Upwork UPWK shares have soared 12.5% in a month, outperforming the Zacks Computer & Technology sector’s appreciation of 5.9% and the Zacks Internet - Services industry’s return of 7.4%.

UPWK shares have outperformed peers like Workday WDAY and Uber Technologies UBER over the same time frame. While Workday shares inched up 7.3%, Uber shares fell 13.1%.

UPWK’s outperformance can be attributed to its strategic focus on AI-driven innovations, strategic acquisitions and impactful partnerships.

Strong Product Portfolio Aids UPWK’s Prospects

UPWK is benefiting via its innovative product portfolio, strategic partnerships and targeted acquisitions. Its recently introduced Business Plus plan bridges the gap between Marketplace and Enterprise offerings, enabling larger clients to access advanced features at lower costs. The platform’s AI-powered Managed Services further enhance its ability to meet enterprise demands.

AI innovation has been a key catalyst for driving Upwork’s top-line growth. Its proprietary Mindful AI, Uma, offers features like tailored proposal drafting and talent-matching enhancements.

UPWK has further bolstered its AI capabilities through acquisitions such as Headroom, which has accelerated its AI roadmap, and Objective, which has brought advanced multi-modal search technology.

UPWK also benefits from a rich partner base, including platforms like Webflow, Smartsheet SMAR and Bubble, which expand Upwork’s footprint by providing pre-vetted experts. Collaborations with emerging tech providers like Lettuce and Ocoya aid in embedding Upwork’s services directly into customer workflows.

UPWK’s Earnings Estimates Trend Steady

For fourth-quarter 2024, UPWK expects revenues between $178 million and $183 million. Non-GAAP diluted earnings are expected to be between 24 cents per share and 26 cents per share.

For the full-year 2024, UPWK expects revenues between $756 million and $761 million, representing 10% year-over-year growth at the midpoint. The non-GAAP diluted earnings are expected to be between $1 per share and $1.02 per share.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $181.2 million, indicating a year-over-year decline of 1.48%. The consensus mark for earnings is currently pegged at 23 cents per share, unchanged over the past 30 days, and indicating year-over-year growth of 15%.

The Zacks Consensus Estimate for 2024 revenues is pegged at $759.04 million, indicating year-over-year growth of 10.14%. The consensus mark for earnings is currently pegged at 89 cents per share, unchanged over the past 30 days, and indicating year-over-year growth of 71.15%.

UPWK has beaten the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.14%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Is UPWK Stock a Buy?

Upwork’s strong focus on AI, strategic acquisitions and expanding partnerships underscores its potential for long-term growth.

UPWK currently has a Zacks Rank #2 (Buy) and Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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