Upland Software Reports First Quarter 2021 Financial Results

Rhea-AI Summary

Upland Software (Nasdaq: UPLD) reported a 9% revenue increase for Q1 2021, totaling $74 million. Subscription and support revenue rose 11% to $70.7 million. Despite a GAAP net loss of $20.7 million (loss of $0.69/share), operating cash flow improved significantly to $12.5 million, up from a loss of $5.3 million in Q1 2020. Upland made two strategic acquisitions in Q1, enhancing its cloud product offerings. For Q2 2021, Upland expects revenue between $73-77 million, while full year revenue guidance is set between $299-311 million, anticipating a 5% growth in recurring revenue.

Positive

• 9% revenue increase to $74 million in Q1 2021.
• 11% rise in subscription and support revenue to $70.7 million.
• Operating cash flow improved to $12.5 million from a loss of $5.3 million in Q1 2020.
• Two strategic acquisitions completed, enhancing product offerings.

Negative

• GAAP net loss increased to $20.7 million from $20.1 million in Q1 2020.
• Adjusted EBITDA decreased by 7% to $22.8 million, 31% of total revenue.

Upland Software, Inc. (Nasdaq: UPLD), a leader in cloud-based tools for digital transformation, today announced financial and operating results for the first quarter of 2021 and issued guidance for its second quarter and full year of 2021.

First Quarter 2021 Financial Highlights

• Total revenue was $74.0 million, an increase of 9% from $68.0 million in the first quarter of 2020.
• Subscription and support revenue was $70.7 million, an increase of 11% from $63.9 million in the first quarter of 2020.
• GAAP net loss was $20.7 million, or a loss of $0.69 cents per share, compared to a GAAP net loss of $20.1 million, or a loss of $0.81 cents per share, in the first quarter of 2020.
• Adjusted EBITDA was $22.8 million, or 31% of total revenue, a decrease of 7% from $24.6 million, or 36% of total revenue, in the first quarter of 2020.
• GAAP operating cash flow was $12.5 million, an increase from $5.3 million of GAAP operating cash outflow in the first quarter of 2020. Free cash flow was $12.2 million, an increase from $5.6 million of free cash outflow in the first quarter of 2020.
• Cash on hand as of the end of the first quarter of 2021 was $186.7 million.

"In Q1, we restarted our M&A engine, completing two strategic and accretive acquisitions,” said Jack McDonald, Upland’s chairman and chief executive officer. “In addition, we posted strong free cash flow, while continuing to invest in our go-to-market growth initiatives,” he added. “Our acquisition pipeline remains robust and we are active in the market for additional opportunities.”

First Quarter Business Highlights

• Expanded relationships with 283 existing customers, 45 of which were major expansions. We also welcomed 118 new customers to Upland in Q1, including 32 new major customers.
• Expanded security and collaboration capabilities across the Upland product portfolio with three major releases and five feature packs. In our Project & IT Management product suite, delivered key product integrations with Salesforce and Sage Intacct and user experience updates. Following the Upland and HP joint announcement in the fall, released essential application updates to our Document Workflow product suite to support the HP Workpath offering.
• Closed the acquisition of Second Street, an audience development platform, adding proven contest and interactive content tools that deliver richer consumer engagement for Upland's Customer Experience Management (CXM) suite customers.
• Closed the acquisition of BlueVenn, a leading customer data platform, anchoring Upland's Customer Experience Management (CXM) suite with a single view of the customer that will drive deeper engagement across email, SMS, mobile application, and online.

Business Outlook

For the quarter ending June 30, 2021, Upland expects reported total revenue to be between $73.0 and $77.0 million, including subscription and support revenue between $70.2 and $73.2 million, for growth in recurring revenue of 6% at the mid-point over the quarter-ended June 30, 2020. Second quarter 2021 Adjusted EBITDA is expected to be between $22.0 and $24.0 million, for an Adjusted EBITDA margin of 31% at the mid-point, representing a reduction of 3% at the mid-point over the quarter-ended June 30, 2020, reflecting our incremental investment in our go-to-market activities.

For the full year ending December 31, 2021, Upland expects reported total revenue to be between $299.0 and $311.0 million, including subscription and support revenue between $285.3 and $295.3 million, for growth in recurring revenue of 5% at the mid-point over the year ended December 31, 2020. Full year 2021 Adjusted EBITDA is expected to be between $94.4 and $100.4 million, for an Adjusted EBITDA margin of 32% at the mid-point, representing reduction of 3% at the mid-point over the year ended December 31, 2020, reflecting our incremental investment in our go-to-market activities.

Conference Call Details

Upland's executive team will host a live conference call and webcast at 4:00 p.m. Central Time, 5:00 p.m. Eastern Time today to review Upland’s financial results and outlook for the business. The call can be accessed via a webcast on investor.uplandsoftware.com, or by dialing 1-866-270-1533 in the United States or +1-412-317-0797 if outside the United States, using the conference identification number: 10153909. This webcast will contain forward-looking statements and other material information regarding Upland’s financial and operating results.

Following the completion of the conference call, a recording of the webcast will be made available at investor.uplandsoftware.com for twelve months.

About Upland Software

Upland Software (Nasdaq: UPLD) is a leader in cloud-based tools for digital transformation. The Upland Cloud enables thousands of organizations to engage with customers on key digital channels, optimize sales team performance, manage projects and IT costs, and automate critical document workflows. The Upland Cloud is backed by a 100% customer success commitment and the UplandOne platform, which puts customers at the center of everything we do. To learn more, visit { "@context": "https://schema.org", "@type": "FAQPage", "name": "Upland Software Reports First Quarter 2021 Financial Results FAQs", "mainEntity": [ { "@type": "Question", "name": "What were Upland's total revenues for Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Upland reported total revenues of $74 million for Q1 2021." } }, { "@type": "Question", "name": "What is Upland's earnings per share for Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Upland's earnings per share for Q1 2021 was a loss of $0.69." } }, { "@type": "Question", "name": "What is Upland's revenue guidance for Q2 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Upland expects revenue between $73 million and $77 million for Q2 2021." } }, { "@type": "Question", "name": "How much free cash flow did Upland generate in Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Upland generated $12.2 million in free cash flow in Q1 2021." } }, { "@type": "Question", "name": "What is Upland's full-year revenue guidance for 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Upland's full-year revenue guidance is between $299 million and $311 million for 2021." } } ] }

FAQ

What were Upland's total revenues for Q1 2021?

Upland reported total revenues of $74 million for Q1 2021.

What is Upland's earnings per share for Q1 2021?

Upland's earnings per share for Q1 2021 was a loss of $0.69.

What is Upland's revenue guidance for Q2 2021?

Upland expects revenue between $73 million and $77 million for Q2 2021.

How much free cash flow did Upland generate in Q1 2021?

Upland generated $12.2 million in free cash flow in Q1 2021.

What is Upland's full-year revenue guidance for 2021?

Upland's full-year revenue guidance is between $299 million and $311 million for 2021.