Upwork (UPWK) Q3 Earnings: What To Expect

StockStory
2024-11-05
Upwork (UPWK) Q3 Earnings: What To Expect

Online work marketplace Upwork (NASDAQ:UPWK) will be reporting results tomorrow after the bell. Here’s what you need to know.

Upwork met analysts’ revenue expectations last quarter, reporting revenues of $193.1 million, up 14.5% year on year. It was a slower quarter for the company, with a miss of analysts’ GMV estimates and underwhelming revenue guidance for the next quarter. It reported 868,000 gmv, up 5.6% year on year.

Is Upwork a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Upwork’s revenue to grow 4.7% year on year to $184 million, slowing from the 10.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Upwork has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.2% on average.

Looking at Upwork’s peers in the gig economy segment, some have already reported their Q3 results, giving us a hint as to what we can expect. DoorDash delivered year-on-year revenue growth of 25%, beating analysts’ expectations by 1.8%, and Fiverr reported revenues up 7.7%, topping estimates by 3.4%. DoorDash’s stock price was unchanged after the results, and Fiverr’s price followed a similar reaction.

Read our full analysis of DoorDash’s results here and Fiverr’s results here.

There has been positive sentiment among investors in the gig economy segment, with share prices up 6.3% on average over the last month. Upwork is up 28.9% during the same time and is heading into earnings with an average analyst price target of $14.18 (compared to the current share price of $13.50).

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