Upwork’s Q2 revenue climbs to $168.6Mn

CALIFORNIA, UNITED STATES — Global freelancing platform Upwork reported a promising second quarter, with revenue climbing 7.5% year-on-year (YoY) to $168.6 million. 

Much of this success was attributed to marketplace revenue, which spiked 8.5% to US$156.6 million. Factors influencing this increase include pricing alterations in April 2022, the growth in virtual tokens called Connects, and the introduction of a contract initiation fee in April 2023.

However, Upwork also reported some setbacks last quarter. First, the firm saw a dip in talent services fees after introducing a flat 10% fee structure for talent last May. 

Additionally, gross services volume witnessed a minor 1% decrease YoY at $1.04 billion, influenced by strong performances in the previous year’s second quarter and the pricing changes.

Encouragingly, active clients on the platform saw a 2% annual rise, totaling 822,000 in Q2. The company also managed to shrink its net loss from $23.8 million in the previous year to just $4.0 million this quarter.

“We achieved better-than-expected results across our financial goals while making significant strides in generative AI and growth across our business,” the company reported in a shareholder letter,” said Upwork.

For the upcoming quarter, the freelancing platform anticipates revenue between $165 million and $170 million and predicts a year-end total of $665 million to $675 million.