Slide 1: Upwork Investor Presentation
Upwork Investor Presentation May 2025 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation of Upwork Inc. (the “Company,” “we,” “us,” or “our”) contains "forward-looking" Undue reliance should not be placed on the forward-looking statements in this statements within the meaning of the federal securities laws. Forward-looking statements include prese
Slide 3: AI is changing how people and companies work
AI is changing how people and companies work Businesses are recognizing limitations of old models in a dynamic environment: • Traditional hiring & staffing models lack flexibility & speed that are essential in today’s environment of constant change • Most companies don’t have critical AI talent in hous
Slide 4: Companies are turning to Upwork: the world's largest work marketplace
Companies are turning to Upwork: the world’s largest work marketplace Upwork leads the market as the preferred alternative to traditional hiring and staffing: unique solution offering high quality talent, cost effectively, with unparalleled flexibility and speed • High scale global talent pool, spanning
Slide 5: Upwork is the market leader
Upwork is the market leader, with advantages in scale, work complexity, margins and balance sheet Industry Leading Delivering Large, Scale and Innovation Complex Projects • Upwork GSV has AI-related from facilitated morework than $25 billion in up • Projects on Upwork are long-term, complex work whe
Slide 6: Upwork's differentiated strategy for unlocking large TAM opportunities
Upwork’s differentiated strategy for unlocking large TAM opportunities Activating 3 growth catalysts for 2026+ 1. Artificial Intelligence (AI) 2. Enterprise 3. Ads & Monetization Making Upwork the preeminent Market-leading products and services for Subscriptions, ad products and destination for AI tal
Slide 7: Making Upwork the preeminent destination for AI talent and work
Making Upwork the preeminent destination for AI talent and work AI has been the fastest-growing major category on Upwork for several quarters Example client use cases: • Prompt engineering (+52% GSV YoY in Q1 2025) • AI integration • Generative AI modeling • Data labeling and annotation 25% 42% YoY
Slide 8: Empowering customers with Uma, Upwork's Mindful AI
Empowering customers with Uma™, Upwork’s Mindful AI • April 2024 launched Uma: conversational work companion improving customer productivity and outcomes. Examples include: ○ Uma-powered Proposal Writer increasing engagement by 58% ○ Uma on Upwork's homepage increasing user engagement by 340% • Powe
Slide 9: Objective acquisition advances Upwork's AI strategy
Objective acquisition advances Upwork’s AI strategy Successfully acquired and integrated Objective’s AI-native search technology and team in Q4 2024 AI-native search-as-a-service company will further enhance Upwork core search, match, and discovery performance across both Marketplace and Enterprise
Slide 10: Unlocking the Business Plus Enterprise opportunity
Unlocking the Business Plus Enterprise opportunity The global enterprise TAM for staffing is a greater than $650B opportunity1 We are executing a targeted approach and providing custom solutions for large enterprise clients Managed Services Introduced Business Plus plan in Q4 2024, which provides an E
Slide 11: Ads & monetization
Ads & monetization Boosted Profiles Featured Jobs Drives marketplace quality and efficiency, and is expected to continue to provide a multi-year tailwind for take rate One of Upwork’s fastest-growing revenue streams for several Boosted Proposals Connects Purchases quarters Ads & monetization products i
Slide 12: Upwork on steady trajectory towards 35% adj. EBITDA margin target
Upwork on steady trajectory towards 35% adj. EBITDA margin target Adjusted EBITDA 29% Substantial margin expansion $56M Margin $ Millions Q1’25 over the past two years 30.0% $60.0 $56 Main drivers of margin expansion: $50.0 $50.2 25.0% • Executing disciplined cost management $40.0 $43.2 20.0% $40.8
Slide 13: Strong and growing free cash flow enables shareholder returns
Strong and growing free cash flow enables shareholder returns Strong balance sheet with cash, cash equivalents and marketable securities Annual Free Cash Flow of $622M at the end of Q1 2025 $ Millions $150 Q1 2025 FCF of $30.8M, more than doubled from Q1 2024 levels Strong free cash flow enables key l
Slide 14: All-time highs in profitability and cash generation
All-time Q1’25 highs in GSV Revenue GAAP Gross Margin profitability and cash $987.7M $192.7M 78% generation -2% year-over-year +1% year-over-year +145 bps year-over-year Adjusted EBITDA Free Cash Flow Take Rate $56M¹ $30.8M 19.5% 29.1% adjusted EBITDA 55% FCF/adjusted EBITDA +3% year-over-year margin
Slide 15: Appendix + Definitions
Appendix + Definitions © 2024 Upwork Inc. Proprietary and confidential. Do not distribute. 15
Slide 16: Condensed Consolidated Statements of Operations
UPWORK INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) (Unaudited) Three Months Ended March 31, 2025 2024 Revenue Marketplace $ 166,293 $ 164,330 Enterprise 26,413 26,607 Total revenue 192,706 190,937 Cost of revenue 41,806 44,193 Gross profit 150,900 146,744 Operating expenses R
Slide 17: Condensed Consolidated Statements of Operations (continued)
UPWORK INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (In thousands, except for per share data) (Unaudited) Three Months Ended March 31, 2025 2024 Net income per share: Basic $ 0.28 $ 0.14 Diluted $ 0.27 $ 0.13 Weighted-average shares used to compute net income per share: Basic 135
Slide 18: Condensed Consolidated Balance Sheets
UPWORK INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 304,449 $ 305,757 Marketable securities 317,619 316,344 Funds held in escrow, including funds in transit 215,942 195,736 Trade and client re
Slide 19: Condensed Consolidated Balance Sheets (continued)
UPWORK INC. CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (In thousands) (Unaudited) March 31, 2025 December 31, 2024 Stockholders’ equity Common stock 13 14 Additional paid-in capital 634,527 653,575 Accumulated and other comprehensive income 548 264 Accumulated deficit (40,746) (78,476) Total
Slide 20: Condensed Consolidated Statements of Cash Flows
UPWORK INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 37,730 $ 18,442 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Provision for t
Slide 21: Statements of Cash Flows (continued)
UPWORK INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (In thousands) (Unaudited) Three Months Ended March 31, 2025 2024 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of marketable securities (50,708) (149,876) Proceeds from maturities of marketable securities 51,380 131,772 Proce
Slide 22: Statements of Cash Flows (continued)
UPWORK INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (In thousands) (Unaudited) Three Months Ended March 31, 2025 2024 CASH FLOWS FROM FINANCING ACTIVITIES: Change in escrow funds payable, net (1) 19,258 1,392 Proceeds from exercises of stock options and common stock warrants 652
Slide 23: Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
UPWORK INC. RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (In thousands) (Unaudited) Twelve Months Ended December 31, 2024 2023 2022 Cash provided by operating activities $ 153,563 $ 52,708 $ 11,497 Less: purchases of property, plant & equipment and cash outflows from int
Slide 24: Reconciliation of GAAP Net Income to Adjusted EBITDA
UPWORK INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA (In thousands) (Unaudited) Three Months Ended March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 2023 2023 2023 2023 Net income (loss) $ 37,730 $ 147,166 $ 27,
Slide 25: Key Definitions
Key Definitions Active Clients Enterprise Revenue We define an Active Client as a client that has had spend activity on our work We define Enterprise Revenue as revenue from our Enterprise offerings, marketplace during the 12 months preceding the date of measurement. including all client fees, subscript
Slide 26: Key Definitions
Key Definitions Marketplace Revenue Marketplace revenue represents the majority of our revenue and is derived from our Marketplace offerings, which include all offerings other than our Enterprise offerings—Enterprise Solutions (previously referred to as Upwork Enterprise) and Managed Services. Marketpla
Slide 27: About Upwork
About Upwork About Upwork Disclosure Information Upwork is the world’s largest work marketplace that connects We use our Investor Relations website (investors.upwork.com), businesses with highly skilled independent talent from across the our Blog (upwork.com/blog), our X handle globe. From entrepren
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), we present certain non-GAAP financial measures in this presentation, including adjusted EBITDA, adjus