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Upwork: Difference between revisions
→4. Upwork will likely benefit from the upcoming recession
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[[File:UPWORK ACTIVE CLIENTS.png|thumb|230x230px|https://investors.upwork.com/static-files/b5ef19da-22d6-4701-a36b-aa86cb398a6b#:~:text=Our%20overall%20take%20rate%20in,quarter%20of%20the%20prior%20year.<nowiki/>page.12<nowiki/>]] | [[File:UPWORK ACTIVE CLIENTS.png|thumb|230x230px|https://investors.upwork.com/static-files/b5ef19da-22d6-4701-a36b-aa86cb398a6b#:~:text=Our%20overall%20take%20rate%20in,quarter%20of%20the%20prior%20year.<nowiki/>page.12<nowiki/>]] | ||
Both the Gross Services Volume(GSV) and Active Clients are growing. GSV and Active Clients grew by 14% and 9% in Q3 2022, respectively<ref>https://investors.upwork.com/static-files/b5ef19da-22d6-4701-a36b-aa86cb398a6b#:~:text=Our%20overall%20take%20rate%20in,quarter%20of%20the%20prior%20year. page.12</ref>. Even though these represent a deceleration from previous quarters, this is expected since the company is coming off the pandemic period, which was associated with high demand for its marketplace. Of great significance is growth in its number of high-value clients. The number of clients spending over $100,000 per year in the trailing 12 months grew by 32% during the quarter<ref>https://investors.upwork.com/static-files/b5ef19da-22d6-4701-a36b-aa86cb398a6b#:~:text=Our%20overall%20take%20rate%20in,quarter%20of%20the%20prior%20year<nowiki/>.page.12</ref>. This indicates that there is increasing adoption of the marketplace by big companies. | Both the Gross Services Volume(GSV) and Active Clients are growing. GSV and Active Clients grew by 14% and 9% in Q3 2022, respectively<ref>https://investors.upwork.com/static-files/b5ef19da-22d6-4701-a36b-aa86cb398a6b#:~:text=Our%20overall%20take%20rate%20in,quarter%20of%20the%20prior%20year. page.12</ref>. Even though these represent a deceleration from previous quarters, this is expected since the company is coming off the pandemic period, which was associated with high demand for its marketplace. Of great significance is growth in its number of high-value clients. The number of clients spending over $100,000 per year in the trailing 12 months grew by 32% during the quarter<ref>https://investors.upwork.com/static-files/b5ef19da-22d6-4701-a36b-aa86cb398a6b#:~:text=Our%20overall%20take%20rate%20in,quarter%20of%20the%20prior%20year<nowiki/>.page.12</ref>. This indicates that there is increasing adoption of the marketplace by big companies. | ||
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(c)Clients using upwork to reaccelerate growth at the end of a recession.As recessionary environment diminishes, businesses start hiring aggressively in an effort to accelerate growth. They will choose platforms such as Upwork to drive this agenda due to its flexibility and fast hiring. | (c)Clients using upwork to reaccelerate growth at the end of a recession.As recessionary environment diminishes, businesses start hiring aggressively in an effort to accelerate growth. They will choose platforms such as Upwork to drive this agenda due to its flexibility and fast hiring. | ||
When we go back to 2020 recessionary environment brought by Covid-19 pandemic, we notice that Hayden Browns statement above holds true. During Q2 2020, Upwork revenue grew by 17%, the worst in history. However, revenue growth rate started picking up in Q3 henceforth. In fact, Upwork emerged as one of the biggest beneficiaries of covid 19 pandemic, with its revenue growing by 35% in 2021<ref>https://docs.google.com/spreadsheets/d/1HEX9PT_YXkz-eua9tR-FFx-s6gAr-7ZoTmbW8RbRqYE/edit#gid=649874449</ref>. | When we go back to 2020 recessionary environment brought by Covid-19 pandemic, we notice that Hayden Browns statement above holds true. During Q2 2020, Upwork revenue grew by 17%, the worst in history. However, revenue growth rate started picking up in Q3 henceforth. In fact, Upwork emerged as one of the biggest beneficiaries of covid 19 pandemic, with its revenue growing by 35% in 2021<ref>https://docs.google.com/spreadsheets/d/1HEX9PT_YXkz-eua9tR-FFx-s6gAr-7ZoTmbW8RbRqYE/edit#gid=649874449</ref>. | ||
=== 5. Jobs posted on Upwork platform holds steady === | === 5. Jobs posted on Upwork platform holds steady === | ||