Upworks Business Plus Plan: A Catalyst for Growth in the Freelance Market?
Upwork Inc. (UPWK) is making significant strides in the freelance market with its new Business Plus plan, which is designed to attract larger and higher-value clients. In the last reported quarter, the number of active clients on Business Plus more than doubled, with about 40% of them being brand new to Upwork. This impressive growth, despite minimal marketing spend, indicates that the offer is meeting a clear need in the market.
The Business Plus plan provides clients with a smoother hiring experience, including access to Upwork's top-vetted talent, help with shortlisting, and Net-30 payment terms. These features are helping new customers move faster from signing up to posting jobs and spending more once they start hiring.
At the same time, Upwork's larger Enterprise business is in a transition phase, but Business Plus is picking up some of the slack by pulling in larger, higher-value customers. These customers are using the new features at high rates, and Upwork sees strong early signs that Business Plus fits what these clients want. The company plans to keep improving the offering this year.
For investors, this could be important. If Business Plus keeps growing, it could help Upwork bring in more steady revenue from bigger customers. This shift may not make headlines, but it could have a significant impact over time.
Upwork isn't alone in trying to attract larger, higher-value clients. Fiverr (FVRR) is also stepping up its game with Fiverr Pro, which is aimed at teams and bigger projects. Like Upwork, Fiverr is leaning into AI and premium services to boost average spend per client.
Meanwhile, Microsoft's (MSFT) LinkedIn remains a powerful force in the professional hiring space. LinkedIn Recruiting Solutions offers enterprise clients tailored sourcing tools, advanced filters, and AI-driven candidate recommendations. Backed by Microsoft's ecosystem, LinkedIn is becoming a go-to for companies managing large-scale hiring.
As Upwork, Fiverr, and LinkedIn expand their enterprise-facing offerings, Business Plus gives Upwork a more structured way to win over mid-to-large clients directly on its platform. From a valuation standpoint, UPWK trades at a forward price-to-sales ratio of 2.25, lower than the industry and its own 5-year average. The Zacks Consensus Estimate for Upwork's earnings has been revised upward over the past 60 days, indicating positive sentiment among analysts.
Upwork stock currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of B. If you're looking for the best stocks to invest in for the next 30 days, you can download 7 Best Stocks for the Next 30 Days for free by clicking the link below.
In conclusion, Upwork Inc.'s (UPWK) Business Plus plan is redefining the freelance market and attracting larger and higher-value clients. With its smooth hiring experience and top-vetted talent, it's no wonder that the number of active clients on Business Plus has more than doubled in the last reported quarter. As the company continues to improve its offering and attract more customers, it could be a great investment opportunity for investors looking to capitalize on the growing freelance market.
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