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Upwork:Quarterly Results/2024 Q1: Difference between revisions
→Earnings Call Summary
(Created page with "== Earnings Call Summary == === GSV, revenue and take rate === * Historically, addition of new clients has been of the most leading indicators of GSV growth. * They anticipa...") |
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* Revenue from Freelance Plus subscription has grown by 76% y/y. | * Revenue from Freelance Plus subscription has grown by 76% y/y. | ||
* They added 28 new enterprise clients in Q1 (WPP, Unisys and Ansys), growing revenue in this segment by 28%. | * They added 28 new enterprise clients in Q1 (WPP, Unisys and Ansys), growing revenue in this segment by 28%. | ||
* Revenue growth in Q1 was driven "in part by the final transition to the new flat fee pricing structure we started last year," CFO Erica Gessert said. | |||
* Growth in active client base was driven by activations and reactivations. | |||
* They added 20,000 new clients in Q1. | |||
* '''"Excluding the impact to GSV growth rate from the pricing change, we estimate Q1 GSV growth would have been approximately 3% year-over-year. While GSV grew approximately 1% year-over-year, this included some temporary headwinds associated with the final transition to our simplified flat fee pricing structure, which occurred on January 1," CFO Erica Gessert said.''' | |||
* They view the pricing changes as positive despite it causing some headwinds to the GSV. | |||
* The said their marketplace take rate is still lower than that of the peers. '''"Even after these changes, our marketplace take rate at 17.7% remains one of the lowest in the industry, which means that we have the capacity to continue to develop targeted monetization opportunities on the platform that will bring value to our customers," CFO Erica Gessert said.''' | |||
=== Products === | === Products === | ||
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* They said they are committed to continuing growing operating leverage to 2025 and beyond. | * They said they are committed to continuing growing operating leverage to 2025 and beyond. | ||
* CFO Erica said they are now in a position to commit to hit 35% adjusted EBITDA margin in the next 5 years. | * CFO Erica said they are now in a position to commit to hit 35% adjusted EBITDA margin in the next 5 years. | ||
* As said last time, they expect y/y revenue growth to moderate in the second half as they lap pricing changes implemented in 2023. | |||
* They expect to increase operating margin q/q this year through efficiency efforts. | |||
=== Share repurchase program === | |||
* The completed the purchase of $100 million shares this month. '''"In the first quarter, we repurchased approximately 5.2 million shares and as of April 23rd we have completed the entire $100 million repurchase program, repurchasing approximately 8.1 million shares. "''' | |||