Online work marketplace Upwork (NASDAQ: UPWK) will be announcing earnings results this Wednesday afternoon. Here’s what you need to know.
Upwork beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $192.7 million, flat year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a decline in its customers. It reported 812,000 active customers, down 6.9% year on year.
Is Upwork a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Upwork’s revenue to decline 2.9% year on year to $187.6 million, a reversal from the 14.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Upwork has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.4% on average.
Looking at Upwork’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Fiverr delivered year-on-year revenue growth of 14.8%, beating analysts’ expectations by 0.9%, and Shutterstock reported revenues up 21.3%, topping estimates by 7.5%. Fiverr traded down 11.7% following the results while Shutterstock’s stock price was unchanged.
Read our full analysis of Fiverr’s results here and Shutterstock’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Upwork is down 10.3% during the same time and is heading into earnings with an average analyst price target of $19.10 (compared to the current share price of $12.07).
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