Upwork Inc. (NASDAQ: UPWK) reported Q1 EPS of ($0.03), $0.03 better than the analyst estimate of ($0.06). Revenue for the quarter came in at $83.2 million versus the consensus estimate of $81.15 million.

First Quarter 2020 Financial Results

• Gross services volume (GSV) increased by 15% year-over-year to $559.5 million;
• Revenue grew 21% year-over-year to $83.2 million;
• Marketplace revenue grew 24% year-over-year to $74.8 million;
• Marketplace take rate was 13.6%, up from 12.6% a year ago;
• Gross margin expanded three percentage points year-over-year to 72%;
• Net loss was $10.0 million, or $(0.09) per share, compared to a net loss of $5.2 million, or $(0.05) per share, in the first quarter of 2019;
• Non-GAAP net loss was $3.6 million, or $(0.03) per share, compared to non-GAAP net income of breakeven, or $0.00 per share, in the first quarter of 2019; and
• Adjusted EBITDA, a non-GAAP financial measure, was negative $1.0 million compared to $0.8 million in the first quarter of 2019.

“With the global spread of the coronavirus significantly accelerating the adoption of remote work and increasing the value that companies place on workforce flexibility, Upwork’s solutions for customers are more relevant than ever,” said Hayden Brown, President and CEO of Upwork. “We have smoothly pivoted to a fully remote work model for our own teams and are focused on fulfilling the critical needs of our customers at this moment, from supplying them with the skilled talent they need to deliver on changing demands, to helping them migrate their existing team members onto our platform to enable continuous operations. We see promising indicators in our business, and continue to be very optimistic about our future.”

GUIDANCE:

Upwork Inc. sees Q2 2020 revenue of $79-81 million, versus the consensus of $82.85 million.

Impact of COVID-19 on Guidance

Recognizing the uncertainties related to the ongoing COVID-19 pandemic and rapidly shifting macroeconomic conditions, we are withdrawing full-year 2020 revenue guidance issued on February 26, 2020. Our second quarter revenue guidance factors in the expected impacts of the COVID-19 pandemic that we have visibility into today.

As of May 6, 2020, Upwork is providing the following guidance for its second quarter:

• Revenue in the range of $79 million to $81 million
• Weighted average shares outstanding in the range of 116 million to 118 million

For earnings history and earnings-related data on Upwork Inc. (UPWK) click here.