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Sep 30, 2023

Upland Q3 2023 Earnings Report

Upland Software's Q3 2023 financial performance saw a revenue decrease but beat revenue and Adjusted EBITDA guidance midpoints.

Key Takeaways

Upland Software reported a decrease in total revenue and subscription revenue compared to Q3 2022. The company experienced a GAAP net loss, but operating cash flow and free cash flow increased due to a one-time cash benefit. They welcomed 162 new customers, including 26 major ones.

Total revenue decreased by 7% to $74.1 million compared to Q3 2022.

Subscription and support revenue decreased by 7% to $70.0 million compared to Q3 2022.

GAAP net loss was $8.7 million, compared to a net loss of $6.5 million in Q3 2022.

Adjusted EBITDA was $16.2 million, representing 22% of total revenue.

Total Revenue
$74.1M
Previous year: $79.5M
-6.8%
EPS
$0.33
Previous year: $0.5
-34.0%
Adjusted EBITDA Margin
22%
Gross Profit
$51.2M
Previous year: $53.8M
-4.9%
Cash and Equivalents
$240M
Previous year: $242M
-0.9%
Free Cash Flow
$17.8M
Previous year: $1.46M
+1120.2%
Total Assets
$894M
Previous year: $1.11B
-19.7%

Upland

Upland

Upland Revenue by Segment

Forward Guidance

Upland expects a decline in total revenue and Adjusted EBITDA for the fourth quarter and full year 2023, reflecting incremental sales, marketing, and product investments, as well as an estimated non-cash charge related to Sunset Assets.

Challenges Ahead

  • Upland expects total revenue to be between $69.0 and $75.0 million for Q4 2023.
  • Subscription and support revenue is expected to be between $65.5 and $70.5 million for Q4 2023.
  • Adjusted EBITDA is expected to be between $12.6 and $15.6 million for Q4 2023.
  • Upland expects total revenue to be between $294.7 and $300.7 million for the full year 2023.
  • Adjusted EBITDA is expected to be between $63.0 and $66.0 million for the full year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income