Shares of Upwork (NASDAQ:UPWK) saw a significant 23% increase intra-day today after the freelancing platform beat third-quarter results expectations.
The company reported earnings per share (EPS) of $0.21, which exceeded the consensus prediction of $0.10. Upwork’s revenue climbed by 11% from the same quarter last year, reaching $175.73 million and surpassing the expected $168.33 million.
This revenue growth can be attributed to an expanded take rate, bolstered by the strong performance of the company’s advertising products and its transition to a new flat-fee pricing model in 2023. The number of active clients showed growth, with a 2% increase from last year and from the previous quarter, reaching approximately 836,000.
Looking into the fourth quarter, Upwork anticipates revenues between $175 million and $180 million, which is ahead of the market’s forecast of $172.72 million. The EPS is projected to be between $0.16 and $0.18, compared to the Street estimate of $0.16.
For the entire year, Upwork is forecasting revenues to fall between $680 million and $685 million, which is more optimistic than the consensus estimate of $670.52 million. Additionally, the anticipated EPS range is set at $0.47 to $0.49, again higher than the market consensus of $0.37.