Freelance platform Upwork reports record top line; stock soars

Shares of the freelance marketplace Upwork surged 18% yesterday, May 6, on the Nasdaq after the company reported record first-quarter revenue at $192.7 million.

Upwork jumped 18% yesterday to $15.70 per share. A day earlier, the company released its financial results for the first quarter, reporting a doubling of profit, along with year-over-year revenue growth. Revenue rose a tiny 1% to $192.7 million, but it marked the highest quarterly revenue in the company’s history. Net income reached $37.7 million.

The total amount spent by clients on the platform (gross services volume, or GSV) was $987.7 million, down 2% year over year. Upwork attributed the decline to macroeconomic conditions. The number of active users also fell, to 812,000 from 872,000 a year earlier. However, clients are spending more: GSV per client rose 3% year over year to $4,912. It was the first increase in this metric in the last six quarters, according to the company.

For the full-year 2025, Upwork guides for revenue between $740 million and $760 million and adjusted earnings per share between $1.14 and $1.18. While this implies a decline in the bottom line compared to 2024, it would still represent a significant top-line boost, as 2024 EPS was just $1.04.

Following the earnings, Citigroup lowered its price target on Upwork stock from $19 per share to $18 per share while maintaining a neutral rating. Despite the strong quarterly performance, Citigroup remains cautious about the outlook due to ongoing macroeconomic pressures that could impact future performance.

Goldman Sachs was more optimistic: Analyst Eric Sheridan reiterated his “buy” rating on Upwork and raised his price target to $25 per share.

Of the 11 analysts covering Upwork, six rate it a “buy” and five have it as a “hold.” The average target price is $18.90 per share, according to MarketWatch.

Upwork is an online marketplace that connects freelancers with clients, earning money by charging a fee for these services. The company came about in 2015 through the merger of two similar platforms — Elance and oDesk. In 2018, Upwork went public and raised $1.5 billion in its IPO.

In September, hedge fund Engine Capital, one of Upwork’s major shareholders, publicly questioned the company’s management and strategic direction, arguing that the platform was failing to realize its potential. In an open letter, Engine Capital cited a lack of strategic clarity and focus, poor capital allocation, ineffective leadership, and high turnover among executives under CEO Hayden Brown.

Upwork’s official response to the letter was vague, but within a month, the company announced it would lay off 21% of its staff, streamline its organizational structure, increase automation, and optimize its investment in research and development.