Online work marketplace Upwork (NASDAQ: UPWK) will be reporting results this Monday after market close. Here’s what you need to know.
Upwork beat analysts’ revenue expectations last quarter, reporting revenues of $191.7 million, down 1.7% year on year. It was a softer quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is Upwork a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Upwork’s revenue to decline 10.6% year on year, a reversal from the 4.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Upwork rarely misses Wall Street’s revenue estimates.
Looking at Upwork’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Fiverr’s revenues decreased 15.8% year on year, beating analysts’ expectations by 8.4%, and DoorDash reported revenues up 34%, topping estimates by 1.1%. Fiverr traded up 4.2% following the results while DoorDash was also up 5.6%.
Read our full analysis of Fiverr’s results here and DoorDash’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 3.4% on average over the last month. Upwork is up 13.7% during the same time and is heading into earnings with an average analyst price target of $9.88 (compared to the current share price of $9.15).
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