Upland Software UPLD is set to report fourth-quarter 2024 results on March 12.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

For the fourth quarter of 2024, the company expects revenues between $65.9 million and $71.9 million. This represents a decline of 5% year over year at the midpoint.

The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $68.06 million, indicating a decline of 5.71% year over year. 

The consensus mark for earnings is currently pegged at 24 cents per share, unchanged over the past 30 days. The figure indicates a 71.43% increase from the year-ago quarter’s reported figure.

UPLD earnings beat the Zacks Consensus Estimate in each of the trailing three quarters while missing the same once, with an average surprise of 29.23%.

Let’s see how things have shaped up prior to this announcement.

Key Factors to Note for UPLD Q4 Earnings

Upland’s fourth-quarter 2024 performance is likely to have benefited from increased customer acquisitions and successful AI integrations.

Upland’s portfolio of Generative AI (Gen AI) solutions, which contributed to new customer acquisitions and major expansions in the third quarter of 2024, is expected to have driven growth in the fourth quarter of 2024 as well. 

As AI-powered products like Upland RightAnswers and Upland BA Insight gain recognition and adoption, they are likely to fuel additional customer engagement and revenues in the to-be-reported quarter.

UPLD added 122 new customers in the third quarter of 2024, including 18 major customers, and expanded relationships with 312 existing customers, including 27 major expansions. This momentum is expected to have reflected in the fourth quarter of 2024 performance, contributing to revenue stability and potential growth.

UPLD Shares Underperform Sector, Industry

UPLD shares have plunged 38% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s decline of 9.7% and the Zacks Internet - Software industry’s decrease of 3.2%.

Year-to-Date Performance

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UPLD Stock is Trading at a Discount

UPLD stock is cheap, as suggested by the Value Score of A.

In terms of the forward 12-month Price/Sales, UPLD is trading at 0.28X, lower than the industry’s 4.20X.

Price/Sales (F12M)

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Upland Drives Growth With AI-Powered Solutions

Upland’s efforts in integrating generative AI into its solutions proved instrumental in attracting new customers and deepening relationships with existing ones.

In February 2025, Upland launched Panviva Sidekick, an AI-powered assistant designed to provide agents with real-time, contextualized, and compliant knowledge, enhancing the customer experience in complex and regulated industries. 

The solution features advanced AI search, Smart Snippets, and a user-friendly interface, integrating seamlessly with existing systems to improve agent productivity and decision-making.

Upland Expands AI and Partnerships With Key Players

Upland’s expanding partner base, which includes Microsoft MSFT and Konica Minolta KNCAY, is likely to have driven growth during the fourth quarter.

In December 2024, UPLD announced that Upland InterFAX had expanded its partnership with Konica Minolta to provide secure, cloud-based fax solutions integrated into Konica Minolta’s bizhub One i-Series Multi-Function Printer across the United States and Canada. 

In the third quarter of 2024, Upland announced the availability of BA Insight for Microsoft Azure AI Search in the Microsoft Azure Marketplace. This allows customers to seamlessly integrate BA Insight’s user experience platform and over 90 connectors with Azure AI Search for intelligent, secure, and efficient content search without navigating multiple systems.

Upland also focuses on several AI initiatives, including integrating AI-powered features into products like Upland Qvidian. The partnership with International Business Machine IBM WatsonX for AI-driven solutions has enhanced product capabilities and attracts enterprise customers.

The company’s partnership with IBM provides advanced AI functionalities and integrations, which help Upland deliver more value to its enterprise customers and meet the needs for data privacy and compliance.

UPLD — A Smart Buy or Risky Bet

UPLD’s robust AI portfolio and expanding partner base are key drivers that make the stock attractive for long-term investors.

However, Upland is suffering from a planned runoff of Sunset asset revenue, which will continue to impact its financial performance in the fourth quarter of 2024 and contribute to the overall revenue decline.

UPLD currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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