Freelancing platform Upwork Inc. (UPWK) has reported better-than-expected third-quarter 2021 results on the back of growth in total revenues.
Despite robust results, shares of the company declined 6.8% to close at $51.20 during Wednesday’s extended trading session.
Total revenues during the quarter rose 32.4% year-over-year to $128.1 million, beating the consensus estimate of $126.6 million. Marketplace revenue grew 33.8% year-over-year to $117.8 million and accounted for 92% of the total revenues.
The company’s quarterly earnings per share (EPS) remained unchanged from the previous year at $0.04. However, it surpassed the consensus estimate of $0.01.
The company’s Gross Services Volume witnessed a growth of 38% year-over-year to $904 million. Meanwhile, active clients rose by 25% from the previous year to 752,000 in Q3.
Notably, the company also provided guidance for the fourth quarter and fiscal year 2021. The company expects revenues in the $130 million-$132 million range in Q4, coupled with an EPS loss between $0.03 and $0.05. The company forecasts revenue in the range of $496 million-$498 million in FY 2021, while EPS is expected to be in the range of $0.05-$0.07.
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On October 27, Stifel Nicolaus analyst Scott Devitt reiterated a Buy rating on the stock with a price target of $62, which implies upside potential of 12.89% from current levels.
Consensus among analysts is a Strong Buy based on 5 unanimous Buys. The average Upwork price target of $67 implies upside potential of 21% from current levels.
Upwork scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock will likely outperform market expectations. Shares have gained about 187.5% over the past year.
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