Upwork's GSV Per Client Rises: What's Fueling It and Can It Last?

Freelancing platform Upwork Inc.’s UPWK latest results show that clients are spending more on the platform and at a better pace. Gross Services Volume (GSV), the all-in value of every payment, fee, and service run through Upwork, reached $988 million in Q1 2025, topping management’s expectations.GSV per active client, measured on a rolling 12-month basis, climbed 3% year over year. This was the first year-over-year growth in six quarters and the third straight sequential increase.The improvement wasn’t just from one client segment. Every client tier showed growth, with GSV from large customers jumping 11%. So, where’s the lift coming from? First, product enhancements like smarter search and better talent matching are leading to higher customer spend.Second, Upwork’s growing exposure to artificial intelligence (AI)-related work is showing up in the numbers. AI-related GSV surged 25% year over year, driven by categories like prompt engineering, which saw 52% growth. These jobs aren’t just more frequent—they also come with 40% higher freelancer earnings, boosting overall platform volume.Third, Upwork’s Business Plus plan is helping too. It is pulling in larger clients—many brand-new to the platform—who tend to spend more once they are onboard and stick around longer. Management has trimmed broad marketing, yet the mix shift toward higher-value customers has lifted fixed-price and hourly spend per contract.On top of that, early signs from Uma, Upwork’s in-platform AI assistant, are promising. It’s already contributing to higher proposal volume and faster hiring, with management expecting a bigger impact in the coming quarters.For investors, rising GSV per client matters more than raw user growth. Higher average spend points to stronger network effects, better unit economics, and a platform that can scale without piling on marketing costs. If Upwork can keep nudging this metric higher—through AI demand, premium tiers and smarter matching—it may be laying the groundwork for a more durable growth cycle into 2026 and beyond.The Zacks Rundown for UpworkShares of Upwork have lost more than 18% year to date compared with the industry’s decline of 10.5%. Upwork’s closest publicly traded competitor is Fiverr International FVRR. Fiverr’s shares have contracted almost 8% so far this year. Image Source: Zacks Investment ResearchFrom a valuation standpoint, UPWK trades at a forward price-to-sales ratio of 2.29, lower than the industry and its own 5-year average. Meanwhile, Fiverr is trading at a slightly higher multiple of 2.32X. Image Source: Zacks Investment ResearchSee how the Zacks Consensus Estimate for Upwork’s earnings has been revised over the past 60 days. Image Source: Zacks Investment ResearchUpwork stock currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks hereOnly $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Upwork Inc. (UPWK): Free Stock Analysis Report Fiverr International (FVRR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks