Upwork Inc. Q1 FY2026 earnings call

• AI work category is a tremendous bright spot, keeps growing above 40% year over year, leading indicators more promising. - Exploring AI data opportunity as AI data needs evolve, with 3 million job posts per year and over 125 categories. - Restructuring came about due to disciplined cost management, progress in automation initiatives, and to be more nimble and fast moving. - SMB growth with GSV up 34% quarter-over-quarter for Business Plus.

AI work category is a bright spot, growing above 40% year over year. Business Plus GSV up 34% quarter-over-quarter for SMB growth. 11% of job posts were in AI category in the quarter, but GSV from AI category was 8%. Marketplace take rate is 19.4%.

Prudently forecast ongoing deterioration in marketplace trends through rest of the year. AI work category keeps growing above 40% year over year, leading indicators more promising.

Q: Were there any new categories impacted by AI in the quarter?

A: No big changes in the quarter, focus on AI work category which grows above 40% year over year, job posts in AI category 11% but GSV from that category 8%.

Q: Why feel good about 10% exposure boundary?

A: Methodologies revised, tasks classified as automated or not, trend of exposure to AI automation diminishing, enterprise has AI tailwind in pipeline, SMB program attracting larger projects, mix shift reducing exposure, human supervised agents launching later this year.

Q: 40% growth for AI work slight slowdown from 50% last quarter, underlying trends?

A: Volume of customers for AI work growing, leading indicators like job post mix shift positive.

Q: AI data opportunity?

A: Could be meaningful, evolving from synthetic to real-time learning scenarios, unique role with job posts and categories, early stages of exploration.

Q: How did restructuring come about?

A: Disciplined cost management, progress in automation initiatives, market conditions choppy, to be more nimble.

Q: Are non-AI GSB decelerating at accelerating pace?

A: Deceleration in very small businesses, weakness in smallest contract types, due to macro environment impact on small businesses.