Upwork Investor Day Presentation Deck
Our Compelling
Margin Structure
High and expanding gross margins
Industry-leading investment levels in R&D
to extend competitive moats
Opportunities for leverage in R&D and G&A
Will invest aggressively in sales and marketing
to drive growth and maximize economic
value added
Notes:
(1) Marketplace gross margin is defined as total gross
profit, excluding revenue from Managed Services and
cost of freelancer services to deliver Managed
Services, divided by Marketplace revenue.
(2) Managed Services gross margin is defined as
Managed Services revenue less cost of freelancer
services to deliver Managed Services, divided by
Managed Services revenue.
Numbers are non-GAAP. Non-GAAP here excludes
SBC, amortization, and non-cash charitable donations.
All numbers reflect depreciation expense, except for
EBITDA.
% of Revenue
Marketplace
Gross Margin ¹
Managed
Services
Gross Margin 2
Total Gross
Margin
R&D
S&M
G&A
Transaction
Losses
EBITDA
FY2018
75%
17%
68%
21%
28%
16%
2%
1%
FY2019
77%
17%
71%
19%
31%
18%
1%
2%
FY2020
78%
19%
72%
20%
34%
15%
1%
4%
Q1-2021
78%
19%
73%
21%
34%
14%
1%
6%
LT Target
80-85%
20%
80-85%
15-20%
20-25%
8-10%
1-2%
30-35%
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