Upwork Could Head Down With Lockup Expiration

April 1, 2019, concludes the 180-day lockup period of Upwork Inc. (UPWK).

When the lockup period ends for Upwork Inc., its pre-IPO shareholders will have the ability to sell more than 91 million currently-restricted shares. With just 12.3 million shares of UPWK trading pursuant to the IPO, any significant sales could flood the secondary market for UPWK and cause a sharp, short-term downturn in share price.

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(Source: S-1/A)

Currently, UPWK trades in the $19 to $20 range. Shares of UPWK had a first day return of 41.2% and shares currently have a 33.7% return from IPO.

Business Overview: Online Platform that Connects Businesses to Independent Contractors

Upwork is an online platform that connects businesses with freelancers and independent professionals. The platform connects these businesses with a wide range of professionals who have many different talents. According to the firm's S-1, these talent categories include web development, sales, mobile app development, graphic design, data science and analytics, content marketing, and customer service. This information comes from the firm's S-1.

The platform offers a variety of features that help to simplify the process of finding the correct independent professional for completing your task. The platform allows you to contact talent and facilitates ongoing communication. You can also use the platform for invoicing and payment.

(Source: Upwork.com)

According to the firm's S-1, the company operates in the United States, the Philippines, India, and other countries abroad.

In its SEC filings, Upwork stated it is the "largest online global marketplace" connecting businesses with freelancers. For the 12 months ended June 30, 2018, Upwork had facilitated $1.56 billion in gross service volume (GSV) in over 2.0 million projects that involved 475,000 clients and 375,000 freelancers in more than 180 countries.

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Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this ...

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