Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Akanksha Bakshi

Why Are Upwork Shares Trading Lower Today?

  • JMP Securities analyst Andrew Boone lowered the price target on Upwork Inc (NASDAQ:UPWK) to $48 from $55 and maintained an Outperform rating on the shares after its in-line Q4 earnings and below-consensus outlook.
  • The analyst mentions that the company is making substantial investments in the business while delaying profitability, now estimating 2022 EBITDA to be breakeven vs. $42 million prior forecast.
  • Boone further adds that freelancing will be one of the persistent trends that continue beyond COVID-19. He believes that these investments to build awareness can accelerate Upwork's adoption, especially with enterprise clients.
  • Needham analyst Bernie McTernan maintained Upwork with a Buy and lowered the price target from $60 to $42.
  • Recently, the company reported fourth-quarter revenue growth of 29% year-over-year to $136.86 million, beating the consensus of $131.77 million.
  • The gross margin was flat at 72.9%. The company reported a loss from operations of $(21.81) million, compared to an income of $0.656 million a year ago.
  • Adjusted EPS declined to $(0.05) from $0.06 in 4Q20, in line with the consensus.
  • 1Q22 Outlook: Upwork expects revenue of $139 million - $141 million, an increase of 23% Y/Y at the midpoint, versus the consensus of $139.1 million; and Adjusted EBITDA of $(11) million - $(13) million.
  • It expects Non-GAAP basic loss per share of $(0.11) - $(0.13) versus consensus $0.03.
  • FY22 Outlook: The company expects revenue of $620 million -$630 million, an increase of 24% Y/Y at the midpoint, versus the consensus of $620.9 million, and Adjusted EBITDA to breakeven.
  • It expects Non-GAAP basic loss per share of $(0.08) - $(0.11), versus the consensus $0.21.
  • Price Action: UPWK shares are down by 7.48% at $26.10 during the premarket session on Friday.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.