Online work marketplace Upwork (NASDAQ: UPWK) will be reporting results tomorrow afternoon. Here’s what investors should know.
Upwork beat analysts’ revenue expectations by 5.8% last quarter, reporting revenues of $191.5 million, up 4.1% year on year. It was a mixed quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations but a significant miss of analysts’ number of gross services volume estimates. It reported 832,000 active customers, down 2.2% 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 1.3% year on year to $188.5 million, a reversal from the 18.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 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 3.3% on average.
Looking at Upwork’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 1.2%, and Booking reported revenues up 7.9%, topping estimates by 3.6%. Alphabet traded up 1.8% following the results while Booking was also up 3.4%.
Read our full analysis of Alphabet’s results here and Booking’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 18% on average over the last month. Upwork is up 14% during the same time and is heading into earnings with an average analyst price target of $19.20 (compared to the current share price of $13.64).
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