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Upland Software (UPLD)
NASDAQ:UPLD
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Upland Software
(NASDAQ:UPLD)
44Neutral
Positive Factors
Debt Management
The company paid down $177M of debt, reducing annualized interest expense by about $7M, which should improve cash generation potential.
Financial Performance
Upland reported steady results with recurring revenue exceeding guidance and core organic growth showing improvement.
Negative Factors
Market Challenges
Upland is winning fewer deals in a more scrutinized macroeconomic environment.
Revenue
Total revenue and subscription revenue have declined, partly due to the planned runoff of legacy assets.
Upland Software (UPLD) vs. S&P 500 (SPY)
Market Cap
$80.56M
Dividend YieldN/A
Average Volume (3M)193.04K
Price to Earnings (P/E)―
Beta (1Y)2.75
Revenue Growth-7.74%
EPS Growth28.24%
CountryUS
Employees998
SectorTechnology
Sector Strength44
IndustrySoftware - Application
Share Statistics
EPS (TTM)-4.13
Shares Outstanding28,168,266
10 Day Avg. Volume144,155
30 Day Avg. Volume193,042
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.35
Price to Cash Flow (P/CF)2.60
P/FCF Ratio2.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.25Price Target Upside43.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Upland Software Business Overview & Revenue Model
Company DescriptionUpland Software, Inc. is a provider of cloud-based enterprise work management software. Headquartered in Austin, Texas, the company offers a comprehensive suite of solutions designed to help organizations streamline their operations and enhance productivity. Upland Software's products cover various sectors, including project management, IT management, marketing, and customer experience management, catering to a wide range of industries.
How the Company Makes MoneyUpland Software generates revenue primarily through a subscription-based model, offering its software solutions as a service (SaaS) to businesses. Customers pay recurring fees to access Upland's suite of enterprise work management tools, which entails ongoing updates and customer support. Additionally, the company may earn revenue through professional services such as consulting, training, and implementation support, which help clients effectively integrate and utilize its software solutions. Upland's revenue is further bolstered by strategic partnerships and acquisitions that expand its product offerings and customer base, allowing it to enhance its market presence and drive growth.
Upland Software Financial Statement Overview
Summary
Upland Software is facing financial challenges with declining revenues, persistent losses, and negative equity. These factors indicate potential risks to financial stability. While the company shows strength in gross profit margins and cash management, the overall financial health is concerning due to high leverage and negative profitability metrics. Strategic measures are needed to address these financial strains to ensure long-term viability.Income Statement
Upland Software has faced a decline in revenue over the past years, with a notable decrease from $317.3 million in 2022 to $274.8 million in 2024. Gross profit margin stands at 70.5% for 2024, indicating cost efficiency in production. However, the company struggles with profitability, reflected by negative EBIT and net income margins, with a net loss of $118.3 million in 2024. This trend shows financial strain and challenges in managing expenses relative to revenue.45
Neutral
Balance Sheet
The balance sheet reveals a worrying situation with negative stockholders' equity of -$18.3 million in 2024, indicating liabilities exceeding assets. The debt-to-equity ratio cannot be calculated due to negative equity, which signals high financial leverage. The equity ratio is also negative, further highlighting potential solvency issues. These factors suggest significant financial risk and instability.30
Negative
Cash Flow
Cash flow analysis shows a positive trend in free cash flow generation, with $23.4 million in 2024, although operating cash flow has decreased from $49.9 million in 2023 to $24.2 million in 2024. The free cash flow to net income ratio is positive, indicating effective cash management despite losses. However, the decrease in operating cash flow suggests declining cash-generating capacity, which could impact future operations.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 274.79M | 297.85M | 317.30M | 302.02M | 291.78M | Gross Profit |
| 193.70M | 201.49M | 213.56M | 202.56M | 193.33M | EBIT |
| -102.30M | -163.92M | -6.95M | -13.70M | 3.15M | EBITDA |
| -46.17M | -96.99M | 15.14M | 18.00M | 22.04M | Net Income Common Stockholders |
| -118.32M | -179.87M | -68.41M | -58.21M | -51.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 56.43M | 236.56M | 248.65M | 189.16M | 250.03M | Total Assets |
| 529.52M | 870.02M | 1.11B | 1.03B | 1.01B | Total Debt |
| 291.96M | 480.62M | 523.13M | 528.65M | 533.30M | Net Debt |
| 235.53M | 244.06M | 274.48M | 339.49M | 283.28M | Total Liabilities |
| 424.60M | 626.09M | 692.30M | 712.72M | 704.61M | Stockholders Equity |
| -18.30M | 243.93M | 421.16M | 316.29M | 306.62M |
| Cash Flow | Free Cash Flow | |||
| 23.36M | 48.72M | 29.11M | 40.62M | 34.30M | Operating Cash Flow |
| 24.24M | 49.94M | 29.98M | 41.74M | 35.62M | Investing Cash Flow |
| -882.00K | -1.22M | -63.22M | -93.53M | -68.97M | Financing Cash Flow |
| -202.31M | -61.38M | 94.15M | -8.18M | 107.90M |
Upland Software Technical Analysis
Negative
2.97
Price Trends
3.67
Negative
3.80
Negative
3.07
Negative
Market Momentum
-0.16
Negative
39.46
Neutral
13.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPLD, the sentiment is Negative. The current price of 2.97 is below the 20-day moving average (MA) of 3.11, below the 50-day MA of 3.67, and below the 200-day MA of 3.07, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 39.46 is Neutral, neither overbought nor oversold. The STOCH value of 13.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UPLD.
Upland Software Risk Analysis
Upland Software disclosed 47 risk factors in its most recent earnings report. Upland Software reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Upland Software Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.47B | 22.97 | 189.40% | ― | 5.05% | 103.11% | |
66 Neutral | $3.07B | 21.75 | 45.56% | ― | 10.74% | 200.08% | |
64 Neutral | $4.42B | ― | 99.24% | ― | 17.24% | 57.87% | |
57 Neutral | $20.97B | 10.32 | -14.01% | 2.49% | 4.46% | -23.38% | |
57 Neutral | $2.17B | ― | -936.62% | ― | 13.14% | 17.06% | |
56 Neutral | $75.38B | ― | -11.44% | ― | -6.61% | -254.90% | |
44 Neutral | $80.56M | ― | -208.78% | ― | -7.74% | 28.24% |
* Technology Sector Average
Performance Comparison
UPLD
Upland Software
2.97
0.11
3.85%
MSTR
Strategy
306.02
148.14
93.83%
WK
Workiva
76.06
-5.30
-6.51%
BOX
Box
30.86
2.53
8.93%
BL
BlackLine
48.42
-14.10
-22.55%
APPN
Appian
28.91
-8.58
-22.89%
Upland Software Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 3.85% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
Upland Software's earnings call highlighted several positive developments, including improvements in net dollar retention rate, adjusted EBITDA margins, debt reduction, and recognition for their AI-enabled product advancements. However, these were offset by challenges such as flat core organic growth in Q4 2024, revenue decline due to divestitures, and an expected decline in total revenue for early 2025. Despite the positive outlook for 2025 with projected growth and margin improvements, the mixed performance in Q4 and anticipated revenue decline in 2025 suggest a balanced outlook.Highlights
Improvement in Net Dollar Retention Rate
Upland Software's net dollar retention rate improved to 96% at the end of 2024, up from 95% in the prior year, with a target for continued improvement in 2025.
Increase in Adjusted EBITDA Margins
Adjusted EBITDA margins are projected to increase by 400 basis points in 2025, from 20% in 2024 to 24%.
Debt Reduction
Upland Software paid down $33 million in debt in 2025, in addition to $189 million in 2024, reducing gross debt to approximately $261 million.
New Customer Acquisition
The company welcomed 110 new customers in Q4 2024, including 21 major customers, and expanded relationships with 291 existing customers.
Recognition and Awards
Upland Software earned 76 badges in the G2 Winner 2025 Market Reports and was recognized in the IDC MarketScape Worldwide Digital FAX 2024 Vendor Assessment.
AI-Enabled Product Developments
Upland Software has AI-enabled 80% of its core content and knowledge management product portfolio, which is expected to drive future growth.
Strong Free Cash Flow
Q4 free cash flow was $9 million, bringing the full year 2024 free cash flow to $23.4 million.
Lowlights
Flat Core Organic Growth
Core organic growth in Q4 2024 was flat, although there is positive growth momentum expected in 2025 with a guidance of 2.5% growth.
Revenue Decline Due to Divestitures
Divestitures of non-strategic product lines reduced the 2025 revenue guide by approximately $18 million, although they had no impact on adjusted EBITDA.
Expected Decline in Total Revenue
For Q1 2025, total revenue is expected to decline by 12% at the midpoint compared to Q1 2024, with an annual decline of 11% expected for the full year 2025.
First Quarter Adjusted EBITDA Decline
Q1 2025 adjusted EBITDA is expected to be between $11.2 million and $14.2 million, reflecting a decrease from Q1 2024 due to payroll taxes and costs related to divested assets.
Company Guidance
During the Upland Software Fourth Quarter 2024 Earnings Call, the company provided guidance for Q1 and the full year 2025, projecting a core organic growth rate of 2.5% for 2025, a significant improvement from the negative 1% growth rate in 2024. Adjusted EBITDA margins are expected to increase by 400 basis points, reaching 24% in 2025. The company achieved a net dollar retention rate of 96% at the end of 2024 and aims for 98% by the end of 2025. Upland's Q4 2024 adjusted EBITDA was $14.9 million, contributing to a full-year free cash flow of $23.4 million. The company also divested two underperforming product lines, reducing 2025 revenue guidance by about $18 million but with no impact on adjusted EBITDA. Upland has been focusing on AI-enabled solutions, earning significant accolades, and strengthening its partnerships, such as with Konica Minolta. The company paid down $33 million in debt early in 2025, adding to $189 million in debt reductions in 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.