Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

The Junk Pile

Is Upland Software making money?

Many investors are investigating Upland Software Inc. (NASDAQ: UPLD) because it is a cheap cloud-enterprise stock with a growing price.

Over the past year, Upland’s share price rose from $30.92 on 11 May 2020 to $44.20 on 7 May 2021 and fell to $41.89 on 11 May 2021. Thus, Upland (UPLD) is growing, but it is not bubbling.

So what is Upland Software (UPLD) and does it make money? I think Upland Software is an attempt to offer one-stop shopping for organizations’ cloud enterprise software needs.

One-stop Cloud Enterprise Software Solutions

Simply put, Upland offers a suite of applications that meet corporate needs. Hence, you can think of Upland as an app store for big business.

Each Upland app automates or digitizes a critical corporate function. For instance, Filebound manage documents and content workflow. Similarly, BlueVenn is a unified customer data platform.

AccuRoute captures and delivers documents. Hence, AccuRoute could send all of a company’s bills to the Accounts Payable department. Similarly, Intelligent Capture captures and routes documents in the cloud and axes them.

They built some of Upland’s software for specific business functions. Cimpl, for example, manages expenses and inventory for telecoms. Altify is an account planning app. Meanwhile, PostUp is an enterprise email marketing software for publishers.

Upland offers many customer service products, including InGenius an CRM integration solution for phones. There’s also Localytics which analyzes app user behavior. Plus Adestra automates enterprise marketing and email automation.

 A fascinating solution is Kapost. Upland claims Kapost creates unified content marketing strategies and improves content by allowing users to manage and track all content. One use of Kapost is to make sure content follows the company’s marketing strategy.

Upland claims over 10,000 companies use its products. Those companies include Pepsico, Frontier Airlines, GE (General Electric) Healthcare, Frontier Airlines, Western Union, and Extended Stay America, Upland claims.

Does Upland Make Money?

Upland (UPLD) loses money from its operations. Upland reported a quarterly operating loss of -$17.53 million on 31 March 2021. That operating loss grew from -$15.32 million on 31 March 2020.

In contrast, Upland reported a quarterly gross profit of $49.54 million on 31 March 2021. The quarterly gross profit grew from $36.56 million on 31 March 2020.

Similarly, Upland’s quarterly revenues grew from $68.03 million on 31 March 2020 to $73.97 million on 31 March 2021. Stockrow estimates that Upland’s revenues grew by 8.73% in the quarter ending on 31 March 2021. Upland experienced high revenue growth in 2020. Its revenues grew by 40.29% in the quarter ending on 31 March 2020.

How much Cash does Upland generate?

The growth does not generate cash at Upland (UPLD). For instance, Upland reported a quarterly operating cash flow of $12.50 on 31 March 2021.

Similarly, the quarterly ending cash flow grew from $98.69 million on 31 March 2020 to $186.67 million on 31 March 2021. Upland, borrowed some money in 2020 it reported a $126.68 million quarterly financing cash flow on 30 June 2020.

Importantly, Upland’s total debt fell to $517.64 million on 31 March 2020. So Upland paid some debt during a pandemic.

What Value does Upland offer?

I think Upland (UPLD) offers a small amount of value. For instance, Upland had $1.035 billion in Total Assets on 31 March 2021. The Total assets grew from $884 million on 31 March 2020.

Upland also has a tiny amount of cash. It reported $186.87 million in cash and short-term investments on 31 March 2021. The cash and short-term investments grew from $88 million on 31 March 2020.

Therefore, I do not think Upland was worth the $44.20 Mr. Market paid for it on 7 May 2021. Predictably, Upland pays no dividend. I advise investors to avoid Upland because it has little value and makes a tiny amount of money. In conclusion, I think there are better cloud enterprise stocks out there, such as Oracle (ORCL).