Overview

* Freelance marketplace operator Upwork ( UPWK ) Q3 revenue rises 4% yr/yr, beating analyst expectations

* Adjusted EBITDA for Q3 beats estimates, reaching a record $59.6 mln

* Company raises FY2025 revenue and adjusted EBITDA guidance

Outlook

* Upwork ( UPWK ) raises FY2025 revenue guidance to $782 mln-$787 mln

* Upwork forecasts Q4 2025 revenue between $193 mln and $198 mln

* Upwork ( UPWK ) expects FY2025 adjusted EBITDA of $222 mln-$225 mln

Result Drivers

* AI GROWTH - GSV from AI-related work grew 53% yr/yr, driving overall GSV growth

* BUSINESS PLUS EXPANSION - Business Plus offering for SMBs saw a 33% qtr/qtr increase in GSV

* ADS & MONETIZATION - Revenue from Ads & Monetization grew 19% yr/yr, contributing to revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $201.70 $193.34

Revenue mln mln (11

Analysts

)

Q3 Net $29.30

Income mln

Q3 Beat $59.60 $50.10

Adjusted mln mln (11

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the employment services peer group is "buy"

* Wall Street's median 12-month price target for Upwork Inc ( UPWK ) is $19.50, about 18.3% above its October 31 closing price of $15.94

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)