The following is a summary of the Upland Software, Inc. (UPLD) Q4 2023 Earnings Call Transcript:
Financial Performance:
Upland Software reported Q4 revenue of $72.2 million, down by 8% YoY due to declines in subscription support and professional service revenue.
Gross margin was 67%, with product gross margin at 68%, or 72% when adding back depreciation amortization.
Adjusted EBITDA was $14.1 million, or 19% of total revenue, down from 31% of total revenue in 2022's same quarter.
Free cash flow for FY23 stood at $48.7 million, in line with expectations, and aided by the liquidation of half of the interest rate swaps.
For Q1 2024, the company anticipates a total revenue between $65 million and $71 million and adjusted EBITDA between $11.3 million and $14.3 million.
For FY24, the projected reported total revenue is anticipated to be between $259 million and $283 million with an adjusted EBITDA between $49 million and $61 million.
Business Progress:
Upland Software added 154 new customers, including 15 major ones, in Q4 2023.
The company earned recognition as a leader in the 2023 Enterprise Content Management Data Quadrant report for its product, Filebound.
AI initiatives are in the development, including integration of Azure AI Search with BA Insights.
The company won 44 badges in G2's Winter 2024 market reports, indicating buyer satisfaction.
Significant improvements have been made on product development side, including building a Center of Excellence in India.
Upland Software plans to resume acquisitions in 2024.
In Q4 2023, the company used $10.8 million of cash to buy back about 2.5 million shares of common stock, intending fuller utilization of a potential total of $25 million.
As of December 2023, the company had a liquidity of about $297 million.
The company is forecasting a shift in growth from a negative 1% core organic growth rate in Q4 2023 to positive in 2024. It is planning for a free cash flow between $20 million to $25 million in 2024, signaling strategic financial management.
More details: Upland Software IR
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