Business Context and Reporting Period
This Form 8-K is a current report filed by Upwork, Inc. on February 25, 2019. The filing primarily announces the entry into a material definitive agreement regarding corporate real estate and references the upcoming release of financial results for the quarter and full year ended December 31, 2018.
Key Financial Metrics and Agreements
The filing details a new sublease agreement with Veritas Technologies LLC for approximately 32,492 rentable square feet at 2625 Augustine Drive, Santa Clara, California, which will serve as Upwork's new corporate headquarters.
- Lease Term: Expires on October 15, 2028.
- Base Rent: Approximately $14.3 million in aggregate over the term of the Sublease.
- Additional Costs: Upwork is responsible for build-out expenses, operating expenses, taxes, assessments, insurance, and utilities.
- Financial Results: Specific revenue, profit, cash flow, margin, debt, and liquidity figures for the period ended December 31, 2018, are not included in this text. They are contained in a press release (Exhibit 99.1) issued on February 28, 2019.
Material Changes
The primary material change disclosed is the relocation of corporate headquarters to Santa Clara, California, via the new sublease agreement. The filing notes that the company will disclose financial results for the prior year, but does not provide specific comparative data or material changes in financial performance within this document.
Guidance, Outlook, and Risks
Management commentary and financial guidance for the period ended December 31, 2018, are referenced but not detailed in this filing; investors are directed to the press release and conference call held on February 28, 2019. The company utilizes its Investor Relations website, Twitter, and LinkedIn for disseminating material non-public information. No specific risks or contingencies beyond the standard lease obligations are detailed in this text.
Investor Verification Checklist
- Verify the full text of the Sublease agreement, expected to be filed in the Form 10-Q for the quarter ended March 31, 2019.
- Review the press release (Exhibit 99.1) dated February 28, 2019, for actual revenue, profit, and cash flow figures for 2018.
- Confirm the reconciliation of GAAP to non-GAAP financial results provided in the referenced press release.
- Monitor the company's designated social media channels for future material disclosures.