Dealing with declines in turnover with…

• Total turnover: $66.7 million, down 10% year over year.

• Recurring subscription support revenue: $63.8 million, down 9% year over year.

• Perpetual license revenue: $1.1 million, compared to $1.5 million in Q3 2023.

• Professional services revenue: $1.8 million, down 32% year over year.

• Total gross margin: 70%.

• Gross margin product: 72%, or 75% when adding depreciation and amortization (cash gross margin).

• Operating costs: $35.6 million, 53% of total revenue.

• Adjusted EBITDA: $14 million, 21% of total revenue, compared to $16.2 million or 22% in Q3 2023.

• Debt payment: $177 million during the quarter, with net debt outstanding of approximately $241 million.

• Cash flow: GAAP operating cash flow of $4.3 million and free cash flow of $4.2 million.

• Fourth quarter revenue guidance: $65.9 to $71.9 million.

• Adjusted EBITDA guidance for the fourth quarter: $13.4 to $16.4 million, with a 22% margin at the midpoint.

• Revenue guidance for full year 2024: $272.6 to $278.6 million.

• Adjusted EBITDA guidance for full year 2024: $54.1 to $57.1 million, with a 20% margin at the midpoint.

Release date: November 7, 2024

For the full earnings call transcript, please refer to the full earnings call transcript.

• Upland Software Inc (NASDAQ:UPLD) exceeded the midpoint of third-quarter revenue guidance and met the midpoint of adjusted EBITDA.

• The company welcomed 122 new customers, including 18 major ones, and expanded relationships with 312 existing customers.

• Upland Software Inc (NASDAQ:UPLD) earned 72 badges in G2’s Fall 2024 Market Reports, up from 56 in the Summer 2024 Reports.

• The company announced the availability of Upland BA Insight for Microsoft Azure, expanding its product offering.

• Upland Software Inc (NASDAQ:UPLD) targets positive core organic growth and continued Adjusted EBITDA expansion through 2025.

• Total revenue for the third quarter was down 10% year over year, with recurring subscription support revenue down 9%.

• Perpetual license revenue and professional services revenue both saw significant declines year over year.

• Operating costs amounted to 53% of total turnover, due to continued investments and cost pressure.

• Adjusted EBITDA for the third quarter was lower than the prior year, due to growth investments and sunset decisions.

• The company expects a 7% decline in total revenue for the full year 2024 compared to 2023.

Q: Can you provide more details on the cost savings in OpEx and whether these changes have been completed? How should we think about this towards 2025? A: Michael Hill, CFO: Annual costs will continue to decline as we target higher EBITDA next year. We have infrastructure costs that can be reduced because we are not pursuing as many acquisitions. These cost efficiencies will continue to be recognized. John Mcdonald, CEO: Within growth investments, we optimize spend based on returns, which supports greater margins.

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