{
  "docId": "019dd923-622c-750b-8b95-80f0b042605c",
  "docSlug": "913de915d5c6",
  "documentTitle": "Upwork Inc. (UPWK)",
  "authorId": "27_Engine_Capital",
  "authorName": "Arnaud Ajdler",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2024-09-13 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 2,
  "pageCount": 7,
  "prevPage": 1,
  "nextPage": 3,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "overcrowded",
  "nDataPoints": 55,
  "notes": "The slide uses a combination of a performance table and qualitative narrative to argue for management failure.",
  "elementsJson": [
    "comparison_table",
    "paragraph",
    "headline_text",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b95-80f0b042605c/2",
  "deckHref": "/decks/019dd923-622c-750b-8b95-80f0b042605c",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b95-80f0b042605c.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-80f0b042605c#slide-2",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "These discussions made clear that many of the Company’s issues are self-inflicted and attributable to senior management.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-1ac3-70f9-8557-5bee3eca8239",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Total shareholder return: -104.1%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-1ac3-70f9-8557-5dd6acb94224",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.663
      },
      "kind": "paragraph",
      "text": "The Company's failure to maximize this opportunity is a direct result of its lack of focus combined with poor execution.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "13c764de-90cd-4269-9400-49dafa9cbf39",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.78,
        "x": 0.11,
        "y": 0.368
      },
      "kind": "paragraph",
      "text": "To better understand Upwork's subpar performance, we spoke with more than 20 former senior employees. These discussions made clear that many of the Company's issues are self-inflicted and attributable to senior management.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9d426952-bba1-496a-9dc9-e9e81a21c5dc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.568
      },
      "kind": "paragraph",
      "text": "Just two years after highlighting the tremendous opportunity to expand its Enterprise business at its 2021 Investor Day, the Company significantly downsized the Enterprise team in a strategic U-turn.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a8d826df-72be-47d7-80ab-eff88e5e109c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.476
      },
      "kind": "paragraph",
      "text": "Instead of pursuing a clear, consistent strategy and committing the necessary resources behind it, the Company appears unfocused and unable to prioritize initiatives.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "eefc731a-846c-4b64-a88e-e73adababa08",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.858
      },
      "kind": "source-note",
      "text": "2 2025 consensus EBITDA. 3 As an example, in a recent video, Ms. Brown boasted about more than 70 products and features in Upwork's 2024 Spring Update. 4 Company's 2021 Investor Day transcript. 5 Company's 4Q 2021 earnings call transcript.",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7bd8ab1b-19d4-46a4-bcbd-8527121e41c7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.17,
        "w": 0.78,
        "x": 0.11,
        "y": 0.145
      },
      "kind": "table",
      "text": "Performance table comparing UPWK to Russell 2000, NASDAQ, FVRR, and Staffing Peer Groups across 5 time horizons.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fb5ca290-df63-4574-a6d1-a4319340b09c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.01,
        "w": 0.48,
        "x": 0.26,
        "y": 0.338
      },
      "kind": "title",
      "text": "Former Employees Say Upwork's Issues Originate at the Top",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3510be1a-7988-4d47-97d5-a8de1a84d1e2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.01,
        "w": 0.16,
        "x": 0.42,
        "y": 0.14
      },
      "kind": "title",
      "text": "Total shareholder returns overtime",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "eeb83e90-74bb-4ec2-a28c-7af17201a0e3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.01,
        "w": 0.27,
        "x": 0.11,
        "y": 0.446
      },
      "kind": "title",
      "text": "Lack of Strategic Clarity and Focus",
      "attrs": null,
      "subkind": "subtitle",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9a1ab4e7-1cdb-4dab-8d6d-aed444822f16",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "antagonist-introduction",
      "slug": null,
      "matchId": "f5296b83-7b37-4e31-9f95-21ba7d7d23fd",
      "evidence": "The slide explicitly frames senior management as the source of the company's problems.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 3,
      "from": 1,
      "beatId": "05411f63-7415-4792-8b60-98adf04a00aa",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Problem & Complication",
      "beatSlug": "consultants-gambit-problem-complication",
      "evidence": "The executive summary and villain critique slides outline the problem and complication",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [
    {
      "to": 3,
      "from": 2,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "4c0070f1-44cf-46e3-9a07-93ad497771bf",
      "evidence": "The peer benchmark and villain critique slides imply the cost of inaction",
      "position": 0,
      "objective": "Highlight the cost of not taking action",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}