Upwork Inc. (UPWK) shares are soaring after-hours Monday after the company reported third-quarter financial results and provided an update on forward guidance.

Here are the highlights.

Upwork Q3 Financials

Upwork reported third-quarter revenue of $185.599 million, which beat a Street consensus estimate of $180.219 million, according to data from MarketDash Pro.

Marketplace revenue of $159.32 million was down 9% year-over-year, while Enterprise revenue of $26.28 million was down 3% year-over-year.

The company reported earnings of 40 cents per share, beating a Street consensus estimate of 32 cents per share.

Upwork ended the quarter with 717,000 active clients.

The gross sales volume was $914.1 million in the third quarter, down 10.1% year-over-year.

The company’s Lifted business is acquiring employer record company WorkMotion to help with global growth.

AI continues to be key for the future, with gross sales volume from freelancers with AI skills hitting an annualized run rate of $45 million in the third quarter.

GSV from freelancers with AI skills was up 55% year-over-year in the third quarter.

What’s Next for Upwork

Upwork announced the launch of Upwork Now on Monday, which opens up the company’s marketplace to AI agents.

"Combined with continued growth of our higher-margin products and high-value customers, we’re well positioned to capture new opportunities while continuing to drive strong profitable growth," Upwork CEO Hayden Brown said.

The company announced that Chief Financial Officer Erica Gessert is stepping down from the role on Jan. 1, 2027. Upwork’s Chief Business Officer Peter Sanborn was named as the company’s next CFO.

Guidance from the company has investors excited and is likely the biggest factor for the share price bump in after-hours trading.

Upwork is guiding for fourth-quarter earnings of 30 cents to 32 cents per share and revenue of $169 million to $177 million.

For the full fiscal year, Upwork raised its earnings per share and revenue outlooks.

The company sees full-year earnings per share hitting a range of $1.45 to $1.47, up from prior guidance of $1.38 to $1.43.

The company sees full-year revenue of $742 million to $750 million, tightened from a prior range of $730 to $750 million.

Analysts are currently expecting the company to post full-year earnings per share of $1.38 on revenue of $742.20 million.

Upwork Stock Price Action

Upwork shares are up 12.4% to $10.92 in after-hours trading Monday versus a 52-week trading range of $7.44 to $22.84.