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Upwork (UPWK) investor relations material
Upwork Goldman Sachs Communicopia + Technology Conference 2025 summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Business performance and growth trajectory
Achieved a breakout Q2, outperforming industry peers in both top and bottom-line metrics, with growth rates 10–15% higher than other staffing agencies over several years.
Successfully bent the GSV curve, now positioned for resumed GSV and revenue growth ahead of previous expectations, with growth anticipated into 2026.
Margin improvement has been significant, reaching a 29.3% adjusted EBITDA margin last quarter, with a long-term goal of 35%.
Growth investments in Business Plus, ads, monetization, and enterprise are showing early positive results.
Expectation to slow margin expansion slightly to balance continued top-line growth.
Strategic priorities and AI integration
Focused on three strategic priorities: expanding access to TAM, leveraging AI category growth, and implementing AI across the platform.
AI category growth accelerated from 25% in Q1 to 30% in Q2, with further acceleration expected.
UMA, the AI companion, automates job posting, proposals, interviews, and will soon manage project milestones, driving $80 million in GSV in Q2.
AI is augmenting non-AI categories, increasing productivity and expanding the portfolio of work.
AI adoption is seen as a tailwind, enabling both freelancers and clients, with new subscription products and agentic work models planned.
Enterprise and product expansion
Recent acquisitions of BubTea and Ascend expand access to the full suite of contingent labor solutions, opening up the entire enterprise wallet.
Major GSV and revenue growth from enterprise solutions expected to manifest in the back half of 2026.
Business Plus product, with a premium take rate, saw 190% GSV growth quarter-over-quarter in Q2 and is in early adoption stages.
Value-added services, such as micro-lending for freelancers, are in early development with significant future potential.
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Frequently asked questions
Empowering talent and unlocking opportunities
Upwork is a leading online platform that connects freelancers with clients seeking services. It operates as a marketplace where businesses and individuals can hire and collaborate with remote workers across various fields, including software development, design, writing, marketing, and more. Upwork provides a convenient and efficient way for employers to find qualified freelancers and for freelancers to showcase their skills and find work opportunities.
Matching supply and demand
Upwork's business model revolves around facilitating the matchmaking between clients and freelancers. Clients post job listings on the platform, specifying their requirements, budget, and timeline. Freelancers can then browse through these job listings and submit proposals to the clients, highlighting their skills, experience, and estimated cost for completing the project. Upwork also provides tools for communication, collaboration, and payment processing, ensuring a seamless workflow between the parties involved. The company has experienced significant growth in recent years, driven by the increasing demand for remote work and the gig economy, and is one of the largest online freelance marketplaces globally.
A rapidly evolving market
Upwork operates in a rapidly evolving and competitive landscape, which presents both opportunities and challenges. Upwork has the potential to further expand its reach into new markets and tap into the growing demand for remote work worldwide. Also, the company can leverage technological advancements, such as AI and automation, to improve its matching algorithms and enhance the overall user experience on the platform.
Network effects
Since the core of a marketplace is supply and demand, it is also getting stronger when both sides grow, also called network effects. Amazon, Alibaba, Airbnb, and Uber are a few examples of companies operating as online marketplaces. Fiverr is a company that operates a similar marketplace as Upwork and are considered its closest competitor.
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