Part 5/8:
While Upwork shows promise, it is not without potential red flags. As noted by Feroldi, a substantial reliance on a limited group of customers can jeopardize a company’s stability. In Upwork's instance, the largest customer contributes only about 2% of revenue, which mitigates concerns of customer concentration—an advantageous position that many companies do not enjoy.
Market conditions also matter; Upwork serves a growing freelance market, indicating sustained demand for its services. The company’s strategy insulates it from fluctuations tied to external factors, such as oil prices or interest rates—variables that could otherwise derail its operations.