- Upwork Inc (NASDAQ:UPWK) reported first-quarter revenue growth of 24% year-over-year to $141.3 million, beating the consensus of $136.47 million.
- Marketplace revenue was $129.4 million (+24% Y/Y), and Managed services revenue was $11.9 million (+33% Y/Y). The gross margin was flat at 73%.
- Adjusted EBITDA loss was $(0.4) million, compared with adjusted EBITDA of $6.9 million in 1Q21.
- Non-GAAP operating expenses for Q1 were $106.2 million, representing 75% of revenue compared with 70% in the prior year.
- Adjusted EPS was $(0.03), beating the consensus of $(0.13).
- Upwork held Cash, cash equivalents, and marketable securities of ~$673 million at the end of the quarter.
- Upwork stated that with respect to business activity in Ukraine, after dipping initially, by the end of the quarter, GSV was about 90% of pre-invasion levels. Financially, they estimate that the first-quarter revenue loss directly attributed to the war was ~$1 million.
- The company expects to see a more significant impact on revenue in the second quarter due to the winding down of all contracts with talent and clients in Russia and Belarus. Upwork also incurred roughly $4.3 million in humanitarian and related expenses in the first quarter.
- 2Q22 Outlook: Upwork expects revenue of $147 million to $151 million, higher than the consensus of $143.45 million, and an adjusted EBITDA loss of $(6) million to $(10) million.
- It expects non-GAAP basic loss per share of $(0.06) to $(0.10), vs. consensus of $(0.08).
- FY22 Outlook: The company expects revenue of $590 million - $610 million, vs. a consensus of $599.52 million.
- Price Action: UPWK shares are trading higher by 11.46% at $21.50 during the post-market session on Wednesday.
