Upland Software (UPLD) Stock Forecast & Price Target

Upland Software Inc. demonstrated a stable customer acquisition trajectory, adding 155 new customers in the latest quarter, reflecting a 16% increase sequentially, while major customer expansions reached their highest level since Q2 2022, with 41 expansions noted. The company achieved gross margins of 74%, which surpassed estimates by 190 basis points and increased by 170 basis points year-over-year, indicating strong profitability and efficiency. Furthermore, Upland reported its first quarter of core organic revenue growth at 0.3% year-over-year, signaling positive trends in both go-to-market initiatives and customer retention stabilization.

Upland Software has revised its revenue guidance downward, now projecting total revenue in the range of $269.6 million to $281.6 million, reflecting a decline of approximately 7.5% at the midpoint compared to previous forecasts. The company's subscription and support revenue guidance remains unchanged at $254.1 million to $264.1 million, also indicating an 8% decline at the midpoint. Additionally, first-quarter revenues of $70.7 million marked a decrease from both the previous quarter and the same quarter last year, contributing to a continual downward trend in revenues and adjusted EBITDA, which has reached its lowest point since early 2020.