Summary
Upland Software reported total revenue of $78.7 million for the first quarter of fiscal 2022, up 6.4% from $74.0 million in the prior-year quarter. Gross profit rose 8.9% to $54.0 million, and gross margin reached 68.6%, up 1.6 percentage points from 67.0%. The revenue and gross profit lines improved, but the bottom line stayed under pressure. Operating loss was $14.8 million, narrower than the $17.5 million operating loss in the prior-year quarter. Net loss widened to $22.8 million from $20.7 million. Diluted loss per share widened to $0.73 from $0.69. Operating margin was negative 18.8%, an improvement of 4.9 percentage points from negative 23.7%.
Cash generation weakened. Operating cash flow was $8.2 million, down 34.2% from $12.5 million in the prior-year quarter. Capital expenditures were $0.18 million, down 37.6% from $0.28 million. Free cash flow, a non-GAAP measure, was $8.0 million compared with $12.2 million in the prior-year quarter. Deferred revenue, current portion, was $114.5 million, up 20.9% from $94.7 million. Adjusted EBITDA, also non-GAAP, was $23.4 million, or 30% of total revenue, compared with $22.8 million, or 31% of total revenue, in the prior-year quarter.
The quarter included two acquisitions in the Document Workflow product family, BA Insight and Objectif Lune. Management reported that Upland expanded relationships with 280 existing customers, including 49 major expansions, and added 120 new customers, including 25 new major customers. The company announced major new releases for a host of products and opened a Center of Excellence in India, which it described as a cornerstone for global product development. The MD&A attributes much of the revenue increase to acquisitions not fully in the comparative period. It also separates the Core Organic Business from acquisitions, Sunset Assets, Overage Charges and Political Revenue, and states that Core Organic Business total revenue decreased. Overage Charges declined on variable demand, and the prior-year quarter included political revenue that did not repeat. Foreign revenue rose to 32% of total revenue from 25% in the prior-year quarter.
Guidance covers the second quarter and the full fiscal year. For the quarter ending June 30, 2022, management guided to total revenue growth of 4% at the midpoint over the quarter ended June 30, 2021, with Adjusted EBITDA of $23.4 million to $25.4 million, a 31% margin at the midpoint and a 3% increase from the quarter ended June 30, 2021. For the full year ending December 31, 2022, management guided to total revenue growth of 6% at the midpoint over the year ended December 31, 2021, with Adjusted EBITDA of $95.0 million to $103.0 million, a 31% margin at the midpoint and a 2% increase over the year ended December 31, 2021.
Risks remain tied to the pandemic, acquisition integration, competition, third-party data centers, privacy laws and foreign currency. The MD&A notes that COVID-19 uncertainty persists and that the company cannot predict the extent of the outbreak's impact on the business. Acquisitions are central to the growth story, but integrating deals and running a larger global operation carry execution risk. The company also flags foreign currency exposure as international revenue grows. The filing lists economic and financial conditions, growth management, reseller performance and brand protection among other risk factors. On the credit side, the MD&A states that the company was in compliance with all covenants under its credit facility as of March 31, 2022, and that current cash, operating cash flows and available borrowings should fund operations for at least the next twelve months.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2022 | Q4 FY2021 | QoQ | Q1 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $78.7M | $75.7M | +3.9% | $74.0M | +6.4% |
| Gross profit | $54.0M | $50.5M | +6.8% | $49.5M | +8.9% |
| Gross margin | 68.5% | 66.7% | +1.8 pp | 67.0% | +1.6 pp |
| Research & development | $12.1M | $10.2M | +18.3% | $10.9M | +10.3% |
| Sales & marketing | $15.6M | $14.0M | +11.4% | $12.4M | +25.4% |
| General & administrative | $19.6M | $15.6M | +25.6% | $24.4M | -19.5% |
| Total operating expenses | $68.7M | $52.8M | +30.2% | $67.1M | +2.5% |
| Operating income (loss) | -$14.8M | -$2.2M | -558.5% | -$17.5M | +15.7% |
| Operating margin | -18.8% | -3.0% | -15.8 pp | -23.7% | +4.9 pp |
| Net income (loss) | -$22.8M | -$7.5M | -205.6% | -$20.7M | -10.4% |
| Net margin | -29.0% | -9.9% | -19.1 pp | -28.0% | -1.0 pp |
| Diluted EPS | -$0.73 | -$0.25 | -$0.48 | — | — |
| Customers | 10,000 | 10,000 | ±0.0% | 10,000 | ±0.0% |
| Net retention rate | 94.0% | — | — | — | — |
Risks
A new risk factor added in this filing states that inflation may adversely affect liquidity, business, financial condition, and results by increasing the cost structure if the company cannot achieve commensurate price increases. It cites higher interest rates and capital costs, shipping costs, supply shortages, increased labor costs, and weakening exchange rates, and notes Upland has already experienced cost increases.
MD&A discloses that total FY2022 Q1 revenue increased 6.4% to $78.7 million, but Core Organic Business total revenue decreased by $2.1 million. Subscription and support core organic revenue declined to $59.5 million from $61.5 million, Overage Charges declined by $2.1 million, and $0.8 million of political revenue from 2021 will not repeat for the remainder of 2022.
FY2022 Q1 net loss widened 10.4% to $22.8 million and operating cash flow decreased 34.2% to $8.2 million. Cash and cash equivalents fell $58.7 million from December 31, 2021 to March 31, 2022, and working capital surplus declined to $29.9 million, partly due to $62.3 million of cash paid for acquisitions.
Growth depends heavily on acquisitions: acquisitions not fully in the comparative period contributed $10.1 million to the FY2022 Q1 revenue increase after a $1.9 million purchase accounting deferred revenue discount. The company closed two acquisitions in the quarter, had 31 acquisitions since 2012, incurred $10.4 million of acquisition-related expenses, and paid $62.3 million cash for acquisitions, creating integration and execution risk.
SaaS KPIs
All quarters →Adjusted EBITDA
Free Cash Flow
Major expansions
New customers
Adjusted EBITDA margin
New major customers
Total Customers
Enterprise Customers
Existing customers expanded
Users
Summary, forecast, risks and KPIs are extracted from Upland Software, Inc.'s SEC filings for Q1 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.