Upwork Inc. (Nasdaq: UPWK) released its third quarter 2018 financial results yesterday and has significantly beaten many of its previous projections.
- Gross services volume (GSV) increased by 27% year-over-year to $449.5 million
- Revenue increased by 23% year-over-year to $64.1 million
- Core clients grew 22% year-over-year to 101,000
- Client spend retention increased to 108%, up from 95% a year ago
Third Quarter 2018 Financial Results & Highlights
- Revenue: Marketplace revenue for the third quarter increased 23% year-over-year to $56.8 million, while managed services revenue was up 21% year-over-year to $7.3 million
- Take Rate: Take rate, which we define as revenue divided by GSV, in the third quarter was 14.3% compared to 14.8% a year ago
- Gross Margin: Gross margin was 68%, remaining consistent year-over-year
- Net Loss: Net loss was $7.3 million compared to a net loss of $0.3 million a year ago. Non-GAAP net loss was $1.4 million compared to a non-GAAP net income of $1.9 million a year ago
- Adjusted EBITDA: Adjusted EBITDA was ($0.1) million in the third quarter compared to $2.8 million a year ago
Analysis
Upwork is investing all of its revenue and profits back into the growth of the platform. With a new Chicago sales floor opened and 100 enterprise sales reps of 500 started, Upwork cannot hire fast enough to manage its growth.
