Upwork Delivers 'Solid Start To 2025': Analyst

Upwork Inc UPWK delivered strong first-quarter results and investors are driving the stock higher on Tuesday. Analysts are weighing in on the company's strong report. 

Q1 Results: Upwork beat analysts' estimates on the top and bottom lines with earnings of 34 cents per and revenue of $192.71 million for the quarter. 

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Expert Ideas: Analysts from Goldman Sachs and Needham both highlighted Upwork's 25% year-over-year increase in AI-related work, strong engagement with its AI assistant Uma and the successful launch of Business Plus, which led to a sequential improvement in GSV. 

Goldman Sachs pointed to the 3% growth in GSV per active client and the 11% gain for large clients as a “solid start to 2025,” even amid the current macroeconomic pressures. 

Both firms attributed Upwork's adjusted EBITDA beat to lower-than-expected expenditure on sales and marketing (S&M). However, they cautioned that the Q1 EBITDA margin of 29% will be the high point for 2025, as reinvestments in AI and Enterprise will weigh on the metric going forward. 

Goldman Sachs and Needham revised their 2026 estimates down slightly due to continued macro uncertainty. 

Analyst Updates: Goldman Sachs analyst Eric Sheridan maintained Upwork with a Buy rating and a price target of $25. Needham analyst Bernie McTernan reiterated a Buy rating and a $19 price target on the stock. 

UPWK Stock Price Action: Upwork shares were up 21.5% at $16.19 at the time of publication, according to Benzinga Pro. 

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