Upland Earnings: What To Look For From UPLD

Max Juang /
2023/11/01 3:02 am EDT

Business automation software provider Upland Software (NASDAQ: UPLD) will be reporting earnings tomorrow after market hours. Here's what to look for.

Last quarter Upland reported revenues of $74.5 million, down 7.14% year on year, beating analyst revenue expectations by 1.59%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.

Is Upland buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Upland's revenue to decline 8.15% year on year to $73.1 million, a deceleration on the 4.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.

Upland Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.3%.

Looking at Upland's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Freshworks delivered top-line growth of 19.3% year on year, beating analyst estimates by 1.86%, and VeriSign reported revenues up 5.44% year on year, missing analyst estimates by 0.75%. Freshworks was up 1.9%, and VeriSign was flat after the results.

Read our full analysis of Freshworks's results here and VeriSign's results here.

The whole tech sector has been facing a sell-off, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share price declining 4.45% over the last month. Upland is down 25.4% during the same time, and is heading into the earnings with analyst price target of $4.8, compared to share price of $3.34.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.