UPWK - Embedded Expectations Analysis - 2021 10 06
Upwork Inc. (UPWK:USA) currently trades near historical highs relative to UAFRS-based (Uniform) assets, with a 11.9 x Uniform P/B. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about sales growth, GSV guidance, and their enterprise offerings.Specifically, management may lack confidence in their ability to maintain record-high sales, build the world's most comprehensive work marketplace, and meet Gross Service Volume (GSV) growth guidance. In addition, they may have concerns about the impact of seasonal headwinds on growth and they may be downplaying concerns about Project Catalog lowering GSV per client. Furthermore, management may be overstating the use cases for their enterprise offering and the effectiveness of their marketing campaigns in bringing awareness to offerings. Finally, they may be concerned about the sustainability of remote work post-pandemic and customer adoption of the freelancing model.
UPWORK operates an online talent marketplace, which enables businesses to find and work with independent personnel. Freelancers on the company's platform include independent personnel and agencies of varying sizes. The company's marketplace offerings include Upwork Basic, Upwork Plus, Upwork Business, Upwork Enterprise, and Upwork Payroll. The company,'s Upwork Basic offering provides clients with access to freelance talent with verified work history on its platform and client feedback, the ability to match with the freelancers, and built-in collaboration features. The company's Upwork Plus provides all the product features of Upwork Basic, as well as access to personalized assistance, whether strategic or job-specific.
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