
Upwork Inc (UPWK) Stock Forecast & Price Target
Upwork Inc (UPWK) Analyst Ratings
Bulls say
Upwork Inc. demonstrated a significant improvement in its financial metrics, with Ads & Monetization tools revenue increasing by 51% year-over-year in 2024, indicating enhanced marketplace efficiency and higher take rates. The marketplace take rate grew notably to 18.1% in the fourth quarter of 2024, up from 15.9% in the same period the previous year, driven by effective pricing strategies and robust growth in ad revenue and managed services. Revenue exceeded market expectations by 6.2%, reflecting a 4% year-over-year increase, bolstered by growth in ads, enterprise segments, and a notable surge in AI-related job postings, which rose by 60% year-over-year.
Bears say
Upwork Inc. has reported a notable year-over-year decline in active clients, dropping to 832,000 at the end of 2024 from 851,000 at the end of 2023, indicating weakness in its customer acquisition efforts. The company's gross service volume (GSV) also experienced a decline of 3.5% in Q4, reflecting broader macroeconomic challenges and a slowdown in hiring demand, particularly in software development job postings, which are crucial for its revenue generation. Additionally, management's cautious outlook on the future, highlighting the potential lag in benefiting from macro recovery and the need for reinvestment into growth initiatives, raises concerns about continued pressure on revenue and profitability metrics, contributing to a negative outlook on the stock.
This aggregate rating is based on analysts' research of Upwork Inc and is not a guaranteed prediction by Public.com or investment advice.
Upwork Inc (UPWK) Analyst Forecast & Price Prediction
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