Upland Software, Inc. SEC 10-Q Report

Upland Software, Inc., a leading provider of cloud-based enterprise work management software, has released its Form 10-Q report for the third quarter. The report highlights significant improvements in operational efficiency and strategic business adjustments, despite a decline in total revenue. The company continues to focus on optimizing its core assets and enhancing its market position through strategic divestitures and investments in AI-powered solutions.

Financial Highlights

• Total Revenue: $63.7 million, a decrease of 10% from the same period last year primarily due to declines in subscription and support revenue from Sunset Assets and divested businesses.
• Gross Profit: $45.6 million, representing 72% of total revenue, reflecting a slight improvement in gross margin compared to the previous year.
• Loss from Operations: $(1.1) million, a significant improvement from a loss of $(91.6) million in the prior year, primarily due to the absence of goodwill impairment charges.
• Net Loss: $(25.8) million, compared to a net loss of $(96.1) million in the previous year, reflecting improved operational efficiency and cost management.
• Net Loss Per Common Share, Basic and Diluted: $(0.97), compared to $(3.37) in the prior year, indicating a reduction in net loss per share.

Business Highlights

• Revenue Segments: Subscription and support revenue decreased by 10% year-over-year, primarily due to declines in Sunset Assets and divested businesses. Perpetual license revenue increased by 9%, while professional services revenue decreased by 15%.
• Geographical Performance: The United States remains the largest market, contributing significantly to subscription and support revenue, followed by the United Kingdom, Canada, and other international markets. The decline in revenue was consistent across these regions.
• Divestitures Impact: The company completed divestitures of certain product lines, which contributed to a $23.5 million loss on divestitures. This strategic move impacted revenue and cost structures, aligning with the company's focus on core assets.
• Operational Efficiency: Cost of subscription and support revenue decreased by 15% due to reduced infrastructure and personnel costs, particularly related to divested product lines. This reflects ongoing efforts to streamline operations and focus on core business areas.
• Sales and Marketing Adjustments: Sales and marketing expenses decreased by 19%, driven by reduced personnel costs and marketing spend, indicating a strategic shift towards more efficient customer acquisition and retention strategies.
• Research and Development Focus: The company continues to invest in research and development to enhance its AI-powered solutions, although specific figures were not detailed in the report.
• Future Outlook: The company plans to continue focusing on core organic growth by optimizing its product offerings and exploring strategic acquisitions to enhance its market position and operational efficiency.

SEC Filing: Upland Software, Inc. [ UPLD ] - 10-Q - May. 12, 2025