Upland Software Inc (UPLD) Reports Q3 2023 Financial Results
Total revenue for Q3 2023 was $74.1 million, a decrease of 7% from $79.5 million in Q3 2022.
GAAP net loss was $8.7 million compared to a GAAP net loss of $6.5 million in Q3 2022.
Adjusted EBITDA was $16.2 million, or 22% of total revenue, compared to $24.9 million, or 31% of total revenue, in Q3 2022.
GAAP operating cash flow was $18.3 million, compared to GAAP operating cash flow of $1.9 million in Q3 2022.
Upland Software Inc (NASDAQ:UPLD), a leader in cloud-based tools for digital transformation, announced its financial and operating results for the third quarter of 2023 on November 2, 2023. The company reported a decrease in total revenue and net loss compared to the same period in the previous year.
Financial Performance
Upland Software Inc (NASDAQ:UPLD) reported total revenue of $74.1 million for Q3 2023, a decrease of 7% from $79.5 million in Q3 2022. Subscription and support revenue was $70.0 million, also a decrease of 7% from $75.1 million in Q3 2022. The GAAP net loss was $8.7 million compared to a GAAP net loss of $6.5 million in Q3 2022. Adjusted EBITDA was $16.2 million, or 22% of total revenue, compared to $24.9 million, or 31% of total revenue, in Q3 2022.
Operating Cash Flow and Cash on Hand
GAAP operating cash flow was $18.3 million, compared to GAAP operating cash flow of $1.9 million in Q3 2022. Free cash flow was $17.8 million, compared to free cash flow of $1.5 million in Q3 2022. Cash on hand as of the end of Q3 2023 was $239.6 million, after paying down $35 million of outstanding debt in the quarter.
Commentary from the CEO
We beat our Q3 revenue and Adjusted EBITDA guidance midpoints." said Jack McDonald, Upland's chairman and chief executive officer. "We also welcomed 162 new customers to Upland in Q3, including 26 new major customers." he added. "It's still early, but we are making progress on our new growth plan and remain focused on building shareholder value over time."
Business Highlights
Upland Software Inc (NASDAQ:UPLD) expanded relationships with 279 existing customers, 28 of which were major expansions. The company also welcomed 162 new customers in the third quarter, including 26 new major customers. In G2s Fall 2023 market report, Upland earned 33 badges, including a "High Performer" badge for its knowledge management solution RightAnswers, and 22 badges for its audience development solution Second Street.
Business Outlook
For the quarter ending December 31, 2023, Upland expects reported total revenue to be between $69.0 and $75.0 million, including subscription and support revenue between $65.5 and $70.5 million. This represents a decline in total revenue of 9% at the mid-point over the quarter-ended December 31, 2022. Fourth quarter 2023 Adjusted EBITDA is expected to be between $12.6 and $15.6 million, for an Adjusted EBITDA margin of 20% at the mid-point.
Explore the complete 8-K earnings release (here) from Upland Software Inc for further details.
This article first appeared on GuruFocus.
