Online freelance marketplace Upwork (NASDAQ:UPWK) will be announcing earnings results tomorrow afternoon. Here's what to expect.
Upwork beat analysts' revenue expectations by 2.9% last quarter, reporting revenues of $190.9 million, up 18.7% year on year. It was a good quarter for the company, with a decent beat of analysts' gmv estimates but slow revenue growth. It reported 872,000 gmv, up 5.4% 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 14.5% year on year to $193 million, improving from the 7.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 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 3% on average.
Looking at Upwork's peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. DoorDash delivered year-on-year revenue growth of 23.3%, beating analysts' expectations by 3.6%, and Fiverr reported revenues up 5.9%, in line with consensus estimates. DoorDash traded up 8.4% following the results while Fiverr was also up 6.3%.
Read our full analysis of DoorDash's results here and Fiverr's results here.
Inflation fears have put pressure on growth stocks, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share prices down 6.6% on average over the last month. Upwork's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $17.7 (compared to the current share price of $11.13).
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