Daily News
View All NewsUpwork revenue rises 26.3% in Q2, gross services volume up 19%
B2B talent platform Upwork Inc. (NASDAQ: UPWK) reported second-quarter revenue rose 26.3% year over year. In addition, gross services volume — which represents both client spend and additional fees charged for other services — rose 19% year over year to $1.046 billion.
“We continued to focus on product innovation and saw outstanding results in the form of higher customer satisfaction scores, faster time-to-hire, and strong client re-engagement rates from our latest innovative feature in the Project Catalog area, Consultations,” President and CEO Hayden Brown and CFO Jeff McCombs wrote in a shareholder letter.
| (US$ thousands) | Q2 2022 | Q2 2021 | % change |
| Revenue | $156,898 | $124,181 | 26.3% |
| Gross profit | $116,041 | $91,098 | 27.4% |
| Gross margin | 74.0% | 73.4% | |
| Net loss | ($23,820) | ($16,538) | nm |
The company saw the highest gross margin since going public in 2018. Brown and McCombs noted it was driven by the new client marketplace plan.
Upwork also added new enterprise clients in the second quarter including Asurion, a global technology services company with 22,000 employees.
Revenue by segment
| (US$ thousands) | Q2 2022 | Q2 2021 | % change |
| Marketplace | $144,325 | $114,460 | 26.1% |
| Managed services | $12,573 | $9,721 | 29.3% |
Guidance
Upwork forecast third-quarter revenue of between $156 million and $158 million, an increase of 23% year over year at the midpoint.
Share price and market cap
Shares in Upwork were down 16.18% to $19.40 as of 2:21 p.m. Eastern time; they were 30.60% above their 52-week low, according to FT.com. The company had a market cap of $3.00 billion.