Upwork Inc. (UPWK) has enhanced its platform by integrating AI through its in-house tool, Uma, which has improved user engagement by 52% in Q1. Proposal writing features saw a 58% increase, positively impacting client conversions, hiring rates, and freelancer earnings. This integration is part of Upwork’s strategy to become an AI-native platform as competitors like Fiverr International (FVRR) and Microsoft’s (MSFT) LinkedIn also evolve their AI capabilities.
Upwork’s acquisition of Objective AI has further strengthened its machine learning capabilities, contributing to improved gross services volume. Currently, UPWK shares have declined by 17% this year, compared to the industry’s 6% drop, and the stock trades at a forward price-to-sales ratio of 2.33, below its historical average.
