Upwork VP Dave Bottoms sells over $13k worth of stocks Via Investing.com

Working up Inc. (NASDAQ:) GM VP II, Marketplace Dave Bottoms, recently engaged in a transaction involving the company's stock, according to a new SEC filing. Bottoms sold shares with an aggregate value of more than $13,000, as part of the company's withholding tax obligations related to restricted stock units (RSUs).

The transactions, which took place between August 18 and August 19, 2024, include the issuance of 3,750 RSUs, which represent a contingent right to receive shares of Upwork common stock. After the issuance, Bottoms sold 1,433 shares at prices ranging from $9.55 to $9.96 per share, culminating in a total sale of approximately $13,825.

Investors may note that the sale was not optional but required to cover tax deductions as mandated by Upwork's equity incentive plans. This “sell to cover” exercise is a common practice for managing tax liabilities arising from the vesting of equity awards.

After this transaction, the filing showed that Bottoms still owned 11,636 shares of Upwork common stock. The company, headquartered in San Francisco, California, operates in the technology sector, providing a platform for freedom and remote work opportunities.

Detailed transactions are now publicly accessible through the SEC's website, providing transparency into the trading activities of Upwork executives. These letters give investors insight into the financial movements of company insiders, which can sometimes serve as a gauge of their confidence in the company's future prospects.

In other recent news, Upwork Inc. reported a 15% year-over-year increase in revenue to $193.1 million in the second quarter of 2024. The company also achieved its highest quarterly GAAP net income of $22.2 million and a strong adjusted EBITDA ratio. 21%. Despite these positive results, Roth/MKM cut Upwork's stock price to $13 from $19, following a disappointing second quarter. The company continues to endorse the stock with a buy rating, noting continued interest in projects related to AI, business services, and advertising.

Upwork's second-quarter performance led to revised 2024 revenue estimates, now 5% lower, and a reduced outlook for 2024 amid growing macroeconomic challenges. However, the company remains committed to its EBITDA forecast for the same year. Roth/MKM also revised its profit and EBITDA estimates for 2025 down, to 10% and 6%, respectively.

Despite the slowdown in new client activity, Upwork expects Q3 revenue to be between $179 million and $184 million. Full-year revenue is expected to range from $735 million to $745 million, with the company maintaining its full-year adjusted EBITDA forecast of $140 million to $150 million. These are the latest developments in the company's financial performance.

InvestingPro Insights

As Upwork Inc. (NASDAQ:UPWK) navigates a period marked by high stock turnover, investors looking for in-depth insights can turn to InvestingPro's key metrics and tips. With a market capitalization of $1.25 billion, Upwork stands as a key player in the freelance platform market. The company's price-to-earnings (P/E) ratio currently stands at 17.24, indicating investors' expectations for future earnings growth.

InvestingPro data highlights a gross profit margin of 76.18% for the last twelve months from Q2 2024, indicating that Upwork has been effective in controlling its service delivery costs. This efficiency is also underlined by the company's revenue growth, which increased by 14.5% in the same period. Such performance is important for investors to consider, especially in the competitive context of the technology sector.

InvestingPro Tips for Upwork reveals that the company has more cash than debt on its balance sheet, and revenue is expected to grow this year. These factors suggest a stable financial base and future profitability potential, which can be particularly reassuring for investors given recent stock price volatility. Upwork's stock has been highly volatile, down 25.95% in the past six months, yet the company's executives have been actively buying shares, indicating confidence in its long-term value.

For those interested in a more comprehensive analysis, there are additional InvestingPro Tips available, including insights into Upwork's cash flow potential and EBITDA valuation multiples. Visit to check out all 15 InvestingPro tips, which can provide more clarity about a company's financial health and strategic direction.

Investors may also note that despite recent internal activity, Upwork executives continue to hold a large number of shares, indicating a vested interest in the company's success. With the next earnings date set for October 23, 2024, market participants will be eager to evaluate Upwork's performance and strategic plans.

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