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Upwork:Quarterly Results/2024 Q2: Difference between revisions
→Earnings Call Summary
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* CEO Hayden Brown said they outperformed their profitability goals in a dynamic macroeconomic environment that has become more challenging for both large and small businesses. | * CEO Hayden Brown said they outperformed their profitability goals in a dynamic macroeconomic environment that has become more challenging for both large and small businesses. | ||
* CFO Erica Gesert said customer spend and behavior of Enterprise clients remained consistent with Q1. | |||
=== GSV, Take rate and Clients Insights === | |||
* GSV declined 2.7% while GSV per active client was down 5% in Q1 due to macro-related challenges. | |||
* Active clients grew 6% y/y to 868,000 aided by both acquisition and retention. | |||
* Take rate rose 30 bps to quarter over quarter to 18%. | |||
* '''Gesert pointed out that they are confident that they can grow their target rate further.''' "We are confident we have additional capacity to grow our take rate, and our approach to this is focused on pricing to value. We continue to test and experiment with a wide variety of monetization strategies on the platform, and these tests are supporting our belief that we have significant opportunities to increase our take rate in the future," she said. | |||
* '''Freelancer Plus subscriptions grew 28% y/y in Q2.''' | |||
=== Macro === | === Macro === | ||
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* '''Hayden said though small businesses showed resilience compared to other cohorts, their spend has historically been smaller hence they are lowering their guidance for 2024.''' "We believe it's prudent to assume that the changes in client activity due to macroeconomic conditions that we observed in Q2 will remain for the rest of 2024, and we have factored those changes into lowered 2024 full-year revenue guidance while reiterating our 2024 full-year adjusted EBITDA guidance," she said. | * '''Hayden said though small businesses showed resilience compared to other cohorts, their spend has historically been smaller hence they are lowering their guidance for 2024.''' "We believe it's prudent to assume that the changes in client activity due to macroeconomic conditions that we observed in Q2 will remain for the rest of 2024, and we have factored those changes into lowered 2024 full-year revenue guidance while reiterating our 2024 full-year adjusted EBITDA guidance," she said. | ||
* '''Gesert pointed out that they also expect some anti-circumvention headwinds in 2024'''. "Contemplated in our revenue guidance are some near-term headwinds from anti-circumvention initiatives, which we expect will help to improve customer experience and platform quality while stimulating long-term growth of our marketplace," she said. | |||
* They also expect timing headwinds in Q4. "As a reminder, GSV and revenue growth, and consequently adjusted EBITDA margins, are affected in the fourth quarter of this year by the fact that there are fewer Sundays in the quarter this year versus last year. Excluding the structural impact, our GSV growth rate for the year would be approximately one point higher." | |||
* '''They expect their take rate throughout 2024 to remain stable with what they saw in Q2.''' | |||
=== Pricing === | === Pricing === | ||
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* Hayden said they added more connects during the quarter. | * Hayden said they added more connects during the quarter. | ||
* Hayden pointed out that asset monetization products revenue grew by 75% y/y. "Asset monetization products continue to be one of our fastest-growing revenue streams," she said. | * Hayden pointed out that asset monetization products revenue grew by 75% y/y. "Asset monetization products continue to be one of our fastest-growing revenue streams," she said. | ||
=== Share Buy Backs === | |||
* They bought back shares worth $33.1 million during the quarter. | |||
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