Upwork shares plunge 12.2% after Q2 earnings miss and full-year guidance cut, citing AI automation and weak labor market
Upwork (NASDAQ: UPWK) reported second-quarter earnings per share of $0.20, missing the average analyst estimate of $0.21, despite sales of $191.7 million which slightly beat expectations. The gig-economy marketplace company also lowered its full-year sales guidance to between $730 million and $750 million, down from previous guidance of $760 million to $790 million. Full-year non-GAAP EPS guidance was also reduced to $1.38-$1.43 from $1.50-$1.55. CEO Hayden Brown attributed the downward revisions to automation driven by artificial intelligence technologies and a lack of improvements in the labor market.
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