Upwork (NASDAQ: UPWK) witnessed an impressive surge in its shares, climbing over 18% in after-hours trading subsequent to the release of its Q3 results. The company outperformed expectations, reporting an EPS of $0.21, surpassing the consensus estimate of $0.10.
The revenue also exhibited robust growth, marking an 11% increase year-over-year, totaling $175.73 million, which surpassed the anticipated figure of $168.33 million. This growth trajectory was largely attributed to an expansion in take rates, driven by the solid performance of the company’s advertising products and its strategic shift in 2023 towards a simplified, flat-fee pricing structure. The number of active clients saw a steady 2% increase both year-over-year and quarter-over-quarter, reaching approximately 836,000.
Looking ahead to Q4, Upwork anticipates a revenue range between $175 million and $180 million, exceeding the consensus estimate of $172.72 million. Additionally, the projected EPS is in the range of $0.16 to $0.18, as compared to the consensus of $0.16.
For the full fiscal year, Upwork foresees revenue within the spectrum of $680 million to $685 million, surpassing the consensus estimate of $670.52 million. The expected EPS for the year is projected to be within the range of $0.47 to $0.49, compared to the consensus of $0.37.
This remarkable performance has significantly boosted Upwork’s market standing, with the impressive Q3 results and strong guidance propelling an 18% surge in its stock value.