- Earnings call transcript Q3 2022

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Operator

Good day. And thank you for standing by. Welcome to Upwork Q3, 2022 Earnings Conference Call. At this time all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. now for hand today, would to conference I speaker your Evan Instructions] like the to over [Operator Barbosa.

You may begin.

Evan Barbosa

Thank the third Officer. the Upwork and Jeff discussion financial Executive Chief and to Hayden Leading Financial Upwork's President are discussion you. results. today, Officer Upwork's Chief McCombs, quarter Welcome XXXX Brown, of

first remarks, safe harbor the prepared happy management's review will Following to take I'll be we your question, but statement.

securities forward-looking law. make statements statements related our statements During under of call, are federal a variety guarantees rather we may not and of this but risks, are These to business are to performance, uncertainties that future assumptions. subject

Our actual in reflected expectations materially results could from any forward-looking statements. differ

decision statements In statements the currently that changing in Ukraine impacts future current pandemic operations are we Russia's the invasion impacts to of Russia rapidly. actions looking regarding of related taken in and future Belarus Russia's our pandemic control and and suspend the COVID and business, XX addition, beyond on our and to our business invasion are any response of COVID-XX to and of and have forward are Ukraine matters

factors our the in our Investor For material that filings affect other refer discussed letter. as risks, well actual website, Relations SEC and on SEC to important results, today's risks important discussion could available other website and please our factors and the of on the as shareholder

on the XX, report in Additional XXXX forth filed. Form for information we the will be also ended when quarterly XX-Q quarter September set

afternoon was our GAAP measures at the found regarding to Investor financial investors.upwork.com. Information to Relations reconciliation will on shareholder issued a website, of in made reference non-GAAP be be this non-GAAP addition, letter that In can measures.

quarter the and as XXXX. grounded As of non-GAAP. cited to reported third All third the figures of are always, of are measures unless XXXX otherwise GAAP or quarter comparisons and known

call turn over to I'll Hayden. the Now,

Hayden Brown

XXXX third And thank us today our for call. joining Evan. earnings Thanks, for quarter you all

our $X $X.X Upwork a focused XXXX, even GSV uncertainty. both grew prudent challenging quarter our of XX% exceed to third in continue business the growth, and We're proposition closed has in in and of value macroeconomic XX% $XXX.X our to that our once economic of on EBITDA of and clear loss we million grew As customers to critical billion times indicators drive again, the to be steady, was million. sustainable year-over-year Revenue adjusted backdrop making and against year-over-year investments quarter conditions. business the to durable

times. their continue on to these during to uncertain our businesses work Importantly, count us and customers their enable critical

around work is change it aware of are the workers be operations of pioneered XX% companies reality We new for and benefited from we managers bring remote, them or expect moving remote have to into who workforces, Upwork opportunity the new introduce fact the part illustrated remote mostly shaped of their been American standard one have companies considered while XX% opens fold or the by both paradigm up remote hiring of work as vast fourth as hybrid reality of major that fundamental today. working This first, and know of that shifts or work, now changes and have to This to and customers. more to not a ourselves work the forward. sea Upwork

work of online should that like human It the TV, reinforces that brands than targets how alike, apparent work late-September we aware the aren't now, has few the priorities limited across appearing us and who video, and years. changed campaign. past have Nowhere streaming clients digital Upwork, audio, emerged belief forever. social media now new world central emphasizes prospects, our largely but is of been the ways embrace of has working that mainstream instead our that to talent work yet recognize of unleash time more potential This is over opportunity that the of to the new launch and and campaign our

Our both our resonant flexibility bottom of to strong us new business position as hiring operational and through our their agility and offense value valuable as amplification talent well campaign benefits brand most on proposition states. our fingertips, at to allow remain clients' line expert and evidence

Operator

Instructions] conference will please conference hold and this slight will gentlemen [Operator operator. there resume on a in I apologize momentarily. Ladies remain your your is do the replace be delay

Hayden Brown

Okay line? can line? Hello? Okay, phone hear can you Well on thank on hear me? Okay, me you this you me can hear this you

Operator

begin Thank you for your patience gentlemen. Hayden, may you ladies and

Hayden Brown

hear Can me? you you my think just I disconnected line.

Operator

Yeah, we hear can you.

Hayden Brown

Excellent.

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on only three fact, purchase what is consultations In Project Catalog by nearly customers spend customers times day XX who who spent. use

with validate their vast Lastly, thousands enabling of partnership of the and softness the access to in immune technological from more together talent continue are of we adding the and professionals in second talented To to that clients was with through clients display that expertise Equipped digital and defining our persist. budding trail to effectively quarter new a some as customers talent economic in-line with see of third we previously expectations. earnings, to metrics. our evidenced blazing may sure, Credly, our market and the marketplace the can since capabilities supply not these in and the job our confidence. work, workforce conditions revenue match Nonetheless, are expected credentialing, fully quarter faster on be profile leader that are efficiently, uncertainty that engage our and talent with uncertainty, impact more posts, reality the badges regardless by shared

be seen more and softer third pronounced have sized We retention to Europe in that the in businesses. stabilized we observed the client trends quarter in acquisition and the continuing softness quarter, medium small with with and the second

targeted. saw enterprise in Pains team due Our sales for This resulted find also plus outlook elongated handful fewer accounts. enterprise quarter a macroeconomic the third than the to clients cycles some Growing operational of in LAN

growing attractive operational believe ever remains as the remedying Upwork. for are We and opportunity enterprise the as pains

a further whether to around expanding occur, uncertainty and adjustments with and Due toward largely the for and across visibility as need environment. our the on new our regardless to manage ongoing, principle and able of workforce in current partnership up as a transformation nimble be business position business and evaluate their to Additionally, roles of for our businesses reviewing activity we time ability to have they This we skilled period high of goals. or on the of platform, more as behavior a work prudent to internal monitor on vendor customer hiring, a us we focused changes cost our responsibly a have or where project tight we our us ways always needed. confidence critical highly they through be to with with including We evolves, leader adjusting turn programmatic plans And operating aggressively gives view ensuring dynamic are as majority Being business Upwork of manage their always their and recurring making for macroeconomic as to management market their resources aiding source We the been this underway, in own guiding climate. integral discipline. cementing ecosystem. outlook as industry, to based, economic measures still stand our nature see remote prioritizing cadence we continue our timing budgets, and a of in the several work. degree is economic working continuing workers, has reducing spend and

continue and and trusted, talent to for highly it get deep, innovators And done lasting The Upwork to quarter the globe. for fourth together. these We you and will and scale world's the us skilled fosters that journey. Thank beyond. joining more across evangelize this on diverse marketplace and innovate, community center gravity also of work build remains a career the we relationships in know work

all for want company his last and few contributions have questions. as last for experience will thank just Best the to I and over chapter. all next Before incredibly of your I call Jeff, future continued strength you, his growth community for this position earnings investor we your grateful the on to Upwork. put years. us our the of endeavors. His to Jeff luck a take expertise and am marketplace positioned Upwork for in be

open We some patience the thank will you as your today the challenges well. for your now of questions call with technical to and

Operator

Our & first Needham with the comes Instructions] question [Operator from line Company. McTernan Bernie of

Your line is open.

Bernie McTernan

for thank the taking was on sequentially to you questions. start virtually Maybe enterprise just Great, flat. revenue

the re-emphasized the in the there you of less or or top quarter? downshifting churn than $XXX for the any add force? in the doubling term confidence gross And addressed customers problems were you spending So long I have was or shareholder still reiterated But funnel letter. target But issues maybe do I million that understand sales know and revenue?

Hayden Brown

in of for downshifting any we I'd question. retain not say did spend. Thanks -- customer terms see Bernie. the

success zoomed the who to vendors rate good the solution. customers account now kind existing is growing list close top with the million our of $XX with us. has really was referenced, saw not the we fact, previously top the a of and We customers leaning in team, to of into In one run five in

on in who existing with cases. So this long spend us continuing term coming to We're we in really customers trajectory a spend expanding our of targets with about are feel lot the good call. not

spend overall normally think your your question enterprise I land And changes do we opportunity, thinking how been in really QX the that. theme no with on about our team know of are something and more to we're the the of expand feel terms has plan but continuing about earlier cohort. part good in really that's that to call, great

Bernie McTernan

far investor term the the and letter that balance any what sites the marketing profitability there of then while the long investments so nice investing near the in success leeway term. other hit just some assuming Great, to to focusing and continue? and struck in goals the and mean brand also cost on how Is about a discipline in 'XX? much new campaigns could marketing early for think there 'XX the how for And of then is brand indications

Hayden Brown

definitely we investment, brand measurability focus. are Sure, our monitoring

Looking that outset about be goals would we we're at this of that of achieve to went good our year. other journey. the But the we next into as context And area brand yet. not out profitability knew at EBITDA ability the in feel a brand the side we the multi-quarter that

the so excited we of achieving year, there. launched of that even in about that And context brand will things our we be a us. will a And goods see commitment we're goals for lot the our campaign continued But new awareness. even happening again, profitability and next

Bernie McTernan

questions. taking thanks Great,

Hayden Brown

Absolutely.

Operator

you. Thank

Matt with line the from Piper Sandler. comes question next of Our Farrell

open. line Your is

Matt Farrell

Jeff. question. bit great like any was million And number It second macro about the the And million with we provided start I to I think my headwind should half. I guess, the it as Is it or at in-line look be you, And wanted a get right macro. believe well? taking for it worse? XXXX, $XX we the way on sounded you maybe still expectations to for zero early about $XX QX. thinking with in work as to to the Thanks that QX was little did how for to

Hayden Brown

we look definitely that see Matt, Sure, anything now million to decelerated some stabilized million that in then see full far, right concerns that chime with. so that line can we Jeff QX. than a And and or for bit and particular XX us think of But as think you I from now that's have I'll $XX everything And what been with we further $XX definitely we to start QX. in deceleration, $XX of client the in and want giving anything but seeing acquisition QX add communicated. previously to and then in million softer baked ahead, indications did has we QX, any we're I that million kind retention in not normal

see where level think we good, we the of and last we exposure, the quarter right consistent I so that that's macro around and that from given where guardrails, things we've feel stood have And really visibility where is now. those any we with

Jeff McCombs

roughly for expansion with that the on the QX line on add the QX. fronts. QX normally, Matt, QX to bit just you see that, And we to And from revenue actuals noticed our guidance is a midpoint in would seasonal of to

to adjustment. that more So of time. call. offsets this QX adjustments on that we're normal on respect that our that not commenting at on that macro with kind And seasonal XXXX, But to

Matt Farrell

Hayden, Thanks. And this for one's you.

and with provide the chapter detail talking drivers that recently. next about specific you more dynamics you trends and how on some of the been for just and growth think looks, maybe You've macro? Upwork with of Could particularly the some

Hayden Brown

that investment. the we marketing pipeline. to work laying around for chapter our them the benefits adoption next of offer unlock last the the had, force around talent our bets groundwork been work opportunity the for some about and for we've the these sales which of chapter of offers all been have the and a we've And and source one is we brand last next of a continuing than such we which marketplace, is enterprise expansion, in total years been more strategic strength marketplace Upwork years, new half, more historically. a that that's innovation the And the this to two launching just way making us But been them. products and customer we've really The over Sure. has over really, more few us have

for next to us sub-XX% wider a customers the continuing this the ahead bringing that, today, us gets market for us So to the much us that in is chapter innovate been building customers, cohort we've beyond knew about this building stage. that awareness and model of way

Operator

by Thank Please stand question. next for you. our

from RBC. Brad Our line comes the Erickson of with next question

Your line open. is

Logan Reich

on Logan It's for Hi. Brad.

on external some Just enterprise, you and double internal had wanted headwinds. to click like which

most say you and economic you macroeconomic on can you want externally, the environment just to back would of the uncertainty where clients' ask, then guys was be internally? And of sort headwind to strong one, getting then timeline on quarter? making? potential where kind in decision unpack And guys impacting wanted any each just how that's Just or to the clients, Thanks.

Hayden Brown

up where Thanks. we are off well. like that was were issue from XX% as revenue see ability Thanks, our happening I Logan, that about with again, some as great the the with as actually good execution the campaigns execution some Again, for top of feel there a in and and we an quarter. because funnel email lots we cycles standpoint, we did hit and the enterprise with we activity particularly enterprise, for was internal although and was migration of many wanted, a really the overall, elongate impacted driven have that the did part like of in our quarter the land internal bunch accounts, definitely had macro, by hiccup things to fuel more expansion previously side, turned that leads we by of happening marketing see than that. But team an some things system

-- on we is were to continues that another around And our So side. and of puzzle we our us for and how which the those remedying piece the challenges what key good that team on feel for have have arms execution be have hiring those. land we're track, been

good to be. quarter think timeline, to it us get And take a we to does you to exactly could drivers the can insight have that's where like where is. But macro of that headed. want that timeframe bit little to control So for one the of time bit that a a in we uncertainty and terms of back feel around what we we present show I

decisions. how In factors the terms macro of impacting potential client are

I accounts hand, spend then the excited factor. side, cycles where the being or they're elongated, very constraints, talked now, even, our is what that some as think it's certain model appealing. the have we've seen land about expanding because other on another be is our one other customers they where, really very either But existing we on to customers model deal

are we who macro that. So all familiar and mix model, we at of customers, haven't in our the a us, overall, bit headwind a of seen again, that a already with for be feel on existing little But are using particular, side.

Logan Reich

taking for thanks Great, the question.

Operator

you. Thank

comes Fong line Marvin Our next question of from the BTIG. with

Your line is open.

Marvin Fong

Great, thank my the for that appreciated consultation you and question. I taking detail about there. the the Project Catalog you success provided and

cited in after XX significant you've spend wondering, Just the the increase days.

So Catalog smaller? approaching our of then still with are projects the size I Product And project a a they quite marketplace? consultation, they up. talent average bit Or are the follow have

Hayden Brown

Marvin. Sure,

stone stepping still, view I they're and what maybe marketplace a them think like. look we between catalog in still the as talent

pretty between. still it's So also just space on a we site. they're in very rolled for across they're the product, categories it new us. plus XX all But like It's out, dynamic a

is where a So categories lot very Because with of we're across in a about. product. days this this our of we're situation, launched And all very it's this I all we're early leaning moving them. just into And seeing definitely would kind new kind contacts excited deploying customers the it both of are which very new and applications of emphasize where customers, having product. it was a of

Marvin Fong

follow also my on And is great. enterprise. up Okay,

-- those of you are Just -- a how decisions long Are clients us But press rate? give are that decision? those that much confident And longer Thank close wanted different taking just ask feel at these you how elongated? product can you. an make same exactly this idea that to do will confident the being to are you way. the question, still

Hayden Brown

Yeah, thanks.

different We our in haven't funnels. seen the conversion points rates change in

for So some deals, at not some process, the just in this the cycle involved companies to are we're It's issues example, to getting more pretty or signs positive more get more being seem going seeing the that's times. approving counsel more not us. of that introduced there approvers the comfort hitting time. because their just that to is And that's they're into outside really be into

So these And in increase it's up process time -- those you that it's is the on blowing something types things, the completely. it's not, we're but cycle know, seeing, of issues.

unfortunate, definitely derailing feel way, was an this this issue of more So, our the was the but feel side, again, We're quarter saw result, through, like mean, in where ways, in the land not a pains our on we land operational myths. issues terms a working pleased those in of address is it's issues. good some that we're we that we're just And the about -- and team around and our it it we is of -- is in the not internal team. is, that I comforting issue comforting. hampering land that we our that feel some it's minority lot significant can growing that more that

Marvin Fong

And great endeavors. it's next to good Thanks, hear. on luck, So Hayden. Jeff, your

Jeff McCombs

Thanks, Marvin.

Operator

you. Thank

Our with Canaccord. Maria next Ripps question comes from

open. is line Your

Maria Ripps

taking for questions. thanks Great, the

you're First, kind curves you Is in to by spend what workforce of of of seeing vertical? mean, has by all? is that by at call and there that category Or expense I say retention terms more tech is impacting impacted patterns sort reductions. obviously, broad anything been you would or or out based?

Hayden Brown

broad See, as we're with is caveat with, based what that, mentioned. a seeing

softening has metrics Europe. the more of SMBs been certain Some more and with of in the

in bit the would some and in that pronounced definitely customers, cases I we Europe. say it's it's with So smaller exclusively with a and the but seen in U.S., little larger have more customers

we So by real type other We're the or a not those differentiation business or that's sector, where dimensions. see any of seeing differentiation.

Maria Ripps

it. Got very That's helpful.

Hayden Brown

Maria, I dimension. think on you I note really to asking either. customer cohorts. anything call out of think there's wouldn't don't terms about anything In cohorts. I were there that

Maria Ripps

of rate sequential secondly, couple it. and then the several from and behind expanded drivers over sequentially, of about And sort talked really you it. about here take progression nicely, quarters? next year-over-year, Got should both think How your we

Jeff McCombs

the for Maria. Hey, question. Thanks Yeah.

pricing couple was care change last primarily the mid-quarter. So by driven quarters we implemented the that take the QX, over

QX you that that have service, to the pricing QX. still in saw structure. our working that both and tiers spend of tiered with more continue the have you benefits graduate with So the clients freelancers that We incorporated That's They more they're fully value us our with. now, more won't benefit. as and lower find so into the and dynamic

And dynamic to take so that And pressure talent the that will to growing continue rate faster play meaning side all out. rate non-enterprise. had, we've take take out, also is than rates. on play enterprise upward and scout will continue also higher additional And Project Catalog have

terms to will dynamics. those offsetting will think foreseeable continue the the in be where play But We're rates, take future. not out will So be for guidance those providing in trends of we will, XXXX.

Hayden Brown

Great, thank Jeff, And going much. best forward. of luck you very

Jeff McCombs

Thank much. you so

Operator

Thank you.

line John with Jefferies. Our Byun the comes next from of question

Your line is open.

John Byun

Thill. you. for thank is This Hi, Brent John Byun

Just a couple of have questions.

through if First, to lot there's are there. to And just recognizable enterprise more And anything wondering show up. there that Is that. you a brand that we're follow can read of the I going these it logos any are color names. the pretty this to maturing? quarter, is guess, add I'll just letter from impressive then things

Hayden Brown

we're those Thanks, about too. John. customers Yeah, excited

business more get to recognition. think continues I our

fact that our Marriott, a We've companies. not great are is & a of making doing with Our solution customers. to Bradstreet. resonates, tech the of I [ph] just phenomenal speaks about job, talked mean, this, really the just sales Dun inroads I some despite team with hiccups ABM think lot

model, the that they how are industries, them or is and best XXX lot or experience XX so solution of fact, many to certain an tech type many world Upwork the company value in savings, or agility, really, a with but a businesses the understand I are started. think, right cutting a for best old outside and landing talent gives you businesses we access are of think, company, need, very just whether who so in cost whether now, getting of small year people they edge business think I know, the absolutely a our increasingly this they

think So, even of and with times of some uncertain some we're of that I those is illustrated really the business logos in. our resiliency through these

we are it unlock trillion incredible we that those going we after also have the that think I quarter. landed through TAM to illustrates that ability companies dollar this like

John Byun

it's much, macro have And to then sequentially. another related so do down I that question helpful. suggests year Thanks was

maybe little think seasonality familiarity in or was the or a but guess have macro market, the -- could be bit letter to there client parse guess if Any to the it you're mentioned you I price between out maybe it and I will Thank pointing wanted helpful. you. change. color see some churn with I client

Jeff McCombs

that a out. Yeah, There's pointed out number played you as drivers of that there.

macro First kind off, the of throughout QX, stabilized QX. and it throughout dynamics of that kind increased softness in

decrease. would a in So quarter-over-quarter that role have played that a bigger role causing played

of impact whereas full Secondly, or implementation Ukraine couple a was months Ukraine a X improvements there, increasing substitution that war substitution on May so also, had a impact was little bit rate QX. had offset a the in played also of that in quarter the role It's where the of of our by changes increasing.

traction which the was to we are increased expectations, behind change, customers, also from right there take GSV as might paywall those rate. more the with that features Third, the delivered gaining thought it's revenue impact. in And removing might our be expected, increased be pricing line some

And bit already then And I saw the as the I macro. well. mentioned so a guess, from map, that we

that the terms that really reasons drivers. providing breakdown the why of are the decline. we of absolute those saw not We're So key those those. key But are context in

dynamic jump. a also QX, normally, the quarter-over-quarter to addition slower to seasonal QX is In

And it, on so when those all layer decline. we of top you ended that up with

John Byun

Jeff. best And you wish very Thanks much. the

Jeff McCombs

much. Thank you

Operator

by stand Thank question. next for our you. Please

with Our Partners. Kulkarni of next from question MKM comes the Rohit line

open. is line Your

Rohit Kulkarni

couple the over A lack visibility. on you. visibility over thank growing of Has kind days your Hey, shape just other overall, talk or as past of that uncertainty, of past kind XX through days. XX of or growing hearing with One conversations companies uncertainty seeing, in you're lot about of that of questions. changed is the the we're the clients a

they can that not look say So how whole the confidence is of right could December now. like degree

that how So what just just conviction you're evolved. change there guidance, is follow want reiterating has some your quick ups. if Love to of have but in a love hearing. see to I hear or couple then And would you're certainty

Hayden Brown

tightening Yes, think their in But it's general. days a two question, company the Rohit. around now last I is change level around right every a XX there that been don't certainty. big big self conversation of at there's in

as And be we've very going so, in continue they think to terms their expecting our measured spend, guarded that taken company with through is very their is, to thought of about I how guidance every are we with where that, we've spend. go QX

is that on the so in with Because, in modestly impact not lot this, mentality. it kind margin, that's use a we people or again, their different And budgets, impact mentality a of a of of just expect it more times to lose times and like and QX lot numbers. case, the our that are it's something QX,

in the environment year I So temperature right how rest going as now. out play the the there something a think think of to that's that's we that's consideration into taken we is And have out. that about

typically customers advocating the our other for those the you from customers, our we especially our companies. Upwork about the enterprise agents, if solution I dynamic hear the change inside that think who are and customers think is, ones

the the actually they actually which it? bit moment, is and So ones best people business doing as their the quite the moment doing change they force And everyone stop what this [Indiscernible] it this UST agenda they're they often the at and are use of can resources. a and they forces when are scarcity in suddenly, are like who a moment how to Because agents, see evaluate more. is

differently. actually a lets us the gives of actually kind with step them say, alternative forefront step achieve fattier same and to the during have or these maybe these objectives kind hey, Upwork platform that it and that opportunity I And that change this times they an table to here can don't of the the have times, So agents when in way. normal is moment

a and they businesses, is solution from us. know some an where the is and our drives for conversation So, agents the around very knowledge their the pieces again, it's whole what to hard them of have advantage which in us of play for macro of tailwinds the opportunity do type out for scarcity this interesting. can them have and I've promoting been agenda it how But really of headwinds, change our like different for advantage hearing

Rohit Kulkarni

kind Okay, as fantastic. been new on And growing any any, driving as there -- that of the clients you've the of has seem why of on is to above are specific drive which the your color spend already there types that, do? the are some spend disclosed to specific and question as Is of see how Or sequentially, steadily slow per is trending? top client there that per peers one to kind continue behind has clearly what sustainable that beyond So that? as been wanted uptake well behind how how that to why gradual are as of client, what verticals as and well additional such?

Jeff McCombs

that fairly and it's relationships One, growing drivers and continuing others. to But Clearly, the a there general, it really very slower It's been driven Thanks, it's of is And broad in categories appreciate by the than really Rohit. are continuation past. all based. elongate. broad talents in the It's we've some the clients primarily is seen are categories. across based. I between faster question.

per to hours the continues longer. So get project

into client project rate. increase to be client basically The maybe If per spend is slight, client per hours hourly line spend continues in of per down slightly hourly you break per rate rate is projects in the slight driver. size, projects -- down the a the

So probably value together. all is what about seen we've talent and more working by continues which Upwork years couple that really more drive and last clients is to dynamic, relationship what forward as is the of over

Rohit Kulkarni

next. Jeff. Okay, whatever again, was And you with you. It with good okay, do awesome. luck Thanks, working great

Jeff McCombs

Thank you so Rohit. much,

Operator

Thank you.

Our comes the of Securities. last question Andrew Boone from JMP with line

is Your line open.

Andrew Boone

Hi. taking much Thanks questions. for my so

of can You guys is detail good or any funnel some But on better way there the traffic? top terms really us in offered of SMB enterprise. of you understand help cohorts health

Hayden Brown

Thanks, Andrew.

solution was is, of think healthy. any the last I going where notes SMB There some say, to we leaning changes were We've the has number hasn't metrics looked the as that like in our of Sorry, And macro. over was $XXX,XXX, are despite way, environment. spenders, the spend, softness what's we've going that at of even a business things XX% been on in in our the who into year-over-year people by impacted even quarter. really mentioned we've stabilized significant really at seen, it's were up in in terms from I that the broader

by increase that. was NCPAs CPCs seen we macro. by really And that a are again, that couple of somewhat the slight funnel, that have a driven feel we things. was in I think of So about Top impacted good the

optimize we perspective. around monitor the we that is program our So ROI where growth. doing And is an continue and been about great that feel from it with our so healthy acquisition we've well. business really to But

around pipeline, graduating while tackle enterprise come that are to opportunity, great enterprise bringing us. to more to for jewel then innovating, new in a marketplace, in the a doing more continuing the ready we're and talent customers that in and marketplace and have acquisition new things which crown through build products continues like from to includes we've be usage. growing through customers the our the experience programmatic products consultations, Our sales that different And to been for even to work team innovate Catalogs marketplace,

place. that all So we're with foundation just that I we're the opportunity amazing good on. think an massive We building innings in good market feel is -- still dollar trillion a early in this unlocking of about of really

Andrew Boone

that to you be results frame And spend way on the judged then I back brands guys million would you it guys second the of wanted for historically to $XX I is basically question, that are thought go marketing. the that seeing. my

year, guys and that so of now have effectiveness Thanks do how seen this the of spend you of So we're you at that think end luck. Best there? the kind guys about October Jeff. much,

Hayden Brown

Andrew. that thanks, for Thanks Yeah, question.

great of on I measuring of the gain been first And carefully. legs move think seeing we're that and to quarters campaign, really definitely of the needle awareness. couple some some it's start a

trying level without work about in more spend catches we recent brought this that to impact capability breakthrough, even the Because both of attention measurement rules even last about we message the the this messaging work the and And campaign, [indiscernible] most and have program. bigger an all increase dead. dollars creative really make call, to with the talked and is launch efficiency increasing quarter-over-quarter, around, we around our really drive are As we're of harder. through onboard materially some additional people's a the and having the partners campaign with having the but that awareness that old powerful creative,

that know, quarters this is, couple we feel in. you a So

measurement way learned have have messaging even work and program. We that to insights our that continuing we're that adjust to used a better even lot channels as so to and better we planning through that drive using getting improving different along the creative the marketing we're we're we're

makes targets. results to to committed we that measure of XXXX. as we the brand all So seeing are, we that's dynamic and while that are great we and we EBITDA think us feel to know need seeing especially profitability changes were achieving make those I goals program will achieving in continue where And where about our we this profitability going to as

Andrew Boone

you. Thank

Hayden Brown

Thank you.

Operator

to like closing are questions the back to now turn over Thank remarks. further in you. will call no for I the Evan There queue.

Evan Barbosa

And the today. of you entire Upwork. us behalf for in interest On thank thank team, Upwork you for joining your Thanks.

me This concludes have Thank please If our call. hesitate up or not need do to reach follow investor@upwork.com. clarifications any you questions, any at out to you.

Operator

for participation. this conference concludes today's Thank gentlemen, and Ladies you your call.

disconnect. You may now

Upwork (UPWK) 27 Oct 222022 Q3 Earnings call transcript