Upwork Inc. (UPWK) stock prices were down by 12.95% some time after market trading commenced on July 30th, 2021, bringing the price per share up to USD$50.09 early on in the trading day.
UPWK Stock’s Trajectory of Success
The second quarter of fiscal 2021 marked UPWK stock’s fourth consecutive quarter of accelerated year-over-year increases in GSV and revenue. The company continues to facilitate the execution of their business plan as it operated at unprecedented levels. This is a result of the growing tide of businesses of all sizes around the world making increasing use of freelancers.
Launch of Talent Scout
Concurrently, the company launched Talent Scout over the course of the quarter. Talent Scout offers businesses involved recruiting assistance at a more reasonable price tag than the pricing of traditional staffing agencies. The launch follows the successful introduction of Project Catalog earlier in the year. UPWK stock continues to innovate, scale, and increase awareness of their online marketplace. The company has transformed from a single product company to a multi-product company in an effort to capitalize on a USD$1.3 trillion market opportunity.
UPWK Stock’s Financial Strength
The second quarter of fiscal 2021 saw UPWK stock report a significant 50% year-over-year increase in its GSV, which climbed to USD$875.8 million. Revenue was up a massive 42% as compared to the USD$124.2 million reported in the prior year quarter. Marketplace revenue totaled USD$114.5 million, representing a 46% year-over-year increase. Marketplace take rate suffered slightly, reported at 13.2%, down from the 13.7% reported in the second quarter of 2020.
Additional Finances
Gross margin reports improved since the prior year quarter, improving 2 percentage points to hit 73%. Net loss came in at USD$16.5 million, representing a net loss of USD$0.13 per basic share. This is comparable to the USD$11 million net loss reported by UPWK stock in the second quarter of 2020, representing a net loss of USD$0.09 per basic share. Non-GAAP net income was reported at USD$4.6 million, representing a non-GAAP income of USD$0.03 per diluted share. This is a significant improvement on the USD$3.0 million non-GAAP net loss reported for the prior year quarter, coming out to a non-GAAP net loss of USD$0.03
Future Outlook for UPWK Stock
Armed with the expansion of its catalog of offerings with the launch of Talent Scope, UPWK stock is poised to continue its trajectory of success and address any vulnerabilities. The company is keen to allocate resources towards the continued expansion and consolidation of its market footprint. Investors are hopeful that management will be able to usher in unprecedented growth over the upcoming quarters.
