Now that the company may have reached a major milestone, we thought we’d take a closer look Upland Software, Inc. (NASDAQ:UPLD) future prospects. Upland Software, Inc. together with its subsidiaries, provides cloud-based software applications under the Upland brand in the United States, United Kingdom, Canada and internationally. The US$42m market-cap company’s losses have narrowed since it announced a full-year loss of US$118m, compared with its latest trailing-twelve-month loss of US$49m, as it approaches breakeven. The most pressing concern for investors is Upland Software’s path to profitability – when will it break even? We’ve put together a quick overview of industry analyst expectations for the company, its breakeven year, and its implied growth rate.
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According to Upland Software’s three industry analysts, the consensus is that breakeven is near. They expect the company to make a final loss in 2026, before generating positive profits of $11 million in 2027. So the company is forecast to break even in about two years from today. To meet this breakeven date, we calculated the rate at which the company needs to grow year-over-year. It turns out that an average annual growth rate of 119% is expected, which is extremely powerful. If this rate proves to be too aggressive, the company could become profitable much later than analysts predict.
Since this is a high-level overview, we won’t go into the details of Upland Software’s upcoming projects. However, keep in mind that a high forecast growth rate is generally not unusual for a company currently going through an investment period.
Check out our latest analysis for Upland Software
Before we close, there is one more issue worth mentioning. Upland Software currently has a debt/equity ratio of over 2x. In general, the rule of thumb is that debt should not exceed 40% of your net worth, and the company has significantly exceeded this. Keep in mind that a higher debt obligation increases the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis of Upland Software, so if you’re interested in understanding the company on a deeper level, check out Upland Software’s company page on Simply Wall St. We’ve also put together a list of key factors you should investigate further:
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Valuation: What is Upland Software worth today? Has the future growth potential already been included in the price? The intrinsic value infographic in our free research report helps visualize whether Upland Software is currently mispriced by the market.
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Management team: An experienced management team at the helm increases our confidence in the company – take a look at who’s on Upland Software’s board and the CEO’s background.
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Other well-performing stocks: Are there other stocks that offer better prospects with proven track records? Discover our free list of these great stocks here.
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.
