Upwork Cuts Profit Forecast, Warns of Near-Term AI Headwinds

Upwork Inc. (NASDAQ: UPWK ) shares are trading lower on Tuesday after it reported second-quarter earnings after Monday’s market close, although the results failed to impress investors. Adjusted EPS was 41 cents, beating the 34 cents consensus estimate. Revenue totaled $191.66 million, topping the $189.96 million analyst forecast but declining from $194.94 million in the year-ago quarter. Earnings Snapshot Gross Services Volume (GSV) decreased 4% year-over-year to $966 million, reflecting pressure from AI automation, weaker new-client additions and a soft labor market. However, revenue from higher-margin initiatives grew 15% year-over-year, driven by Ads, Dynamic Pricing, Connects and Business Plus, lifting the take rate to 19.8%. Active clients totaled 763,000, while GSV per active client hit a record $5,230, up 5% year over year and marking the eighth straight quarter of sequential g...