What happened
Shares of online freelance worker-platform operator Upwork (UPWK -3.70%) were on a sharp downward ride this week. As of mid-afternoon Friday, according to data compiled by S&P Global Market Intelligence, the company's share price had declined by more 17% week to date. Investors were clearly unhappy about the company's latest quarterly results.
So what
In its first quarter, Upwork booked just under $161 million in revenue, which bettered the $141 million it earned in the same period of 2022. The company's gross services volume (GSV) -- a key financial metric for its business -- was flat, however, at $1 billion.
Meanwhile, on the bottom line, the company managed to narrow its non-GAAP (adjusted) net loss to $700,000 ($0.01 per share) from the year-ago deficit of $3.5 million.
Both results beat analyst expectations. Prognosticators following the stock were, on average, anticipating revenue of slightly over $159 million and a per-share, adjusted net loss of $0.10.
In its earnings release, Upwork described "some unanticipated softness" with some of its clients because of macroeconomic worries; this was most apparent in the company's enterprise and large-business customers.
Now what
This dynamic caused Upwork to lower its guidance, the main reason for the sharply negative investor reaction to the earnings release. For the entirety of 2023, it's now modeling revenue of $655 million to $670 million, with adjusted net income landing at $0.24 to $0.28.
Despite the investor disappointment, the average analyst estimates for the full year land within the two ranges. Collectively, those pundits are expecting Upwork to earn annual revenue of just under $665 million, filtering down into an adjusted, per-share net income of $0.24.
