Specialist
Former VP at Upwork Inc
Agenda
- Upwork's (NASDAQ: UPWK) operating environment and secular trends impacting the freelance marketplace industry
- Competitive dynamics vs Fiverr (NYSE: FVRR) and others
- Revenue drivers and growth opportunities
- Headwinds and tailwinds impacting Upwork’s operational and financial performance
- Industry outlook for 2022 and beyond
Questions
1.
Could you provide an overview of Upwork’s operating environment, highlighting 2-3 trends that are impacting the broader freelance marketplace industry?
2.
You mentioned what has been labelled “the great resignation” in news-flow headlines, referring to a wave of workers quitting their jobs. Could this be a tailwind for the freelance marketplace industry? Could you assess the size of the TAM?
3.
Who do you think will be the market winners and losers? You mentioned Fiverr and Upwork, but who has the most market share? Which players might be well-positioned to take market share in the next 1-3 years?
4.
How would you breakdown the competitive landscape within the industry? Is there any other differentiation that investors should be aware of in this sector? It seems there are the online-native players such as Fiverr, Upwork, Freelancer and LinkedIn and then legacy staffing firms such as Robert Half.
5.
Specifically, how does Upwork compete with legacy staffing firms such as Robert Half, especially enterprise client penetration?
6.
What is unique about Upwork’s platform? What are some key differentiations to Upwork’s platform vs Fiverr’s?
7.
What are your thoughts on Upwork’s service fee-based revenue model? What is Upwork’s average value proposition among its freelancers?
8.
How do the differentiations between Upwork and Fiverr’s pricing structures impact freelancer stickiness?
9.
Could you break down Upwork’s revenue growth by customer type across SME business vs enterprise work for large corporations? Could you outline any shifts in Upwork’s go-to-market strategy, given its enterprise focus?
10.
What are the main drivers of Upwork’s YoY GSV [gross sales value] growth of 41% in Q1 2021? What is your outlook for client spend retention, which is 106% from 102% in 2020? What factors could impact client spend retention over the next 1-3 years?
11.
What is your outlook for Upwork’s GSV growth in the next 1-3 years, given its push to expand its enterprise client base? Is there a point at which enterprise represents the majority portion of GSV vs business from SMEs?
12.
Where you do you expect Upwork to pursue new logo or client growth? Are there any areas in domestic or international markets that are under-penetrated where you would expect it to expand?
13.
Could you outline the strengths and weaknesses of the enterprise sales team and the sales team structure at Upwork?
14.
Upwork CEO Hayden Brown claimed that for the company to achieve its goal of a USD 1tn TAM, a sizeable awareness gap in the market needs to be closed. How might the company go about closing that gap?
15.
What do you think are the drivers of Upwork’s 13.5% marketplace take rate, which is relatively flat vs 2020? Is there a floor and a ceiling for a take rate across the next 1-3 years relative to competitors?
16.
Do you think Upwork can significantly increase its margins without sacrificing growth? What is driving margins?
17.
What’s your outlook for Upwork and the broader freelancing industry across the next 1-5 years and beyond?
