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Upland Software (UPLD) to Report Q2 Earnings: What to Expect

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Upland Software (UPLD - Free Report) is slated to release its second-quarter 2024 results on Aug 1.

For the second quarter, UPLD expects revenues of $64.4-$70.4 million, including subscription and support revenues between $61.5 and $66.5 million, for a decline in total revenues of 10% at the mid-point from the year-ago quarter.

The Zacks Consensus Estimate for revenues is pegged at $67.91 million, suggesting a decline of 8.85% from the year-ago quarter’s levels.

The consensus mark for second-quarter 2024 earnings is pegged at 15 cents per share, remaining unchanged in the past 30 days.

Upland Software, Inc. Price and EPS Surprise

 

Upland Software, Inc. Price and EPS Surprise

Upland Software, Inc. price-eps-surprise | Upland Software, Inc. Quote

 

The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing the same on two occasions, the average surprise being 8.63%.

Let’s see how things have shaped up for this announcement.

Factors to Note

Upland Software’s second-quarter fiscal 2024 performance is likely to have benefited from increased customer acquisitions and successful AI integrations.

The company is seeing positive signs with the acquisition of 134 new customers in first-quarter 2024, including 21 major customers. They expanded relationships with more than 250 existing customers, including 29 major expansions. The upside in customer base and expansion of existing accounts is expected to have driven revenues and increased market share. 

Upland is focusing on several AI initiatives, including integrating AI-powered features into products like Upland Qvidian and Upland Altify. The partnerships with International Business Machine (IBM - Free Report) WatsonX and Salesforce (CRM - Free Report) for AI-driven solutions are expected to have enhanced product capabilities and attract enterprise customers in the to-be-reported quarter. 

The company’s partnerships with IBM and Salesforce are expected to provide advanced AI functionalities and integrations, which should help Upland deliver more value to its enterprise customers and meet their needs for data privacy and compliance. 

Improvements in digital marketing effectiveness and increasing sales pipeline generation are expected to have been a tailwind for the company. 

The new inside sales teams have started to close significant deals, with six major customer deals secured in the first quarter of 2024, including some with an average annual recurring revenue (ARR) of $200,000. This momentum is likely to have continued and contributed positively to revenue in the to-be-reported quarter. 

The effectiveness and efficiency of digital marketing efforts have improved, including better Search Engine Optimization (SEO) page ranks and reduced cost per lead. This is likely to have enhanced lead generation and conversion rates in the quarter under review. 

However, UPLD expects a decline in revenues and adjusted EBITDA in the second quarter due to decreasing revenues and expenses related to Sunset Assets and ongoing growth investments.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Upland Software has an Earnings ESP of +0.00% and a Zacks Rank #3 (Hold) currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stock to Consider

Here is a stock worth considering, as our model shows that it has the right combination of elements to beat on earnings in its upcoming releases:

Shopify (SHOP - Free Report) has an Earnings ESP of +7.78% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Shopify’s shares have declined 23.2% year to date. SHOP is set to report its second-quarter 2024 results on Aug 7.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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