Upland Software Reports Fourth Quarter 2024 Financial Results
Upland Software (UPLD) reported Q4 2024 financial results with total revenue of $68.0 million, down 6% year-over-year. Subscription and support revenue decreased 6% to $64.3 million. The company reduced its GAAP net loss to $3.4 million from $16.0 million in Q4 2023.
Key metrics include Adjusted EBITDA of $14.9 million (22% of revenue), improved from $14.1 million (19%) year-over-year. Free cash flow reached $9.0 million, with cash on hand of $56.4 million after $7.4 million in Term Loan repayments.
The company welcomed 110 new customers, including 21 major ones, and expanded relationships with 291 existing customers. For 2025, Upland projects Q1 revenue between $59.0-$65.0 million and full-year revenue of $231.5-$255.5 million, representing an 11% decrease at midpoint, impacted by recent divestitures of two non-strategic product lines.
Upland Software (UPLD) ha riportato i risultati finanziari del quarto trimestre del 2024 con un fatturato totale di 68,0 milioni di dollari, in calo del 6% rispetto all'anno precedente. I ricavi da abbonamenti e supporto sono diminuiti del 6% a 64,3 milioni di dollari. L'azienda ha ridotto la sua perdita netta GAAP a 3,4 milioni di dollari rispetto ai 16,0 milioni di dollari del quarto trimestre del 2023.
I principali indicatori includono un EBITDA rettificato di 14,9 milioni di dollari (22% del fatturato), migliorato rispetto ai 14,1 milioni di dollari (19%) dell'anno precedente. Il flusso di cassa libero ha raggiunto i 9,0 milioni di dollari, con disponibilità liquide di 56,4 milioni di dollari dopo i rimborsi di 7,4 milioni di dollari di prestiti a termine.
L'azienda ha accolto 110 nuovi clienti, di cui 21 di grandi dimensioni, ed ha ampliato le relazioni con 291 clienti esistenti. Per il 2025, Upland prevede un fatturato per il primo trimestre compreso tra 59,0 e 65,0 milioni di dollari e un fatturato annuo compreso tra 231,5 e 255,5 milioni di dollari, che rappresenta una diminuzione dell'11% al punto medio, influenzata dalle recenti dismissioni di due linee di prodotto non strategiche.
Upland Software (UPLD) informó los resultados financieros del cuarto trimestre de 2024 con ingresos totales de 68,0 millones de dólares, una disminución del 6% en comparación con el año anterior. Los ingresos por suscripciones y soporte disminuyeron un 6% a 64,3 millones de dólares. La empresa redujo su pérdida neta GAAP a 3,4 millones de dólares desde 16,0 millones de dólares en el cuarto trimestre de 2023.
Los principales indicadores incluyen un EBITDA ajustado de 14,9 millones de dólares (22% de los ingresos), mejorado desde 14,1 millones de dólares (19%) en comparación con el año anterior. El flujo de caja libre alcanzó los 9,0 millones de dólares, con efectivo disponible de 56,4 millones de dólares después de reembolsos de 7,4 millones de dólares en préstamos a plazo.
La empresa dio la bienvenida a 110 nuevos clientes, incluidos 21 importantes, y amplió las relaciones con 291 clientes existentes. Para 2025, Upland proyecta ingresos para el primer trimestre entre 59,0 y 65,0 millones de dólares y un ingreso total anual de entre 231,5 y 255,5 millones de dólares, lo que representa una disminución del 11% en el punto medio, afectado por recientes desinversiones de dos líneas de productos no estratégicos.
업플랜드 소프트웨어 (UPLD)는 2024년 4분기 재무 결과를 보고하며 총 수익이 6,800만 달러로 전년 대비 6% 감소했다고 발표했습니다. 구독 및 지원 수익은 6% 감소하여 6,430만 달러에 이릅니다. 이 회사는 GAAP 기준의 순손실을 1,340만 달러에서 1,600만 달러로 줄였습니다.
주요 지표에는 조정 EBITDA가 1,490만 달러 (수익의 22%)로 전년 대비 1,410만 달러 (19%)에서 개선되었습니다. 자유 현금 흐름은 900만 달러에 도달했으며, 740만 달러의 기간 대출 상환 후 보유 현금은 5,640만 달러입니다.
회사는 110명의 신규 고객을 맞이했으며, 그 중 21명이 주요 고객입니다. 또한 291명의 기존 고객과의 관계를 확장했습니다. 2025년을 위해, 업플랜드는 1분기 수익을 5,900만에서 6,500만 달러 사이로 예상하며, 연간 수익은 2억 3,150만에서 2억 5,550만 달러 사이로 예상하며, 이는 중간값에서 11% 감소를 나타내며 최근 두 개의 비전략적 제품 라인의 매각에 영향을 받았습니다.
Upland Software (UPLD) a publié les résultats financiers du quatrième trimestre 2024, avec un chiffre d'affaires total de 68,0 millions de dollars, en baisse de 6 % par rapport à l'année précédente. Les revenus d'abonnements et de support ont diminué de 6 % pour atteindre 64,3 millions de dollars. L'entreprise a réduit sa perte nette GAAP à 3,4 millions de dollars contre 16,0 millions de dollars au quatrième trimestre 2023.
Les indicateurs clés comprennent un EBITDA ajusté de 14,9 millions de dollars (22 % du chiffre d'affaires), amélioré par rapport à 14,1 millions de dollars (19 %) d'une année sur l'autre. Le flux de trésorerie libre a atteint 9,0 millions de dollars, avec des liquidités de 56,4 millions de dollars après des remboursements de 7,4 millions de dollars de prêts à terme.
L'entreprise a accueilli 110 nouveaux clients, dont 21 importants, et a élargi ses relations avec 291 clients existants. Pour 2025, Upland prévoit un chiffre d'affaires du premier trimestre compris entre 59,0 et 65,0 millions de dollars et un chiffre d'affaires annuel total compris entre 231,5 et 255,5 millions de dollars, représentant une baisse de 11 % au point médian, impactée par les récentes cessions de deux lignes de produits non stratégiques.
Upland Software (UPLD) hat die finanziellen Ergebnisse für das vierte Quartal 2024 veröffentlicht, mit einem Gesamtumsatz von 68,0 Millionen Dollar, was einem Rückgang von 6% im Vergleich zum Vorjahr entspricht. Die Einnahmen aus Abonnements und Unterstützung sanken um 6% auf 64,3 Millionen Dollar. Das Unternehmen verringerte seinen GAAP-Nettoverlust auf 3,4 Millionen Dollar von 16,0 Millionen Dollar im vierten Quartal 2023.
Wichtige Kennzahlen umfassen ein angepasstes EBITDA von 14,9 Millionen Dollar (22% des Umsatzes), verbessert von 14,1 Millionen Dollar (19%) im Vergleich zum Vorjahr. Der freie Cashflow erreichte 9,0 Millionen Dollar, mit liquiden Mitteln von 56,4 Millionen Dollar nach Rückzahlungen von 7,4 Millionen Dollar für Terminkredite.
Das Unternehmen begrüßte 110 neue Kunden, darunter 21 große, und erweiterte die Beziehungen zu 291 bestehenden Kunden. Für 2025 prognostiziert Upland einen Umsatz im ersten Quartal zwischen 59,0 und 65,0 Millionen Dollar und einen Gesamtjahresumsatz von 231,5 bis 255,5 Millionen Dollar, was einen Rückgang von 11% im Mittelwert darstellt, beeinflusst durch die jüngsten Veräußungen von zwei nicht-strategischen Produktlinien.
- Reduced GAAP net loss by 79% year-over-year to $3.4 million
- Improved Adjusted EBITDA margin to 22% from 19% year-over-year
- Core Organic Growth Rate increasing to 2.5% in 2025
- Strong customer acquisition with 110 new customers in Q4
- Significant debt reduction with $188.4 million in Term Loan repayments during 2024
- Total revenue declined 6% year-over-year to $68.0 million
- Subscription and support revenue decreased 6% to $64.3 million
- Projected 11% revenue decline for 2025 due to non-strategic product divestitures
- Q1 2025 guidance shows 12% revenue decline at midpoint
Insights
Upland Software's Q4 2024 results present a mixed picture with revenue declines offset by improved profitability metrics. Total revenue decreased 6% YoY to
The company's focus on operational efficiency is yielding results, with Adjusted EBITDA improving to
Debt reduction has been a priority, with
The 2025 outlook signals continued strategic repositioning. The divestiture of underperforming product lines will reduce revenue by approximately
Customer metrics remain positive with 110 new customers and 291 relationship expansions in Q4, suggesting the core business fundamentals remain intact despite the revenue challenges. The company's strategic pivot to higher-margin business indicates management is prioritizing profitability over top-line growth.
Upland's strategic repositioning toward AI-enabled products is showing early signs of traction amid its broader revenue challenges. The company specifically highlighted "sizable product wins" for its AI-enabled offerings in Q4. Their continued investment in this space is evident through multiple products receiving industry recognition.
The company earned 76 G2 badges in the Winter 2025 market reports, an increase from 72 in the previous quarter. Their AI knowledge management solutions (RightAnswers and Panviva) garnered significant recognition, while BA Insight (AI enablement platform) and Qvidian (AI-powered proposal management) also received notable mentions. This third-party validation suggests Upland's AI capabilities are competitive within their market segments.
Additionally, Upland secured recognition as a major player in the IDC MarketScape for Digital Fax and was included in IDC's Knowledge Management Market Glance. These acknowledgments from respected industry analysts provide credibility for Upland's solutions in competitive enterprise software categories.
The expanded partnership with Konica Minolta for InterFAX (cloud fax and digital workflow) represents an important distribution channel expansion, positioning their solution as the preferred offering across Konica's extensive client base in the US and Canada.
While the company's Core Organic Growth Rate is projected to reach only
Fourth Quarter 2024 Financial Highlights
-
Total revenue was
$68.0 million 6% from$72.2 million -
Subscription and support revenue was
$64.3 million 6% from$68.2 million -
GAAP net loss was
$3.4 million $16.0 million $4.9 million $17.4 million $0.18 $0.56 -
Adjusted EBITDA was
$14.9 million 22% of total revenue, compared to$14.1 million 19% of total revenue, in the fourth quarter of 2023. -
GAAP operating cash flow was
$9.3 million $8.8 million $9.0 million $8.6 million -
Cash on hand as of the end of the fourth quarter of 2024 was
$56.4 million $7.4 million $188.4 million $32.9 million
"In Q4, we beat our Recurring Revenue guidance midpoint and met our Adjusted EBITDA guidance midpoint," said Jack McDonald, Upland's chairman and chief executive officer. "We saw some nice, sizable product wins, including for our AI enabled products. We are seeing progress on our growth plan with our Core Organic Growth Rate increasing to
Fourth Quarter Business Highlights
- We welcomed 110 new customers to Upland in the fourth quarter, including 21 new major customers. We also expanded relationships with 291 existing customers, 42 of which were major expansions. These new and expanded relationships were across our portfolio, including our Generative AI solutions.
- We earned 76 badges in the G2 Winter 2025 market reports, up from 72 badges the previous quarter. Our AI knowledge management solutions, Upland RightAnswers and Upland Panviva, continue to earn a significant number of badges. Upland BA Insight, our AI enablement platform, and Upland Qvidian, our AI-powered proposal management and response software, garnered valuable recognitions along with others across Upland’s portfolio.
-
Upland InterFAX, a leader in secure cloud fax and digital workflow solutions, has expanded its partnership with Konica Minolta Business Solutions
U.S.A. , Inc., a global leader in workplace technology. Building on a successful collaboration that began during the COVID-19 pandemic, the strengthened partnership positions InterFAX as the go-to cloud fax solution for Konica Minolta’s extensive multi-channel customer base acrossthe United States andCanada . - Upland was recognized as a major player in the IDC MarketScape: Worldwide Digital Fax 2024 Vendor Assessment (December 2024) and was also included in the IDC Market Glance: Knowledge Management, Q42024 (October 2024). Upland is dedicated to providing innovative, AI-enabled solutions that enable organizations to optimize workflows, improve knowledge sharing, and drive better business outcomes.
Business Outlook
Subsequent to year-end we divested two non-strategic product lines which had been underperforming relative to the rest of our product portfolio. These divestitures lowered our 2025 revenue guidance by approximately
For the quarter ending March 31, 2025, Upland expects reported total revenue to be between
For the full year ending December 31, 2025, Upland expects reported total revenue to be between
Conference Call Details
Upland's executive team will host a live conference call and webcast at 11:00 a.m. Central Time, 12:00 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 1-800-715-9871 in
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, Inc. enables global businesses to work smarter with over 20 proven cloud software products that increase revenue, reduce costs, and deliver immediate value. Our AI-powered solutions cover knowledge management, content lifecycle and workflow automation, and digital marketing. Upland's powerful cloud products are trusted by more than 10,000 global customers. Learn how Upland helps businesses achieve outcomes that matter at www.uplandsoftware.com.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted EBITDA, non-GAAP net income (loss), non-GAAP net income (loss) per share and free cash flow.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our recurring core business operating results, such as our revenues excluding the impact for foreign currency fluctuations or our operating performance excluding not only non-cash charges, but also discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and they are used by our institutional investors and the analyst community to help them analyze the health of our business. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the tables provided below in this release.
We are unable to reconcile any forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort. Additionally, we are unable to quantify the impact of foreign currency exchange fluctuations on components of our income statement beyond revenues because the information which is needed to do so is unavailable at this time without unreasonable effort.
Upland defines Adjusted EBITDA as net income (loss), calculated in accordance with GAAP, plus depreciation and amortization expense, interest expense, net, other expense (income), net, provision (benefit) for income taxes, stock-based compensation expense, acquisition- and divestiture-related expenses, non-recurring litigation costs, purchase accounting adjustments for deferred revenue and impairment of goodwill.
Upland defines non-GAAP net income (loss) as net income (loss), calculated in accordance with GAAP, plus amortization of purchased intangible assets, amortization of debt discount, loss on debt extinguishment, stock-based compensation expenses, acquisition- and divestiture-related expenses, non-recurring litigation expenses, purchase accounting adjustments for deferred revenue, non-recurring provision for income tax, impairment of goodwill and the related tax effect of the adjustments above.
Upland defines free cash flow as GAAP operating cash flow less purchases of property and equipment.
Upland defines major accounts as accounts with greater than or equal to
Upland defines major expansions as existing customers who expanded the amount of annual recurring revenue under their contract by at least
Upland defines cash gross margin as product revenue less subscription and support cost of sales, excluding depreciation and amortization.
In connection with periodic reviews of our business, we have decided to discontinue the availability of certain non-strategic product offerings and a limited number of non-strategic customer contracts (collectively referred to as “Sunset Assets”).
Overage Charges are subscription and support revenues earned in addition to contractual minimum customer commitments as a result of the usage volume of services including text and e-mail messaging and third-party pass-through costs that exceed the levels stipulated in contracts with the Company.
Upland defines Core Organic Growth Rate as the percentage change between two reported periods in subscription and support revenue, excluding subscription and support revenue from Sunset Assets and Overage Charges. We calculate our year-over-year Core Organic Growth Rate as though all acquisitions or dispositions closed as of the end of the latest period were closed as of the first day of the prior year period presented. Core Organic Growth Rate does not represent actual organic revenue generated by our business as it stood at the beginning of the respective period.
Core Bookings and Core Churn exclude bookings and churn from Sunset Assets.
Forward-looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance, including our guidance related to future performance, and are subject to substantial risks, uncertainties and assumptions. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make. Accordingly, you should not place undue reliance on these forward-looking statements. Forward-looking statements include any statement that does not directly relate to any historical or current fact and often include words such as “anticipate,” “believe,” “may,” “will,” “continue,” “seek,” “estimate,” “intend,” “hope,” “predict,” “could,” “should,” “would,” “project,” “plan,” “expect” or the negative or plural of these words or similar expressions, although not all forward-looking statements contain these words.
Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but are not limited to: our financial performance and our ability to achieve or sustain profitability or predict future results; our plans regarding future acquisitions, acquisition expense timing and our ability to consummate and integrate acquisitions; our ability to expand our go to market operations, including our marketing and sales organization and cross selling opportunities, and successfully increase sales of our products; our ability to obtain financing in the future on acceptable terms or at all; our expectations with respect to revenue, cost of revenue, average annual spend, margin expense and operating expenses in future periods; our expectations with regard to revenue from perpetual licenses and professional services; our ability to adapt to macroeconomic factors impacting the global economy, including foreign currency exchange risk, inflation and supply chain constraints; our ability to attract and retain customers; our ability to successfully enter new markets and manage our international expansion; our ability to comply with privacy laws and regulations; our ability to incorporate and deliver artificial intelligence (“AI”) functionality into our products and services; our ability to deliver high-quality customer service; our plans regarding, and our ability to effectively manage, our growth, including with respect to our growth investments; maintaining our senior management team and key personnel; the performance of our resellers; our ability to adapt to changing market conditions and competition; our ability to adapt to technological change and continue to innovate; global economic and financial market conditions and uncertainties; the growth of demand for cloud-based, digital transformation applications; our ability to integrate our applications with other software applications; maintaining and expanding our relationships with third parties; costs associated with defending intellectual property infringement and other claims; our ability to maintain, protect and enhance our brand and intellectual property; our expectations with regard to trends, such as seasonality, which affect our business; impairments to goodwill and other intangible assets; our beliefs regarding how our applications benefit customers and what our competitive strengths are; the operation, reliability and security of our third-party data centers; our expectations as to the timing of the discontinuation of any Sunset Assets, as well as the composition of Sunset Assets; our current level of indebtedness, including our exposure to variable interest rate risk; the potential elimination or limitation of tax incentives or tax losses and/or reductions of
The forward-looking statements herein represent Upland's views as of the date of this press release, and these views could change. However, while Upland may elect to update these forward-looking statements at some point in the future, Upland specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing the views of Upland as of any date subsequent to the date of this press release.
Upland Software, Inc. |
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Condensed Consolidated Statements of Operations |
||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Subscription and support |
|
$ |
64,332 |
|
|
$ |
68,184 |
|
|
$ |
260,685 |
|
|
$ |
281,554 |
|
Perpetual license |
|
|
1,531 |
|
|
|
1,760 |
|
|
|
5,837 |
|
|
|
6,077 |
|
Total product revenue |
|
|
65,863 |
|
|
|
69,944 |
|
|
|
266,522 |
|
|
|
287,631 |
|
Professional services |
|
|
2,164 |
|
|
|
2,234 |
|
|
|
8,272 |
|
|
|
10,221 |
|
Total revenue |
|
|
68,027 |
|
|
|
72,178 |
|
|
|
274,794 |
|
|
|
297,852 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
||||||||
Subscription and support |
|
|
18,512 |
|
|
|
22,483 |
|
|
|
76,037 |
|
|
|
88,894 |
|
Professional services and other |
|
|
1,352 |
|
|
|
1,226 |
|
|
|
5,055 |
|
|
|
7,467 |
|
Total cost of revenue |
|
|
19,864 |
|
|
|
23,709 |
|
|
|
81,092 |
|
|
|
96,361 |
|
Gross profit |
|
|
48,163 |
|
|
|
48,469 |
|
|
|
193,702 |
|
|
|
201,491 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
|
16,167 |
|
|
|
17,438 |
|
|
|
66,301 |
|
|
|
64,342 |
|
Research and development |
|
|
11,293 |
|
|
|
11,662 |
|
|
|
47,365 |
|
|
|
49,375 |
|
General and administrative |
|
|
11,300 |
|
|
|
13,895 |
|
|
|
49,463 |
|
|
|
61,264 |
|
Depreciation and amortization |
|
|
11,356 |
|
|
|
14,405 |
|
|
|
45,622 |
|
|
|
58,614 |
|
Acquisition-related expenses |
|
|
19 |
|
|
|
451 |
|
|
|
19 |
|
|
|
3,060 |
|
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
87,227 |
|
|
|
128,755 |
|
Total operating expenses |
|
|
50,135 |
|
|
|
57,851 |
|
|
|
295,997 |
|
|
|
365,410 |
|
Loss from operations |
|
|
(1,972 |
) |
|
|
(9,382 |
) |
|
|
(102,295 |
) |
|
|
(163,919 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
Interest income (expense), net |
|
|
(1,262 |
) |
|
|
(5,322 |
) |
|
|
(8,939 |
) |
|
|
(18,684 |
) |
Other income (expense), net |
|
|
1,251 |
|
|
|
(675 |
) |
|
|
1,142 |
|
|
|
236 |
|
Total other income (expense) |
|
|
(11 |
) |
|
|
(5,997 |
) |
|
|
(7,797 |
) |
|
|
(18,448 |
) |
Loss before benefit from (provision for) income taxes |
|
|
(1,983 |
) |
|
|
(15,379 |
) |
|
|
(110,092 |
) |
|
|
(182,367 |
) |
Benefit from (provision for) income taxes |
|
|
(1,447 |
) |
|
|
(633 |
) |
|
|
(2,640 |
) |
|
|
2,493 |
|
Net loss |
|
$ |
(3,430 |
) |
|
$ |
(16,012 |
) |
|
$ |
(112,732 |
) |
|
$ |
(179,874 |
) |
Preferred stock dividends |
|
|
(1,421 |
) |
|
|
(1,359 |
) |
|
|
(5,592 |
) |
|
|
(5,347 |
) |
Net loss attributable to common stockholders |
|
$ |
(4,851 |
) |
|
$ |
(17,371 |
) |
|
$ |
(118,324 |
) |
|
$ |
(185,221 |
) |
Net loss per common share: |
|
|
|
|
|
|
|
|
||||||||
Net loss per common share, basic and diluted |
|
$ |
(0.18 |
) |
|
$ |
(0.56 |
) |
|
$ |
(4.26 |
) |
|
$ |
(5.77 |
) |
Weighted-average common shares outstanding, basic and diluted |
|
|
27,605,490 |
|
|
|
30,995,441 |
|
|
|
27,789,248 |
|
|
|
32,074,906 |
|
Upland Software, Inc. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
|
|
December 31, |
|
December 31, |
||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(unaudited) |
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
56,426 |
|
|
$ |
236,559 |
|
Restricted cash |
|
|
626 |
|
|
|
— |
|
Accounts receivable |
|
|
38,647 |
|
|
|
38,765 |
|
Deferred commissions, current |
|
|
8,361 |
|
|
|
10,429 |
|
Unbilled receivables |
|
|
3,441 |
|
|
|
2,701 |
|
Income tax receivable, current |
|
|
762 |
|
|
|
3,775 |
|
Prepaid expenses and other current assets |
|
|
10,129 |
|
|
|
8,004 |
|
Total current assets |
|
|
118,392 |
|
|
|
300,233 |
|
Tax credits receivable |
|
|
951 |
|
|
|
1,657 |
|
Property and equipment, net |
|
|
1,518 |
|
|
|
1,932 |
|
Operating lease right-of-use asset |
|
|
1,364 |
|
|
|
2,929 |
|
Intangible assets, net |
|
|
123,903 |
|
|
|
182,349 |
|
Goodwill |
|
|
260,976 |
|
|
|
353,778 |
|
Deferred commissions, noncurrent |
|
|
12,147 |
|
|
|
12,568 |
|
Interest rate swap assets |
|
|
9,742 |
|
|
|
14,270 |
|
Other assets |
|
|
529 |
|
|
|
308 |
|
Total assets |
|
$ |
529,522 |
|
|
$ |
870,024 |
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
9,388 |
|
|
$ |
8,137 |
|
Accrued compensation |
|
|
6,226 |
|
|
|
7,174 |
|
Accrued expenses and other current liabilities |
|
|
6,876 |
|
|
|
7,050 |
|
Deferred revenue |
|
|
93,706 |
|
|
|
102,763 |
|
Operating lease liabilities, current |
|
|
1,000 |
|
|
|
2,351 |
|
Current maturities of notes payable |
|
|
3,224 |
|
|
|
3,172 |
|
Total current liabilities |
|
|
120,420 |
|
|
|
130,647 |
|
Notes payable, less current maturities |
|
|
286,970 |
|
|
|
473,502 |
|
Deferred revenue, noncurrent |
|
|
4,670 |
|
|
|
3,860 |
|
Operating lease liabilities, noncurrent |
|
|
762 |
|
|
|
1,597 |
|
Noncurrent deferred tax liability, net |
|
|
11,347 |
|
|
|
16,025 |
|
Other long-term liabilities |
|
|
428 |
|
|
|
461 |
|
Total liabilities |
|
|
424,597 |
|
|
|
626,092 |
|
Mezzanine equity |
|
|
123,230 |
|
|
|
117,638 |
|
Stockholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
|
605,286 |
|
|
|
608,995 |
|
Accumulated other comprehensive income (loss) |
|
|
(21,990 |
) |
|
|
6,168 |
|
Accumulated deficit |
|
|
(601,604 |
) |
|
|
(488,872 |
) |
Total stockholders’ (deficit) equity |
|
|
(18,305 |
) |
|
|
126,294 |
|
Total liabilities, convertible preferred stock and stockholders’ (deficit) equity |
|
$ |
529,522 |
|
|
$ |
870,024 |
|
Upland Software, Inc. |
||||||||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
||||||||
Operating activities |
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
$ |
(3,430 |
) |
|
$ |
(16,012 |
) |
|
$ |
(112,732 |
) |
|
$ |
(179,874 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
13,580 |
|
|
|
17,510 |
|
|
|
54,986 |
|
|
|
71,985 |
|
Deferred income taxes |
|
|
(2,393 |
) |
|
|
(1,558 |
) |
|
|
(3,658 |
) |
|
|
(4,209 |
) |
Amortization of deferred costs |
|
|
2,998 |
|
|
|
3,261 |
|
|
|
12,150 |
|
|
|
13,170 |
|
Foreign currency re-measurement loss |
|
|
(240 |
) |
|
|
445 |
|
|
|
(999 |
) |
|
|
(538 |
) |
Non-cash interest, net and other income, net |
|
|
(2,710 |
) |
|
|
(896 |
) |
|
|
(11,978 |
) |
|
|
(2,976 |
) |
Non-cash stock-based compensation expense |
|
|
3,192 |
|
|
|
4,682 |
|
|
|
15,270 |
|
|
|
22,874 |
|
Non-cash loss on impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
87,227 |
|
|
|
128,755 |
|
Non-cash loss on retirement of fixed assets |
|
|
(1 |
) |
|
|
1 |
|
|
|
17 |
|
|
|
47 |
|
Changes in operating assets and liabilities, net of purchase business combinations: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
|
(7,421 |
) |
|
|
(1,252 |
) |
|
|
(328 |
) |
|
|
8,916 |
|
Prepaid expenses and other current assets |
|
|
2,779 |
|
|
|
4,934 |
|
|
|
74 |
|
|
|
(471 |
) |
Interest rate swaps and other assets |
|
|
(2,930 |
) |
|
|
(1,393 |
) |
|
|
(10,089 |
) |
|
|
10,866 |
|
Accounts payable |
|
|
703 |
|
|
|
(6,025 |
) |
|
|
1,344 |
|
|
|
(6,896 |
) |
Accrued expenses and other liabilities |
|
|
840 |
|
|
|
(1,459 |
) |
|
|
(556 |
) |
|
|
(6,188 |
) |
Deferred revenue |
|
|
4,374 |
|
|
|
6,551 |
|
|
|
(6,489 |
) |
|
|
(5,518 |
) |
Net cash provided by operating activities |
|
|
9,341 |
|
|
|
8,789 |
|
|
|
24,239 |
|
|
|
49,943 |
|
Investing activities |
|
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment |
|
|
(320 |
) |
|
|
(186 |
) |
|
|
(882 |
) |
|
|
(1,220 |
) |
Net cash used in investing activities |
|
|
(320 |
) |
|
|
(186 |
) |
|
|
(882 |
) |
|
|
(1,220 |
) |
Financing activities |
|
|
|
|
|
|
|
|
||||||||
Payments of debt costs |
|
|
(281 |
) |
|
|
(31 |
) |
|
|
(358 |
) |
|
|
(221 |
) |
Payments on notes payable |
|
|
(7,350 |
) |
|
|
(1,350 |
) |
|
|
(188,400 |
) |
|
|
(40,400 |
) |
Repurchase of shares |
|
|
— |
|
|
|
(10,845 |
) |
|
|
(10,958 |
) |
|
|
(14,060 |
) |
Taxes paid related to net share settlement of equity awards |
|
|
(1,838 |
) |
|
|
(349 |
) |
|
|
(2,591 |
) |
|
|
(1,091 |
) |
Issuance of common stock, net of issuance costs |
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
5 |
|
Additional consideration paid to sellers of businesses |
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
|
|
(5,617 |
) |
Net cash used in financing activities |
|
|
(9,469 |
) |
|
|
(12,639 |
) |
|
|
(202,307 |
) |
|
|
(61,384 |
) |
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash |
|
|
(2,239 |
) |
|
|
1,004 |
|
|
|
(557 |
) |
|
|
567 |
|
Change in cash, cash equivalents and restricted cash |
|
|
(2,687 |
) |
|
|
(3,032 |
) |
|
|
(179,507 |
) |
|
|
(12,094 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
|
59,739 |
|
|
|
239,591 |
|
|
|
236,559 |
|
|
|
248,653 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
57,052 |
|
|
$ |
236,559 |
|
|
$ |
57,052 |
|
|
$ |
236,559 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
|
||||||||
Cash paid for interest, net of interest rate swaps |
|
$ |
4,491 |
|
|
$ |
8,990 |
|
|
$ |
28,900 |
|
|
$ |
32,137 |
|
Cash paid for taxes |
|
$ |
213 |
|
|
$ |
879 |
|
|
$ |
2,015 |
|
|
$ |
7,106 |
|
Upland Software, Inc. |
||||||||||||||||
Reconciliation of Adjusted EBITDA |
||||||||||||||||
(in thousands, unaudited) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve months ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of Net Loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
$ |
(3,430 |
) |
|
$ |
(16,012 |
) |
|
$ |
(112,732 |
) |
|
$ |
(179,874 |
) |
Add: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense |
|
|
13,580 |
|
|
|
17,510 |
|
|
|
54,986 |
|
|
|
71,985 |
|
Interest expense, net |
|
|
1,262 |
|
|
|
5,322 |
|
|
|
8,939 |
|
|
|
18,684 |
|
Other expense (income), net |
|
|
(1,251 |
) |
|
|
675 |
|
|
|
(1,142 |
) |
|
|
(236 |
) |
Provision for (benefit from) income taxes |
|
|
1,447 |
|
|
|
633 |
|
|
|
2,640 |
|
|
|
(2,493 |
) |
Stock-based compensation expense |
|
|
3,192 |
|
|
|
4,682 |
|
|
|
15,270 |
|
|
|
22,874 |
|
Acquisition-related expense |
|
|
19 |
|
|
|
451 |
|
|
|
19 |
|
|
|
3,060 |
|
Non-recurring litigation costs |
|
|
35 |
|
|
|
699 |
|
|
|
187 |
|
|
|
1,126 |
|
Purchase accounting deferred revenue discount |
|
|
47 |
|
|
|
92 |
|
|
|
244 |
|
|
|
557 |
|
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
87,227 |
|
|
|
128,755 |
|
Adjusted EBITDA |
|
$ |
14,901 |
|
|
$ |
14,052 |
|
|
$ |
55,638 |
|
|
$ |
64,438 |
|
Upland Software, Inc. |
||||||||||||||||
Reconciliation of Non-GAAP Net Loss and Non-GAAP EPS |
||||||||||||||||
(in thousands, except share and per share data, unaudited) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve months ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of Net Loss to non-GAAP Net Income: |
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
$ |
(3,430 |
) |
|
$ |
(16,012 |
) |
|
$ |
(112,732 |
) |
|
$ |
(179,874 |
) |
Add: |
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
|
3,192 |
|
|
|
4,682 |
|
|
|
15,270 |
|
|
|
22,874 |
|
Amortization of purchased intangibles |
|
|
13,267 |
|
|
|
17,184 |
|
|
|
53,764 |
|
|
|
70,566 |
|
Amortization of debt discount |
|
|
535 |
|
|
|
581 |
|
|
|
2,279 |
|
|
|
2,313 |
|
Acquisition-related expense |
|
|
19 |
|
|
|
451 |
|
|
|
19 |
|
|
|
3,060 |
|
Nonrecurring litigation expense |
|
|
35 |
|
|
|
699 |
|
|
|
187 |
|
|
|
1,126 |
|
Purchase accounting deferred revenue discount |
|
|
47 |
|
|
|
92 |
|
|
|
244 |
|
|
|
557 |
|
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
87,227 |
|
|
|
128,755 |
|
Tax effects of non |
|
|
1,460 |
|
|
|
— |
|
|
|
1,460 |
|
|
|
— |
|
Tax effect of adjustments above |
|
|
(681 |
) |
|
|
(2,302 |
) |
|
|
(5,096 |
) |
|
|
(11,509 |
) |
Non-GAAP net income |
|
$ |
14,444 |
|
|
$ |
5,375 |
|
|
$ |
42,622 |
|
|
$ |
37,868 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding, basic |
|
|
27,605,490 |
|
|
|
30,995,441 |
|
|
|
27,789,248 |
|
|
|
32,074,906 |
|
Weighted average common shares outstanding, diluted |
|
|
35,007,580 |
|
|
|
37,992,837 |
|
|
|
34,971,488 |
|
|
|
38,920,323 |
|
Non-GAAP earnings per share, basic |
|
$ |
0.52 |
|
|
$ |
0.17 |
|
|
$ |
1.53 |
|
|
$ |
1.18 |
|
Non-GAAP earnings per share, diluted |
|
$ |
0.41 |
|
|
$ |
0.14 |
|
|
$ |
1.22 |
|
|
$ |
0.97 |
|
Upland Software, Inc. |
||||||||||||||||
Reconciliation of Operating Cash Flow to Free Cash Flow |
||||||||||||||||
(in thousands, unaudited) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve months ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of operating cash flow to Free Cash Flow: |
||||||||||||||||
Net cash provided by operating activities |
|
$ |
9,341 |
|
|
$ |
8,789 |
|
|
$ |
24,239 |
|
|
$ |
49,943 |
|
Less: Purchase of property and equipment |
|
|
(320 |
) |
|
|
(186 |
) |
|
|
(882 |
) |
|
|
(1,220 |
) |
Free Cash Flow |
|
$ |
9,021 |
|
|
$ |
8,603 |
|
|
$ |
23,357 |
|
|
$ |
48,723 |
|
Upland Software, Inc. |
||||||||||||||||
Supplemental Financial Information |
||||||||||||||||
(in thousands, unaudited) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve months ended December 31, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Stock-based compensation: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
$ |
181 |
|
|
$ |
102 |
|
|
$ |
765 |
|
|
$ |
952 |
|
Research and development |
|
|
381 |
|
|
|
552 |
|
|
|
2,095 |
|
|
|
2,463 |
|
Sales and marketing |
|
|
355 |
|
|
|
495 |
|
|
|
1,512 |
|
|
|
2,059 |
|
General and administrative |
|
|
2,275 |
|
|
|
3,533 |
|
|
|
10,898 |
|
|
|
17,400 |
|
Total |
|
$ |
3,192 |
|
$ |
4,682 |
|
$ |
15,270 |
|
$ |
22,874 |
||||
|
|
Three Months Ended December 31, |
|
Twelve months ended December 31, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Depreciation: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5 |
|
Operating expense |
|
|
313 |
|
|
|
326 |
|
|
|
1,222 |
|
|
|
1,414 |
|
Total |
|
$ |
313 |
|
|
$ |
326 |
|
|
$ |
1,222 |
|
|
$ |
1,419 |
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
$ |
2,224 |
|
|
$ |
3,105 |
|
|
$ |
9,364 |
|
|
$ |
13,366 |
|
Operating expense |
|
|
11,043 |
|
|
|
14,079 |
|
|
|
44,400 |
|
|
|
57,200 |
|
Total |
|
$ |
13,267 |
|
$ |
17,184 |
|
$ |
53,764 |
|
$ |
70,566 |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250312477648/en/
Investor Relations Contact:
Michael D. Hill
investor-relations@uplandsoftware.com
512-960-1031
Media Contact:
Lloyd Berry
media@uplandsoftware.com
512-960-1010
Source: Upland Software Inc.
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