Upwork’s Gross Services Volume Surges 23 Pct Amid Record Customer Adoption
Upwork reported on Wednesday (Nov. 4) as part of its earnings results that gross services volume (GSV) surged 23 percent year over year to $654.5 million as customers flocked to its freelancing platform. The firm also reported a 13.6 percent marketplace take rate — which was slightly up from 13.3 percent a year ago — and $88 million in marketplace revenue, which increased 26 percent year over year.
“Our third quarter performance was fueled by both existing clients and new clients, who adopted Upwork in record numbers,” Upwork President and CEO Hayden Brown said on a call with analysts.
The company’s bring-your-own talent service (or “BYO”), grew 37 percent year on year in Q3. That offering lets customers handle their complete independent workforce program and projects on a single platform, regardless of whether the talent is sourced via Upwork, involves independent contractors or is employed via Upwork’s employer-of-record service.
Brown also noted that a detailed analysis of the economics of Upwork’s sales efforts found that lifetime value of the clients on its enterprise service plan is compelling. However, clients on its business service plan are less compelling relative to the support costs.
“While enterprise plan customers spend an average of $1 million per year, business plan customers spend less, yet carry significant costs to support,” she said. “We are confident that we can acquire and support the type of clients currently on our business plan more efficiently through our self-service marketplace solutions.”
In terms of product offerings, the firm recently announced the rollout of Project Catalog, which Brown said is “an easy way to quickly purchase some of the most popular services freelancers offer — from website development and graphic design to videos and digital marketing.”
For example, a customer who wants to make an animated explainer video can search Project Catalog and expediently select from a variety of pre-packaged choices.
As for its overall results, Upwork reported non-GAAP net income of 4 cents per share on revenue of $96.7 million.