Freelance contractor Upwork had its best growing year as a publicly traded company last year, and CEO Hayden Brown sees no momentum starting before the coronavirus pandemic slowed when the economy reopened.
Younger workers, scarred by a labor market that has been plagued by two recessions in just over a decade, are increasingly seeking greater control and flexibility over their careers. The trends have only been amplified by the world of remote working, giving companies the opportunity to adapt and tap into a global talent pool of independent professionals, she told CNBC on Wednesday.
“The paradigm has changed completely,” said Brown, who appeared in “Mad Money,” explaining that recessions in 2007 and 2020 have dampened workers’ confidence and loyalty. “We’ve been seeing that again for years. That’s not a new trend, but it’s certainly accelerated today with more than half of Gen Z freelancing and 59 million Americans freelancing.”
Gen Z, short for Generation Z, is made up of young people who are currently adults or who are now growing up and who are now struggling their way through a pandemic-hampered economy. The age group is also called zoomers.
Millennials, its older counterpart, came of age during the Great Recession.
Upwork, a job marketplace that went public in 2018, helps companies leverage the gig economy for both short-term and long-term projects. The independent economy has disrupted several industries, creating famous names such as Uber and DoorDash.
Brown said more than 70% of the freelancers on the platform are college educated and many earn high wages.
Unlike ride-hailing apps like Uber, which saw sales increase 21% during the pandemic after years of multi-digit growth, the small-cap Upwork saw the business accelerate in 2020. Revenues of the Santa Clara, California-based company were up 24% last. years to $ 373.63 million.
Shares are up 522% over the past 12 months, hitting a 52-week high on Wednesday before closing at $ 53.36.
“This is a long-term trend that is emerging in the workforce, and companies are becoming aware that if they want to work with the best talent, they need to tap into the independent economy,” said Brown. “They shouldn’t be limited to full-time employees.”
In 2021, Upwork expects sales to grow by at least 23%. The company with sales of $ 6.5 billion gave a revenue recommendation of $ 460 million to $ 470 million for the full year.