Mon, May 5, 8:48 PM (17 days ago)
**Upwork Inc. (UPWK) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $192.7 million, up 1% YoY, driven by Marketplace revenue growth. - **Gross Profit:** $150.9 million, up 2% YoY, with a gross margin of 78%. - **Operating Income:** $38.7 million, up 197% YoY, due to cost-saving measures. - **Net Income:** $37.7 million, up 105% YoY, with a net margin of 19.6%. - **EPS:** $0.28 (basic) and $0.27 (diluted), up from $0.14 (basic) and $0.13 (diluted) YoY. - **Cash Flow from Operations:** $37.0 million, up from $14.8 million YoY. - **Cash & Cash Equivalents:** $304.4 million, down from $305.8 million QoQ. - **Marketable Securities:** $317.6 million, up from $316.3 million QoQ. **Key Metrics:** - **GSV:** $987.7 million, down 2% YoY. - **Marketplace Take Rate:** 18.3%, up from 17.7% YoY. - **Active Clients:** 812,000, down 7% YoY. - **GSV per Active Client:** $4,912, up 3% YoY. - **Adjusted EBITDA:** $56.0 million, up 68% YoY. **Trends & Uncertainties:** - **Marketplace Revenue:** Slight increase due to ads and monetization products. - **Enterprise Revenue:** Decrease due to focus on existing clients and macroeconomic challenges. - **Cost of Revenue:** Decrease due to cost-optimization efforts. - **Operating Expenses:** Decrease in R&D, Sales & Marketing, and G&A due to cost-saving measures. - **Provision for Transaction Losses:** Increase due to better-than-expected collections in Q1 2024. - **Income Tax Provision:** Increase due to higher income and non-deductible compensation. - **Macroeconomic Conditions:** Adverse impact on GSV and client acquisition. - **Strategic Initiatives:** Focus on Connects, ads, monetization, operational efficiency, and generative AI. **Future Operations Impact:** - **Marketplace Revenue:** Expected to decline due to macroeconomic conditions. - **Enterprise Revenue:** Expected to decline due to strategic refinements. - **Cost of Revenue:** Expected to decrease due to cost optimization. - **Operating Expenses:** Expected to decrease due to ongoing cost-saving initiatives. - **Provision for Transaction Losses:** Expected to return to normalized levels. - **Income Tax Provision:** Expected to fluctuate based on income and tax credits. - **Cash Flow:** Expected to be sufficient for working capital and capital expenditure requirements.