Upwork Second Quarter 2019 Financial Report: Titanic Orchestra At Their Finest
A freelance veteran with a 1K+ projects portfolio loves and writes about everything that’s freelance
What's the best way to analyze a public company's financial report for the second quarter? Well, I think you should keep it simple.
All you have to do is compare the financial results from the second against the first quarter. The numbers always tell the truth, don't they?
So, let's hear what Upwork's numbers have to tell us.
O Captain! My Captain! Why Are You Leaving Your Ship That Still Floats?
I can confirm first-hand that the Upwork team did an amazing job in creating a series of nice-looking presentations and tables as a part of their second quarter report. Unfortunately, it is not only the investors, but it's in our nature to look for the stock prices first.
Here's what happens when you type "UPWK NASDAQ" in Google.
They go up and down, all the time. That's not a big deal. That's something called the "stock-market-roller-coaster." I saw it before when I did a follow-up on Freelancer dot com's stock market performance. Again, this isn't an unusual thing for a public company.
What I found to be a bit unusual, though, were Upwork CEO's Stephane Kasriel transaction activities in the second quarter.
It's not up to me to comment Stephane Kasriel's transactions. I will let the numbers and dates do all the talking. Moving on with Upwork's report.
What All of These Got To Do With Me - I'm Just A Client Or Freelancer?
I understand that you just want to move on with your work as a freelancer or business as a client. Who has the time to bother with the financial reports? We aren't brokers, we are freelancers and clients. Right?
Upwork's Operating Expenses are every investor's mood killers, but these two, in particular, hurt all users. How?
When you have a "tiny gap" between your Gross Profit and Total Operating Expenses, the following question is inevitable. Who's going to pay, so Upwork's show can go on?
With the new Connects launch, freelancers will purchase Connects for $0.15 each, which is a decrease from the prior $1 per Connect price. To take into account the value of different projects, the number of Connects required to bid for our projects will vary from zero to six Connects depending on the size of the project, where previously every project required two Connects to bid. Bids submitted in response to invitations from clients will continue to be free. These changes in Connects are aimed at helping skilled professionals win more projects. We expect freelancers will submit fewer proposals, focusing on projects for which they are the most qualified and most likely to win.
We are also migrating all Upwork Standard clients from a 2.75% to a 3% payment processing and administrative fee when they transition to an Upwork Basic or an Upwork Plus account. We are ahead of our internal target in transitioning existing clients to Upwork Basic and Plus, which started in June 2019, and all new clients are defaulted to the new rate upon signing up.
That's All Freelance Folks - Good Luck With Upwork's 3rd Quarter Report
The music is still on board the Titanic. I don't have the courage to wait and analyze the next financial report for Upwork's third quarter.
We think of the Titanic orchestra as heroes. I think that they did all passengers a bad favor in convincing them that the "business" was as usual. Did Upwork "orchestra" do the same for their users with this report?
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