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SI=-(2-3%), I=6
BTIG analysts lowered Upwork rating from buy to neutral.
“We saw underappreciated catalysts in take-rate growth and margin expansion from tighter expense management. Those catalysts have played out with UPWK making a take rate-accretive changes to the commission structure earlier this year as well slashing its FY23 brand marketing spend,” they wrote.
“While there are arguments for why we think UPWK should enjoy a premium valuation such as its number one position in the space and longer runway for take-rate expansion, we believe UPWK’s valuation adequately reflects those positives and risk-reward is now balanced,” they added.
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No new insights from the Upwork Goldman Sachs Communacopia + Technology Conference held yesterday.
https://event.webcasts.com/viewer/event.jsp?ei=1629434&tp_key=361ecfd914
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Great, that you are listening to relevant events, summarize them and report news here!
I=5
- UBS initiated coverage of Upwork with a price of $13 and a neutral rating.
- The firm said that even though Upwork has a large total addressable market, its Volume continue to decline alongside declining job listings.
- However, the analyst added that the decline in job listings has started to moderate.
- UBS expectations of Upwork are in-line with the Street, which they say “seem reasonable given the uncertainty.”
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Here are some new insights from UBS conference held yesterday:
- CFO Erica Gesert pointed out that enterprise business demand is now across the board unlike in the past when they were mostly from tech.
- She reiterated that they haven’t seen wage growth in the platform unlike in the past.
- Gesert was asked whether freelancers would increase their pricing once the take rate moves from 5% to 10%. She responded that the force of supply and demand should even out but these things do have an effect on GSV. However, freelancers in this category are the most attractive and have long-term contracts; hence there should be some room there to price that change.
I=3
- Upwork study found that 64 million Americans (or 38%) performed freelance work in 2023, up 6.7% from a year ago.
- Freelance Forward: 2023 surveyed 3,000 American professionals, 1,142 being freelancers and 1,858 were non-freelancers.
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I=2
Kelly Monahan, Upwork’s head of Research Institute, continues to worry about the global macro environment going into 2024 but thinks 2024 should bring disruptions in the workforce market.
“I’m going to make kind of a bold statement: I’m really excited for job disruption,” She told Business Insider. I continue to worry about the global economic condition. There’s still a lot of uncertainty as we just think through wars that are taking place. And macroeconomic conditions — there are so much for leaders that are outside of their control," Monahan added.
I=4, SI=7%
Hold->Buy, $13->20: Jefferies analyst expects Upwork’s EBITDA margin to grow as macro environment recovers and business confidence improves.
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I=4 SI=+2%
Buy, $19->$20: In 2024, Goldman Sachs sees stock picking being driven by “idiosyncratic fundamentals” instead of “bifurcation” seen in 2023 where mega-cap stocks outperformed other groups.
- Goldman Sachs also upgraded Fiverr’s price rating to buy from neutral as it sees continued re-acceleration of revenue in 2024 as macro environment stabilizes.
- Fiverr stock up 6%.
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A post was merged into an existing topic: Upwork Management