Online work marketplace Upwork (NASDAQ:UPWK) will be announcing earnings results this Monday after market close. Here’s what to look for.
Upwork beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $201.7 million, up 4.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations. It reported 794,000 active customers, down 7.1% year on year.
Is Upwork a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Upwork’s revenue to grow 3.2% year on year to $197.6 million, in line with the 4.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.
Analysts covering the company have generally 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 3.4% on average.
Looking at Upwork’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Uber delivered year-on-year revenue growth of 20.1%, meeting analysts’ expectations, and Electronic Arts reported revenues up 61.8%, topping estimates by 29.4%. Uber traded down 3.5% following the results while Electronic Arts was also down 2.3%.
Read our full analysis of Uber’s results here and Electronic Arts’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. Investors in consumer internet stocks have been spared in this environment as share prices are down 16.6% on average over the last month. Upwork is down 5.3% during the same time and is heading into earnings with an average analyst price target of $23.90 (compared to the current share price of $18.87).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.