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Upwork:Quarterly Results/2024 Q2: Difference between revisions
→Earnings Call Summary
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* '''Gesert pointed out that they are confident that they can grow their target rate further.''' "We are confident we have additional capacity to grow our take rate, and our approach to this is focused on pricing to value. We continue to test and experiment with a wide variety of monetization strategies on the platform, and these tests are supporting our belief that we have significant opportunities to increase our take rate in the future," she said. | * '''Gesert pointed out that they are confident that they can grow their target rate further.''' "We are confident we have additional capacity to grow our take rate, and our approach to this is focused on pricing to value. We continue to test and experiment with a wide variety of monetization strategies on the platform, and these tests are supporting our belief that we have significant opportunities to increase our take rate in the future," she said. | ||
* '''Freelancer Plus subscriptions grew 28% y/y in Q2.''' | * '''Freelancer Plus subscriptions grew 28% y/y in Q2.''' | ||
* Hayden Brown pointed out that they are still behind their competitors when it comes to monetization (Q&A). " Stepping back and looking more broadly at the ads and monetization opportunity we have, we know that given where we are today and when we compare our opportunity to other two-sided marketplace businesses, there is a lot of run room here. And we also know specifically about features and functionality, whether it's in value-added services or further enhancements to subscriptions that there's a long road map here that we can execute on," she said. | |||
=== Macro === | === Macro === | ||
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* They also expect timing headwinds in Q4. "As a reminder, GSV and revenue growth, and consequently adjusted EBITDA margins, are affected in the fourth quarter of this year by the fact that there are fewer Sundays in the quarter this year versus last year. Excluding the structural impact, our GSV growth rate for the year would be approximately one point higher." | * They also expect timing headwinds in Q4. "As a reminder, GSV and revenue growth, and consequently adjusted EBITDA margins, are affected in the fourth quarter of this year by the fact that there are fewer Sundays in the quarter this year versus last year. Excluding the structural impact, our GSV growth rate for the year would be approximately one point higher." | ||
* '''They expect their take rate throughout 2024 to remain stable with what they saw in Q2.''' | * '''They expect their take rate throughout 2024 to remain stable with what they saw in Q2 due to the current trends that they are seeing.''' " I think we're just being prudent, again, kind of anticipating the trends that we're seeing and just looking at top-of-funnel trends, both on kind of the demand side as well as this mix shift and expecting that we'll see a little bit lighter usage in some of the ads products as well," Gesert said in their Q&A. | ||
=== Pricing === | === Pricing === | ||
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=== AI === | === AI === | ||
* '''Hayden Brown said in the Q&A that the number of jobs in the platform that can get disrupted by AI are few'''. "The segment of jobs in our marketplace that are less complex and hypothetically, most easily disrupted over time by AI, are jobs and Upwork with less than $300 of spend, which comprised just under 5% of our GSV today," she said. '''Hayden added that they are not yet seeing an AI impact on these jobs.''' "To be clear, we are not yet seeing a broad-based AI impact overall in this small job segment. Now, if you look within the small job segment, the current impact from AI is much more limited and is most visible in a couple of categories. Writing and translation is obviously where it's most evident, and that's just as we've expected and seen over multiple quarters now. In writing and translation and elsewhere, we continue to see, at this point, a positive AI-driven mix shift away from simple, very low-effectiveness jobs, to complex, more valuable, higher-paying work." | |||
* Hayden said clients are coming to them to transform their AI dreams into realities. | * Hayden said clients are coming to them to transform their AI dreams into realities. | ||