Upwork (UPWK) investor relations material

Macro environment and industry trends

• The macro environment remains challenging, with continued deceleration and softness, especially in small jobs under $300, reflecting broader market pullbacks and reduced hiring.

• Job openings in tech and professional services are at their lowest non-recessionary levels since 2003, impacting platform activity.

• Both macroeconomic pressures and AI-driven displacement are affecting lower-value work, while companies are rethinking workforce models toward more flexibility.

• Early signs indicate a shift to more fractional and flexible work arrangements, benefiting platforms focused on contingent labor.

AI strategy and platform innovation

• AI, SMB, and enterprise are the three main growth levers, with AI investments like Uma driving efficiency and faster matches.

• Uma, the AI companion, contributed a $100 million GSV lift in 2025, with ongoing enhancements expanding its role across onboarding, matching, and post-hire workflows.

• The AI category is at a $300 million run rate, growing 50% annually, with subcategories including AI infrastructure, model building, and AI-enabled creative work.

• Human-AI collaboration outperforms AI agents alone, with human-agent pairs delivering 70% higher success rates.

Product and business model evolution

• Business Plus, launched for larger SMBs, offers premium features and access to top talent, expected to double its GSV share in 2026 from 2.5% in 2025.

• Variable freelancer fees, tested in 2025 and now in limited rollout, are tailored by category to optimize supply, demand, and take rates.

• Enterprise strategy expanded through acquisitions of Bubty and Ascen, enabling a comprehensive contingent workforce solution (Lifted) for large clients.

• Lifted allows enterprises to manage all contract types, optimize costs, and access global talent, with early customer wins and strong pipeline visibility.