Sam Boughedda

Investing.com — Work from Home Inc. (NASDAQ:) shares dropped more than 6% at the start of Monday’s session after the company suspended all of its business operations in Russia and Belarus and withdrew its previously issued first-quarter and full-year 2022 guidance.

Upwork stated that the suspension would take effect May 1, 2022. It will also include the closing of all support for Russian and Belarusian business development. 

Customers in Russia and Belarus won’t be able sign up for any new accounts or initiate new contracts in the near future. They will also no longer be visible on search engines. The platform said that existing contracts with clients and talent in the region would remain open. Final billing will be due May 1, 2022.

It was due to “rapidly developing, increased risks or uncertainties,” an “untenable operational status and dire geopolitical position associated with the ongoing Russian conflict against Ukraine.”

Upwork’s 2021 total revenue was around 10% based on work done in the area where the talent was or client was. Ukraine was responsible for approximately 6% of the total revenue, with Russia and Belarus accounting for about 4% each. This revenue was almost entirely generated by work done in the region for other clients.

Upwork stated that it had seen a decrease in activity in talent areas in the region, especially in Ukraine since late February.

According to the company, it provided financial support and other assistance. It also paid certain expenses for employees who were attempting to move from affected regions. Upwork also stated that the company has already committed or incurred several million dollars in unplanned expenses. This includes a $1 million donation to Direct Relief International. It expects further costs to be incurred as more events occur. 

Upwork explained that increased expenses in the region and lower activity by talent will affect its full-year and first quarter financial results for 2022, which include revenue, adjusted EBITDA, and EBITDA.