Upwork (NASDAQ:UPWK) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Upwork beat quarterly expectations: The company reported EPS of $0.40, topping the $0.31 consensus estimate by $0.09, while revenue reached $185.60 million versus forecasts of $180.22 million.
• Shares rose 6.2% to $9.72 following the earnings release, with trading volume nearly double the stock’s average daily volume.
• Analyst sentiment remains cautious: Upwork carries a consensus “Hold” rating, with analysts’ average price target at $13.05 after several firms lowered their targets; insiders have also sold shares primarily to cover tax obligations on vested equity awards.

Upwork (NASDAQ:UPWK - Get Free Report) released its quarterly earnings data on Monday. The company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.09, FiscalAI reports. The business had revenue of $185.60 million during the quarter, compared to analyst estimates of $180.22 million. Upwork had a net margin of 12.94% and a return on equity of 16.70%.

Upwork Trading Up 6.2%

UPWK traded up $0.57 during trading on Monday, hitting $9.72. The stock had a trading volume of 6,804,896 shares, compared to its average volume of 3,548,754. The firm has a market cap of $1.21 billion, a PE ratio of 12.62 and a beta of 1.03. Upwork has a 12 month low of $7.44 and a 12 month high of $22.84. The company has a 50 day simple moving average of $8.64 and a 200-day simple moving average of $10.71.

Insider Buying and Selling at Upwork

In other news, CFO Erica Gessert sold 9,336 shares of the firm's stock in a transaction dated Friday, September 18th. The stock was sold at an average price of $8.45, for a total value of $78,889.20. Following the sale, the chief financial officer directly owned 373,586 shares of the company's stock, valued at approximately $3,156,801.70. This trade represents a 2.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Hayden Brown sold 23,893 shares of Upwork stock in a transaction dated Friday, September 18th. The stock was sold at an average price of $8.45, for a total value of $201,895.85. Following the completion of the transaction, the chief executive officer owned 793,593 shares in the company, valued at $6,705,860.85. The trade was a 2.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 178,868 shares of company stock worth $1,509,462 over the last ninety days. Company insiders own 4.90% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. Royal Bank Of Canada reduced their price target on Upwork from $9.00 to $8.00 and set a "sector perform" rating for the company in a research report on Tuesday, August 11th. UBS Group lowered their price objective on Upwork from $10.00 to $9.00 and set a "neutral" rating on the stock in a report on Friday, August 14th. Scotiabank cut their price objective on Upwork from $10.00 to $8.00 and set a "sector perform" rating on the stock in a research note on Tuesday, August 11th. Canaccord Genuity Group cut their price objective on Upwork from $10.00 to $9.00 and set a "hold" rating on the stock in a research note on Wednesday, August 12th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Upwork in a report on Tuesday, October 27th. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $13.05.

Upwork Company Profile

Upwork Inc operates a global work marketplace that connects businesses with independent professionals and agencies. Clients use the platform to find, evaluate, hire and manage talent for projects across areas such as software development, design, marketing, writing, consulting, customer support and administrative services.

The company provides tools for talent discovery, project collaboration, communications, time tracking, contract management and payments. Its offerings serve both individual clients and larger organizations, with features designed to support recurring engagements, contingent-work programs and enterprise talent management.

Upwork was formed in 2015 through the merger of Elance and oDesk, two online freelance-work platforms, and began trading publicly on the Nasdaq stock exchange in 2018.

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