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Upwork:Quarterly Results/2023 Q2: Difference between revisions
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== Summary of earnings call == | == Summary of earnings call == | ||
You can find our brief summary of the earnings cal in [https://www.mindmeister.com/app/map/2885176377?t=NZWNxayDl6 MindMap.] | |||
=== Cost-saving measures === | |||
Throughout the quarter, Upwork identified and implemented additional cost-saving measures, which include(MR); | |||
* Additional reduction of brand marketing costs. | |||
* Deprioritize lower return investment vendor expenses and consulting projects. | |||
* Reassessed hiring plans so as to focus on most important strategic initiatives. | |||
Upwork hopes to continue identifying areas of efficiency while continuing to invest in growth areas(MR). | |||
Expects cost-savings measures undertaken to yield incremental benefits in second half(MR). | |||
=== AI === | |||
* One of their most important growth areas is generative AI(MR). | |||
* AI was the fastest-growing category in H1(MR). | |||
* Generative AI job posts grew 10x while searches grew 15x compared to Q4 2022(MR). | |||
* OpenAI is using Upwork talent to support its innovation and growth, and this created an opportunity for Upwork to help its customers gain access to Upwork talent(MR). | |||
=== Enterprise business === | |||
* Enterprise business added new clients like Mastercard, R.R. Donnelley, and Las Vegas Sands(MR). | |||
* Hired Zoë Diamadi as our new General Manager of Enterprise(MR). | |||
=== Numbers, Insights, Strategy === | |||
* '''Total revenue growth was primarily driven by pricing changes in April 2022 as well as monetization strategies related to connects and contract initiation fee introduced in the quarter'''(MR). | |||
* Active clients grew 2% y/y to 822,000(MR). | |||
* '''Growth in active clients was driven by y/y increase in retained clients, partially offset by flat growth in new clients'''(MR). | |||
* '''Operating expenses declined 4% in Q2 due to cost-saving measures initiated'''(MR). | |||
* '''Non-GAAP R&D expenses declined 24% y/y while sales and marketing, G&A and transaction losses declined significantly'''(MR). | |||
* '''Raised revenue guidance due to the success of its simplified pricing structure and other monetization improvements(MR).''' | |||
* | |||
== Management Guidance and Analysts Estimates == | == Management Guidance and Analysts Estimates == | ||