Upland Software (UPLD) Q4 2024 earnings summary

Executive summary

• Q4 2024 recurring revenue exceeded expectations, with adjusted EBITDA of $14.9M (22% margin), meeting guidance midpoint and up from $14.1M (19% margin) in Q4 2023.

• Core organic growth was flat in Q4 but is projected to reach 2.5% in 2025, reversing negative growth in 2024.

• Net dollar retention improved to 96% in 2024, with a target of 98% by end of 2025.

• 110 new customers and 291 customer expansions were achieved in Q4, including significant wins for AI-enabled products.

• GAAP net loss narrowed to $3.4M from $16.0M in Q4 2023; net loss per share improved to $0.18 from $0.56.

Financial highlights

• Q4 adjusted EBITDA was $14.9M, up sequentially from Q3, with a full-year free cash flow of $23.4M.

• Q4 free cash flow was $9M, exceeding expectations, with operating cash flow at $9.3M.

• Full-year 2024 revenue was $274.8M, down from $297.9M in 2023.

• Adjusted EBITDA for 2024 was $55.6M, down from $64.4M in 2023.

• Cash and equivalents declined to $56.4M at year-end from $236.6M a year earlier.

Outlook and guidance

• 2025 core organic revenue growth is projected at 2.5%, with a goal to exit the year at mid-single digits.

• Full-year 2025 total revenue is expected between $231.5M and $255.5M, an 11% decline at midpoint year-over-year due to asset divestitures.

• Adjusted EBITDA for 2025 is guided at $53.5M–$65.5M, with a 24% margin at midpoint, a 7% increase from 2024.

• Q1 2025 revenue guidance is $59M–$65M, with adjusted EBITDA of $11.2M–$14.2M.

• 2025 guidance reflects divestiture of two non-strategic product lines, reducing revenue by $18M but not materially impacting Adjusted EBITDA.