Why Are Upwork Shares Trading Lower Today?

  • JMP Securities analyst Andrew Boone lowered the price target on Upwork Inc UPWK to $48 from $55 and maintained an Outperform rating on the shares after its in-line Q4 earnings and below-consensus outlook.
  • The analyst mentions that the company is making substantial investments in the business while delaying profitability, now estimating 2022 EBITDA to be breakeven vs. $42 million prior forecast.
  • Boone further adds that freelancing will be one of the persistent trends that continue beyond COVID-19. He believes that these investments to build awareness can accelerate Upwork's adoption, especially with enterprise clients.
  • Needham analyst Bernie McTernan maintained Upwork with a Buy and lowered the price target from $60 to $42.
  • Recently, the company reported fourth-quarter revenue growth of 29% year-over-year to $136.86 million, beating the consensus of $131.77 million.
  • The gross margin was flat at 72.9%. The company reported a loss from operations of $(21.81) million, compared to an income of $0.656 million a year ago.
  • Adjusted EPS declined to $(0.05) from $0.06 in 4Q20, in line with the consensus.
  • 1Q22 Outlook: Upwork expects revenue of $139 million - $141 million, an increase of 23% Y/Y at the midpoint, versus the consensus of $139.1 million; and Adjusted EBITDA of $(11) million - $(13) million.
  • It expects Non-GAAP basic loss per share of $(0.11) - $(0.13) versus consensus $0.03.
  • FY22 Outlook: The company expects revenue of $620 million -$630 million, an increase of 24% Y/Y at the midpoint, versus the consensus of $620.9 million, and Adjusted EBITDA to breakeven.
  • It expects Non-GAAP basic loss per share of $(0.08) - $(0.11), versus the consensus $0.21.
  • Price Action: UPWK shares are down by 7.48% at $26.10 during the premarket session on Friday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: Analyst ColorEarningsNewsGuidancePrice TargetReiterationAnalyst RatingsMoversTrading IdeasBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!