Upwork 2024 Financial

Results: AI, Monetization

& Freelancer Impact

Upwork recently published its 2024 financial report , reaffirming the platform’s leading position in the freelance world and highlighting its growing focus on artificial intelligence technologies. At the same time, despite record revenue and a notable surge in the AI sector, some figures indicate a slight decline in client activity. Let’s review the most interesting points from the report and then dive deeper into the key insights and their impact on freelancers.

Active Clients Decreased by 2%

In 2024, there were 832 thousand active clients, compared to 851 thousand in 2023. In other words, the number of active users did not grow—in fact, it slightly dropped.

Reduction in GSV (Gross Services Volume)

At the end of 2024, the total transaction volume (GSV) amounted to \$4.008 billion, compared to \$4.142 billion in 2023—a decrease of about 3%. Comparing the fourth quarter of 2024 to the same period in 2023, GSV declined from \$1.072 billion to \$992.8 million, roughly a 7% drop.

Meanwhile, the average yearly spend per client stands at about \$4,817.44. This figure reflects the average GSV per user, although it can vary based on specific projects and industries.

Growth in Advertising and Paid Subscriptions

Interestingly, despite fewer active clients and lower spending by them on the platform, Upwork shows an increase in overall revenue indicators. One reason for this is that the platform actively develops paid services for both clients and freelancers—such as additional tools, priority listing of proposals, and extended subscriptions—which significantly contribute to its net income.

Revenue from promotions and monetization grew by 51%, indicating that Upwork is successfully implementing paid promotional tools and other monetization strategies. Freelancers and clients invest in paid options to gain an edge and achieve results more quickly.

Subscriptions to “Freelancer Plus” have increased by 58%. From a freelancer’s perspective, it can be useful since it provides faster development tools; however, promotion comes at a price, and this aspect is becoming increasingly important every year.

Rapid AI Growth

Work related to AI rose by 60% over the year, and the number of clients ordering AI projects increased by 42%.

Freelancers specializing in AI earned 44% more per hour in 2024 compared to those working on non-AI projects. This highlights the strong demand for technological skills on the platform and could be a powerful incentive for upgrading one’s competencies in 2025.

Enterprise and Managed Services on the Rise

According to the report, Enterprise revenue grew by 4% to \$107.2 million in 2024, while Managed Services skyrocketed by 12%. This means more and more large clients (corporations) are willing to entrust Upwork with a “turnkey” approach, not just finding individual freelancers. Enterprise clients typically enter into long-term contracts with significant budgets.

Main Takeaways from the Report

Growing Demand and Platform Stability

Given Upwork’s increasing revenue and active development in AI, we can expect more high-quality projects, especially in high-tech fields.

Complex Impact of Competition and Monetization

The more successful the platform becomes (evidenced by its high margin and record income), the more new freelancers join, intensifying competition for the “best” projects.

Meanwhile, Upwork plans to achieve a 35% increase in profits in 2025, which could drive up costs for both freelancers and clients, as well as introduce new paid features. For freelancers, this means not only tougher competition but also higher expenses for profile promotion. Over time, new paid services or advertising options are likely to emerge, and without investing in them, freelancers risk getting lost among the multitude of applicants.

Technological Shift

Thanks to the rollout of Uma™ (Upwork’s Mindful AI), many routine processes—such as the initial screening of candidates based on key skills—are automated. The more effective this automation becomes, the less chance there is for freelancers who lack clearly defined strengths or unique competencies.

So, due to Uma™, simplistic or superficial proposals, as well as weaker portfolios, risk being filtered out before a client even sees them. This means there’s an increasing need to either develop more specialized skills or shape a profile that AI perceives as the best match for a particular job posting.

Specialization

The market is gradually shifting toward the principle of “fewer general skills—more unique expertise.” Routine tasks get handled either by algorithms or by low-paid workers, while complex and well-paid projects cannot be replaced by automation. Therefore, those aiming to enhance their professional level should invest time and effort in learning current technologies and developing unique competencies.

There are plenty of other interesting insights in the report, but these are the ones that caught our attention most.

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