Outlook - For the first quarter, Upwork expects revenue between $192 million and $197 million, lower than analyst estimates of $200.83 million [3]. - The anticipated adjusted earnings for the first quarter are between 26 cents and 28 cents per share, compared to estimates of 34 cents per share [3]. - For the full year 2026, Upwork projects revenue of $835 million to $850 million, slightly below estimates of $836.15 million, with adjusted earnings expected between $1.43 and $1.48 per share, in line with estimates of $1.42 per share [3]. Technical Analysis - The stock is currently trading 28.1% below its 20-day simple moving average (SMA) and 24% below its 100-day SMA, indicating significant weakness in the short to medium term [4]. - Over the past 12 months, shares have decreased by 19.30% and are closer to their 52-week lows than highs [4]. - The Relative Strength Index (RSI) is at 44.50, indicating neutral territory, while the MACD is below its signal line, suggesting bearish pressure on the stock [5]. Analyst Consensus & Recent Actions - The stock carries a Buy Rating with an average price target of $21.22 [6]. - Recent analyst actions include Jefferies raising its target to $27.00 and UBS raising its target to $24.00 [6]. - During premarket trading, Upwork shares were down 23.68% at $14.34 [6].

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - Upwork reported record revenue and adjusted EBITDA for 2025, driven by growth in AI-related work and the Business Plus offering for small businesses [4][6][3] Financial Performance - In Q4, Upwork achieved a 3% year-over-year growth in gross services volume (GSV) and a 4% increase in revenue, with adjusted EBITDA margin at 27% [2] - For the full year 2025, Upwork reported over $4 billion in GSV, $788 million in revenue, and $226 million in adjusted EBITDA, marking record highs [3][6] - Q4 GSV exceeded $1 billion, with average GSV per active client rising 7% year-over-year to over $5,100 [2][6] Client Metrics - The company ended Q4 with 785,000 active clients, with churn improving to its lowest level in over eight quarters [1] - Active Business Plus clients grew 49% sequentially in Q4, with these clients spending nearly 2.5 times more than the marketplace average [11][12] AI Integration and Growth - AI-related work grew over 50% year-over-year, generating an annualized GSV of over $300 million in Q4 [6][8] - AI-native features contributed approximately $100 million in incremental GSV in 2025, with significant growth in categories like Generative AI [7][8] Business Plus and Enterprise Strategy - Business Plus saw a 24% increase in GSV quarter-over-quarter in Q4, with management targeting it to double in GSV by 2026 [12][18] - The Lifted platform, aimed at enterprise clients, is expected to drive significant growth, with a target of 25% GSV growth for the enterprise business in 2026 [13][15] Margins and Cash Flow - Gross margin was 78.0% in Q4 and 77.8% for the full year 2025, with non-GAAP operating expenses at 54% of revenue in Q4 [16] - Free cash flow for Q4 was $57 million, with the company repurchasing about 2 million shares for $34 million [17] 2026 Outlook - For 2026, Upwork guided GSV growth of 4% to 6% and revenue between $835 million and $850 million [6][18] - Q1 2026 revenue is expected to be between $192 million and $197 million, with adjusted EBITDA margin projected at 23% to 24% [19]

分组1 - Upwork reported quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.23 per share, and down from $0.30 per share a year ago, representing an earnings surprise of -47.83% [1] - The company posted revenues of $198.41 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.03%, and up from $191.48 million year-over-year [2] - Upwork has surpassed consensus revenue estimates four times over the last four quarters, indicating a positive trend in revenue performance [2] 分组2 - The stock has underperformed the market, losing about 4.5% since the beginning of the year compared to the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the coming quarter is $0.40 on revenues of $201.51 million, and for the current fiscal year, it is $1.39 on revenues of $823.99 million [7] - The Zacks Industry Rank for Internet - Services is currently in the bottom 38% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]

Financial Data and Key Metrics Changes - In 2025, the company achieved over $4 billion in Gross Services Volume (GSV), $788 million in revenue, and $226 million in adjusted EBITDA, marking record levels for both revenue and adjusted EBITDA with revenue growth of 2.4% and an adjusted EBITDA margin of 29% [7][20] - Q4 saw year-over-year growth of 3% in GSV, 4% in revenue, and a 27% adjusted EBITDA margin [7][20] - Average GSV per active client increased by 7% year-over-year in Q4 to over $5,100, while overall spend per contract rose by 10% year-over-year [21][22] - The churn rate declined in 2025, reaching its lowest level in over eight quarters in Q4, which was over 130 basis points lower than Q4 2024 [22] Business Line Data and Key Metrics Changes - The Business Plus solution for SMBs grew active clients by 49% sequentially in Q4, with 38% of these clients being new to the platform [12][22] - Revenue from Freelancer Plus grew by 29% year-over-year, contributing to a total ads and monetization revenue growth of 24% year-over-year [23] - Enterprise revenue decreased by 3% year-over-year in Q4 due to a strategic pause in selling legacy enterprise plans as the company shifted to the new Lifted strategy [23] Market Data and Key Metrics Changes - GSV from AI-related work surpassed $300 million on an annualized basis in Q4, up more than 50% from the prior year, driven by categories like Generative AI and creative production [10][11] - The number of clients engaging in AI work increased over 50% year-over-year, with GSV from these clients exceeding the average spend per client by about three times [11] Company Strategy and Development Direction - The company aims to capitalize on a $1.3 trillion market opportunity by positioning itself as a leader in the AI era, focusing on flexible, skills-based talent [8][19] - The strategy includes enhancing the AI-native marketplace, expanding the Business Plus offering, and ramping up the Lifted platform for enterprise clients [15][18] - The company plans to double GSV from Business Plus to represent over 5% of total annual GSV in 2026 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2026, anticipating GSV growth of 4%-6% and revenue growth of 6%-8% [26][27] - The company expects to see sequential increases in GSV, total take rate, and revenue throughout 2026, particularly in the second half as Lifted completes its integration [27][28] - Management highlighted the importance of human-agent collaboration, indicating that combining human judgment with AI capabilities leads to superior outcomes [81][82] Other Important Information - The company generated a record $223 million in free cash flow in 2025, which will support organic growth initiatives, M&A, and share repurchases [26] - Non-GAAP operating expenses were $107 million in Q4, maintaining a consistent percentage of revenue compared to Q4 2024 [25] Q&A Session Summary Question: Insights on 2026 investments and growth contributions - Management indicated that investments in AI features, Business Plus expansion, and Lifted are expected to ramp up throughout 2026, contributing to GSV and revenue growth [34] Question: AI search and recommendation functionality - The company has launched features like Uma Recruiter to enhance client hiring efficiency and is seeing positive impacts from these investments [40] Question: Active client trends and marketing initiatives - Management noted a decrease in churn rates and positive top-of-funnel yields, which are expected to drive active client growth [56] Question: AI talent availability on the platform - The company reported no significant talent gaps in the AI category and is actively working to attract more AI talent through partnerships [58] Question: Enterprise client demand and milestones - Management is focused on acquiring a small number of high-quality enterprise clients to meet growth goals, with a healthy pipeline of interest from existing customers [63][90]

Financial Data and Key Metrics Changes - In 2025, the company achieved over $4 billion in Gross Services Volume (GSV), $788 million in revenue, and $226 million in adjusted EBITDA, marking record levels for both revenue and adjusted EBITDA [7][20] - Revenue growth was 2.4% year-over-year, with an adjusted EBITDA margin of 29% for the full year [7][20] - In Q4, GSV grew by 3% year-over-year, revenue by 4%, and adjusted EBITDA margin was 27% [7][20] Business Line Data and Key Metrics Changes - The AI-related work on the platform generated over $300 million in GSV on an annualized basis in Q4, up more than 50% from the prior year [10][11] - Business Plus, aimed at SMBs, saw active clients grow by 49% sequentially, with these clients spending almost 2.5 times more than the marketplace average [12][22] - Enterprise revenue decreased by 3% year-over-year in Q4 due to a strategic pause in selling legacy enterprise plans [23][24] Market Data and Key Metrics Changes - The company is targeting a $1.3 trillion market opportunity, with a focus on AI, SMB, and enterprise segments [8][19] - The demand for AI-skilled talent has more than doubled year-over-year, indicating a strong market trend [16][19] Company Strategy and Development Direction - The company aims to lead in the AI era by transforming its product, customer experience, and operations [6][19] - The strategy includes enhancing AI functionalities, expanding the Business Plus offering, and integrating the Lifted platform for enterprise clients [12][15][19] - The company plans to double GSV from Business Plus to represent over 5% of total annual GSV in 2026 [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving top-line growth in 2026, driven by strong fundamentals and growth levers [29][31] - The company anticipates a ramp-up in GSV and revenue in the second half of 2026 as the Lifted platform integration completes [27][29] - Management highlighted the importance of human-agent collaboration, which is expected to enhance work outcomes significantly [81][84] Other Important Information - The company generated a record $223 million in free cash flow in 2025, which will support growth initiatives and share repurchases [26][30] - The company ended Q4 with 785,000 active clients, with a declining churn rate reaching its lowest level in over eight quarters [22][23] Q&A Session Summary Question: How should investments in AI features and Business Plus expansion scale in 2026? - Management expects a ramp in GSV and revenue throughout 2026, with strong growth trajectories in AI and Business Plus [34][35] Question: What are the early benefits of the AI search and recommendation functionalities? - Early investments in AI features have positively impacted client hiring processes, accelerating time to hire and improving search experiences [40][41] Question: What dynamics are driving active client growth? - The declining churn rate and effective marketing campaigns are expected to resume active client growth [56][57] Question: What is the outlook for enterprise revenue and client demand? - Enterprise revenue is expected to see a slight decline in Q1 due to a pause in legacy plans, but there is a healthy pipeline for future growth [73][74] Question: What factors contribute to higher spending by AI clients? - AI clients tend to have higher hourly rates and project volumes, contributing to their increased spending [78][79]

Financial Data and Key Metrics Changes - In 2025, the company achieved over $4 billion in Gross Services Volume (GSV), $788 million in revenue, and $226 million in adjusted EBITDA, marking record levels for both revenue and adjusted EBITDA [5][19] - Revenue growth was 2.4% year-over-year, with a fourth-quarter revenue growth of 4% [5][20] - Adjusted EBITDA margin reached 29% for the full year and 27% in Q4 [5][24] Business Line Data and Key Metrics Changes - The AI-related work on the platform generated over $300 million in GSV on an annualized basis in Q4, reflecting a growth of more than 50% year-over-year [9][10] - Business Plus, aimed at SMBs, saw active clients grow by 49% sequentially, with clients spending nearly 2.5 times more than the marketplace average [11][21] - Enterprise revenue decreased by 3% year-over-year in Q4 due to a strategic pause in selling legacy enterprise plans [22][23] Market Data and Key Metrics Changes - The number of clients engaging in AI work increased by over 50% year-over-year, with GSV from these clients exceeding the average spend per client by about three times [10][19] - The company is targeting a $1.3 trillion market opportunity, with a focus on flexible, skills-based talent in the AI era [6][18] Company Strategy and Development Direction - The company aims to lead in the AI era by transforming its product, customer experience, and operations, positioning itself as a human plus AI solution [5][6] - The strategy includes enhancing the AI-native marketplace and expanding the Business Plus offering to capture more of the SMB market [12][16] - The Lifted platform is designed to support major contingent work contracts and integrate into workflows of large companies, with a focus on a targeted set of enterprise accounts [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in accelerating growth and generating strong margins in 2026, supported by ongoing investments in AI and SMB initiatives [6][18] - The company anticipates a ramp-up in GSV and revenue in the second half of 2026 as the Lifted platform integration completes [26][89] - Management highlighted the importance of human-agent collaboration, indicating that combining human judgment with AI capabilities leads to superior outcomes [80][81] Other Important Information - The company generated a record $223 million in free cash flow in 2025, which will support organic growth initiatives and share repurchases [25][29] - The company expects to maintain an adjusted EBITDA margin of approximately 29% for 2026, with a target of exiting the year at a margin in the low 30s [26][28] Q&A Session Summary Question: How should we think about the investments scaling as you move deeper into 2026? - Management anticipates a ramp in GSV and revenue throughout the year, with strong growth trajectories in AI and Business Plus [33][34] Question: Can you elaborate on the search and recommendation functionality? - The company has launched features like Uma Recruiter to accelerate hiring and improve client visibility, which are already having a positive impact [38][40] Question: What are the dynamics driving active client growth? - The company is seeing a decrease in churn rates and positive top-of-funnel yields, which are expected to benefit active client growth [54] Question: Can you comment on AI clients spending three times the average? - Higher spend is driven by higher rates, longer project durations, and larger scopes of work in the AI category [75][76] Question: What milestones are needed to achieve enterprise growth goals? - The focus is on onboarding a small number of high-quality clients and launching the Lifted platform by mid-year [88][89]