Shares of Upwork (UPWK 18.39%) were really putting in the work for investors on Tuesday. The job and human resources tech specialist’s stock enjoyed an 18% rise across the day thanks to a first-quarter earnings report that many investors found very heartening. That increase made the stock quite the outperformer, as the S&P 500 index closed with a 0.8% decrease.
A new top-line record
Upwork reported those figures after market close on Monday, divulging that it notched new all-time high Q1 revenue of $192.7 million. This was a 1% improvement over the same period of 2024. More impressive than that was the company’s non-GAAP (adjusted) net income leaped to almost $48.4 million, or $0.34 per share, from the year-ago quarter’s nearly $30.6 million.
Image source: Getty Images.
That earned the company a double beat on the consensus analyst estimates. On average, prognosticators following Upwork stock were anticipating revenue of $188.7 million and a per-share net-income number of only $0.27.
In its earnings release, Upwork said that its embrace of artificial intelligence (AI) technology to help power its solutions was improving both client productivity and engagement.
Given that, the company quoted CEO Hayden Brown as saying “we are confident in our path to expand market share, drive ongoing profitability, and continue to be the category leader at the intersection of talent, technology and work.”
Justifiable confidence
Upwork proffered revenue guidance for the entirety of 2025 of $740 million to $760 million and per-share adjusted earnings of $1.14 to $1.18. That’s a mixed bag, as the company’s 2024 top line was higher at $769 million, yet adjusted profitability was only $1.04.
All in all, though, the company seems to be on a good path and is well in the black on the bottom line. Unemployment remains low in this country, providing fertile ground for a business specializing in matching workers with enterprises eager to hire.
