Is Now the Time to Buy Upwork After Earnings Estimates Move Higher?
November 21, 2023
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As Upwork Inc ($NASDAQ:UPWK). prepares to report its latest quarterly earnings, investors are wondering if now is the right time to invest in the company. Upwork Inc. is a provider of freelancing and other business services. In recent weeks, experts have been pushing up their earnings estimates for the company, creating a potential opportunity for investors. The question now being asked is whether or not this increased expectations represent a good buying opportunity. Upwork’s stock has been on a steady climb since the start of the year, and it has already gained over 30% since April.
With experts expecting earnings to be even higher than previously expected, some analysts believe that now is the time to jump on board before prices rise even further. It remains to be seen if Upwork can deliver on the increased expectations, but the potential for investors is certainly there. With the company’s steady rise in stock prices and experts predicting higher future earnings, now may be the right time to consider investing in Upwork Inc.
Earnings
As the latest earning report of FY2023 Q3 ending September 30 2021 showed, UPWORK INC earned a total revenue of 128.14M USD but lost 9.31M USD in net income. Compared to the previous year, there was a 19.2% decrease in total revenue. Despite this, UPWORK INC’s total revenue has steadily risen from 128.14M USD to 175.73M USD in the last 3 years. Given that this increase in revenue was observed despite a decrease in net income in the latest quarter, investors may be wondering if now is the time to buy into UPWORK INC’s stock. With a strong upward trend in total revenue and the potential for future growth, investing in UPWORK INC could be a good option for investors looking to diversify their portfolio.
However, investors should also be mindful of the company’s recent losses and consider all possible risks before making any investments.
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 |
| 666.64 | 13.01 | 2.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Upwork Inc. More…
| Operations | Investing | Financing |
| 41.02 | 114.67 | -157.18 |
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 |
| 961.44 | 618.5 | 2.52 |
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 |
| 24.2% | – | 3.1% |
| FCF Margin | ROE | ROA |
| 4.3% | 4.0% | 1.3% |
Market Price
The stock of Upwork Inc. has seen some ups and downs in the last month. On Monday, it opened at $14.4 and closed at $14.2, a decrease of 0.6% from the previous closing price of $14.3. Recent earnings estimates have been positive for the company, with the consensus among analysts that Upwork could see a solid growth in the upcoming quarter. This is especially true for revenue growth, with analysts expecting a solid 10% overall increase. This has helped to bolster confidence in Upwork’s stock, which has seen a bit of a roller coaster ride since its debut on the market.
The company has also been focusing on improving its customer service offerings and expanding its presence in the freelance marketplace, both of which could help to further propel its stock price higher. Furthermore, the company’s recent announcement of its acquisition of Work Market could help to further capitalize on the growing demand for remote work and freelancing opportunities. All in all, analysts remain bullish on Upwork Inc., with many predicting that now is an opportune time to invest in the company’s stock. With solid prospects for revenue growth, improved customer service, and an expanding presence in the market, now may be the right time to buy Upwork Inc. Live Quote…
Analysis
GoodWhale conducted an analysis of UPWORK INC‘s wellbeing using the Star Chart methodology. The results of the analysis revealed that UPWORK INC is strong in Asset, Growth, and medium in Profitability. However, it was weak in Dividend. UPWORK INC scored 8/10 on the health score and is considered capable to safely ride out any crisis without the risk of bankruptcy. Considering the results of the Star Chart analysis, GoodWhale classified UPWORK INC as a ‘cheetah’ company; a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. The type of investors who may be interested in investing in a company like UPWORK INC would be those who are looking for a higher return on their investment. These investors may be willing to take more risk in exchange for the potential reward of higher returns, as UPWORK INC is not as stable as other companies. They should also be prepared for the possibility of losing some or all of their investment if the company does not perform well. 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
Upwork Inc. (UPWK) has seen increases in analyst estimates for its earnings, signaling a potential buy opportunity. Upwork has seen strong revenue growth over the past three years, with profits increasing steadily.
Additionally, the company has a good balance sheet and low debt levels. Upwork has also seen positive free cash flow growth in recent years, indicating strong operational performance. Overall, Upwork offers solid fundamentals that make it a good buy at current levels.
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