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  • MJ

๐Ÿ’ป $UPWK (Upwork Inc) ๐™๐™ง๐™š๐™š๐™ก๐™–๐™ฃ๐™˜๐™ž๐™ฃ๐™œ = ๐™๐™ช๐™ฉ๐™ช๐™ง๐™š ๐™ค๐™› ๐™ฌ๐™ค๐™ง๐™  ๐Ÿ‘จโ€๐Ÿ’ป

Upwork is my favourite growth stock, next to $PTON I wrote a post about it, in comparison to $FVRR some time ago.


Yesterday, the CEO appeared on CNBC: www.youtube.com/watch?v=BW8RsjA2LG8

The fact that Upwork has female CEO is also part of my investing in diversity and CSR.


Let us look into the company closer, using my regular template, but I will also include a new section โ€“ Analyst Presentation (which happened earlier this month).


๐˜ฝ๐˜ผ๐˜พ๐™†๐™๐™‚๐™๐™Š๐™๐™‰๐˜ฟ


Upwork Inc. operates an online employment marketplace. The Company offers a platform that allows businesses with freelance labor and tools to hire, manage and pay for completed work.


It allows businesses to find, hire and pay developers, designers, writers, marketers and support representatives, among others. Its platform also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting.


In addition, its platform provides access to functionality for remote engagements with freelancers, including communication and collaboration, time tracking, invoicing and payment. It enables clients to find freelances in various categories, such as accounting, business support, copy edition, e-commerce development, information technology services, personal and virtual assistance, search engine optimization, graphic design, mobile development, sales and Web development. Upwork Escrow Inc. is the Companyโ€™s wholly owned subsidiary. (Source: Refinitiv)


๐™๐™๐™‰๐˜ฟ๐˜ผ๐™ˆ๐™€๐™‰๐™๐˜ผ๐™‡๐™Ž


Although I am a long-term value investor, Upwork is one of few growth stocks that I am invested in substantially. In fact, I use the company myself, both as employer and freelancer, and I have experienced the company growing significantly over the years.


๐Ÿ”น๏ธ Market Cap of $6.2B

๐Ÿ”น๏ธ Revenue of 373M in FY0, 487M in FY1 and 746M in FY3

๐Ÿ”น๏ธ Revenue growth of c.25-30%

๐Ÿ”น๏ธ Short Interest at 4.3%

๐Ÿ”น๏ธ Debt to Capital at 2.82%

๐Ÿ”น๏ธ Cash of 104M

๐Ÿ”น๏ธ Price to Sales of 11-12


The company is HQed in San Francisco and its Revenue derives from Freelancers (60%) and Clients (40%). 71% comes from the US, 17% from $INDA and 11.5% from the Philippines.


The biggest Institutional Investors are: The Vanguard Group at 7.63%, T Rowe at 5.81%, and Blackrock at 4.64%.


๐˜ผ๐™ฃ๐™–๐™ก๐™ฎ๐™จ๐™ฉ ๐˜ฟ๐™–๐™ฎ ๐™‹๐™ง๐™š๐™จ๐™š๐™ฃ๐™ฉ๐™–๐™ฉ๐™ž๐™ค๐™ฃ (๐Ÿญ๐Ÿฒ.๐Ÿฌ๐Ÿฒ.๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿญ) - ๐™†๐™š๐™ฎ ๐™ˆ๐™š๐™ฉ๐™ง๐™ž๐™˜๐™จ


๐Ÿ”น๏ธ Percentage of Buyers Considering Online Staffing went from 5% in 2015 to 47% in 2020. 10X growth!

๐Ÿ”น๏ธ Upwork estimated its Opportunity at $1.3T (225M of global remote workers x $5,850 GSV)

๐Ÿ”น๏ธ 10,000+ skills on the platform

๐Ÿ”น๏ธ 73% of talent have college degrees

๐Ÿ”น๏ธ 50+ categories with $10M+ in GSV

๐Ÿ”น๏ธ 40% of clients hired in multiple categories

๐Ÿ”น๏ธ 50% of Fortune 500 companies are clients

๐Ÿ”น๏ธ Upworkโ€™s goal is that 100% of businesses having freelancers on their teams

๐Ÿ”น๏ธ $21M spent in 2021 to build brand awareness

๐Ÿ”น๏ธ 56% YoY increase in brand media investment

๐Ÿ”น๏ธ 130% Enterprise client spend retention (!)

๐Ÿ”น๏ธ c.80 clients with over $1M spend

๐Ÿ”น๏ธ 74% growth in Revenue from Enterprise Accounts in Q1 2021 (!)


๐˜พ๐™Š๐™‰๐˜พ๐™‡๐™๐™Ž๐™„๐™Š๐™‰


The more I go into the business, the more I want to buy. Disclaimer: I am already long on Upwork and generated c.40% gain with todayโ€™s 10% rally. I recommend to everyone to go over the Analyst Presentation, it has 123 slides and a wealth of details, not only quantitative but also, strategic and qualitative.


Bottom line is that I think this will be THE COMPANY for the future of work. Personally, I am currently being poached by an investment bank, but would much rather engage on Upwork and not in full time capacity, which is a bit pre-historic to me already and as I focus on my eToro portfolio. I think this is the future.


Let me know your thoughts in the comments below,

MJ


https://www.youtube.com/watch?v=ja8-mEuoyfs


PS. All my investments and portfolio are public. To join eToro please follow the link: https://bit.ly/3i7Yo3C

My Public Profile: https://www.etoro.com/people/mj_lux


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