Our full year adjusted EBITDA came in at negative $4 million. In the fourth quarter of 2022, GSV grew 5% year-over-year to once again exceed $1 billion and revenue grew 18% year-over-year to reach $161.4 million. Fourth quarter adjusted EBITDA reached $1.1 million. The fourth quarter demonstrated a continuation of the macroeconomic trends that we saw in the third quarter. We observed corporate caution during budgeting and planning cycle, leading to softer client acquisition and retention trends across our customer base. This behavior is consistent with our experience in past uncertain macroeconomic environments, in which we have typically seen companies moving through a sequence of phases. In the first phase, companies will reduce their costs and freeze hiring budgets as they grapple with uncertainty or the onset of macroeconomic weakness.

This is when we may see a headwind from customers reducing overall budgets. As they move into the second phase, companies realign their cost structures in a more efficient manner and start to redeploy resources to solutions such as Upwork, where they have confidence they can deliver the best returns. This is when we have typically shifted from being a headwind to a tailwind. In the final phase as the economy shows definitive signs of improvement, companies ramp up budget and seek to aggressively hire, characteristically turning to our solution more than others because of the speed and flexibility we offer. This is when our momentum gathers further. Today, we see many of our customers are in the first phase, realigning their budgets, with some moving into the second phase.

Although this dynamic is creating near-term headwinds in our numbers, we have our eyes on the opportunity ahead of us. We are taking proactive steps to position Upwork for the full benefit the second and third phases can offer as we provide companies with rapid access to cost-effective, highly skilled, global talent and flexible solutions to meet their workforce needs. To capture the opportunity ahead of us, we continue to innovate to advance Upworks' evolution from the largest global freelance marketplace to the world's work marketplace. Earlier this week, we announced our end-to-end solution for full-time hiring. This is the next step in the journey we started in 2021 to expand our offerings to support all the ways our customers want to work on Upwork.

With this launch, we are bringing to bear more than 20 years of worker classification expertise as well as existing and new technology solutions to enable our customers not only to form the trusted long-term working relationships that Upwork is known for, but to do so via a complete set of full-time hiring solutions now available to all our customers, enterprise clients and marketplace clients alike. This strategic expansion affords both clients and talent further flexibility and choice in how they work together and delivers a first-of-its-kind end-to-end solution that enables businesses to easily, quickly and cost-effectively find, vet, hire and pay talent who are interested in full-time work from all around the world and offering more than 10,000 skills.

Addressing global full-time work is a natural extension of our existing work marketplace and supports both our mission and the natural progression of work behaviors we see on Upwork today. Embarking on a brand awareness campaign to introduce ourselves to the many companies and hiring managers who have not been previously aware of Upwork has been an ongoing priority. Our goal has been to raise unaided awareness across a broad audience and ensure that companies and hiring managers understand our compelling value proposition. As companies are increasingly scrutinizing their internal resources and costs, we believe now is the right time to educate them about our solutions. We are pleased with the results thus far. With our This Is How We Work Now campaign, which we launched in September of 2022, we have seen greater progress increasing brand awareness than we expected.

Since the September launch of our new campaign, unaided awareness has grown more than 30%, with unaided awareness among large businesses, which represent the biggest segment in our TAM, growing by more than 140%. From the third quarter to the fourth quarter of 2022, ad recall, which measures the impact of brand campaign messaging on our chosen target audience, grew 45% among large businesses, and we saw 58% growth in top-of-mind awareness, which is a measurement on being the first brand mentioned in a category. Looking at the year ahead, we also recognize the macroeconomic climate has changed rapidly, and we are moving to reduce our brand working media spend by approximately 12% in 2023 compared to 2022. Given the strong focus on measurability and testing that we have deployed to date, we are able to make this reduction in costs while still driving the outcomes we are seeking with our investment in campaigns in 2023, targeting significant continued growth in unaided awareness as well as delivering insights into how this investment impacts our downstream metrics and overall marketing efficiency as our campaigns evolve and our data sets mature.

This approach is tailored to achieve our customer- and business-impacting goals while giving us more room to respond to new macroeconomic realities and continue to make strongly data-informed decisions about this investment area in the future. In our Enterprise business, revenue grew 22% year-over-year. We continued to make progress in ramping our sales force and educating our prospects and customers on the new features and enhancements we launched in the year, including flexible approval workflows, talent performance reports and user activity reports. In the fourth quarter, we signed 26 new enterprise clients, as we saw the average length of the sales cycle extend by nearly 20% as corporations made changes to and delayed their budgeting and approval processes.

In the fourth quarter, this also resulted in an unprecedented increase in customers pushing their late-stage deals into 2023 as they work through these changes. Our new enterprise clients included high-quality companies like HTC, JLL, Maaco, Lucid Motors and Sweetwater Sound, who have turned to Upwork to help them solve their workforce needs in this evolving work environment. The decision of these leading companies to source talent through Upwork is a testament to the real value we bring through both the quality of talent on Upwork as well as the ease of use and cost efficiency we provide. We are making strong progress addressing the internal enterprise sales operational growing pains we experienced last quarter. Our efforts to close the gap on them has started to fuel improvement in top of the funnel activity late in the fourth quarter, and we expect to see our sales reps' productivity normalize as we move into 2023.

Barring further deterioration of the macroeconomic environment, even with the elongated sales cycles we have experienced recently, we expect to be back on track with our land team at full productivity and performance by the third quarter of 2023. We see a clear path to reaccelerate our momentum in enterprise and believe the enterprise opportunity remains as attractive as ever for Upwork. In 2023, we are proceeding in a balanced and nimble manner and focusing on the things that we can control while being ready to make the most of any opportunities that may arise. For example, in December, we made a significant change to our organizational structure, moving from a purely functional to a business unit composition. With this new organizational framework, we have been able to strategically reallocate resources from a broader, more fragmented portfolio of investments that at times represented incremental opportunities to a more concentrated set of resources in all of our key business unit areas, each helmed by a leader laser-focused on delivering customer and business outcomes with attractive growth and return opportunities.

As a result, we have set ourselves up for the future with increased efficiency, agility and accountability throughout the organization. We remain committed to achieving our goal of adjusted EBITDA profitability in 2023 and aim to increase our adjusted EBITDA margin by a few hundred basis points per year as we progress toward our previously communicated long-term target of an adjusted EBITDA margin of 30% to 35%. A critical part of our strategy is to remain disciplined with regard to our cost management, and we are focused on increasing our operating leverage, targeting 2023 revenue growth in excess of operating expense growth. We are entering 2023 on offense, ready to capture the opportunity ahead of us. With our leading cost-effective solutions, we are uniquely positioned to meet customers where they are and benefit as customers learn about and turn to Upwork for their full range of talent and work needs.

We remain steadfast in our long-term vision, and we'll continue to innovate, evangelize and scale Upwork as the world's work marketplace in 2023 and beyond. We will now open the call to your questions.

See also 15 Most Valuable Greek Companies and 11 Most Profitable European Stocks.

To continue reading the Q&A session, please click here.