Shares of Upwork (UPWK 2.15%) were moving higher today after the online employment marketplace posted better-than-expected results in its third-quarter earnings report.
As of 12:43 p.m. ET, the stock was up 13%.
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Upwork impresses in Q3
Revenue in the third quarter rose 10% to $193.8 million, which easily beat the consensus at $185.9 million.
Active clients rose 2% to 855,000, and the company drove growth with new artificial intelligence (AI) investments that help match talent with employers. Job posts enabled by Uma, its AI tool, helped clients complete job posts 73% faster than job posts done without them. Gross service volume, or the money spent on the platform, jumped 36% from AI-related work.
On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 38% to $43.2 million. Adjusted earnings per share rose from $0.21 to $0.29, which beat the consensus at $0.26.
CEO Hayden Brown said, "Upwork continues to seize the tremendous market opportunity and execute our strategy to deliver durable, profitable growth, with 10% year-over-year revenue growth and our highest-ever net income in the third quarter."
NASDAQ: UPWK
Key Data Points
What's next for Upwork?
Looking ahead, the company forecast revenue of $178 million-$183 million, ahead of the consensus at $175.7 million, and it expects adjusted EPS of $0.24-$0.26, above the consensus at $0.22.
The company announced a $100 million share buyback authorization as well.
Upwork's investments in AI appear to be paying off. If the company continues to deliver steady growth and improve profit margins, the stock is well priced to move higher.
