Upwork Inc. (NASDAQ: UPWK) reported Q1 EPS of $0.03, $0.07 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $113.6 million versus the consensus estimate of $108.65 million.

First Quarter 2021 Financial Results

• GSV increased by 41% year-over-year to $786.8 million;
• Revenue grew 37% year-over-year to $113.6 million;
• Marketplace revenue grew 40% year-over-year to $104.7 million;
• Marketplace take rate was 13.5%, down from 13.6% a year ago;
• Gross margin increased one percentage point year-over-year to 73%;
• Net loss was $7.8 million, or $(0.06) per share, compared to a net loss of $10.0 million, or $(0.09) per share, in the first quarter of 2020;
• Non-GAAP net income was $4.2 million, or $0.03 per share, compared to non-GAAP net loss of $3.6 million, or $(0.03) per share, in the first quarter of 2020; and
• Adjusted EBITDA, a non-GAAP financial measure, was $6.9 million compared to $(1.0) million in the first quarter of 2020.

“After a record year in 2020, we’re off to an even stronger 2021,” said Hayden Brown, President and Chief Executive Officer of Upwork. “We continue to see success with our strategy as demonstrated by accelerating growth of both new clients and core clients, growing spend per client, and increasing customer lifetime value. With Covid shattering the biggest impediment to broader freelancer adoption - businesses’ prior discomfort with remote work - now is the time to introduce the new work marketplace industry category, which we announced today. Shining a spotlight on the work marketplace category and the numerous ways businesses and freelancers can work together on Upwork will help them achieve more than they ever imagined was possible.”

GUIDANCE:

Upwork Inc. sees Q2 2021 revenue of $119-121 million, versus the consensus of $113.98 million.

Upwork Inc. sees FY2021 revenue of $480-490 million, versus the consensus of $466.7 million.

The guidance we are providing today factors in the expected impacts of the COVID-19 pandemic that are available to us as of today.

As of May 4, 2021, Upwork is providing the following guidance for its second quarter and full year 2021:

For the second quarter of 2021, Upwork expects to report:

• Revenue in the range of $119 million to $121 million
• Adjusted EBITDA in the range of $2 million to $3 million
• Weighted average shares outstanding in the range of 127 million to 129 million

For the full year 2021, Upwork expects to report:

• Revenue in the range of $480 million to $490 million
• Adjusted EBITDA in the range of $16 million to $20 million
• Weighted average shares outstanding in the range of 128 million to 132 million

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