Upwork Inc (NASDAQ:UPWK) shares are tumbling in Thursday’s after-hours session after the company posted first-quarter results showing weakness on the top line.
- Upwork stock is at significant support. What’s behind UPWK weakness?
Upwork Q1 Highlights
Upwork reported first-quarter revenue of $195.48 million, missing analyst estimates of $195.90 million, according to Benzinga Pro. The company reported first-quarter adjusted earnings of 35 cents per share, beating analyst estimates of 27 cents per share.
Total revenue increased 1% year-over-year. Active clients totaled 784,000 at quarter’s end. Gross services volume per active client came in at $5,138, up 5% year-over-year. Upwork generated $23 million in cash from operations and $12.90 million in free cash flow during the quarter.
“This was a dynamic first quarter, where we delivered strong profitability while navigating a challenging demand environment,” said Hayden Brown, president and CEO, Upwork.
“With momentum in our AI, SMB, and Enterprise growth pillars, we are confident in our strategy and are taking the necessary steps today to further sharpen our execution.”
Upwork repurchased 8.1 million shares of its common stock during the quarter. The company had $256.10 million remaining on its buyback as of March 31.
Upwork ended the quarter with $328.40 million in total cash and cash equivalents. The company also announced that it secured a commitment letter to add a $150 million revolving credit facility, which is expected to be finalized in the coming weeks.
Furthermore, Upwork announced a restructuring plan that includes a workforce reduction of approximately 24%. The restructuring is expected to be substantially complete in the fourth quarter of 2026.
Upwork Guidance
Upwork sees second-quarter revenue in the range of $187 million to $193 million versus estimates of $204.17 million. The company lowered its full-year revenue outlook from a range of $835 million to $850 million to a new range of $760 million to $790 million, versus estimates of $842.32 million.
On the other hand, Upwork raised its full-year adjusted earnings guidance from a range of $1.43 to $1.48 per share to a new range of $1.50 to $1.55 per share, versus estimates of $1.45 per share.
UPWK Shares Plunge After The Bell
UPWK Price Action: Upwork shares were down 17.26% in after-hours, trading at $8.78 at the time of publication on Thursday, according to Benzinga Pro.
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