Upwork has replicated its algorithm to expand beyond developers to include hiring in design, creative, writing, marketing, and more. This is extremely disruptive to business models like Indeed and LinkedIn, where you have to hire talent through old-world processes: interview, background check, payroll setup, etc. Additionally these antiquated platforms cost money to post jobs and recruiters get paid hefty fees for assisting in the recruitment process.
Upwork completely distrupts old world hiring practices. Platforms like LinkedIn take 30+ days to hire off of, whereas Upwork’s average time to hire is less than 1 day for similar talent.
Why Did Upwork Stock Plummet This Week?
Great question.
First-quarter revenue grew by 16% year over year while Upwork’s $.04 GAAP loss was 80% less than it was last year!
Motley Fool suggested that “Probably what we’re seeing here is a reaction not to Upwork’s earnings but to its guidance. Upwork’s promise to book about $73 million in sales in Q2 falls a bit short of the $74 million sales estimate Wall Street had been giving.
