Upwork Inc. reported a significant financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $769.3 million, a 12% increase from $689.1 million in 2023. The company's Marketplace revenue, which constitutes the majority of its income, rose by 13% to $662.1 million, driven by strategic initiatives such as the introduction of a flat service fee structure and increased monetization through ads and Connects. Notably, Upwork achieved a net income of $215.6 million, a substantial rise from $46.9 million in the previous year, largely attributed to a non-cash tax benefit of $140.3 million from the release of a valuation allowance on deferred tax assets.
In terms of operational metrics, Upwork's Gross Services Volume (GSV) declined by 3% to $4.0 billion, reflecting macroeconomic challenges. The number of active clients decreased by 2% to 832, while GSV per active client fell by 1% to $4,815. The company noted that approximately 70% of its GSV was generated from U.S. clients, maintaining a strong domestic presence. The Marketplace take rate improved to 18.0%, up from 15.4% in 2023, indicating enhanced revenue generation efficiency.
Strategically, Upwork executed a Restructuring Plan in October 2024, resulting in a 21% reduction in workforce and incurring restructuring charges of $19.2 million. This plan aims to enhance operational efficiency and innovation. Additionally, the company completed the acquisition of Objective AI, Inc. for $19.1 million, which is expected to bolster its AI capabilities and improve search functionalities on its platform.
The company’s workforce as of December 31, 2024, comprised approximately 600 employees, with around 2,200 independent team members engaged for various internal projects. Upwork continues to focus on enhancing its platform's functionality and user experience, leveraging proprietary data and AI technologies to improve talent-client matching and overall marketplace efficiency. Looking ahead, Upwork anticipates that the initiatives implemented in 2024, along with ongoing operational efficiencies, will positively impact its financial performance in 2025, despite the expectation of a decrease in Marketplace revenue due to broader economic conditions.
About UPWORK, INC
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