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UPWK Upwork

Upwork, Inc. operates an online marketplace that enables businesses to find, hire, and pay freelancers for short-term and longer-term projects. Its marketplace offerings include Upwork Basic, Upwork Plus, Upwork Business, Upwork Enterprise, and Upwork Payroll. The company was founded by Odysseas Tsatalos and Efstratios Karamanlakis in December 2013 and is headquartered in Santa Clara, CA.

Company profile

UPWK stock data

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Calendar

23 Feb 21
28 Feb 21
31 Dec 21
Quarter (USD)
Dec 20 Sep 20 Jun 20 Mar 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from Upwork earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 232.46M 232.46M 232.46M 232.46M 232.46M 232.46M
Cash burn (monthly) (positive/no burn) (positive/no burn) (positive/no burn) 1.92M (positive/no burn) (positive/no burn)
Cash used (since last report) n/a n/a n/a 3.8M n/a n/a
Cash remaining n/a n/a n/a 228.67M n/a n/a
Runway (months of cash) n/a n/a n/a 119.2 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
19 Feb 21 Eric Gilpin Common Stock Sell Dispose S No No 55.22 36 1.99K 7,033
19 Feb 21 Eric Gilpin Common Stock Sell Dispose S No No 54.6363 540 29.5K 7,069
19 Feb 21 Eric Gilpin Common Stock Sell Dispose S No No 53.5988 2,813 150.77K 7,609
18 Feb 21 Eric Gilpin Common Stock Option exercise Aquire M No No 0 6,735 0 10,422
18 Feb 21 Eric Gilpin RSU Common Stock Option exercise Dispose M No No 0 6,735 0 80,819
17 Feb 21 Hayden Brown RSU Common Stock Grant Aquire A No No 0 41,000 0 41,000
17 Feb 21 Eric Gilpin RSU Common Stock Grant Aquire A No No 0 8,410 0 8,410
17 Feb 21 Jeff McCombs RSU Common Stock Grant Aquire A No No 0 23,549 0 23,549
20 Jan 21 Hayden Brown Common Stock Sell Dispose S No No 41.3537 80 3.31K 438,904
20 Jan 21 Hayden Brown Common Stock Sell Dispose S No No 40.7498 354 14.43K 438,984
63.8% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 226 178 +27.0%
Opened positions 72 43 +67.4%
Closed positions 24 27 -11.1%
Increased positions 68 56 +21.4%
Reduced positions 61 53 +15.1%
13F shares
Current Prev Q Change
Total value 4.65B 1.68B +176.5%
Total shares 77.91M 73.6M +5.9%
Total puts 980.9K 483.2K +103.0%
Total calls 2.24M 880.6K +154.0%
Total put/call ratio 0.4 0.5 -20.1%
Largest owners
Shares Value Change
Vanguard 8.83M $304.76M +15.5%
TROW T. Rowe Price 6.72M $232.03M +24.6%
BLK Blackrock 6.55M $226.15M +7.5%
FMR 5.88M $203.13M +136.7%
Baillie Gifford & Co 4.47M $154.22M +18.7%
Ancient Art 3.34M $115.34M -35.4%
Hawk Ridge Capital Management 2.08M $71.87M -45.4%
Dorsey Asset Management 1.89M $65.11M -52.3%
STT State Street 1.77M $61.19M +2.9%
ATOMVEST 1.76M $60.85M NEW
Largest transactions
Shares Bought/sold Change
FMR 5.88M +3.4M +136.7%
Capital International Investors 1.3M -2.39M -64.8%
Dorsey Asset Management 1.89M -2.06M -52.3%
Ancient Art 3.34M -1.83M -35.4%
ATOMVEST 1.76M +1.76M NEW
Hawk Ridge Capital Management 2.08M -1.73M -45.4%
Wishbone Management 0 -1.6M EXIT
TROW T. Rowe Price 6.72M +1.33M +24.6%
Vanguard 8.83M +1.19M +15.5%
SRS Investment Management 1.09M +1.09M NEW

Financial report summary

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Risks
  • Our growth depends on our ability to attract and retain a community of freelancers and clients, and the loss of our users, failure to maintain or grow spend of our current users, or failure to attract new users could adversely impact our business.
  • If we fail to attract new users, new users fail to transact at the rates we expect, or we fail to maintain or increase activity by existing users in a cost-effective manner or at all, our revenue will grow more slowly than expected or may decline and our business will be adversely impacted.
  • We have experienced growth in recent periods and expect to continue to invest in our growth for the foreseeable future. If we are unable to manage our growth effectively, our business, revenue and profits, and financial condition could be adversely affected.
  • We have a limited operating history under our current business strategy and pricing model, which makes it difficult to evaluate our business and future prospects.
  • Our business experienced, and may again experience, an adverse impact from the ongoing COVID-19 pandemic. In addition, users may reduce their use of our work marketplace as offices begin to reopen as the pandemic subsides.
  • We face payment and fraud risks that could adversely impact our business.
  • Changes to our pricing model have in the past and could in the future adversely affect our business.
  • If we are unable to maintain our payment partner relationships on favorable terms, or at all, or if our payment partners cease providing services to us, our business could be adversely affected.
  • Our revenue growth and ability to achieve and sustain profitability will depend in part on being able to increase the productivity, effectiveness, and efficiency of our sales force.
  • Our revenue growth depends in part on the success of our strategic relationships with third parties and their continued performance.
  • Our business model subjects us to disputes with or between users of our work marketplace.
  • Our business depends largely on our ability to attract and retain talented employees, including senior management and key personnel. If we lose the services of Hayden Brown, our President and Chief Executive Officer, or other members of our senior management team or key personnel, we may not be able to execute on our business strategy.
  • Clients sometimes fail to pay their invoices, necessitating action by us to compel payment.
  • The requirements of being a public company may strain our resources, divert management’s attention, and affect our ability to attract and retain additional executive management and qualified board members. The additional requirements we must comply with may further strain our resources and divert management’s attention from other business concerns.
  • Our management team has limited experience managing a public company.
  • We may be unable to integrate acquired businesses and technologies successfully or to achieve the expected benefits of such acquisitions. We may acquire or invest in additional companies, which may divert our management’s attention, result in additional dilution to our stockholders, and consume resources that are necessary to sustain our business.
  • Because we derive the substantial majority of our revenue from our marketplace offerings—with most of our marketplace revenue derived from our Upwork Basic, Plus, and Enterprise offerings—our inability to generate revenue from our marketplace offerings would adversely affect our business operations, financial results, and growth prospects.
  • We face intense competition and could lose market share to our competitors, which could adversely affect our business, operating results, and financial condition.
  • If we fail to develop, maintain, and enhance our brand and reputation cost-effectively, our business and financial condition may be adversely affected.
  • If we are not able to develop and release new products and services, or develop and release successful enhancements, new features, and modifications to our existing products and services, our business could be adversely affected.
  • Because a substantial portion of the services offered by freelancers and sought by clients on our work marketplace is information technology services, a decline in freelancers offering information technology services or the market for information technology service providers on our work marketplace could adversely affect our business.
  • Users circumvent our work marketplace, which could adversely impact our business.
  • Our sales efforts are increasingly targeted at large enterprise, global account, and mid-market clients, and as a result we may encounter greater pricing, implementation, and customization challenges, we may incur additional costs, and we may have to delay revenue recognition for more complicated transactions, each of which could adversely impact our business and operating results.
  • If the market for freelancers and the services they offer develops more slowly than we expect, our growth may slow or stall, and our operating results could be adversely affected.
  • If we or our third-party partners experience a security breach, other hacking or phishing attack, ransomware or other malware attack, or other privacy or security incident, whether intentionally or unintentionally caused by us or by third parties, our work marketplace may be perceived as not being secure, our reputation may be harmed, demand for our work marketplace may be reduced, our operations may be disrupted, we may incur significant legal costs, fines, or liabilities, and our business could be adversely affected.
  • If internet search engines’ methodologies or other channels that we utilize to direct traffic to our website are modified to our disadvantage, or our search result page rankings decline for other reasons, our user growth could decline.
  • Our ability to attract and retain users is dependent in part on ease of use and reliability of our work marketplace and the quality of our support, and any failure to offer high-quality support could adversely impact our business, operating results, and financial condition.
  • Errors, defects, or disruptions in our work marketplace could diminish demand, adversely impact our financial results, and subject us to liability.
  • We rely on AWS to deliver our work marketplace to our users, and any disruption of service from AWS or material change to our arrangement with AWS could adversely affect our business. We are also subject to litigation relating to our use of AWS.
  • We are vulnerable to intellectual property infringement claims and challenges to our intellectual property rights brought against us by third parties.
  • Failure to protect our intellectual property could adversely affect our business.
  • Our work marketplace contains open source software components, and failure to comply with the terms of the underlying licenses could restrict our ability to market or operate our work marketplace.
  • Our user growth and engagement on mobile devices depend upon third parties maintaining open application marketplaces and effective operation with mobile operating systems, networks, and standards that we do not control.
  • We and our users may be subject to new and existing laws and regulations, both in the United States and internationally.
  • There may be adverse tax, legal, and other consequences if the contractor classification or employment status of freelancers that use our work marketplace is challenged.
  • The regulatory landscape regarding contractor classification is rapidly changing, and changes in these laws could adversely affect demand for our services and platform and adversely affect our business.
  • The applicability of sales, use, and other tax laws or regulations on our business is uncertain. Adverse tax laws or regulations could be enacted or existing laws could be interpreted as applying or otherwise applied to us or users of our work marketplace, which could subject us or our users to additional tax liability and related interest and penalties, and adversely impact our business.
  • Having an international community of users and engaging freelancers internationally exposes us to risks that could have an adverse effect on our business, operating results, and financial condition.
  • Changes in laws or regulations relating to privacy or the protection, collection, storage, processing, transfer, or use of personal information, or any actual or perceived failure by us to comply with such laws and regulations or our privacy policies, could adversely affect our business.
  • We may be subject to escrow, payment services, and money transmitter regulations that may adversely affect our business.
  • Failure to comply with anti-corruption, anti-money laundering, and sanctions laws, including the U.S. Foreign Corrupt Practices Act, which we refer to as the FCPA, and similar laws associated with our activities outside of the United States, could subject us to penalties and other adverse consequences.
  • Litigation could have a material adverse impact on our operating results and financial condition.
  • We may be required to comply with governmental export control laws and regulations. Our failure to comply with these laws and regulations could have an adverse effect on our business and operating results.
  • We have a history of net losses, anticipate increasing our operating expenses in the future, and may not achieve or sustain profitability.
  • Our operating results may fluctuate from quarter to quarter, which makes our future results difficult to predict.
  • If our estimates or judgments relating to our critical accounting policies prove to be incorrect or financial reporting standards or interpretations change, our operating results could be adversely affected.
  • Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which could adversely impact our operating results.
  • We track certain performance metrics with internal tools and do not independently verify such metrics. Certain of our performance metrics may not accurately reflect certain details of our business, are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business.
  • We have recently remediated a material weakness in our internal control over financial reporting and if we fail to develop and maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable laws and regulations could be impaired.
  • Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
  • Our loan and security agreement provides our lender with a first-priority lien against substantially all of our assets (excluding our intellectual property), and contains financial covenants and other restrictions on our actions, which could limit our operational flexibility and otherwise adversely affect our financial condition.
  • We may require additional capital to fund our business and support our growth, including in connection with any future acquisitions or strategic investments, and any inability to generate or obtain such capital may adversely affect our operating results and financial condition.
  • Our reported financial results may be adversely affected by changes in U.S. GAAP.
  • If currency exchange rates fluctuate substantially in the future, the results of our operations, which are reported in U.S. dollars, could be adversely affected.
  • The stock price of our common stock has been and may continue to be volatile, and you could lose all or part of your investment.
  • Sales of substantial amounts of our common stock in the public markets, particularly sales by our directors, executive officers, and significant stockholders, or the perception that these sales could occur, could cause the market price of our common stock to decline and may make it more difficult for you to sell your common stock at a time and price that you deem appropriate.
  • The concentration of our stock ownership with insiders could limit your ability to influence corporate matters, including the ability to influence the outcome of director elections and other matters requiring stockholder approval.
  • If securities or industry analysts do not publish research, or publish inaccurate or unfavorable research, about our business, the price of our common stock and trading volume could decline.
  • We do not intend to pay dividends for the foreseeable future.
  • Provisions in our charter documents and under Delaware law could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove our current management, limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees, and limit the market price of our common stock.
  • Adverse or changing economic conditions may negatively impact our business.
  • We may be adversely affected by natural disasters and other catastrophic events, including the current COVID-19 pandemic, by man-made problems such as terrorism, or failures of technology, that could disrupt our business operations and our business continuity and disaster recovery plans may not adequately protect us from a serious disaster.
  • We may be adversely affected by the withdrawal of the United Kingdom from the EU Single Market and Customs Union.
Management Discussion
  • In March 2020, the World Health Organization declared the outbreak of COVID-19 to be a pandemic, which continues to spread throughout the United States and the world, and has resulted in governmental authorities implementing numerous measures to contain the virus, including travel bans and restrictions, shelter-in-place orders, and business limitations and shutdowns. The COVID-19 pandemic and the resulting restrictions intended to prevent its spread have accelerated the secular shift toward remote and independent work, and, with our unique, remote-based business model, the COVID-19 pandemic has not impacted our clients’ access to highly-skilled freelancers to complete short- and long-term projects on our work marketplace. In 2020, we continued to identify opportunities to prioritize our advertising and marketing efforts in order to reach those new and existing clients seeking to engage with independent talent due to the COVID-19 pandemic, as well as companies that have already embraced a remote work model. As a result of these efforts, our 2020 results were fueled by both existing and new clients, who used our work marketplace to address their changing business needs.
Content analysis
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