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Jun 30, 2023

Upland Q2 2023 Earnings Report

Upland Software's financial performance declined in Q2 2023 due to decrease in total revenue and subscription revenue, but beat revenue and Adjusted EBITDA guidance midpoints.

Key Takeaways

Upland Software reported a decrease in total revenue and subscription revenue for Q2 2023. The company beat revenue and Adjusted EBITDA guidance midpoints. They added 20 new major customers and announced new product innovations.

Total revenue was $74.5 million, a decrease of 7% year-over-year.

Subscription and support revenue was $70.5 million, a decrease of 6% year-over-year.

GAAP net loss was $15.1 million compared to a GAAP net loss of $16.4 million in the second quarter of 2022.

Adjusted EBITDA was $16.6 million, or 22% of total revenue, compared to $24.5 million, or 31% of total revenue, in the second quarter of 2022.

Total Revenue
$74.5M
Previous year: $80.2M
-7.1%
EPS
$0.22
Previous year: $0.55
-60.0%
Gross Profit
$50.3M
Previous year: $53.7M
-6.3%
Cash and Equivalents
$263M
Previous year: $138M
+89.9%
Free Cash Flow
$6.73M
Previous year: $13.9M
-51.6%
Total Assets
$956M
Previous year: $1.03B
-7.2%

Upland

Upland

Upland Revenue by Segment

Forward Guidance

Upland expects a decline in total revenue for the third quarter and full year of 2023. They are making significant incremental sales, marketing and product investments as part of its comprehensive growth plan.

Challenges Ahead

  • Total revenue for Q3 2023 is expected to be between $70.4 and $76.4 million, a decline of 8% at the mid-point over the quarter-ended September 30, 2022.
  • Subscription and support revenue for Q3 2023 is expected to be between $65.5 and $70.5 million.
  • Adjusted EBITDA for Q3 2023 is expected to be between $14.5 and $17.5 million, a decrease of 36% from the quarter-ended September 30, 2022.
  • Total revenue for full year 2023 is expected to be between $292.1 and $304.1 million, a decline of 6% at the mid-point over the year ended December 31, 2022.
  • Adjusted EBITDA for full year 2023 is expected to be between $63.2 and $69.2 million, a decrease of 32% over the year ended December 31, 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income