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Upland Software (UPLD) Q2 Earnings: What To Expect


Jabin Bastian /
2022/08/02 4:13 am EDT
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Business automation software provider Upland Software (NASDAQ: UPLD) will be reporting results tomorrow after market hours. Here's what investors should know.

Last quarter Upland Software reported revenues of $78.7 million, up 6.41% year on year, beating analyst revenue expectations by 2.53%. It was a mixed quarter for the company, with a decent beat of analyst estimates but a slow revenue growth.

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 grow 4.26% year on year to $79.5 million, slowing down from the 6.93% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 per share.

Upland Software 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 3.43%.

Looking at Upland Software's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Qualtrics delivered top-line growth of 42.9% year on year, beating analyst estimates by 3.34% and Zendesk reported revenues up 27.9% year on year, exceeding estimates by 0.62%. Qualtrics traded down 5.24% on the results, and Zendesk was flat on the results. Read our full analysis of Qualtrics's results here and Zendesk's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 3.08% over the last month. Upland Software is down 27.5% during the same time, and is heading into the earnings with analyst price target of $22.6, compared to share price of $11.04.

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.