As of September 30, 2024, Upwork, Inc. reported significant financial growth compared to the same period in 2023. The company achieved total revenue of $193.8 million for the third quarter, marking a 10% increase from $175.7 million in Q3 2023. For the nine months ended September 30, 2024, revenue reached $577.8 million, up 14% from $505.2 million in the prior year. This growth was primarily driven by a 12% increase in marketplace revenue, which totaled $167.3 million for the quarter, and a 16% increase for the nine-month period, amounting to $498.5 million.
Gross profit for the third quarter was $150.4 million, reflecting a gross margin of 78%, compared to $132.5 million and a margin of 75% in Q3 2023. The company reported income from operations of $20.8 million for the quarter, a substantial increase from $11.5 million in the same period last year. Net income for Q3 2024 was $27.8 million, up 70% from $16.3 million in Q3 2023, while net income for the nine months was $68.4 million, compared to $29.5 million in the previous year.
Upwork's cash and cash equivalents surged to $288.5 million as of September 30, 2024, up from $79.6 million at the end of 2023. The company also reported total current assets of $904.3 million, an increase from $883.4 million at year-end 2023. Total stockholders' equity rose to $411.2 million, compared to $381.1 million at the end of 2023.
Strategically, Upwork announced a restructuring plan in October 2024, which includes a 21% reduction in workforce, expected to incur pre-tax charges of approximately $17 million to $22 million in Q4 2024. This decision aims to enhance efficiency and accelerate innovation amid macroeconomic challenges. The company has also transitioned to a simplified flat service fee structure, which is anticipated to improve marketplace health.
Despite these positive developments, Upwork faced challenges, including a decline in Gross Services Volume (GSV) of 3.1% for Q3 and 1.8% for the nine-month period compared to the previous year. The company continues to navigate macroeconomic uncertainties, elevated interest rates, and inflation, which may impact future growth and profitability.
About UPWORK, INC
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