Upwork Q3 revenue beats estimates on AI demand, raises FY guidance

Upwork

03/11/2025 21:36

Overview

Freelance marketplace operator Upwork Q3 revenue rises 4% yr/yr, beating analyst expectations

Adjusted EBITDA for Q3 beats estimates, reaching a record $59.6 mln

Company raises FY2025 revenue and adjusted EBITDA guidance

Outlook

Upwork raises FY2025 revenue guidance to $782 mln-$787 mln

Upwork forecasts Q4 2025 revenue between $193 mln and $198 mln

Upwork expects FY2025 adjusted EBITDA of $222 mln-$225 mln

Result Drivers

AI GROWTH - GSV from AI-related work grew 53% yr/yr, driving overall GSV growth

BUSINESS PLUS EXPANSION - Business Plus offering for SMBs saw a 33% qtr/qtr increase in GSV

ADS & MONETIZATION - Revenue from Ads & Monetization grew 19% yr/yr, contributing to revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$201.70 mln
$193.34 mln (11 Analysts)
Q3 Net Income
$29.30 mln
Q3 Adjusted EBITDA
Beat
$59.60 mln
$50.10 mln (11 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the employment services peer group is "buy"

Wall Street's median 12-month price target for Upwork Inc is $19.50, about 18.3% above its October 31 closing price of $15.94

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX1GTwR7

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)