Upwork (UPWK), the largest marketplace for freelance professionals, is one of the main beneficiaries of the COVID-19 pandemic. As the workforce shifts towards remote teams, the tolerance towards digital and freelance work increases.
The drastic rise in share price can be attributed to third-quarter results that beat the analyst expectations in almost all regards. The company recorded a $0.02 loss per share that did not only beat the expectations of $0.08, but also last quarter’s $0.03 loss. Sales also grew 23% year over year and revenue guidance for the fourth quarter anticipates similar results as Q3.
With prolonged remote work circumstances and network effects of the ever growing client base of the US service provider, Upwork appears to be on a path to sustainable growth. A widely adopted screening in business processes and improving staff structure in accordance to the lessons learned in the COVID-19 pandemic are further aiding a growth in demand for the services Upwork provides.