Gig Worker Platform Upwork Sees 2% Upswing in Client Company Spend

Freelancer marketplace Upwork said it saw its client companies using the platform more, with a 2% increase year over year in gross service volume (GSV) per active client, according to its shareholder letter released with its earnings report Wednesday (Aug. 2).

The GSV spend grew to $4,987 as of June 30, per the report.

Active clients also rose 2% year over year (YoY) in the second quarter ending June 30, to about 822,000.

Upwork, the world’s leading online freelance marketplace, reported strong YoY revenue growth and increasing usage of its generative AI services.

Upwork CEO Hayden Brown further commented on the success in an earnings call: “We made strong progress on delivering innovative solutions for our customers and driving durable profitable growth.” Brown also discussed the focus on AI services and the team-up with OpenAI.

The average weekly number of search queries related to generative AI increased more than 1,000% in the first quarter compared to the fourth quarter of last year. Additionally, the average number of weekly job posts related to generative AI was up by 600% during the same time frame.

OpenAI COO Aliisa Rosenthal expressed her feelings on the partnership, stating, “Our aim is for our models to be useful and beneficial for everyone, and we are committed to helping people understand how our technology can impact critical work.”

Upwork CFO Erica Gessert also commented on the strong second quarter numbers: “Revenue grew 7% year over year to $168.6 million … while enterprise revenue rose 16% to $14.3 million.”

The strong performance numbers signal a surge in efficiency and return of investment for businesses around the world.

However, while AI platforms offer benefits, consumer and corporate security remains a priority concern for many. As AI platforms become more widespread, it is expected that measures may be taken to control and regulate such systems.

With strong social media following, open source collaboration, and focus on entrepreneurship, Upwork remains the premier online freelance-as-a-service platform and is looking ahead to positive third quarter results.