Upwork Stock Shines On Q1 Growth, Expects Strong Q2 Performance - Upwork (NASDAQ:UPWK)

Upwork Inc UPWK reported first-quarter revenue growth of 24% year-over-year to $141.3 million, beating the consensus of $136.47 million.
Marketplace revenue was $129.4 million (+24% Y/Y), and Managed services revenue was $11.9 million (+33% Y/Y). The gross margin was flat at 73%.
Adjusted EBITDA loss was $(0.4) million, compared with adjusted EBITDA of $6.9 million in 1Q21.
Non-GAAP operating expenses for Q1 were $106.2 million, representing 75% of revenue compared with 70% in the prior year.
Adjusted EPS was $(0.03), beating the consensus of $(0.13).
Upwork held Cash, cash equivalents, and marketable securities of ~$673 million at the end of the quarter.
Upwork stated that with respect to business activity in Ukraine, after dipping initially, by the end of the quarter, GSV was about 90% of pre-invasion levels. Financially, they estimate that the first-quarter revenue loss directly attributed to the war was ~$1 million.
The company expects to see a more significant impact on revenue in the second quarter due to the winding down of all contracts with talent and clients in Russia and Belarus. Upwork also incurred roughly $4.3 million in humanitarian and related expenses in the first quarter.
2Q22 Outlook: Upwork expects revenue of $147 million to $151 million, higher than the consensus of $143.45 million, and an adjusted EBITDA loss of $(6) million to $(10) million.
It expects non-GAAP basic loss per share of $(0.06) to $(0.10), vs. consensus of $(0.08).
FY22 Outlook: The company expects revenue of $590 million - $610 million, vs. a consensus of $599.52 million.
Price Action: UPWK shares are trading higher by 11.46% at $21.50 during the post-market session on Wednesday.

Market News and Data brought to you by Benzinga APIs