Upwork, Inc

Technology
EDP Services
www.upwork.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.16B
PE 25
Debt $361.00M
Cash $506.87M
EV $2.01B
FCF $137.62M

Earnings

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Sales & Net Margins

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Earnings	$85.79M
EBIT	$87.87M
ROE	21%
ROA	8%
FCF	$137.62M
Equity	$411.17M
Growth Stability	1
PE	25.14
PEG	12.18
PB	5.25
P/FCF	15.67
P/S	2.83
Price/Cash	0.24
Debt/Equity	0.88
Debt/FCF	2.62
Net Margins	12%
Gross Margins	77%
Op. Margins	12%
Earnings CAGR	0%
Sales Growth YoY	10%
Sales Growth QoQ	0%
Sales CAGR	25%
FCF CAGR	20%
Equity CAGR	6%
Earnings Stability	-0.32
Earnings Growth YoY	70%
Earnings Growth QoQ	25%

Earnings CAGR 5Y	2%
Sales CAGR 5Y	23%
FCF CAGR 5Y	23%
Equity CAGR 5Y	7%
Earnings CAGR 3Y	16%
Sales CAGR 3Y	16%
FCF CAGR 3Y	181%
Equity CAGR 3Y	22%
Market Cap	$2.16B
Revenue	$761.78M
Assets	$1.06B
Total Debt	$361.00M
Cash	$506.87M
Shares Outstanding	132.6M
EV	2.01B
Earnings Score	6%
Moat Score	91%
Safety Score	91%
Final Score	63%
Working Capital	619.85M
Current Ratio	3.18
Gross Profit	$584.46M
Shares Growth 3y	1%
Equity Growth QoQ	14%
Equity Growth YoY	20%

Assets & ROA

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Stockholders Equity & ROE

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Upwork Inc is a United States-based company that operates an online marketplace that enables businesses to find and work with highly-skilled independent professionals. The develops platform for hiring and freelancing purposes. Its products offering include Upwork Basic, Upwork Plus, Upwork Business, Upwork Enterprise, and Upwork Payroll. The business generates revenue from Talent and Clients across the USA, India, the Philippines and the rest of the world. Substantial income is derived from providing services to Clients.

SEC Filings

Direct access to Upwork, Inc (UPWK) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Upwork, Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Upwork, Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 0%

Stability -32%

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Upwork, Inc Discounted Cash Flow

Fully customizable DCF calculator online for Upwork, Inc.

Years

Calculation mode

= $5.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$138M	$165M	$198M	$238M	$285M	$342M	$411M	$493M	$592M	$710M	$852M	$8.5B
DCF		$150M	$164M	$179M	$195M	$213M	$232M	$253M	$276M	$301M	$329M	$3.3B
Value	$5.6B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-10%	-5%	-8%	-6%	-6%	-11%	-15%	7%	12%
ROA	-	-	-3%	-4%	-4%	-5%	-8%	5%	8%
ROE	-	-	-8%	-6%	-8%	-22%	-36%	12%	21%

Good Net Margins (11.84%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	2.76	-2.67	1.14	58.62	108.27	13.61	2.62
Debt over Equity	-	-1.41	0.12	0.1	0.06	2.22	2.31	0.95	0.88
Growth Stability	-	-	-	-	-	-	-	-	1

Neutral Debt/FCF ratio (2.62)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.88)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	23%	25%	19%	24%	35%	23%	11%	23%
Earnings YoY growth	-	-35%	87%	-16%	37%	146%	60%	-152%	2%
Equity YoY growth	-	4%	-877%	6%	15%	-13%	-4%	53%	7%
FCF YoY growth	-	-353%	-284%	-190%	-266%	-39%	-46%	400%	23%