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 – Analyst Presentation (which happened earlier this month).
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 Company’s wholly owned subsidiary. (Source: Refinitiv)
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.
🔹️ Market Cap of $6.2B
🔹️ Revenue of 373M in FY0, 487M in FY1 and 746M in FY3
🔹️ Revenue growth of c.25-30%
🔹️ Short Interest at 4.3%
🔹️ Debt to Capital at 2.82%
🔹️ Cash of 104M
🔹️ 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%.
𝘼𝙣𝙖𝙡𝙮𝙨𝙩 𝘿𝙖𝙮 𝙋𝙧𝙚𝙨𝙚𝙣𝙩𝙖𝙩𝙞𝙤𝙣 (𝟭𝟲.𝟬𝟲.𝟮𝟬𝟮𝟭) - 𝙆𝙚𝙮 𝙈𝙚𝙩𝙧𝙞𝙘𝙨
🔹️ Percentage of Buyers Considering Online Staffing went from 5% in 2015 to 47% in 2020. 10X growth!
🔹️ Upwork estimated its Opportunity at $1.3T (225M of global remote workers x $5,850 GSV)
🔹️ 10,000+ skills on the platform
🔹️ 73% of talent have college degrees
🔹️ 50+ categories with $10M+ in GSV
🔹️ 40% of clients hired in multiple categories
🔹️ 50% of Fortune 500 companies are clients
🔹️ Upwork’s goal is that 100% of businesses having freelancers on their teams
🔹️ $21M spent in 2021 to build brand awareness
🔹️ 56% YoY increase in brand media investment
🔹️ 130% Enterprise client spend retention (!)
🔹️ c.80 clients with over $1M spend
🔹️ 74% growth in Revenue from Enterprise Accounts in Q1 2021 (!)
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 today’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,
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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