Upland Software Earnings: What To Look For From UPLD

Kayode Omotosho /
2022/02/23 9:08 am EST

Business automation software provider Upland Software (NASDAQ: UPLD) will be announcing earnings results tomorrow after market close. Here's what investors should know.

Last quarter Upland Software reported revenues of $76 million, up 2.51% year on year, missing analyst expectations by 2.13%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations and an underwhelming revenue guidance for the next quarter.

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

This quarter analysts are expecting Upland Software's revenue to decline 3.59% year on year to $75.4 million, a further deceleration on the 18.4% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 per share.

Upland Software Total Revenue

The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 4.43%.

Looking at Upland Software's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Unity (NYSE:U) delivered top-line growth of 43.3% year on year, beating analyst estimates by 6.81% and Toast (NYSE:TOST) reported revenues up 111% year on year, exceeding estimates by 4.93%. Unity traded up 17.5% on the results, Toast was down 18.2%. Read our full analysis of Unity's results here and Toast's results here.

It seems that the volatility in the software stocks has somewhat calmed down for now, with stocks down on average 1.93% over the last month. Upland Software is down 14.5% during the same time, and is heading into the earnings with analyst price target of $32.9, compared to share price of $16.71.

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.

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