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What's in Store for Upland Software (UPLD) in Q3 Earnings?

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Upland Software, Inc. (UPLD - Free Report) is set to report third-quarter 2019 results on Nov 7.

Upland Software expects third-quarter 2019 revenues between $54.1 million and $56.1 million.

The Zacks Consensus Estimate for revenues currently stands at $55.4 million, which indicates growth of 49.2% from the year-ago quarter’s reported figure.

Moreover, the consensus mark for earnings has remained at 57 cents over the past 30 days and implies growth of 50% from the figure reported in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 20.1%.

In the last reported quarter, Upland Software reported adjusted earnings of 76 cents per share that beat the Zacks Consensus Estimate by 27 cents.

Revenues surged 47.2% year over year to $53 million, which also beat the consensus mark of $51 million.

Let’s see how things have shaped up prior to this announcement

Upland Software, Inc. Price and EPS Surprise

Upland Software, Inc. Price and EPS Surprise

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

Factors to Consider

Upland’s third-quarter results are expected to reflect the impact of an expanding customer base, driven by organic growth in Customer Experience Management solution and addition of robust products through acquisitions.

Notably, in the last reported quarter, Upland signed 150 new customers and expanded relationships with 243 existing customers. The momentum in customer addition most likely continued in the third quarter due to strong demand for cloud-based enterprise work management software solutions across various industries.

Moreover, acquisitions are expected to have helped the company rapidly penetrate different markets, including Professional ServicesAutomation, Document Automation, Project &Financial Management and Knowledge Management in the third quarter.

For instance, Upland’s acquisition of leading cloud-based telecom expense management platform, Cimpl helped the former to expand its IT Financial Management Cloud. Notably, management believes that the acquisition will be immediately accretive to Upland's adjusted EBITDA per share.

Further, the top line is expected to have benefited from improving cross-selling opportunity in the to-be-reported quarter.

However, higher acquisition expenses are expected to have dented profitability.

Key Q3 Developments

On Jul 11, Upland announced that eight of its product lines have been assigned G-Cloud listings by United Kingdom’s government. The listing places the company well in United Kingdom’s digital marketplace to secure cloud-based software and services contracts from the government.

Upland announced the launch of its end-to-end Secure Document Services solution, AccuRoute on Jul 2. The launch will help the company to improve its efficiency and easily extract data within secure, document-intensive environments.

What Our Model Says

According to the Zacks model, the combination of two key ingredients — a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — increases the odds of an earnings beat.

Upland Software has a Zacks Rank #2 and Earnings ESP of 0.00%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

iHeartMedia (IHRT - Free Report) has an Earnings ESP of +3.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Liberty Broadband (LBRDK - Free Report) has an Earnings ESP of +5.75% and a Zacks Rank #2.

Twin River Worldwide has an Earnings ESP of +13.25% and a Zacks Rank #2.

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