- Upwork Inc (NASDAQ: UPWK) has suspended all its business operations in Russia and Belarus, taking full effect by May 1, 2022.
- Existing contracts with talent and clients in the region will remain open, with final billing due by May 1, 2022.
- Upwork also withdrew its Q1 and FY22 guidance due to rapidly evolving, increased risks and uncertainties, an untenable operational position, and the dire geopolitical situation associated with the ongoing Russian war against Ukraine.
- The company's ~10% of the total FY21 revenue was derived from the region, with Ukraine constituting ~6% and Russia and Belarus representing ~4% combined.
- Upwork revealed a meaningful decrease in activity from talent in the region, most notably in Ukraine, since the invasion in late February 2022.
- Upwork stated that unforeseen expenses, along with the decrease in activity from talent in the region, will impact its Q1 and FY22 financial results, including revenue and adjusted EBITDA.
- Price Action: UPWK shares are trading lower by 11% at $19.37 on the last check Monday.
Read at Benzinga