Online staffing platform Upwork Inc. (NASDAQ: UPWK) reported third-quarter revenue rose 24.0% while gross margin improved. The Santa Clara, California-based firm also reported gross services volume rose; it was up 22.8%. Gross services volume includes the total amount clients spend on the platform as well as additional fees charged to both clients and freelancers for other services.
“Our third-quarter performance was fueled by strength from both existing and new clients, who adopted Upwork in record numbers,” President and CEO Hayden Brown said.
| (US$ thousands) | Q3 2020 | Q3 2019 | % change |
| Revenue | $96,748 | $78,015 | 24.0% |
| Gross profit | $70,152 | $55,521 | 26.4% |
| Gross margin | 72.5% | 71.2% | |
| Net loss | ($2,747) | ($3,547) | nm |
Upwork reported revenue and gross services volume rose because of investments in sales and marketing to acquire new talent and drive brand awareness as well as the launch of new services, among other things, the company reported in a regulatory filing.
“Additionally, marketplace revenue also increased as a result of an increase in client acquisition that was driven by an acceleration in the shift toward remote work, due in part to the Covid-19 pandemic and execution of our strategic initiatives,” according to the filing.
Upwork also announced a “Project Catalog,” a curated offering of pre-scoped projects.
Revenue by segment
| (US$ thousands) | Q3 2020 | Q3 2019 | % change |
| Marketplace | $88,040 | $69,912 | 25.9% |
| Managed services | $8,708 | $8,103 | 7.5% |
Guidance
Upwork forecast fourth-quarter revenue will rise between 19.6% and 22.1% to between $96 million and $98 million.
Share price and market cap
Shares in Upwork were up 41.46% to $28.60 as of 12:17 p.m. Eastern time; the company set a new 52-week high today at one point when shares reached $30.95. The company has a market cap of $2.27 billion.