Upland Software, Inc. · NASDAQ:UPLD
Upland Software — 19th Annual Needham Growth Conference (January 2017)
21 slides from Upland Software's conference presentation, Jan 11, 2017
Slide 1: Upland Software, Inc. – Needham Growth Conference
Run smoothly. Change quickly. Achieve more. Cloud-based enterprise work management software Upland Software, Inc. Needham Growth Conference January 2017 Jack McDonald Chairman & Chief Executive Officer, Upland Software
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes “forward-looking statements,”, which are subject to substantial risks, uncertainties and assumptions, subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Accordingly, you should not place undue reliance on th
Slide 3: $85mm Enterprise Cloud Software Provider
$85mm Enterprise Cloud Software Provider (1) Built on 100% Customer Success and long-term sustainable customer relationships Award-winning cloud software for Project & IT Management, Workflow Automation, and Digital Engagement 2,500+ customers and 250,000+ users Strong top-line growth throug
Slide 4: 100% Customer Success
100% Customer Success Customers realizing all the value they expect from our software and being delighted by the experience of being an Upland customer Foundation Measure Benefit Premier Success Renewal Program Customer-driven Net Expansion Innovation Promoter Cross-sell Quality-focused Score R&D (N
Slide 5: Recurring Revenue Growth Trend
Recurring Revenue Growth Trend Recurring Revenue ($ in millions) $71.2 $65.4 $57.2 $48.6 $30.9 $18.3 2012 2013 2014 2015 2016 (1) 1Q’17 (2) Annualized Actuals Guidance Source: Company information and management. (1) Full year guidance (at the mid-point) for the fiscal year ended December 31, 2016 as
Slide 6: Quarterly Adjusted EBITDA Trend
Quarterly Adjusted EBITDA Trend Adjusted EBITDA ($ in millions) $5.25 $4.0 $3.6 $2.8 $2.0 $1.8 $1.1 $0.7 $0.3 (2) (3) 1Q’15 2Q’15 3Q’15 4Q’15 1Q’16 2Q’16 3Q’16 4Q’16 1Q’17 Actuals (1) Guidance Source: Company information and management. (1) Quarterly reported results for periods ending 3/31/15, 6/30
Slide 7: Recent Developments
Recent Developments • Solid Q3’16 Results Record Adjusted EBITDA @ 19% 21% year-over-year growth in recurring revenues • Strong Q4’16 and Q1’17 Guidance Growth in Adjusted EBITDA to 26%(1) 17% year-over-year growth in recurring revenues(1) • Healthy M&A Activity Four accretive acquisitions
Slide 8: Upland Product Family
Upland Product Family Project & IT Workflow Digital Management Automation Engagement Manage your organization’s Real time productivity Effectively engage projects, professional optimization, collaboration, with your customers, workforce and IT costs. and functional automation prospects and across yo
Slide 9: Upland Product Family
Upland Product Family Project & IT Workflow Digital Management Automation Engagement • Lean Six Sigma/Process Excellence • Enterprise Content Management • Application-to-Person Mobile • Project & Portfolio Management • Accounts Payable/Receivable Automation Messaging • Professional Services Automati
Slide 10: Our Customers
Our Customers Fix @ PEPSICO ay” SAP4 Ko) Oe, GRAND iHeart @ Swiss Re __pitneybowes ( ® Grew j da. (v.s.anu GE Healthcare ? SS oldman Johnson Y) ( wv) Sieh pb 7 eonals COATS PPG PPG Industries Ally , pfv nine w NVR § FY OF 0 E, HARLEY-OAVISON CHICAGO A, M At 7. Adobe ae “@Y wepicat cenTER ARAMARK =Te
Slide 11: Efficient Sales Engine
Efficient Sales Engine • Focus is driving repeat business with our 2,500+ customers and 250,000+ users • Target 100%+ NDRRs • Expansion and cross-sell • Premier Success up-sell • Inside sales • Focused Field SWAT team • High-touch Customer Success program with executive sponsorship 11
Slide 12: Why Customers Choose Upland
Why Customers Choose Upland Gartner Visionary Recognition(1) The Upland advantage: Highlighted in Gartner Magic Quadrant for Cloud-Based IT PPM Getting the best of both worlds (PowerSteering and Eclipse) Critical Capabilities Recognition(2) PowerSteering ranked among top three Enterprise-Class Built
Slide 13: 2017 M&A Strategy
2017 M&A Strategy • Acquire $15+ million revenues • High contribution margin tuck-ins on 3 core platforms • Disciplined EBITDA multiples • Adjusted EBITDA per share accretive within first year • Strong pipeline of deals • Have the resources to execute • Proven team has done 35 successful tech acquis
Slide 14: Financial Highlights
Financial Highlights Strong top-line revenue growth through acquisitions Recurring, predictable revenue model with high renewal rates Diversified customer base Expanding EBITDA margins through: Accretive tuck-in acquisitions Back-end dev, QA, offshore & cloud efficiencies G&A/fixed cos
Slide 15: Operating Targets (as a % of Revenue)
Operating Targets (as a % of Revenue) Excludes Depreciation & Amortization and Stock-based compensation 1Q’15 2Q’15 3Q’15 4Q’15 1Q’16 2Q’16 3Q’16 4Q’16(4) 1Q’17(5) Target Guidance Guidance Model Revenue 100% 100% 100% 100% 100% 100% 100% 100% Non-GAAP Gross Margin(1) 68% 68% 68% 66% 67% 70% 70% 73%
Slide 16: Appendix
etl upland Appendix upland
Slide 17: Adjusted EBITDA Reconciliation to Net Loss
Adjusted EBITDA Reconciliation to Net Loss We define Adjusted EBITDA as net loss, calculated in accordance with GAAP, plus net income (loss) from discontinued operations, depreciation and amortization expense, interest expense, net, other expense (income), net, provision for income taxes, stock-base
Slide 18: Upland Product Family
Upland Product Family Product Who It Helps and How Key Business Value Primary Industries Gives IT financial leaders and business unit ITFM drives avg. of 5-10% cost leaders IT cost data and analytics to support saving through reduced demand Banking & Finance, Healthcare. strategic IT & financial dec
Slide 19: Case Study: Project & IT Management
Case Study: Project & IT Management + Challenge + A Fortune 500, multi-national conglomerate producing automotive interiors, HVAC equipment and controls, Johnson Controls needed an enterprise-level project tracking tool for a massive Six Sigma initiative + The organization sought a tool that would s
Slide 20: Case Study: Workflow Automation
Case Study: Workflow Automation + Challenge + A global agricultural marketing company, with more than 120 locations in North America, South America, and Asia, impacting global grain transport for use in food, feed, and renewable fuels, needed an enterprise tool to manage supply chain documentation.
Slide 21: Case Study: Digital Engagement
Case Study: Digital Engagement + Challenge + Viacom’s global cable TV network for kids needed an effective method for communicating with busy parents and millennials, to provide program and brand- related educational information, quizzes, conversation ideas, holiday-themed content, and “tune-in” rem
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