Upland Software Surges 93% in a Month: Should You Buy the Stock?

Core Viewpoint - Upland Software (UPLD) has experienced a significant share price increase of 93.3% over the past month, outperforming the broader Zacks Computer & Technology sector and the Zacks Internet - Software industry due to its strong customer expansion and successful AI integrations [1]. Customer Expansion - In Q3 2024, Upland Software added 122 new customers, including 18 major ones, indicating strong demand for its solutions and an expanding customer base [4]. - The company also expanded relationships with 312 existing customers, including 27 major expansions, driven by its growing portfolio of generative AI solutions [4]. AI Portfolio - Upland's Generative AI solutions, particularly Upland RightAnswers and Upland BA Insight, have been crucial in attracting new business [5]. - Upland RightAnswers gained recognition by earning 17 badges in the G2 Fall 2024 market reports, showcasing its effectiveness in AI-driven knowledge management [6]. - Upland BA Insight has also received new recognitions, contributing significantly to Upland's market position [6]. Partnerships - Upland's expanding partner base, including Microsoft and Konica Minolta, has been a key growth driver [7]. - The partnership with Konica Minolta has led to the integration of secure, cloud-based fax solutions into their multi-function printers across the U.S. and Canada [7]. - Upland announced the availability of BA Insight for Microsoft Azure AI Search, enhancing customer experience and integration capabilities [8]. AI Initiatives - Upland is focusing on integrating AI-powered features into products like Upland Qvidian and has partnered with IBM WatsonX to enhance product capabilities [9]. - The collaboration with IBM provides advanced AI functionalities, helping Upland meet enterprise customer needs for data privacy and compliance [9]. Financial Outlook - For Q4 2024, Upland expects total revenues between $65.9 million and $71.9 million, reflecting a 5% decline at the midpoint compared to the previous year [10]. - For the full year 2024, total revenues are projected between $272.6 million and $278.6 million, indicating a 7% decline at the midpoint from the previous year [11]. - The Zacks Consensus Estimate for Q4 2024 revenues is $68.06 million, suggesting a decline of 5.71% year-over-year [11]. Earnings Estimates - The consensus estimate for Q4 2024 earnings is 24 cents per share, reflecting a year-over-year increase of 71.43% [12]. - For the full year 2024, the earnings estimate is $1.04 per share, indicating a year-over-year increase of 7.22% [13]. Investment Consideration - Upland Software shares are considered cheap with a Value Score of A, and the stock is trading above its 50-day and 200-day moving averages, indicating a bullish trend [15][16]. - The robust portfolio and expanding partner base make UPLD an attractive investment opportunity for long-term investors [18].