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Upwork:Quarterly Results/2024 Q2: Difference between revisions
→Earnings Call Summary
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=== Q1 2024 Results === | === Q1 2024 Results === | ||
* Revenue rose 15% y/y to $193.1 million. | * Revenue rose 15% y/y to $193.1 million driven by the flat fee structure as well as sustained momentum from ads and monetization products. | ||
* Upwork reported GAAP net income of $22.2 million, the highest ever. | * Upwork reported GAAP net income of $22.2 million, the highest ever. | ||
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* '''Hayden said though small businesses showed resilience compared to other cohorts, their spend has historically been smaller hence they are lowering their guidance for 2024.''' "We believe it's prudent to assume that the changes in client activity due to macroeconomic conditions that we observed in Q2 will remain for the rest of 2024, and we have factored those changes into lowered 2024 full-year revenue guidance while reiterating our 2024 full-year adjusted EBITDA guidance," she said. | * '''Hayden said though small businesses showed resilience compared to other cohorts, their spend has historically been smaller hence they are lowering their guidance for 2024.''' "We believe it's prudent to assume that the changes in client activity due to macroeconomic conditions that we observed in Q2 will remain for the rest of 2024, and we have factored those changes into lowered 2024 full-year revenue guidance while reiterating our 2024 full-year adjusted EBITDA guidance," she said. | ||
=== Pricing === | |||
* Hayden said they added more connects during the quarter. | |||
* Hayden pointed out that asset monetization products revenue grew by 75% y/y. "Asset monetization products continue to be one of our fastest-growing revenue streams," she said. | |||
* | |||
=== Competition === | === Competition === | ||
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=== AI === | === AI === | ||
* Hayden said clients are coming to them to transform their AI dreams into realities. | |||
* Hayden pointed out that more than half of Upwork freelancers are already familiar with AI compared to 15% of corporate employees. | |||
* Some of Upwork's AI clients include Scale AI which uses Upwork's talent. | |||
* GSV from AI-related work was up 67% y/y in Q2. | |||
* AI freelance professionals earned 47% more per hour than those that working on non-AI related projects. | |||
* Upwork announced UMA in Q2, an AI model that facilitates hiring and matching process. | |||
* Users interacting with UMA grew 23% y/y in Q2. | |||
=== Products === | |||
* During Q2, Upwork ring-fenced its existing enterprise client functionality. The result was more winning of enterprise clients. They added 46 enterprise clients in Q2, 27 as a result of the new model and 19 as a result of the traditional model. | |||
* They introduced AI-powered Upwork Chat Pro app to the Freelancer Plus subscription during the quarter. Upwork Chat Pro saw 68% y/y growth in daily active users. | |||
=== Clients === | |||
* Some of the clients added during the quarter include Labelbox, Builders FirstSource, and Guidepoint. | |||
* Historically, they acquired clients through their website and mobile apps, word of mouth, SEO and paid acquisition channels but now they are also targeting third-party ecosystems, where they win clients from their partners. | |||
* Hayden Brown said they double their partnership deals in Q2 and May brought the highest monthly revenue from partnerships that they have seen to date. However, GSV contribution by partnerships is still small though growing. | |||