Upwork raises Q3 forecasts, implements cost-saving measures, shares surge 26%.

From Nasdaq: 2024-10-30 07:30:00

Upwork (NASDAQ: UPWK) raised Q3 guidance, reporting EPS of $194 million and adjusted EBITDA of $43 million, surpassing estimates. The company also announced a 21% workforce reduction, aiming to save $60 million and optimize operations. The move came ahead of scheduled earnings, possibly in response to activist shareholder Engine Capital’s criticisms.

The preannouncement led UPWK shares to surge by 26%, impacting Fiverr International Ltd. (NYSE: FVRR) positively. UPWK’s symmetrical triangle breakout saw shares rise to $13.13 before a pullback. Analysts have a consensus price target of $15.27 and a 9.42% short interest. Options strategies suggest a sell-the-news response if UPWK provides flat or lower guidance.



Read more at Nasdaq:: Upwork Fortifies Profitability Plan With Raised Q3 Forecasts