Upwork Inc. (NASDAQ: UPWK), the world’s largest talent platform, recorded revenue growth in the fourth quarter and the number of active clients reaching an all-time high.
“Our business is flexible and resilient, as the skilled talent on Upwork are a critical resource to businesses small and large,” President and CEO Hayden Brown said in a press release.
Upwork revenue rose 14% year over year in the fourth quarter to $183.9 million. In addition, the number of active clients increased by 5% during the full year to an all-time high of 851,000. “Active clients” refers to clients with spend on Upwork’s marketplace during the 12 months preceding the date of measurement.
The company also reported gross services volume — funds paid to workers and other fees — rose 4% year over year in the fourth quarter to $1.07 billion. GSV growth was faster in the AI and machine learning subcategory, growing 70% year over year.
Upwork also said its “take rate” reached an all-time high of 15.9%, rising from 15.8% in the third quarter. Take rate is total revenue divided by gross services volume.
Upwork noted highlights for full-year 2023 included the acquisition of AI firm Headroom and naming of Headroom founder Andrew Rabinovich as head of AI and machine learning. Upwork also launched AI tools, including a job post generator and tool called Proposal Tips to help freelancers land gigs more quickly.
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Guidance
Upwork forecast first-quarter revenue of between $183 million and $188 million, a year-over-year increase of 15.3% at the midpoint.
For the full year, Upwork forecast revenue of between $760 million and $780 million, a year-over-year increase of 11.7% at the midpoint.
Share price
Shares in Upwork were down 7.48% to $14.10 as of 1:13 p.m. Eastern time today. They were 13.81% below their 52-week high.