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Dec 31, 2024
Upland Q4 2024 Earnings Report
Upland Software reported a decline in revenue but improved adjusted EBITDA margin.
Key Takeaways
Upland Software posted Q4 2024 revenue of $68.0 million, a 6% year-over-year decline, driven by lower subscription and support revenue. Adjusted EBITDA increased to $14.9 million, representing an improved margin of 22%. The company reported a GAAP net loss of $3.4 million, with a free cash flow of $9.0 million. Management highlighted progress in its AI-driven product offerings and cost optimization efforts.
Q4 revenue declined 6% year-over-year to $68.0 million.
Subscription and support revenue fell 6% to $64.3 million.
Adjusted EBITDA improved to $14.9 million, with a 22% margin.
GAAP net loss reduced to $3.4 million from $16.0 million in Q4 2023.
Upland
Upland
Upland Revenue by Segment
Revenue by Segment
Subscription and Support Revenue
CapyFin.comPerpetual License Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Upland Software expects total revenue between $231.5 million and $255.5 million in FY25, with an adjusted EBITDA margin of 24%. The company remains focused on AI-driven solutions and efficiency improvements to enhance profitability.
Positive Outlook
- Projected FY25 revenue between $231.5M and $255.5M.
- Adjusted EBITDA margin expected to rise to 24%.
- Strong performance in AI-enabled product adoption.
- Operational efficiency efforts supporting cost reductions.
- Free cash flow expected to remain positive in FY25.
Challenges Ahead
- Revenue decline projected due to discontinued product lines.
- Subscription and support revenue under pressure from churn.
- Macroeconomic conditions may impact enterprise software spending.
- Increased competition in cloud-based digital transformation tools.
- Potential risks in achieving targeted cost optimization goals.
Revenue & Expenses
Visualization of income flow from segment revenue to net income