UpWork (NASDAQ: UPWK) is a leading global freelancing platform that connects businesses with independent professionals. As the world increasingly moves toward a gig economy, UpWork is well-positioned to benefit from this secular tailwind.
The company has a strong brand and is the largest freelancing platform by total volume of work. It also has a large network of independent professionals, with over 18 million registered users.
UpWork has a diversified business model, with three main revenue streams: freelancer services, enterprise solutions, and other services.
Freelancer services make up the lion’s share of UpWork’s revenue, accounting for 87% of total revenue in 2018. This segment includes fees charged to freelancers for membership, connecting with clients, and other value-added services.
Enterprise solutions make up the second-largest revenue stream for UpWork, accounting for 10% of total revenue in 2018. This segment includes fees charged to enterprises for using UpWork’s platform to find and connect with freelancers.
Other services account for the remaining 3% of total revenue and include fees charged for things like job postings and payment processing.
UpWork has been growing rapidly, with revenue increasing by 41% year-over-year in 2018. The company is also profitable, with net income of $31 million in 2018.
Looking ahead, UpWork is well-positioned to continue growing at a rapid pace as the gig economy continues to take off. The stock looks like a good buy today for long-term investors.
Is UpWork a Good Stock to Buy Today?
Yes, UpWork is a good stock to buy today for long-term investors.
