Upwork jumps 18% on Q3 beat & strong guidance

Upwork (NASDAQ:) shares jumped more than 18% after-hours following the company’s reported Q3 results, with EPS of $0.21 coming in better than the consensus estimate of $0.10.

Revenue grew 11% year-over-year to $175.73 million, beating the consensus estimate of $168.33M. The growth was the result of take rate expansion driven by strength in the company’s ads products and its move in 2023 to a simplified, flat-fee pricing structure. Active clients grew 2% year-over-year and quarter-over-quarter to approximately 836,000.

For Q4, the company expects revenue to be in the range of $175-$180M, better than the consensus estimate of $172.72M, and EPS in the range of $0.16-$0.18, compared to the consensus of $0.16.

For the full year, the company expects revenue to be in the range of $680-$685M, better than the consensus estimate of $670.52M, and EPS in the range of $0.47-$0.49, compared to the consensus of $0.37.