UPWK revenue increased to $56.8M with increased GSV to $449.5M, beats projections


Upwork Inc. (Nasdaq: UPWK) released its third quarter 2018 financial results yesterday and has significantly beaten many of its previous projections.

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  • 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


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.