UPWORK INC Reports Earnings Results for Second Quarter of FY2023
August 21, 2023
🌥️Earnings Overview
UPWORK INC ($NASDAQ:UPWK) released its earnings report for the second quarter of FY2023, which closed on June 30, 2023. Compared to the same period in the prior year, total revenue saw an increase of 7.5%, reaching USD 168.6 million. Net income for the quarter was recorded at USD -4.0 million, a decrease from the -23.8 million reported the year before.
Share Price
The stock opened at $9.8 and closed at $10.0, which was a 0.5% decrease from the previous closing price of $10.0. This increase was mainly driven by cost-cutting measures implemented by the company, such as reducing its marketing expenses and optimizing its supply chain operations. This was mainly due to higher costs associated with hiring additional personnel, IT infrastructure, and customer support functions.
Overall, UPWORK INC performed well in the second quarter of FY2023 and managed to report a profit despite a challenging economic environment. The company’s cost-cutting initiatives and efficiency gains will continue to be a key driver of future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Upwork Inc. More…
| Total Revenues | Net Income | Net Margin |
| 649.55 | -28.15 | -4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Upwork Inc. More…
| Operations | Investing | Financing |
| 14.09 | 170.64 | -176.69 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Upwork Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 930.57 | 623.65 | 2.3 |
Key Ratios Snapshot
Some of the financial key ratios for Upwork Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.4% | – | -3.2% |
| FCF Margin | ROE | ROA |
| 0.4% | -4.4% | -1.4% |
Analysis
GoodWhale has conducted a comprehensive analysis of Upwork Inc‘s fundamentals. According to Star Chart, Upwork Inc has been categorized as a ‘cheetah’, meaning it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This makes Upwork Inc an attractive investment for risk-seeking investors. Upwork Inc also has a high health score of 8/10, indicating that it is capable of sustaining future operations in times of crisis. Furthermore, Upwork Inc is strong in asset growth, but weak in dividend and profitability. This could be indicative of a company that has yet to turn a profit or is still in the early stages of growth. Overall, Upwork Inc is an attractive investment opportunity for investors who are willing to take on the risk associated with investing in a ‘cheetah’. Upwork Inc’s healthy cashflow and debt position coupled with its strong asset growth could make it a lucrative investment for investors in the long run. More…
Peers
Some of Upwork’s main competitors include Kanzhun Ltd, LegalZoom.com Inc, and DHI Group Inc. While all these companies offer similar services, each has its own unique features that make it stand out in the market.
– Kanzhun Ltd ($NASDAQ:BZ)
Kanzhun Ltd is a Chinese internet company that offers a variety of services, including online recruitment, information technology, and e-commerce. As of 2022, the company has a market cap of 5.43 billion US dollars and a return on equity of 3.6%. Founded in 2003, Kanzhun Ltd is headquartered in Beijing, China.
– LegalZoom.com Inc ($NASDAQ:LZ)
Founded in 2001, LegalZoom is the nation’s leading provider of online legal solutions for individuals and small businesses. Our mission is to make legal simple, affordable, and accessible for everyone.
With over two million customers and more than 20,000 legal documents, we’ve helped people start their businesses, make their wills, and protect their families. We’re here to help you take care of the legal stuff so you can get back to what matters most.
LegalZoom has a market cap of 1.7B as of 2022, a Return on Equity of -34.4%. The company provides online legal solutions for individuals and small businesses.
– DHI Group Inc ($NYSE:DHX)
DHI Group, Inc. (DHI) is a provider of data and insights on the global technology, financial, and professional services industries. The Company’s products and services include Data, Insights, and Analytics, and Events and Training. DHI Group, Inc. is headquartered in New York, New York.
Summary
Investors in Upwork Inc should assess the company’s second quarter FY2023 results. Total revenue increased by 7.5%, reaching USD 168.6 million, however net income decreased to USD -4.0 million. Overall, this can be seen as a positive sign for the company as the total revenue increase indicates strength in the market.
However, investors should keep an eye on the net income, as the decrease from the prior year shows potential for further losses.
Additionally, an analysis of the company’s future prospects is recommended to fully understand Upwork Inc’s investment potential.
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