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With the economy moving more toward temporary work, as previously described, UpWork becomes a disruptor to businesses which rely on the traditional mode of employment in their business model. This makes UpWork a direct threat to the business of LinkedIn, which could suffer.

Other ways Microsoft could use UpWork

While this exclusive partnership for integration with Microsoft Office products has everyone talking, there is still a lot more room for Microsoft to utilize UpWork and its resources in a future where UpWork is a part of the Microsoft ecosystem.

One potential use for Upwork’s technology and marketplace is integrating it with the already existing network of LinkedIn. LinkedIn has an estimated 575 million users, with more than 260 million of those users active monthly. Maybe more importantly for UpWork, there are over 10 million company profiles on the platform. All of these companies have their own hiring needs and are potential clients who could benefit from an efficient connection with freelance workers.

Paul Estes, a senior director at Microsoft, sees how important it is that the company’s toolkit is geared directly toward the freelance economy. “We’ve learned our tech can make freelancing a powerful and modern way that works for most companies.  We’re at the very beginning of this journey.”

To Estes, “If you want radical agility in your workforce, it starts with a gig mindset.” And this mentality makes UpWork a go-to solution for Microsoft’s future plans.

An already growing business

The technology of this impending deal makes sense, but so do the financials, as UpWork has finally worked its way to profitability. After failing to turn a profit in previous quarters, the last quarter of 2018 showed how the company is finally starting to leverage its business model and strengths toward positive financials.

In the fourth quarter of 2018 the company was able to increase its revenue to $67.3 million, up 23% in the quarter. Adjusted EBITDA for the company was finally in the black, coming in at $3.6 million compared to -$1.9 million a year ago. While these numbers aren’t huge by any means, they do indicate a small business which is finally figuring itself, and the market, out.

Additionally, the platform has no real competitors. Yes, there are other freelance marketplaces out there, but they are all lacking in one way or another. Fiverr is a bottom-of-the-barrel platform which pays freelancers below minimum wage, while Toptal is not even a marketplace at all.