Upwork (NASDAQ:UPWK) Updates FY 2025 Earnings Guidance

Key Points

• Upwork has updated its FY 2025 earnings guidance, projecting an EPS of 1.140-1.180 and revenue of $765.0 million-$775.0 million, exceeding analysts' expectations.
• Following the earnings report, Upwork's stock rose 10.2%, trading at $13.17 with significant trading volume.
• Analysts have set new price targets for Upwork, with JMP Securities raising their target from $18.00 to $20.00, indicating strong market confidence in the company's performance.

Upwork (NASDAQ:UPWK - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided EPS guidance of 1.140-1.180 for the period, compared to the consensus EPS estimate of 1.160. The company issued revenue guidance of $765.0 million-$775.0 million, compared to the consensus revenue estimate of $755.6 million. Upwork also updated its Q3 2025 guidance to 0.260-0.280 EPS.

Upwork Stock Up 10.2%

Shares of UPWK traded up $1.22 during mid-day trading on Thursday, hitting $13.17. 4,763,694 shares of the company's stock were exchanged, compared to its average volume of 2,405,609. The company has a debt-to-equity ratio of 0.60, a quick ratio of 3.41 and a current ratio of 3.41. Upwork has a fifty-two week low of $8.43 and a fifty-two week high of $18.14. The company has a market cap of $1.73 billion, a price-to-earnings ratio of 7.88 and a beta of 1.38. The stock's 50-day moving average is $13.61 and its 200-day moving average is $14.32.

Upwork (NASDAQ:UPWK - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.26 by $0.09. Upwork had a return on equity of 48.38% and a net margin of 30.46%. The firm had revenue of $194.94 million during the quarter, compared to analyst estimates of $187.56 million. During the same period in the prior year, the firm posted $0.26 earnings per share. The business's quarterly revenue was up .9% compared to the same quarter last year. On average, sell-side analysts anticipate that Upwork will post 0.84 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts recently issued reports on UPWK shares. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $18.00 target price on shares of Upwork in a research note on Monday, June 2nd. Citigroup reiterated an "outperform" rating on shares of Upwork in a report on Friday, May 16th. JMP Securities lifted their target price on Upwork from $18.00 to $20.00 and gave the stock a "market outperform" rating in a report on Friday, May 16th. Wall Street Zen raised Upwork from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 24th. Finally, Needham & Company LLC reissued a "buy" rating and set a $19.00 target price on shares of Upwork in a research report on Tuesday, May 6th. Four research analysts have rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $18.67.

Insider Activity

In other Upwork news, CEO Hayden Brown sold 60,000 shares of Upwork stock in a transaction that occurred on Thursday, May 15th. The stock was sold at an average price of $17.16, for a total value of $1,029,600.00. Following the completion of the transaction, the chief executive officer directly owned 1,106,846 shares in the company, valued at $18,993,477.36. The trade was a 5.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Erica Gessert sold 19,677 shares of Upwork stock in a transaction on Monday, May 19th. The stock was sold at an average price of $16.56, for a total value of $325,851.12. Following the completion of the transaction, the chief financial officer owned 181,873 shares in the company, valued at $3,011,816.88. The trade was a 9.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 505,454 shares of company stock valued at $8,536,163. Insiders own 7.50% of the company's stock.

Hedge Funds Weigh In On Upwork

Institutional investors and hedge funds have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Upwork by 5.1% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,466 shares of the company's stock worth $972,000 after buying an additional 3,599 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Upwork by 10.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 338,680 shares of the company's stock worth $4,420,000 after purchasing an additional 31,378 shares during the last quarter. Royal Bank of Canada boosted its position in Upwork by 68.9% in the first quarter. Royal Bank of Canada now owns 191,587 shares of the company's stock valued at $2,501,000 after buying an additional 78,123 shares in the last quarter. Finally, Millennium Management LLC grew its position in shares of Upwork by 364.0% during the 1st quarter. Millennium Management LLC now owns 789,638 shares of the company's stock worth $10,305,000 after buying an additional 619,459 shares during the period. Institutional investors own 77.71% of the company's stock.

Upwork Company Profile

Upwork Inc, together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company's work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development.

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