Business automation software provider Upland Software (NASDAQ: UPLD) met Wall Street’s revenue expectations in Q4 CY2024, but sales fell by 5.8% year on year to $68.03 million. On the other hand, next quarter’s revenue guidance of $62 million was less impressive, coming in 7.7% below analysts’ estimates. Its non-GAAP profit of $0.41 per share was significantly above analysts’ consensus estimates.

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Upland (UPLD) Q4 CY2024 Highlights:

Company Overview

Founder Jack McDonald’s second software rollup, Upland Software (NASDAQ:UPLD) is a one stop shop for sales and marketing software, project management, HR, and contact center services for small and medium sized businesses.

Marketing Software

Whether or not companies market their products through social media, all businesses need to meet customers where they are; and increasingly, that is social media. As more and more people use a greater number of social media platforms, social media management software become more valuable to their customers.

Sales Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Upland struggled to consistently generate demand over the last three years as its sales dropped at a 3.1% annual rate. This wasn’t a great result and is a sign of lacking business quality.

This quarter, Upland reported a rather uninspiring 5.8% year-on-year revenue decline to $68.03 million of revenue, in line with Wall Street’s estimates. Company management is currently guiding for a 12.4% year-on-year decline in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to decline by 3.2% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and indicates its newer products and services will not accelerate its top-line performance yet.