NasdaqGS:UPWK

Stock Analysis Report

Executive Summary

Upwork Inc. operates an online talent marketplace that enables businesses (clients) to find and work with various independent professionals and agencies (freelancers) in the United States, India, the Philippines, and internationally.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Upwork's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UPWK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-16.9%

UPWK

-1.9%

US Professional Services

-2.0%

US Market


1 Year Return

-73.0%

UPWK

-12.3%

US Professional Services

-15.1%

US Market

Return vs Industry: UPWK underperformed the US Professional Services industry which returned -7% over the past year.

Return vs Market: UPWK underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

UPWKIndustryMarket
7 Day-16.9%-1.9%-2.0%
30 Day-32.4%-23.0%-19.7%
90 Day-46.5%-21.9%-23.2%
1 Year-73.0%-73.0%-11.5%-12.3%-13.4%-15.1%
3 Yearn/a16.8%13.1%10.9%3.7%
5 Yearn/a31.9%24.8%28.4%14.4%

Price Volatility Vs. Market

How volatile is Upwork's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Upwork undervalued compared to its fair value and its price relative to the market?

2.36x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate UPWK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate UPWK's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: UPWK is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: UPWK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UPWK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UPWK is overvalued based on its PB Ratio (2.8x) compared to the US Professional Services industry average (1.7x).


Next Steps

Future Growth

How is Upwork forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UPWK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: UPWK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UPWK's is expected to become profitable in the next 3 years.

Revenue vs Market: UPWK's revenue (11.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: UPWK's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if UPWK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Upwork performed over the past 5 years?

16.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: UPWK is currently unprofitable.

Growing Profit Margin: UPWK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if UPWK's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare UPWK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UPWK is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (13.9%).


Return on Equity

High ROE: UPWK has a negative Return on Equity (-6.42%), as it is currently unprofitable.


Next Steps

Financial Health

How is Upwork's financial position?


Financial Position Analysis

Short Term Liabilities: UPWK's short term assets ($280.6M) exceed its short term liabilities ($149.1M).

Long Term Liabilities: UPWK's short term assets ($280.6M) exceed its long term liabilities ($37.9M).


Debt to Equity History and Analysis

Debt Level: UPWK's debt to equity ratio (7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if UPWK's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: UPWK has a low level of unsold assets or inventory.

Debt Coverage by Assets: UPWK's debt is covered by short term assets (assets are 15.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: UPWK has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: UPWK has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -38.4% each year


Next Steps

Dividend

What is Upwork's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UPWK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate UPWK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UPWK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UPWK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UPWK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Hayden Brown (37yo)

0.25

Tenure

US$478,000

Compensation

Ms. Hayden Brown has been President and Chief Executive Officer of Upwork Inc. since January 1, 2020. Ms. Brown has been Director of Upwork Inc. since December 6, 2019. Ms. Brown was the Chief Marketing an ...


CEO Compensation Analysis

Compensation vs Market: Hayden's total compensation ($USD478.00K) is below average for companies of similar size in the US market ($USD3.17M).

Compensation vs Earnings: Hayden's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hayden Brown
President0.25yrUS$478.00k0.30% $1.8m
Brian Kinion
Chief Financial Officer2.5yrsUS$492.14k0.0042% $26.0k
Elizabeth Tse
Senior Vice President of Operations6.08yrsno datano data
Stratis Karamanlakis
Chief Technology Officerno datano datano data
Palmira Gerlach
Director of Investor Relationsno datano datano data
Eric Gilpin
Senior Vice President of Sales4yrsno datano data
Amanda Vinson
Senior Vice President of Corporate Strategy & Development0.50yrno datano data
Zoë Harte
Senior Vice President of Human Resources & Talent Innovation2.58yrsno datano data
Brian Levey
Chief Business Affairs & Legal Officer and Secretary2.5yrsno datano data
Han-Shen Yuan
Senior Vice President of Engineering4.83yrsno data0.0029% $18.0k

2.5yrs

Average Tenure

44yo

Average Age

Experienced Management: UPWK's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hayden Brown
President0.25yrUS$478.00k0.30% $1.8m
Kevin Harvey
Non-Executive Director6.08yrsUS$139.38k1.87% $11.5m
Gary Steele
Non-Executive Director1.67yrsUS$907.93k0.0081% $50.0k
Thomas Layton
Chairman6.08yrsUS$155.00k3.76% $23.2m
Elizabeth Nelson
Non-Executive Director5.17yrsUS$127.50k0.34% $2.1m
Gregory Gretsch
Independent Director6.08yrsUS$143.75k1.31% $8.1m
Daniel Marriott
Non-Executive Director6.08yrsUS$141.88k0.14% $832.7k
Leela Srinivasan
Director0.75yrno datano data

5.6yrs

Average Tenure

54yo

Average Age

Experienced Board: UPWK's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UPWK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 109.9%.


Top Shareholders

Company Information

Upwork Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Upwork Inc.
  • Ticker: UPWK
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$615.232m
  • Shares outstanding: 113.93m
  • Website: https://www.upwork.com

Number of Employees


Location

  • Upwork Inc.
  • 2625 Augustine Drive
  • Suite 601
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UPWKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2018

Biography

Upwork Inc. operates an online talent marketplace that enables businesses (clients) to find and work with various independent professionals and agencies (freelancers) in the United States, India, the Philippines, and internationally. The company’s platform provides access to talent with approximately 8,000 skills across approximately 70 categories, including content marketing, customer service, data science and analytics, graphic design, mobile development, sales, and web development. Its platform also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company’s platform offers access to various functionalities for remote engagements with freelancers comprising communication and collaboration, time tracking, invoicing, and payment. Its marketplace offerings include Upwork Basic, Upwork Plus, Upwork Business, Upwork Enterprise, and Upwork Payroll, as well as managed and internet escrow agency services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in Santa Clara, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 02:11
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.