[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) [Q1 2025 Financial Performance](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) In Q1 2025, Upland's total revenue decreased by 10% year-over-year to $63.7 million, though it surpassed internal guidance. The company significantly narrowed its GAAP net loss to $25.8 million from $96.1 million in the prior year. Adjusted EBITDA remained stable at $13.1 million, with the margin improving from 19% to 21% of total revenue. Free cash flow saw a notable increase to $7.9 million - The company exceeded its guidance for **Revenue** and **Adjusted EBITDA** in Q1 2025[3](index=3&type=chunk) | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $63.7M | $70.7M | -10% | | Subscription & Support Revenue | $60.2M | $67.1M | -10% | | GAAP Net Loss | ($25.8M) | ($96.1M) | +73.2% | | GAAP Net Loss per Share | ($0.97) | ($3.37) | +71.2% | | Adjusted EBITDA | $13.1M | $13.1M | 0% | | Adjusted EBITDA Margin | 21% | 19% | +2 p.p. | | GAAP Operating Cash Flow | $8.3M | $5.1M | +62.7% | | Free Cash Flow | $7.9M | $4.9M | +61.2% | - Cash on hand was **$34 million** at the end of Q1 2025 after making **$34 million** in debt paydowns during the quarter[4](index=4&type=chunk) [Q1 2025 Business & Operational Highlights](index=1&type=section&id=First%20Quarter%20Business%20Highlights) During the first quarter, Upland secured 107 new customers and expanded relationships with 245 existing ones. The company advanced its AI-powered portfolio with the launch of Panviva Sidekick and Adestra Audiences. Subsequent to the quarter's end, Upland divested its mobile messaging product lines to sharpen its focus on higher-margin, higher-growth markets, a move that would have improved its Core Net Dollar Retention Rate to 99% - Acquired **107 new customers** (19 major) and expanded relationships with **245 existing customers** (26 major expansions)[3](index=3&type=chunk) - Subsequent to Q1, the company sold its mobile messaging product lines to focus on markets with stronger competitive advantage, higher margins, and higher growth[9](index=9&type=chunk) - Excluding the divestiture, the Net Dollar Retention Rate for the Core business as of December 31, 2024, would have been **99%**, compared to the reported **96%**[9](index=9&type=chunk) - Key product launches included Panviva Sidekick for AI-powered agent guidance and Adestra Audiences for advanced email marketing analytics[9](index=9&type=chunk) - Upland's solutions earned **76 badges** in G2's Spring 2025 market reports, with notable recognition for AI-enabled products like Upland BA Insight and Upland InterFAX[9](index=9&type=chunk) [Financial Outlook](index=2&type=section&id=Business%20Outlook) [Q2 2025 Guidance](index=2&type=section&id=Q2%202025%20Guidance) For the second quarter of 2025, Upland anticipates total revenue between $50.3 million and $56.3 million, reflecting a 23% year-over-year decline at the midpoint, primarily due to a recent divestiture. Despite the revenue drop, Adjusted EBITDA is expected to be flat year-over-year at $12.1 million to $15.1 million, with the margin forecast to expand significantly to 26% from 20% in Q2 2024 | Metric | Q2 2025 Guidance (Midpoint) | YoY Change (Midpoint) | | :--- | :--- | :--- | | Total Revenue | $53.3M | -23% | | Subscription & Support Revenue | $50.0M | - | | Adjusted EBITDA | $13.6M | 0% | | Adjusted EBITDA Margin | 26% | +6 p.p. | [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) For the full year 2025, Upland projects total revenue between $209.5 million and $227.5 million, a 20% decline at the midpoint from 2024, influenced by the sale of its mobile messaging lines. However, the company expects a 7% increase in Adjusted EBITDA to a range of $55.0 million to $64.0 million. This reflects a significant anticipated improvement in the full-year Adjusted EBITDA margin to 27% from 20% in the previous year - The sale of mobile messaging product lines reduced the full-year 2025 revenue guidance by approximately **$25.0 million** but did not impact the Adjusted EBITDA guidance[5](index=5&type=chunk) | Metric | Full Year 2025 Guidance (Midpoint) | YoY Change (Midpoint) | | :--- | :--- | :--- | | Total Revenue | $218.5M | -20% | | Subscription & Support Revenue | $205.0M | - | | Adjusted EBITDA | $59.5M | +7% | | Adjusted EBITDA Margin | 27% | +7 p.p. | [Financial Statements](index=7&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, total revenue was $63.7 million, a decrease from $70.7 million in Q1 2024. The company reported a net loss of $25.8 million, which was a substantial improvement from the $96.1 million loss in the prior-year period. The prior year's loss was heavily impacted by an $87.2 million goodwill impairment charge, which did not recur. The current quarter's loss includes a $23.5 million loss on the divestiture of businesses | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $63,655 | $70,736 | | Gross Profit | $45,607 | $49,687 | | Loss from Operations | ($1,052) | ($91,641) | | Impairment of Goodwill | $0 | $87,227 | | Loss on Divestitures | ($23,457) | $0 | | Net Loss | ($25,848) | ($96,130) | | Net Loss per Share | ($0.97) | ($3.37) | [Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Upland's total assets were $457.0 million, down from $529.5 million at year-end 2024. This decrease was driven by a reduction in cash to $33.7 million (from $56.4 million) following debt repayments, and a decrease in intangible assets. Total liabilities also decreased to $370.1 million from $424.6 million, primarily due to a reduction in notes payable | (in thousands) | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $33,705 | $56,426 | | Total Assets | $456,972 | $529,522 | | Notes Payable (Current & Noncurrent) | $256,506 | $290,194 | | Total Liabilities | $370,127 | $424,597 | | Total Stockholders' Equity (Deficit) | ($37,823) | ($18,305) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash from operating activities increased to $8.3 million from $5.1 million in Q1 2024. Investing activities provided $3.8 million in cash, mainly from proceeds from business divestitures. Financing activities used $34.7 million, almost entirely for the repayment of notes payable. This resulted in a net decrease in cash of $22.7 million for the quarter | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,305 | $5,121 | | Net cash provided by (used in) investing activities | $3,789 | ($183) | | Net cash used in financing activities | ($34,723) | ($9,599) | | Change in cash, cash equivalents and restricted cash | ($22,721) | ($4,945) | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Net Loss to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Upland's Adjusted EBITDA for Q1 2025 was $13.1 million, consistent with the prior-year period. The reconciliation from a GAAP net loss of $25.8 million involved adding back several items, most notably a $23.5 million loss on divestitures, $9.7 million in depreciation and amortization, and $2.7 million in stock-based compensation | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | ($25,848) | ($96,130) | | Add: Depreciation and amortization | $9,661 | $13,802 | | Add: Stock-based compensation | $2,675 | $3,522 | | Add: Loss on divestitures | $23,457 | $0 | | Add: Impairment of goodwill | $0 | $87,227 | | **Adjusted EBITDA** | **$13,082** | **$13,103** | [Reconciliation of Net Loss to Non-GAAP Net Income](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Net%20Loss%20and%20Non-GAAP%20EPS) Non-GAAP net income for Q1 2025 increased to $8.2 million from $6.8 million in Q1 2024, resulting in a diluted non-GAAP EPS of $0.23, up from $0.19. Key adjustments to the GAAP net loss included adding back amortization of purchased intangibles ($9.4 million), stock-based compensation ($2.7 million), and the loss on divestitures ($23.5 million) | (in thousands, except per share) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | ($25,848) | ($96,130) | | Add: Amortization of purchased intangibles | $9,401 | $13,510 | | Add: Loss on divestitures of businesses | $23,457 | $0 | | Add: Impairment of goodwill | $0 | $87,227 | | **Non-GAAP net income** | **$8,211** | **$6,848** | | **Non-GAAP earnings per share, diluted** | **$0.23** | **$0.19** | [Reconciliation of Operating Cash Flow to Free Cash Flow](index=11&type=section&id=Reconciliation%20of%20Operating%20Cash%20Flow%20to%20Free%20Cash%20Flow) Free Cash Flow for Q1 2025 was $7.9 million, a significant increase from $4.9 million in the same period last year. This was calculated by taking the net cash provided by operating activities of $8.3 million and subtracting $0.4 million for the purchase of property and equipment | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,305 | $5,121 | | Less: Purchase of property and equipment | ($424) | ($183) | | **Free Cash Flow** | **$7,881** | **$4,938** |

Customer Base and Revenue - The company has over 10,000 customers, with no single customer accounting for more than 10% of revenue[5] - Approximately 90% of recurring revenue for the year ended December 31, 2024, was generated from major accounts, defined as those with contracted annual recurring revenue of $25,000 or more[23] - The annual net dollar retention rate was 96% as of December 31, 2024, indicating strong customer loyalty and success[5] - The company aims to increase sales to existing customers, as very few currently use more than one application, presenting significant cross-selling opportunities[5] Sales and Marketing Strategy - The company employs a land-and-expand go-to-market strategy, focusing on expanding the adoption of initial applications across customer organizations[24] - The customer success organization is dedicated to driving adoption, value realization, retention, and loyalty across the customer base[28] Employee and Organizational Structure - The company has a total of 998 full-time employees as of December 31, 2024, with a majority located in the United States and other countries[39] Financial Performance and Seasonality - The company has historically experienced seasonality, with a higher percentage of agreements signed in the fourth quarter, leading to increased cash flow in the first quarter[37] Research and Development - The company continues to invest in research and development to enhance applications and support third-party integrations[5] Tax and Valuation Considerations - As of December 31, 2024, the company recorded a valuation allowance of $50.4 million against its deferred tax assets, indicating potential future tax expense implications[252] - The company has adopted an indefinite reinvestment position for foreign earnings, resulting in no deferred tax liability accrued for anticipated future dividends from foreign subsidiaries[253] - The company assesses goodwill for impairment annually on October 1st, with evaluations based on qualitative and quantitative analyses of fair value compared to carrying value[255][256] - The company utilizes the asset and liability method for accounting income taxes, recognizing deferred tax assets and liabilities based on expected future tax consequences[251] - Significant estimates are made in determining the value of deferred tax assets, including expected reversal periods and the availability of net operating losses[251] - The company accounts for tax uncertainties based on a "more likely than not" threshold for recognition and derecognition of tax positions[254] - The company’s tax provision could be adversely affected by lower-than-anticipated earnings in jurisdictions with lower statutory rates[250] Debt and Lease Obligations - Future interest on debt obligations is calculated using the interest rate effective as of December 31, 2024, with floating-to-fixed interest rate swap agreements in place to mitigate interest rate risk[47] - The company leases office space under operating leases that expire between 2024 and 2033, with future rental income from subletting excess space not included in operating lease obligations[47] Currency and Business Changes - Changes in foreign currency exchange rates, entry into new businesses, and changes in existing businesses may affect the company's tax provision[250]

Financial Data and Key Metrics Changes - The company reported a good Q4 2024, beating recurring revenue expectations and meeting adjusted EBITDA guidance midpoint [7] - Core organic growth in Q4 was flat, but the company is guiding for 2.5% core organic growth in 2025, representing a significant turnaround from a negative 1% average quarterly growth rate in 2024 [7][14] - Adjusted EBITDA margins are expected to increase by 400 basis points in 2025, from 20% in 2024 to 24% in 2025 [14] - The net dollar retention rate improved to 96% at the end of 2024, up from 95% in the prior year [8] - Q4 adjusted EBITDA was $14.9 million, showing sequential growth from Q3 [8][17] - Free cash flow for Q4 was $9 million, contributing to a total of $23.4 million for the full year 2024 [8][18] Business Line Data and Key Metrics Changes - The company welcomed 110 new customers in Q4, including 21 major customers, and expanded relationships with 291 existing customers, including 42 major expansions [9] - The company earned 76 badges in the G2 Winner 2025 Market Reports, indicating strong product performance [9] - AI-enabled solutions have been integrated into 80% of the core content and knowledge management product portfolio, enhancing product capabilities [28] Market Data and Key Metrics Changes - The company divested two non-strategic underperforming product lines, which lowered the 2025 revenue guidance by about $18 million but had no impact on adjusted EBITDA [11][20] - The divestitures are expected to simplify the business and improve core organic growth rates [12] Company Strategy and Development Direction - The company is focusing on AI-enabled solutions to improve knowledge sharing and business outcomes, which is seen as central to future growth [11][32] - The strategy includes enhancing product offerings and improving sales capabilities, particularly through investments in AI technologies [28][42] - The company aims to improve net dollar retention rates to closer to 98% by the end of 2025 [52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving organic growth outlook and the positive momentum in adjusted EBITDA margins [7][14] - The company is targeting full-year 2025 free cash flow in the range of $20 million to $25 million [18] - Management acknowledged the challenges posed by U.S. payroll taxes and costs related to divested assets in Q1 2025 [22] Other Important Information - The company plans to continue paying down debt, having already reduced it by $33 million in 2025, in addition to $189 million in 2024 [13][19] - The gross debt currently stands at approximately $261 million, with most of it hedged to lock the interest rate at 5.4% [19] Q&A Session Summary Question: Can you talk about the AI strategy at Upland? - The company has invested in AI, enabling 80% of its core content and knowledge management products, and sees strong enterprise search use cases for its products [28][32] Question: What is the status of the asset unwind strategy? - The company expects a decline in Sunset asset revenues from $32 million in 2024 to about $14 million in 2025, and then down to around $6 million in 2026 [34] Question: Can you provide insights on the major account expansions and net dollar retention? - The improvement in net dollar retention is driven by better gross dollar retention rates, with a goal to reach 98% by the end of 2025 [52] Question: What is the guidance for Q1 revenue? - The company expects reported total revenue for Q1 2025 to be between $59 million and $65 million, reflecting some lumpiness in perpetual license and professional services revenue [21][46]

Financial Data and Key Metrics Changes - Upland Software reported a good Q4 2024, beating recurring revenue expectations and meeting adjusted EBITDA guidance midpoint [7] - Core organic growth in Q4 was flat, but the company is guiding for 2.5% core organic growth in 2025 [7][13] - Adjusted EBITDA margins are expected to increase by 400 basis points in 2025, from 20% in 2024 to 24% [14] - The net dollar retention rate improved to 96% at the end of 2024, up from 95% in the prior year [8] - Q4 adjusted EBITDA was $14.9 million, showing sequential growth from Q3 [8][17] - Free cash flow for Q4 was $9 million, contributing to a total of $23.4 million for the full year 2024 [8][18] Business Line Data and Key Metrics Changes - Upland welcomed 110 new customers in Q4, including 21 major customers, and expanded relationships with 291 existing customers [9] - The company earned 76 badges in the G2 Winner 2025 Market Reports, indicating strong product performance [9] - AI-enabled solutions have been integrated into 80% of the core content and knowledge management product portfolio [28] Market Data and Key Metrics Changes - The divestiture of two non-strategic product lines lowered the 2025 revenue guidance by approximately $18 million but had no impact on adjusted EBITDA [11][20] - The company expects reported total revenue for Q1 2025 to be between $59 million and $65 million, reflecting a decline of 12% at the midpoint from the previous year [21] Company Strategy and Development Direction - Upland is focusing on AI-enabled solutions to improve knowledge sharing and business outcomes, with a significant investment in product development [10][28] - The company aims to simplify its business by divesting underperforming products, which is expected to reduce execution risk and improve core organic growth [12][20] - The strategy includes enhancing the sales pipeline and upgrading sales talent to support new AI-enabled products [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving core organic growth rate and retention rates, targeting a net dollar retention rate of 98% by the end of 2025 [52] - The company anticipates a turnaround in growth, with a projected improvement from a negative 1% average quarterly growth rate in 2024 to 2.5% in 2025 [14][13] - Management acknowledged the impact of U.S. payroll taxes and costs related to divested assets on Q1 2025 performance [22] Other Important Information - Upland has paid down $33 million in debt in 2025, in addition to $189 million in 2024 [13][19] - The company plans to continue paying down debt by up to $2 million per month [19] Q&A Session Summary Question: Insights on AI strategy and use cases - Management highlighted significant investments in AI, with 80% of core products now AI-enabled, and noted strong sales opportunities in AI-driven products [28][30] Question: Status of asset unwind strategy and revenue impact - The divestiture of two product lines generated about $10 million, with a decline in Sunset asset revenues projected to drop from $32 million in 2024 to around $14 million in 2025 [34] Question: Go-to-market strategy and sales traction - Management discussed improvements in sales talent and demand generation since the HGGC investment, leading to better core organic growth and net renewal rates [42][43] Question: Timing of debt refinancing - Management indicated plans to refinance debt in the second half of the year, benefiting from a lower principal amount despite potentially higher rates [45] Question: Guidance for Q1 revenue range - The wider revenue guidance range for Q1 was attributed to the variability in perpetual license and professional services revenue [47] Question: Core net dollar retention rate components - The improvement in net dollar retention was driven by better gross retention rates and the focus on strong products with high renewal rates [52]

Financial Performance - Total revenue for Q4 2024 was $68.0 million, a decrease of 6% from $72.2 million in Q4 2023[5] - Subscription and support revenue was $64.3 million, down 6% from $68.2 million in Q4 2023[5] - GAAP net loss was $3.4 million, significantly improved from a net loss of $16.0 million in Q4 2023[5] - Adjusted EBITDA was $14.9 million, representing 22% of total revenue, compared to $14.1 million or 19% of total revenue in Q4 2023[5] - Total revenue for Q4 2024 was $68.027 million, a decrease of 5.9% compared to $72.178 million in Q4 2023[29] - Subscription and support revenue decreased to $64.332 million in Q4 2024 from $68.184 million in Q4 2023, representing a decline of 5.4%[29] - Net loss for Q4 2024 was $3.430 million, compared to a net loss of $16.012 million in Q4 2023, showing an improvement of 78.6%[29] - Adjusted EBITDA for Q4 2024 was $14,901 thousand, compared to $14,052 thousand in Q4 2023, reflecting a year-over-year increase of 6%[35] - Non-GAAP net income for the twelve months ended December 31, 2024, was $42,622 thousand, up from $37,868 thousand in 2023, representing a growth of 12%[36] - Non-GAAP earnings per share, diluted, increased to $0.41 in Q4 2024 from $0.14 in Q4 2023[36] Future Guidance - Upland expects Q1 2025 total revenue to be between $59.0 million and $65.0 million, reflecting a 12% decline at the midpoint from Q1 2024[7] - For the full year 2025, total revenue is expected to be between $231.5 million and $255.5 million, an 11% decrease at the midpoint from 2024[8] - Adjusted EBITDA for the full year 2025 is projected to be between $53.5 million and $65.5 million, with a 24% margin at the midpoint, a 7% increase from 2024[8] Customer Acquisition and Relationships - Upland welcomed 110 new customers in Q4 2024, including 21 major customers, and expanded relationships with 291 existing customers[4] Cost Management and Expenses - Total operating expenses decreased to $50.135 million in Q4 2024 from $57.851 million in Q4 2023, a reduction of 13.0%[29] - Stock-based compensation expense for the twelve months ended December 31, 2024, totaled $15,270 thousand, down from $22,874 thousand in 2023, indicating a reduction of 33%[39] - Amortization of purchased intangibles for the twelve months ended December 31, 2024, was $53,764 thousand, down from $70,566 thousand in 2023, a decrease of 24%[36] Cash Flow and Liquidity - Cash and cash equivalents decreased significantly to $56.426 million as of December 31, 2024, down from $236.559 million as of December 31, 2023[31] - Total assets decreased to $529.522 million as of December 31, 2024, compared to $870.024 million as of December 31, 2023, a decline of 39.1%[31] - Total liabilities decreased to $424.597 million as of December 31, 2024, from $626.092 million as of December 31, 2023, a reduction of 32.2%[31] - Net cash provided by operating activities for Q4 2024 was $9.341 million, compared to $8.789 million in Q4 2023, an increase of 6.3%[33] - Free Cash Flow for Q4 2024 was $9,021 thousand, an increase from $8,603 thousand in Q4 2023[38] Shareholder Information - The company reported a net loss per common share of $0.18 for Q4 2024, improving from a loss of $0.56 per share in Q4 2023[29] - The weighted-average common shares outstanding decreased to 27,605,490 in Q4 2024 from 30,995,441 in Q4 2023, a reduction of 10.0%[29] - Weighted average common shares outstanding, basic, decreased to 27,605,490 in Q4 2024 from 30,995,441 in Q4 2023[36] Impairment and Divestitures - The company divested two non-strategic product lines, reducing 2025 revenue guidance by approximately $18 million[6] - The company incurred impairment of goodwill amounting to $87,227 thousand for the twelve months ended December 31, 2024[36]

Core Viewpoint - Upland Software (UPLD) is expected to report a decline in revenues for the fourth quarter of 2024, despite benefiting from increased customer acquisitions and successful AI integrations. Revenue Expectations - Upland anticipates revenues between $65.9 million and $71.9 million for Q4 2024, reflecting a 5% year-over-year decline at the midpoint [2] - The Zacks Consensus Estimate for Q4 revenues is $68.06 million, indicating a 5.71% year-over-year decline [2] Earnings Estimates - The consensus estimate for earnings is 24 cents per share, representing a 71.43% increase from the same quarter last year [3] - Upland has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 29.23% [3] Key Growth Factors - Upland's Q4 performance is likely to benefit from increased customer acquisitions and successful AI integrations [4] - The company's Generative AI solutions contributed to new customer acquisitions and major expansions in Q3 2024, expected to drive growth in Q4 as well [4] Customer Acquisition and Engagement - Upland added 122 new customers in Q3 2024, including 18 major customers, and expanded relationships with 312 existing customers, including 27 major expansions [6] - This momentum is anticipated to contribute to revenue stability and potential growth in Q4 2024 [6] Stock Performance - Upland shares have declined 38% year-to-date, underperforming the broader Zacks Computer & Technology sector's decline of 9.7% and the Zacks Internet - Software industry's decrease of 3.2% [7] Valuation Metrics - Upland stock is considered cheap, with a Value Score of A, trading at a forward 12-month Price/Sales ratio of 0.28X, significantly lower than the industry's 4.20X [11] AI Integration and Partnerships - Upland's integration of generative AI into its solutions has been crucial for attracting new customers and enhancing relationships with existing ones [14] - The company launched Panviva Sidekick, an AI-powered assistant aimed at improving customer experience in complex industries [14][15] - Upland's partnerships with key players like Microsoft and Konica Minolta are expected to drive growth in Q4 [16] Strategic Initiatives - Upland announced the availability of BA Insight for Microsoft Azure AI Search, allowing seamless integration for intelligent content search [17] - The partnership with IBM WatsonX enhances Upland's product capabilities, attracting enterprise customers and addressing data privacy and compliance needs [18] Long-term Investment Perspective - Upland's robust AI portfolio and expanding partner base are seen as attractive for long-term investors [19] - However, the planned runoff of Sunset asset revenue is expected to impact financial performance in Q4 2024, contributing to overall revenue decline [19]

Company Overview - Upland Software Inc. has a market capitalization of $115 million and is based in Austin, TX [1] - The company operates in the application software segment of the information technology sector [1] Investment Strategy - The focus is on building financial assets for a fulfilling retirement, with an interest in both long and short trading strategies [1] - The use of inverse ETFs is considered to capitalize on market declines [1] - The goal is to execute a trading plan effectively and achieve absolute investing results [1] Learning and Development - Articles are viewed as a means to maintain focus on developing successful trades [1] - Feedback from the comments section is expected to provide learning opportunities [1]

Group 1 - Upland Software's stock closed at $3.94, with a daily increase of 0.51%, underperforming the S&P 500's gain of 0.72% and the Nasdaq's increase of 1.35% [1] - The stock has decreased by 18.16% over the past month, contrasting with the Computer and Technology sector's loss of 1.35% and the S&P 500's gain of 1.02% [1] Group 2 - Analysts expect Upland Software to report earnings of $0.24 per share, reflecting a year-over-year growth of 71.43% [2] - Revenue is forecasted to be $68.06 million, indicating a 5.71% decline compared to the same quarter last year [2] Group 3 - Recent shifts in analyst projections for Upland Software should be monitored, as positive revisions indicate analysts' confidence in the company's performance and profit potential [3] Group 4 - Empirical research shows that revisions in estimates correlate with stock price performance, leading to the development of the Zacks Rank system [4] Group 5 - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 ranked stocks yielding an average annual return of +25% since 1988 [5] - Upland Software currently holds a Zacks Rank of 3 (Hold), with no changes in the consensus EPS projection over the past 30 days [5] Group 6 - Upland Software has a Forward P/E ratio of 3.96, significantly lower than the industry average Forward P/E of 31.46 [6] - The Internet - Software industry is part of the Computer and Technology sector, which has a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries [6]

Company Performance - Upland Software closed at $4.50, with a daily change of -0.88%, which was less than the S&P 500's loss of 0.47% [1] - Over the past month, Upland Software's shares gained 4.61%, outperforming the Computer and Technology sector, which saw a loss of 0.19% [1] Upcoming Earnings - Analysts expect Upland Software to report earnings of $0.24 per share, reflecting a year-over-year growth of 71.43% [2] - The consensus revenue estimate is $68.06 million, indicating a 5.71% decline compared to the same quarter last year [2] Analyst Estimates - Recent changes in analyst estimates for Upland Software are important as they reflect short-term business trends [3] - Positive revisions in estimates indicate analyst optimism regarding the company's business and profitability [3] Zacks Rank and Valuation - Upland Software currently holds a Zacks Rank of 2 (Buy), with no change in the Zacks Consensus EPS estimate over the past month [5] - The company is trading at a Forward P/E ratio of 4.59, significantly lower than the industry average of 31.57, indicating a discount [6] Industry Context - Upland Software is part of the Internet - Software industry, which has a Zacks Industry Rank of 39, placing it in the top 16% of over 250 industries [6] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks [7]

Stock Performance and Market Position - Upland Software (UPLD) shares surged 76.3% in the trailing six-month period, significantly outperforming the Zacks Computer & Technology sector's return of 1.1% and the Zacks Internet - Software industry's rise of 14.7% [2] - The company's strong focus on customer expansion and successful AI integrations contributed to its outperformance [2] - Upland's forward 12-month Price/Sales ratio stands at 0.43, lower than the industry's 3.01, indicating attractive valuation [6] AI-Driven Growth and Product Innovations - Upland integrated AI-powered features into products like Upland Qvidian and launched Altify MaxAI, an AI-powered enhancement to its Altify account planning and deal management software [5][11] - The company's AI-driven solutions, including Upland RightAnswers and Upland BA Insight, attracted new business and solidified its market position [13][14] - Upland's AI initiatives, such as the partnership with IBM WatsonX, enhanced product capabilities and attracted enterprise customers [5] Customer Expansion and Partnerships - In Q3 2024, Upland added 122 new customers, including 18 major accounts, and expanded relationships with 312 existing customers, 27 of which were major expansions [9] - The company expanded its partnership with Konica Minolta to provide secure, cloud-based fax solutions integrated into Konica Minolta's bizhub One i-Series Multi-Function Printer [3] - Upland announced the availability of BA Insight for Microsoft Azure AI Search in the Microsoft Azure Marketplace, allowing seamless integration with Azure AI Search [4] Financial Performance and Estimates - The Zacks Consensus Estimate for 2025 earnings is pegged at 99 cents per share, implying a year-over-year decline of 4.81% [17] - The Zacks Consensus Estimate for 2025 revenues is $266.90 million, suggesting a decline of 2.89% from 2024's estimated figure of $274.83 million [17] - Upland's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 10.44% [18] Strategic Positioning and Future Outlook - Upland's robust portfolio and expanding partner base make the stock attractive for long-term investors [19] - The company's integration of AI across its solutions has significantly boosted sales productivity and customer relationships [16] - Upland is set to strengthen its position as a leader in AI-powered enterprise tools, despite the planned runoff of Sunset asset revenue negatively impacting overall revenues [16]