Austin's Upland sees revenue increase, beats Street expectations

Posted March 29th, 2016

Upland Software, which has been growing through acquisitions, reported that revenue grew in the fourth quarter, while the company's net loss widened.

Austin-based Upland posted revenue of $17.6 million for the quarter, a 7 percent increase over revenue of $16.5 million in the same quarter a year ago.

The company reported a net loss of $4.3 million in the fourth quarter, from $2.7 million in the fourth quarter of 2014.

On a per-share basis, Upland said it had a loss of 28 cents. Earnings, adjusted for expenses and costs related to acquisitions, were 1 cent per share.

The results exceeded Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for revenue of $17.2 million and a loss of 18 cents a share.

Upland sells software tools aimed at helping workers increase productivity, collaborate, manage content, work more efficiently and track resources and projects.

HANDOUTJack McDonald, CEO of Upland Software

Jack McDonald, a veteran Austin software executive, founded Upland in 2013 by combining three small cloud-based software companies in project management and work management. 

The company has grown by buying small software companies that have promising technology but are unlikely to break out as large independent players.  

Upland has made 10 acquisitions to date, most recently buying mobile marketing firm Hipcricket of Bellevue, Wash. Financial terms were not disclosed.

Today, Upland's products are used by 1,600 customers and 225,000 workers worldwide.

"In 2015, we built a focused product and operating platform and strengthened our acquisition pipeline while delivering 23 percent growth in recurring revenues," McDonald said in a statement. "2016 will be a pivotal year as we leverage that foundation."

For the year, Upland reported a net loss of $13.7 million, or 91 cents a share, on revenue of $69.9 million.

The company said it expects 2016 revenue in the range of $70 million to $74 million.

Shares of Upland have fallen 3 percent since the beginning of the year. Earnings were released after markets closed. The stock closed at $6.83, up 6 cents, or .89 percent, in Tuesday trading.