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Upwork Inc. (NASDAQ:UPWK) reported earnings after the close Wednesday, beating analyst profit and revenue expectations.
The company posted a second-quarter loss per share of $0.04, topping the analyst estimate of a $0.08 loss per share. Revenue for the quarter came in at $157 million versus the consensus estimate of $147.78 million.
Following the report, analysts provided their commentary and adjusted price targets:
A Stifel analyst maintained a Hold rating and increased the firm’s price target to $23 from $20 per share.
In a note to clients, the analyst said, “Upwork reported solid 2Q results in a tough operating environment with revenue and adj. EBITDA above expectations.”
“The company is not seeing a material change in client behavior as a result of the macro environment, though the company did factor in a $10-$15mm headwind to its improved FY 2022 revenue guidance due to the emergence of some seasonality/macro-driven softness in 2Q (in Europe and from SMBs),” added the analyst.
An RBC Capital analyst maintained a Sector Perform rating and a $21 per share price target on the stock.
“The LT opportunity for growth remains robust in digital talent/freelancing, however, we need line of sight to an inflection to growth, more confidence in margin expansion and more comfort in LinkedIn’s competitive shadow growing smaller not larger before we get constructive,” said the analyst.
A Jefferies analyst maintained a Hold rating on Upwork but raised the firm’s price target to $23 from $20.
“UPWK continues to manage top-line expectations well and beat Q2 revs by 6%, plus raised FY22 guide by $14.5M (3%) at mid-pt despite embedding $10-15M in 2H macro impact,” said the analyst. “There were some early macro pressures on client acquisition & retention, espec. in Europe and from SMBs. FY22 EBITDA guide was reinstated at minus $10-14M vs. St. – $9M and pre-war initial guide of break-even. Client behavior is unclear if macro worsens, though LT secular trends remain positive.”
Finally, a Goldman Sachs analyst Eric reiterated a Buy rating and lowered their price target from $31 to $30.
“Upwork’s Q2’22 earnings report struck a broadly constructive tone on the end demand environment (especially against broader macro fears & uncertainty) with pockets of weakness in certain geos/customer profiles more than offset by strength in other areas (Enterprise, product innovation, etc.),” said the analyst.
