Online work marketplace Upwork (NASDAQ:UPWK) will be reporting results tomorrow after market hours. Here’s what you need to know.
Upwork beat analysts’ revenue expectations by 5.1% last quarter, reporting revenues of $193.8 million, up 10.3% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations. It reported 855,000 gmv, up 2.3% year on year.
Is Upwork a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Upwork’s revenue to decline 1.6% year on year to $180.9 million, a reversal from the 13.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Upwork has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.7% on average.
Looking at Upwork’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Uber delivered year-on-year revenue growth of 20.4%, beating analysts’ expectations by 1.6%, and Alphabet reported revenues up 11.8%, in line with consensus estimates. Uber’s stock price was unchanged after the results, while Alphabet was down 7.2%.
Read our full analysis of Uber’s results here and Alphabet’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 10.4% on average over the last month. Upwork is down 1.3% during the same time and is heading into earnings with an average analyst price target of $18.82 (compared to the current share price of $15.75).
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