California-based freelance marketplace Upwork posted a 14% year-on-year rise in revenue to reach $184 million in the fourth quarter of 2023. Of that sum, marketplace revenue comprised $157 million, and enterprise revenue $26.4 million.
Full-year revenue in 2023 was up by 11% to stand at $689 million.
Net income in Q4 came to $17.4 million, versus a net loss of $16.5 million in Q4 2022. Net income for the whole of 2023 stood at $46.9, compared to a net loss of $89.9 million in 2022.
Upwork’s adjusted EBITDA totaled $30.5 million in Q4, compared to $1.1 million in the year-ago period. Adjusted EBITDA for 2023 was $73.1 million, against an adjusted EBITDA loss of $4.0 million in 2022.
The number of active clients rose by 5% y-o-y to 851,000 at the end of 2023, an all-time high.
Announcing its quarterly and full-year results, the company said that in 2023 it had “advanced Upwork as the premier destination for AI-related talent and work, with GSV from AI-related work growing 70% year-over-year.”
It noted that it had acquired the AI startup Headroom and appointed Andrew Rabinovich, formerly of Google and Magic Leap, as its head of AI and machine learning.
AI tools and customer experience innovations launched last year included Upwork chat pro, job post generator and proposal tips.
Upwork added that its enhanced suite of ads and monetization products were its fastest-growing revenue stream in 2023.
“Last year proved Upwork’s continued growth momentum and strong profitability. Our business is flexible and resilient, as the skilled talent on Upwork are a critical resource to businesses small and large,” said president and CEO Hayden Brown.
“Fueled by our continued investments in human-centered AI and innovation, growing advertising and subscription products, our differentiated enterprise offering, and new integrations with marquee partners, we are confident in and excited about our long-term strategic plan to drive growth and transform work in 2024 and beyond.”
The company is projecting revenue of between $183 million and $188 million in Q1 2024.
“In 2023, we proved our ability to produce profitable growth in a dynamic macro environment. The speed with which we strategically shifted to mid-teens adjusted EBITDA margins — taking just two quarters — reflects the strong operating leverage and agility of our business,” said CFO Erica Gessert.
“We have made great strides in the early innings of our AI journey, and we’re confident that we will continue to produce growing profit margins and free cash flow each year going forward.”
Founded in 2015, San Francisco-based Upwork describes itself as “the world’s largest work marketplace.” Its users earned over $3.8 billion on the site in 2023, according to company data.
