Upland Software’s Stock Soars Amid AI Innovations
Upland Software (UPLD) has seen its shares soar by 76.3% over the last six months. In comparison, the broader Zacks Computer & Technology sector has only increased by 1.1%, while the Zacks Internet – Software industry has risen by 14.7%.
The significant growth can be linked to Upld’s dedication to expanding its customer base and rolling out effective AI solutions.
In the third quarter of 2024, UPLD welcomed 122 new customers, 18 of which were major accounts. Additionally, 312 existing customers deepened their relationships with the company, including 27 major expansions. This interest has centered around Upland’s growing range of generative AI offerings.
With a robust AI portfolio and a rising customer base, is UPLD stock a good investment? Let’s take a closer look.
Upland Outshines Its Sector and Industry
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Driving Growth with AI Solutions
Upland’s focus on integrating generative AI has been crucial in attracting new clients and enhancing existing relationships.
In December 2024, UPLD unveiled Altify MaxAI, an AI-enhanced upgrade to its Altify software, designed for account planning and deal management.
This new tool utilizes generative AI to simplify complex sales processes, offering features such as automated contact identification, valuable buyer insights, and strategic account planning to improve sales productivity.
With tools like Altify MaxAI, Upland strengthens its goal of enhancing sales performance while speeding up customer acquisition.
Beyond Altify MaxAI, Upland’s comprehensive AI solutions portfolio, including Upland RightAnswers and Upland BA Insight, has also played a significant role in attracting new business and solidifying its market standing.
Upland RightAnswers, a knowledge management solution powered by AI, earned 17 badges in the third quarter of 2024, showcasing its effectiveness for companies looking to manage information efficiently. Upland BA Insight, designed for AI search, received various new accolades, emphasizing its ability to improve search and discovery experiences.
Expanding Partnerships with Major Companies
Upland’s growing list of partners, including Microsoft (MSFT) and Konica Minolta (KNCAY), has significantly contributed to its growth.
In December 2024, UPLD revealed that Upland InterFAX expanded its partnership with Konica Minolta to offer secure, cloud-based fax services integrated into Konica Minolta’s bizhub One i-Series Multi-Function Printer in the United States and Canada.
Last quarter, Upland announced that BA Insight is now available for Microsoft Azure AI Search in the Microsoft Azure Marketplace. This allows customers to integrate the BA Insight user experience platform and over 90 connectors for a smooth and secure content search.
Upland is also working on several AI initiatives, such as adding AI-driven functions to Upland Qvidian. Collaborating with International Business Machines (IBM) for AI solutions has further enhanced its product offerings and appealed to enterprise clients.
With this collaboration, Upland can provide advanced AI features and integrations, ultimately delivering more value while addressing the growing needs for data privacy and compliance.
The integration of AI across its product range has notably increased Upland’s sales productivity and fostered better customer relations. As advancements continue, Upland aims to solidify its leadership in AI enterprise tools.
Nonetheless, Upland is facing challenges from a planned reduction in Sunset asset revenues, which may negatively affect overall income.
Earnings Estimates Reflect Mixed Outlook for UPLD
For 2025, the Zacks Consensus Estimate predicts earnings of 99 cents per share, unchanged over the past month. This represents a decline of 4.81% compared to the previous year.
Expected revenues for 2025 stand at $266.90 million, down 2.89% from the 2024 forecast of $274.83 million.
UPLD’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, missing the estimate in the other one, with an average surprise of 10.44%.
Upland Software, Inc. Price and Consensus
Upland Software, Inc. price-consensus-chart | Upland Software, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
What’s Next for UPLD Investors?
Upland Software shares show strong value, currently rated with a Value Score of A.
With a forward 12-month Price/Sales ratio of 0.43, UPLD stands well below the industry’s 3.01.
Price/Sales Ratio (F12M)
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Upland’s solid portfolio and expanding partnerships position it as an attractive option for long-term investors. Currently, the stock’s appealing valuation supports an investment opportunity.
Currently, Upland holds a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
