In This Article:
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Recurring Revenue: Beat expectations in Q4 2024.
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Adjusted EBITDA: $14.9 million in Q4 2024, up sequentially from Q3.
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Adjusted EBITDA Margin: Improved to 22% in Q4 2024, up from 19% in Q4 2023.
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Free Cash Flow: $9 million in Q4 2024; $23.4 million for the full year 2024.
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Net Dollar Retention Rate: 96% at the end of 2024, up from 95% in the prior year.
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New Customers: 110 new customers in Q4 2024, including 21 major customers.
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Debt Paydown: $33 million paid down in 2025 to date; $189 million paid down in 2024.
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2025 Revenue Guidance: Reduced by $18 million due to divestitures, with no impact on adjusted EBITDA.
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2025 Core Organic Growth Guidance: Projected at 2.5%.
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2025 Adjusted EBITDA Margin Guidance: Expected to increase to 24% from 20% in 2024.
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Upland Software Inc (NASDAQ:UPLD) beat its recurring revenue expectations and met the midpoint of its adjusted EBITDA guidance for Q4 2024.
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The company reported a net dollar retention rate of 96% at the end of 2024, an improvement from 95% in the prior year.
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Upland Software Inc (NASDAQ:UPLD) welcomed 110 new customers in Q4, including 21 major customers, and expanded relationships with 291 existing customers.
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The company earned 76 badges in the G2 Winter 2025 market reports, showing strong recognition for its products.
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Upland Software Inc (NASDAQ:UPLD) divested two non-strategic underperforming product lines, simplifying its business and focusing on growth products.
Negative Points
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Core organic growth in Q4 was flat, although there is positive growth momentum expected in 2025.
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The divestitures lowered the 2025 revenue guide by about $18 million, although they had no adjusted EBITDA impact.
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Upland Software Inc (NASDAQ:UPLD) expects a decline in total revenue of 12% at the midpoint for Q1 2025 compared to the same quarter in 2024.
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The company is facing a decline in total revenue of 11% at the midpoint for the full year 2025 compared to 2024.
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Upland Software Inc (NASDAQ:UPLD) has a wide revenue guidance range for Q1 2025, indicating uncertainty in revenue projections.
Q & A Highlights
Q: Can you discuss Upland's AI strategy and its impact on growth? A: Jack McDonald, CEO: Upland has invested significantly in AI, enabling 80% of our core content and knowledge management products. Products like BA Insight and Panviva are now AI-enabled, enhancing enterprise search and customer service. This AI strategy is foundational for our growth, with notable sales like a $500,000 ARR deal for Qvidian's AI Assist. We expect AI to drive higher growth rates in the coming years.