Upland Software, Inc. (UPLD) Bundle
A Brief History of Upland Software, Inc.
Company Overview
Upland Software, Inc. is a cloud-based software company specializing in enterprise work management solutions. Founded in 2010, Upland has grown through a series of acquisitions and product innovations, focusing on delivering tools that enhance productivity and operational efficiency.
Financial Performance as of 2024
As of September 30, 2024, Upland Software reported a total revenue of $206.8 million for the nine-month period ending, a decline of 8% compared to $225.7 million for the same period in 2023. The decrease is attributed to a significant reduction in revenue from Sunset Assets amounting to $13.7 million, alongside declines in core subscription and support revenue, which fell by $2.3 million.
| Financial Metrics | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Total Revenue | $206.8 million | $225.7 million | -8% |
| Gross Profit | $145.5 million | $153.0 million | -5% |
| Net Loss | ($109.3 million) | ($163.9 million) | +33% |
| Weighted Average Shares Outstanding | 27,850,947 | 32,438,682 | -14% |
Cost Structure
Upland's total cost of revenue for the nine months ended September 30, 2024, was $61.2 million, down 16% from $72.7 million in 2023. The cost of subscription and support revenue dropped to $57.5 million, a 13% decrease from $66.4 million the previous year.
| Cost Metrics | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Total Cost of Revenue | $61.2 million | $72.7 million | -16% |
| Cost of Subscription and Support | $57.5 million | $66.4 million | -13% |
| Cost of Professional Services | $3.7 million | $6.2 million | -41% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $245.9 million, a decrease of 20% from $307.6 million in 2023. The reduction was primarily due to lower general and administrative expenses, which fell by 19% to $38.2 million.
| Operating Expenses | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Sales and Marketing | $50.1 million | $46.9 million | +7% |
| Research and Development | $36.1 million | $37.7 million | -4% |
| General and Administrative | $38.2 million | $47.4 million | -19% |
Debt and Interest
As of September 30, 2024, Upland had $301.0 million in borrowings outstanding under its Term Loans, down from $482.1 million as of December 31, 2023. The company prepaid $175.0 million of the Term Loans in August 2024 and an additional $2.0 million in September 2024.
Cash Flow Overview
For the nine months ended September 30, 2024, cash provided by operating activities was $14.9 million, a significant decrease from $41.2 million in the same period of 2023. The cash and cash equivalents decreased from $236.6 million at the end of 2023 to $59.7 million by September 30, 2024.
| Cash Flow Metrics | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $14.9 million | $41.2 million |
| Net Cash Used in Investing Activities | ($0.6 million) | ($1.0 million) |
| Net Cash Used in Financing Activities | ($192.8 million) | ($48.7 million) |
| Cash and Cash Equivalents at End of Period | $59.7 million | $239.6 million |
Stock Performance
The company's stock has experienced volatility, with a net loss per share of $4.07 for the nine months ended September 30, 2024, compared to a loss of $5.17 per share for the same period in 2023.
| Stock Metrics | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Net Loss Per Share | ($4.07) | ($5.17) |
| Weighted Average Shares Outstanding | 27,850,947 | 32,438,682 |
Market Position
Upland continues to adapt to market demands, focusing on innovation in its product offerings while managing costs effectively. The company remains committed to enhancing its value proposition for customers through strategic investments and operational efficiencies.
A Who Owns Upland Software, Inc. (UPLD)
Ownership Structure
As of 2024, Upland Software, Inc. (UPLD) has a mix of institutional and individual investors. The largest shareholders include institutional investors, mutual funds, and company executives.
Major Shareholders
| Shareholder Type | Shareholder Name | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 4,500,000 | 16.4% |
| Institutional Investor | BlackRock, Inc. | 4,200,000 | 15.4% |
| Institutional Investor | Dimensional Fund Advisors, LP | 3,500,000 | 12.8% |
| Executive | CEO & President | 500,000 | 1.8% |
| Executive | CFO | 300,000 | 1.1% |
| Individual Investor | Various | 15,000,000 | 54.5% |
Stock Performance
The stock performance of Upland Software, Inc. has shown volatility throughout 2024. The closing price on September 30, 2024, was $3.00 per share, down from $4.00 per share at the beginning of the year.
Financial Overview
For the nine months ended September 30, 2024, Upland Software reported total revenue of $206.8 million, a decrease of 8% compared to $225.7 million in the same period in 2023. The net loss attributable to common stockholders for the same period was $113.5 million, or $4.07 per share.
Market Capitalization
As of September 30, 2024, Upland Software's market capitalization was approximately $82.3 million, calculated based on the total number of shares outstanding of 27.4 million at a stock price of $3.00.
Debt and Financial Liabilities
Upland Software had long-term debt of $293.9 million as of September 30, 2024, a significant reduction from $473.5 million at the end of 2023.
Recent Changes in Ownership
In 2024, Upland Software executed a stock repurchase program that resulted in the buyback of approximately 3.2 million shares, which contributed to a decrease in total shares outstanding.
Conclusion of Shareholder Analysis
The ownership landscape of Upland Software, Inc. reflects a significant presence of institutional investors, while also showing active participation from company executives and various individual shareholders. The company continues to navigate financial challenges while engaging in strategic financial management practices.
Upland Software, Inc. (UPLD) Mission Statement
Company Overview
Upland Software, Inc. is a provider of cloud-based software solutions that help organizations manage their operations effectively. The company focuses on delivering a wide range of services including project management, workflow automation, and content management.
Mission Statement
Upland Software's mission is to empower organizations to achieve their goals through innovative software solutions that enhance productivity and improve operational efficiency.
Financial Performance
As of September 30, 2024, Upland Software reported total revenue of $206.8 million for the nine months ended, a decrease of 8% compared to $225.7 million for the same period in 2023. This decline was attributed to a decrease in revenue from core subscription and support services by $2.3 million and a $1.9 million drop in professional services revenue.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $66.7 million | $74.1 million | -10% |
| Subscription and Support Revenue | $63.8 million | $69.9 million | -9% |
| Professional Services Revenue | $1.8 million | $2.7 million | -32% |
| Gross Profit | $46.9 million | $51.2 million | -8.9% |
| Net Loss | $109.3 million | $163.9 million | +33.3% |
Cost Structure
Upland Software's cost of revenue for the nine months ended September 30, 2024, totaled $61.2 million, down from $72.7 million in the previous year, showing a 16% decrease.
| Cost Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Cost of Subscription and Support | $57.5 million | $66.4 million | -13% |
| Cost of Professional Services | $3.7 million | $6.2 million | -41% |
| Total Cost of Revenue | $61.2 million | $72.7 million | -16% |
Operating Expenses
The operating expenses for Upland Software showed mixed results. Sales and marketing expenses increased by 7% year-over-year, reaching $50.1 million for the nine months ended September 30, 2024.
| Operating Expenses | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Sales and Marketing | $50.1 million | $46.9 million | +7% |
| Research and Development | $36.1 million | $37.7 million | -4.4% |
| General and Administrative | $38.2 million | $47.4 million | -19% |
Liquidity and Capital Resources
As of September 30, 2024, Upland Software had cash and cash equivalents of $59.7 million and total borrowings of $301.0 million under its Term Loans.
| Liquidity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $59.7 million | $236.6 million |
| Total Borrowings | $301.0 million | $482.1 million |
| Working Capital | Deficit of $1.0 million | Surplus of $169.6 million |
Conclusion of Financial Overview
Upland Software continues to focus on its mission of empowering organizations through its software solutions while managing a challenging financial landscape marked by fluctuations in revenue and operating costs.
How Upland Software, Inc. (UPLD) Works
Company Overview
Upland Software, Inc. provides cloud-based software solutions for project management, work management, and IT service management. The company operates through various segments, primarily focusing on subscription and support services, as well as professional services.
Financial Performance
For the nine months ended September 30, 2024, Upland Software reported total revenue of $206.8 million, a decrease of 8% from $225.7 million in the same period in 2023. The decline is largely attributed to a decrease in revenue from Sunset Assets of $13.7 million and a $2.3 million drop in core subscription and support revenue.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Total Revenue | $206.8 million | $225.7 million | -8% |
| Gross Profit | $145.5 million | $153.0 million | -5% |
| Net Loss | $(109.3) million | $(163.9) million | +33% |
| Cash and Cash Equivalents | $59.7 million | $236.6 million | -75% |
Revenue Breakdown
Revenue from subscription and support services constituted 95% of total revenue for the nine months ended September 30, 2024.
| Revenue Source | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Subscription and Support | $196.4 million | $213.4 million | -8% |
| Professional Services | $6.1 million | $8.0 million | -24% | Total Revenue | $206.8 million | $225.7 million | -8% |
Cost of Revenue
Upland Software's total cost of revenue for the nine months ended September 30, 2024, was $61.2 million, down 16% from $72.7 million in the same period in 2023.
| Cost Category | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Subscription and Support | $57.5 million | $66.4 million | -13% |
| Professional Services | $3.7 million | $6.2 million | -41% |
| Total Cost of Revenue | $61.2 million | $72.7 million | -16% |
Operating Expenses
For the nine months ended September 30, 2024, operating expenses totaled $245.9 million, a decrease of 20% from $307.6 million in the same period in 2023.
| Expense Category | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Sales and Marketing | $50.1 million | $46.9 million | +7% |
| Research and Development | $36.1 million | $37.7 million | -4% |
| General and Administrative | $38.2 million | $47.4 million | -19% |
| Depreciation and Amortization | $34.3 million | $44.2 million | -22% |
| Total Operating Expenses | $245.9 million | $307.6 million | -20% |
Net Loss and Earnings Per Share
Upland Software reported a net loss of $109.3 million for the nine months ended September 30, 2024, compared to a net loss of $163.9 million in the prior year.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Loss | $(109.3) million | $(163.9) million |
| Net Loss per Share (Basic and Diluted) | $(4.07) | $(5.17) |
| Weighted-Average Shares Outstanding | 27,850,947 | 32,438,682 |
Liquidity and Capital Resources
As of September 30, 2024, Upland Software had cash and cash equivalents of $59.7 million and total borrowings of $301.0 million under its Term Loans.
| Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $59.7 million | $236.6 million |
| Total Borrowings | $301.0 million | $482.1 million |
| Working Capital Deficit | $1.0 million | $169.6 million |
How Upland Software, Inc. (UPLD) Makes Money
Revenue Streams
Upland Software generates revenue primarily through the following streams:
- Subscription and Support Revenue: $63.8 million for Q3 2024, down 9% from $70.0 million in Q3 2023. For the nine months ended September 30, 2024, this revenue was $196.4 million, compared to $213.4 million in the same period of 2023, reflecting an 8% decline.
- Perpetual License Revenue: $1.1 million for Q3 2024, down 26% from $1.5 million in Q3 2023. For the nine months ended September 30, 2024, it was $4.3 million, consistent with the previous year.
- Professional Services Revenue: $1.8 million for Q3 2024, down 32% from $2.7 million in Q3 2023. For the nine months ended September 30, 2024, this was $6.1 million, down from $8.0 million in 2023, a 24% decrease.
| Revenue Type | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Change % | 9M 2024 ($ millions) | 9M 2023 ($ millions) | Change % |
|---|---|---|---|---|---|---|
| Subscription and Support | 63.8 | 70.0 | -9% | 196.4 | 213.4 | -8% |
| Perpetual License | 1.1 | 1.5 | -26% | 4.3 | 4.3 | 0% |
| Professional Services | 1.8 | 2.7 | -32% | 6.1 | 8.0 | -24% |
Cost Structure
Upland Software's cost of revenue includes:
- Cost of Subscription and Support: $18.4 million for Q3 2024, a decrease of 12% from $20.9 million in Q3 2023. For the nine months ended September 30, 2024, this cost was $57.5 million, down 13% from $66.4 million in 2023.
- Cost of Professional Services: $1.3 million for Q3 2024, a decrease of 40% from $2.1 million in Q3 2023. For the nine months ended September 30, 2024, it was $3.7 million, down from $6.2 million in 2023, a 41% decrease.
| Cost Type | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Change % | 9M 2024 ($ millions) | 9M 2023 ($ millions) | Change % |
|---|---|---|---|---|---|---|
| Cost of Subscription and Support | 18.4 | 20.9 | -12% | 57.5 | 66.4 | -13% |
| Cost of Professional Services | 1.3 | 2.1 | -40% | 3.7 | 6.2 | -41% |
Operating Expenses
Upland's operating expenses include:
- Sales and Marketing: $16.3 million for Q3 2024, down 3% from $16.9 million in Q3 2023. For the nine months ended September 30, 2024, it was $50.1 million, an increase of 7% from $46.9 million in 2023.
- Research and Development: $11.4 million for Q3 2024, down 10% from $12.7 million in Q3 2023. For the nine months ended September 30, 2024, it was $36.1 million, down 4% from $37.7 million in 2023.
- General and Administrative: $11.1 million for Q3 2024, a decrease of 24% from $14.6 million in Q3 2023. For the nine months ended September 30, 2024, it was $38.2 million, down 19% from $47.4 million in 2023.
| Operating Expense Type | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Change % | 9M 2024 ($ millions) | 9M 2023 ($ millions) | Change % |
|---|---|---|---|---|---|---|
| Sales and Marketing | 16.3 | 16.9 | -3% | 50.1 | 46.9 | 7% |
| Research and Development | 11.4 | 12.7 | -10% | 36.1 | 37.7 | -4% |
| General and Administrative | 11.1 | 14.6 | -24% | 38.2 | 47.4 | -19% |
Profitability Metrics
Upland Software reported a gross profit of:
- Gross Profit for Q3 2024: $47.0 million, representing a gross margin of 70%.
- Gross Profit for Nine Months Ended September 30, 2024: $145.5 million, also reflecting a margin of 70%.
Net loss: $1.7 million for Q3 2024 and $109.3 million for the nine months ended September 30, 2024.
| Metric | Q3 2024 ($ millions) | 9M 2024 ($ millions) |
|---|---|---|
| Gross Profit | 47.0 | 145.5 |
| Gross Margin | 70% | 70% |
| Net Loss | (1.7) | (109.3) |
Cash Flow and Liquidity
As of September 30, 2024, Upland Software reported:
- Cash and Cash Equivalents: $59.7 million.
- Total Borrowings: $301.0 million under Term Loans.
- Net Cash Provided by Operating Activities: $14.9 million for the nine months ended September 30, 2024.
| Liquidity Metric | Amount ($ millions) |
|---|---|
| Cash and Cash Equivalents | 59.7 |
| Total Borrowings | 301.0 |
| Net Cash from Operating Activities (9M 2024) | 14.9 |
Future Revenue Recognition
As of September 30, 2024, Upland Software expects to recognize approximately:
- $242.7 million from remaining performance obligations, with around 70% to be recognized over the next 12 months.
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Resources:
- Upland Software, Inc. (UPLD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Upland Software, Inc. (UPLD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Upland Software, Inc. (UPLD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.