6,294
edits
Upwork:Quarterly Results/2024 Q2: Difference between revisions
→Earnings Call Summary
| Line 22: | Line 22: | ||
* '''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. | * 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. | ||
* Hayden said they expect the levers they are investing now such as UMA, AI, anti-circumvention efforts and enterprise initiatives to benefit GSV from 2025. | |||
=== Macro === | === Macro === | ||
* '''Hayden Brown said macro conditions became more challenging in Q2 2024:''' "This challenging environment showed through with softer top-of-funnel activity than expected in the second quarter. A leading indicator of the softness that we track internally is client-seeking work, which is a measure of the number of clients engaging in an action that leads to a new contract. In Q1, this number accelerated 11% quarter over quarter, while in Q2, this number decelerated 6% sequentially, with particular impact in May and June, along with a mix shift of active clients toward very small businesses," she said. | * '''Hayden Brown said macro conditions became more challenging in Q2 2024:''' "This challenging environment showed through with softer top-of-funnel activity than expected in the second quarter. A leading indicator of the softness that we track internally is client-seeking work, which is a measure of the number of clients engaging in an action that leads to a new contract. In Q1, this number accelerated 11% quarter over quarter, while in Q2, this number decelerated 6% sequentially, with particular impact in May and June, along with a mix shift of active clients toward very small businesses," she said. | ||
* Hayden said the tech industry is being hit harder in terms of job openings perspective. But there are some categories in tech that are performing better. | |||
* Hayden pointed out that U.S., Germany, and U.K. were more impacted than other countries. | |||
=== Outlook === | === Outlook === | ||
| Line 34: | Line 37: | ||
* '''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. | * '''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. | ||
* Gesert pointed out that they will likely maintain their cost discipline as demand picks up. "We've built a very, very good, for example, performance marketing engine, with very kind of clear parameters in terms of yield and ROI, and we'll continue to invest that way as we go forward. So, I don't necessarily see the need to ratchet up significantly our spend as demand returns, but we'll assess it as we go," she said. | |||
=== Pricing === | === Pricing === | ||