Upwork Shares Rally on 'Resilient Results', Analysts Praise Ability to Absorb Ukraine Shockwaves

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Upwork Shares Rally on 'Resilient Results', Analysts Praise Ability to Absorb Ukraine Shockwaves
Credit: © Reuters.

Shares of Upwork (NASDAQ: UPWK ) are up more than 6% in premarket trading after the company reported better-than-expected Q1 earnings and revenue.

UPWK reported a Q1 loss per share of $0.03, compared to the expected loss per share of $0.14. The company generated $141.3 million in revenue in the period, topping the analyst consensus of $136.3 million.

Looking ahead to Q2, Upwork expects a loss per share in the range of $0.06 to $0.10, while analysts are expecting a loss per share of $0.08. Revenue is expected to range between $147 million and $151 million, above the consensus projection of $143.45 million.

Upwork expects FY 2022 revenue in the range of $590 million to $610 million, compared to the estimated $599 million.

BTIG analyst Marvin Fong reiterated a Buy rating and a $34.00 per share price target.

“We believe results are supportive of our view that, within e-commerce, UPWK is one of the best-positioned companiesto navigate broader economic turmoil given its attractive value proposition to clients and secular growth drivers (e.g., Project Catalog, Boosted Proposals, Enterprise, take rate drivers, etc.)... Overall, UPWK delivered a strong quarter relative to expectations, and we view shares as attractively valued,” Fong wrote.

Goldman Sachs analyst Eric Sheridan also reiterated a Buy rating and a $34.00 per share price target, down from $40.00.

“Structurally, we still frame Upwork across a few key themes: 1) executing against a large and growing TAM as the future of work evolves and companies look to adopt hybrid workforces in the future; 2) continuing to scale both the talent/freelancer and client side of the platform (including growing GSV per client); 3) continued product innovation to drive adoption, retention & share of wallet; and 4) investing in the brand to drive improving unaided brand awareness,” Sheridan wrote.

By Senad Karaahmetovic

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