Description

Quick write up due to time sensitive nature...Happy to try to answer question after the call, which is scheduled for today, Aug 4, ATC.

I /we recommend buying UPWK; if you are inclined, a partial position today beofre earnings (after the close today), and perhaps more after the call. I am long the stock. This will be a quick write up, but I believe it to be timely, as I think while everyone is sick of WFH (Work From Home) because we are living it, there is in fact a long runway. UPWK fits right into working from home, and FINDING work while at home, which is a concern for many.

Upwork Inc. operates an online employment marketplace. The Company offers a platform that allows businesses with freelance labor and tools to hire, manage and pay for completed work. It allows businesses to find, hire and pay developers, designers, writers, marketers and support representatives, among others. Its platform also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. In addition, its platform provides access to functionality for remote engagements with freelancers, including communication and collaboration, time tracking, invoicing and payment. It enables clients to find freelances in various categories, such as accounting, business support, copy edition, e-commerce development, information technology services, personal and virtual assistance, search engine optimization, graphic design, mobile development, sales and Web development. 

I / we believe Upwork's potential is underappreciated as it is poised to reap future benefits from strategies being implemented today. Specifically, direct sales force investment, new membership plans, hyperlocal marketplaces, specialized profiles and other initiatives will help reaccelerate GSV and revenue growth.

Broad WFH theme : a report published in June showed that 70%+ of over 500 hiring managers said they will maintain or increase their work with independent freelance talent due to the pandemic. 

We will be watching today's call for an inflection in take rate, which had been in slight decline...Herein we suppose is some of the risk, as the company has indicated this was intentional. 

We believe the large TAM (estimated at over $300B) and secular tailwinds will enable Upwork to grow revenue in excess of 15% over the next 5 years. UPWK are attractviely valued at approx 7ish 2021 gross profit estimate. Comps trade a good deal higher...we believe UPWK is a good investment, which is also not a part of the cabal of "discovered" stocks in this WFH category the best we can tell.

Catalyst

Earnings today...Continued WFH momentum. Please also see : https://www.wsj.com/articles/covid-19-hastens-the-work-at-home-revolution-11596495435?mod=searchresults&page=1&pos=9