
Upwork Inc (UPWK) Stock Forecast & Price Target
Upwork Inc (UPWK) Analyst Ratings
Bulls say
Upwork Inc. demonstrated remarkable financial growth in 2024, with Ads & Monetization tools revenue increasing by 51% year-over-year, which underscores the platform's enhanced efficiency and expanding take rates. The company's marketplace take rate improved to 18.1% in the fourth quarter of 2024, reflecting successful pricing strategies and the growth of ad services, contributing to a revenue rise that outpaced gross services volume by 15 points. Additionally, strong performance in the enterprise segment and significant increases in both AI-related job postings and subscription revenue further reinforce Upwork's positive economic outlook, even amid macroeconomic uncertainties.
Bears say
Upwork Inc experienced a year-on-year decline in active clients, dropping to 832,000 from 851,000 the previous year, indicating a notable decrease in top-of-funnel activity and reflecting broader industry challenges. The company's gross service volume (GSV) fell by 7% in Q4 and 3% for the year, attributed to macroeconomic headwinds and a significant decrease in software development job postings, which directly impact enterprise spending on freelance services. Additionally, the slowdown in active buyer additions and spending per active buyer, coupled with management's lowered EBITDA outlook, raises concerns about growth prospects and potential multiple compression.
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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