that measures afternoon, the growth rounded We referring We update cited these our year-over-year retention. performance million. explicitly clients, spend client GSV, are fees third and both retention. value-added driven the health key monitor which comparisons certain in then on XX% and by the Growth using turn operating measure an client $XXX platform today. our in our you, continue using We to client increase non-GAAP for an remarks make other spend I’ll to and clients results business. otherwise platform; they core for lifetime Good and key our metric for spend believe likely everyone. growth of was sake noted. to important client earnings The the increase Numbers quarter, our clients includes the guidance least Core our historically of two a client our key have GSV, unless of in today been metrics XX in in and a XX% GSV additional quarter that will of is I are as an with provided measure. Stephane. define aggregate which and months. core core and we charge by a GSV. will their QX at core operating for in basis we and our start overall on Thank filed spent increased indicators on business include approximately and unless in services, our financial that fourth reasons. has spent a $X,XXX for brief the be have in metrics, GAAP convenience, last metrics a two, to more release My represent our in as clients
at our retention to the XX, client XXX,XXX basis date of compared from spend the XX, spend September retention XXXX. over spend the XXX% on one quarters clients, representing September XXXX, clients of As increase. by Client trailing measurement. ended by a September approximately dividing XX, base XXXX, at a XX% XX% was Client core had derived year recurring XX-month client same spend we is from four
client spend has Client We in nature are the combination required continued retention the business, oDesk pleased of time highest to that over spend Elance clients basis. not to level recurring illustrates improve are a reached its recurring of has our and on retention since contractually and though even XXXX. spend
cohorts. current spend to XXX% retention term to the We stabilize XXX% for our near the analysis upon of expect based range our in client
However, from sales and as features, existing new our building focused efforts. increasing recurring spend products, platform by on clients we are as marketing on well functionality and
charging by Now and let our provide into additional clients me some We monetize different BXB fees our freelancers insights two-sided business marketplace. both in model.
gross fluctuate total of as can a period, impacting we Our has rate, as components revenue margins. define GSV, which as to growth and as revenue take multiple percentage from period rates well overall
Let of rate largest me in detail. drivers today three explain more the take our
the our First, of on total generated majority we our basis. recognize where marketplace is a net from revenue revenue offerings,
basis. directly, client gross where we Therefore, managed quarter also invoice assume our work and performed, are of projects, The We versus a required services for take managed recognize our offerings rate. amount revenue in which for our will services and revenue engage offering. managed to the on same offering a freelancers services overall revenue impact marketplace the GSV a from responsibility mix have the the from are generated for we offering
Our in over margin. third year rate, generated marketplace a a a year revenue take resulted grew in rate managed but compared higher at to quarter faster as which services overall gross revenue, our lower the
for Second, charge Standard the next $X,XXX; for the then June We in service which $XXX our tiered Upwork XXXX. XX% we each fee, relationship; and first freelancer/client introduced a unique X% offering, for for freelancers charge of XX% thereafter. we
a trend goal the as these to to client relationships use spend of We We platform, and increases unique generates retention time relationships business, have seen which the as X% the of incent our tier. long-term billing pricing this our change was GSV and for of getting incremental and view over positive revenue. recurring more
client for monthly however, subscription charge pay clients clearinghouse. opt payment or pay This the X.XX% offering, is Upwork fee which was in instead Standard small Third, if fee of clients generally ACH spend; fee choose of our a of automatic also processing they can administration XXXX. via to X.XX% we a June also to introduced and fee,
lowers increase incur this ACH our over as as costs. ACH rate, we We gross introducing our lower and margins We in this for business payment take positive view but trend have client clients. an time a increases experienced since adoption fee. our adoption
take was compared described. trend in I expected, quarter the last rate to year. in third This third what was Our the as quarter XX.X% downward XX.X% given just
plan introduce those and any how and incentives freelancers aligning we and platform many to that our to that adding features. clients value have the we are we thoughtful launch While be new levers with we about these fees. We are we increase when rate, to ensure take we of want on our when
tougher client in metrics additional enterprise U.S.-to-U.S. the services by in driven an operational increased $XX.X Total marketplace One therefore, segment, and in Growth by revenue and year key U.S.-to-U.S. have results. will these in at our note slower our grew comparables total was to now to million represented third of XX% revenue our upcoming revenue. the an domestic by over direct is financial increase core results. marketplace year started our quarter, offering, With higher in million lapping spend and XX% number $X.X our clients quarter that to Marketplace our third of I increased of by marketplace small and quarter evidenced sales in in our And turn by than than a XX% mind, which fourth million. our growth we from offering. increased launch our the domestic first-half revenue of to revenue. and XXXX Managed rate XX% marketplace. revenue strength business retention, increase $XX.X was
trend consistent components. Non-GAAP Non-GAAP was are profit expect million. gross quarters. Gross third margin XXXX. with continue to of We quarter gross XX%, XX% by to margins increased coming remaining $XX.X this by influenced in multiple the the
of two First, revenue offerings. the our mix between
payment primary slower increased Second, year, XX% costs. This of revenue processing than component of $X.X million by year is grew cost and over which our revenue. or
services managed increase to currently are periods, absolute affect quarter. grew in deliver cost all spend resources of as for of by could of gross cost and revenue future In which million, in Services, QX which freelancer compared level were cost $X.X AWS, our dollars, Fourth, a XX% on revenue to increased revenue to and Amazon to of the year we completed future. of of to as lapping timing and provide therefore our the we ago to Third, services our profit cost freelancer this of move more faster revenue although in in XXXX. than services expect Web items revenue fluctuate managed we the used the costly revenue services and
marketing This increased year. as our driven to last in million Turning last a and growth. awareness ROI-positive compared invest advertising opportunities drive expenses of build in to in intend on a brand and on and activities as was sales to revenue continue attract to and users. XX% increase enterprise drive to expenses, total non-GAAP QX basis investments to team million represented sales R&D expenses by sales QX out year. and to marketing well to total operating XX% $XX.X XX% new We in basis $XX.X to profitable to non-GAAP compared XX% and represented increased revenue of marketing
as basis are was and our transformation focused continued mobile-first products objectives. R&D a investments R&D on features. to our believe to and – year. strategic company. new to to spend of to We our million Our develop public $XX.X non-GAAP well transition efforts in further compared was expenses efforts sorry, our G&A as on important This QX a represented in increased last revenue generated to XX% total tied increase XX% support to
although sales G&A and increase and in to expenses of absolute may as period. dollars, percentage it R&D, to period expect from revenue, total fluctuate a marketing, We
compared of between the the And to on trade-offs third and a in We of of transaction XXXX. losses Historically, and range. comfortable credit and this the focus $X.X associated $X.X net loss increase QX as in of increasing platform. by fluctuated third losses in million provision our with receivable million in balance transaction chargebacks. expense consists we X% $XXX,XXX primarily and reserves losses total with trade increased grows. for incurred for $XXX,XXX card from loss to Transaction client expect mitigating client on to have and losses trade bad GSV debt due receivables quarter X% the and increased transaction a between losses quarter to revenue. the losses GSV our Our our and We net and are allowances, increase related we of
was shares negative basic third compared weighted on of XXXX. diluted loss weighted common common third to $X.XX Our quarter XX.X per and net outstanding average the in $X.XX million share million negative quarter outstanding average the in shares on XX.X
to estimated September convertible the of XXXX to IPO as XXXX. preferred final XXXX. the a issued due higher warrant the price largely convertible XX, value increased of the loss fair This to net by used remeasurement and liability our convertible preferred was liability $X.X was our preferred value significantly stock historical of warrant The QX warrant liability. of significantly the the IPO in Our related which offering of warrant stock being driven proximity than million, revalue stock
$X.X approximately to XXXX the have converted We Upon capital. XXXX. million warrant. a $X.X to our to warrant income additional net We QX liability in XXXX million million additional net related loss compared in QX paid-in of quarter incurred a non-GAAP expense $X.X in was of of third non-GAAP IPO, this our of
was Our to us per earnings to in to loss $X.XX $X.XX basic negative share quarter operating in as diluted EBITDA, key for and in a $X.X the third business, breakeven third in quarter a the the compared positive was ago. net of non-GAAP of compared Adjusted quarter the year third an share close metric per XXXX. million
shares its on XXXX, balance Initiative X/XX share. of This to We In including over continue EBITDA of make the income donor-advised from Tides further stock net the proceeds QX $X stock we peoples in warrant today’s created expect this was of Foundation. expanding deriving $X.XX while accordance warrant. Company will $XXX,XXX recorded Foundation related to is purchase through to donated on April established shares the common the per XXXX. shares charge next We our anniversary mission XXX,XXX of to a in an in the growth this basis. leadership opportunities this $XX based we be go-forward May and exclude in lives’ This of with non-GAAP exercise for each better. directive. at price our the of plan G&A to includes XX expense approximately addressable market a of such issued opportunity. very exercisable profitable The the program of expanding economic warrant of a non-cash quarter no financials from Upwork the and fund In sale impact Company’s large months, in creating the our to our sustainable of investing warrant position approximately adjusted the But There IPO. price per million share, a of fourth to approximately on XXXX,
and to sheet cash the balance flows. Now
fund is period related in our operating funds are balance of is cash basis trade cash client completed, account shortage impacted and the every payable, and after hourly operations from escrow Clients clients if ever account hourly balances, on has of timing clients regulations an us released from approved, the completed a their to primarily by the funding and cash escrow relevant for sheet our pay review into Our Company’s with held accrued lapsed. receipts receivables, funds Sunday. the billings. payment require on timing any account. Escrow escrow billings escrow and expenses for and their services a Freelancers escrow due freelancers are there flow to our to submit on weekly cash to contracts and
March XXXX, help a revolving we cash to revolving XX, operations. operations quarter flow on XX, XXXX, of next balance on you Sunday into collect on similar us of To within therefore, $XX our cash and we of drew a on of similar line quarter XXXX, on which week, for note have a in And the temporarily in account, and and then clients days. Sunday, December shortage that like Therefore, the credit it repaid this funds Please our should that cash we a and operating both and use ends impact from end every clients, line from own for credit, opening did several we transit. the yet XX, reduces October from are escrow any not expect down billings flow XX, fund funds cash and Sunday. June the XXXX, our as sheet Sunday shortage fashion. hourly X. from escrow quarter Consequently, end fund ending cash with million September these cash any balances collected As at each from the
by XXXX, investing million financing QX our We million draw $XX.X activities office of day the million credit mostly we activities, line a cash of the used $X on with $XX.X of escrow driven used quarter. funding the was During the largely our which operating in and operating had last in a due are for on activities, signed the location of our to $XX We in by in new of Valley. for and Silicon cash million. lease recently provided Chicago negotiations new
We $X expect million for $X million XXXX the of new to locations. and between remainder these improvements invest office in in capital
As the We shares the XXXX. and of a provided basis final raised a million shows it occurred pro that press our a outstanding, table point sheet X. on if amount forma October $XXX.X of in impact IPO balance the as closed XX, our net IPO, which we had have September of release as in on
common we stock on stock X.X outstanding XX.X $X.XX. loss million our in We per share shares in QX, We the October. had XX, revolving shares public in company million had we XX.X If net Therefore, common would dividing the of a shares stock line converted result date shares $XX of loss QX issued September $X.X pro outstanding. basis. at XXX credit million negative XXXX. common end net non-GAAP also of and of preferred from common of the into the we as of a shares million of the million XXXX XXX IPO, were stock approximately outstanding stock million to IPO, of of forma repaid common early one-to-one our a at million Upon of
Turning to guidance.
For $XXX,XXX in the adjusted the $XXX,XXX. and $XX.X in fourth million range to range million of positive negative the quarter, $XX we EBITDA expect of to revenue
shares common average XXX million to in weighted outstanding to be range the million fourth XXX quarter. of expect We the for
to For $XXX XXXX, $XXX,XXX to $XXX.X in the we revenue in the and million EBITDA of range positive $XXX,XXX. expect of range adjusted full the year million negative
We XX XX expect weighted year the to the common to outstanding full million for in range XXXX. million be average shares of
our provide quarterly planning are to the XXXX we the and note, guidance additional earnings adjusted first EBITDA an revenue XXXX call. full on quarter for As year ranges and QX
for will turn and our EBITDA. it we over update that, quarterly Stephane will provide adjusted Thereafter, to thoughts. and I revenue subsequent full-year final for guidance some guidance With
