Upland Software, Inc. · NASDAQ:UPLD
Upland Software — 31st Annual ROTH Conference (March 2019)
47 slides from Upland Software's conference presentation, Mar 19, 2019
Slide 1: Upland Software
Upland Software March 2019 upland
Slide 2: Overview
Overview Product & Operating Platforms M&A Platform Summary 2 | Company Confidential © 2019 Upland Software, Inc.
Slide 3: 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 the
Slide 4: Overview
Overview 4 | Company Confidential © 2019 Upland Software, Inc.
Slide 5: Upland Software at a Glance
Upland Software at a Glance UPLD EWM 1,000,000 HQ Austin, TX 9,000 1,300 Russell 2000 Index $25B $24B HQ Austin, TX Global Users Customers Major Accounts TAM Started TAM Started 2012 2012 (>$100k Avg. ARR) $194MM (1) 69% (2) 37% (3) 98% (4) 20 $1.0 Billion + Acquisitions Enterprise >90% Recurring Re
Slide 6: Upland Business Model
Upland Business Model + High growth, high margin M&A recurring revenue model Platform: + Differentiated, scalable operating Consolidator of platform Subscale Cloud + Large consolidation/arbitrage Providers opportunity Singular + Structural competitive Focus on advantages (scale, solution 100% suites
Slide 7: Secular Tailwinds Driving Upland's Growth
3 Secular Tailwinds Driving Upland’s Growth 1 Demand for Automation Upland’s 7 enterprise solution Need for automated solutions that are scalable and secure suites automate mission critical driving market from Frankenstein spreadsheets and manual processes to professional EWM platforms. business cha
Slide 8: Annual Revenue Growth Trend
Annual Revenue Annual Revenue ($ in millions) Growth Trend Total $196.8 Recurring(3) Growth Drivers 36% + Strong 98% net dollar retention rate (2) R: AG $149.9 C + Installed base expansion ear 7Y + Price uplift, platinum support + Cross-sell $98.0 $183.4 + Efficient new logo acquisition $74.8 $69.9
Slide 9: Adjusted EBITDA Growth Trend
Adjusted EBITDA Adjusted EBITDA ($ in millions) Growth Trend $16.7 $17.5 Robust, Consistent 3% Margin Expansion : 13 $12.5 $13.1 GR + Driven by UplandOne operating CA $10.8 ar platform and scale efficiencies Ye $9.7 3 $8.3 + 40% Adjusted EBITDA(2) long-term margin target $6.8 $5.5 $4.3 $3.6 $2.8 $2.
Slide 10: Performance
Performance UPLD Share Price (by month since IPO 11/5/2014) Capital Stewardship + Value $45 Creation $40 + IPO November 2014 + $1.0 Billion Enterprise Value $35 + Met or beat earnings guidance every $30 quarter since IPO (18 consecutive quarters) $25 + Share creep +/- 3% per year $20 + Target levera
Slide 11: Proven Management Team
Proven Management Team Jack Tim Mike McDonald Mattox Hill Founder, Chairman, and President and COO CFO CEO + Serial entrepreneur and winner of E&Y Entrepreneur of + Executive at Dell, Inc. (1998-2013) + Member of Upland founding team The YearTM Award + Ran worldwide product marketing (80% of Dell’s
Slide 12: Recent Developments
Recent Developments October 2018 December 2018 March 2019 March 2019 Upland Acquires Upland Acquires Upland Announces Upland Announces Rant & Rave Adestra Solution Suites Q4 Earnings(1) Accretive acquisition Accretive acquisition Seven Cloud Solution + Record Revenues adds $21 million in brings $18
Slide 13: Product Platform and UplandOne Operating Platform
Product Platform and UplandOne Operating Platform 13 | Company Confidential © 2019 Upland Software, Inc.
Slide 14: Upland Enterprise Solution Suites
Upland Enterprise Solution Suites Work Management Solution Suites That Deliver Powerful Results Sales and Marketing Suites Project & IT Management Suites Workflow Automation Suites Suite Customer Enterprise Professional Project and Document Secure Enterprise Experience Sales Services Financial Lifec
Slide 15: Product Platform: Architecture
Product Platform: Architecture 7 Enterprise Solution Suites Common UI/UX Customer Sales Professional Project and Document Secure Enterprise Experience Enablement Services Financial Lifecycle Content Knowledge Single Sign On Management Automation Management Automation Services Management (SSO) 16 Ent
Slide 16: Product Platform: WorkCenter
Product Platform: WorkCenter TM + Separate cloud application that functions as a dashboard for one or multiple solutions + Will be deployed first as part of Upland PSA + Pre-configured personas for tailored experiences; PSO support for additional customization + Provides actionable insights from var
Slide 17: 9,000+ Customers
9,000+ Customers Financial Services Manufacturing, Industrial Government, Nonprofit, Education Corporate Services Technology Healthcare Media Consumer, Restaurant, Retail 17 | Company Confidential © 2019 Upland Software, Inc.
Slide 18: Why Customers Choose Upland
Why Customers Choose Upland Award-Winning Customer Success The Scale and Cloud Products Commitment Resources to Deliver You get a trusted, award- At Upland, customer success Upland is a financially strong, winning cloud solution or suite means you achieve the value growing, publicly traded that’s pu
Slide 19: Operating Platform: UplandOne
Operating Platform: UplandOne The Foundation for Customer Success GOAL High-Touch Customer Success Program Enterprise-Grade Cloud Platform 100% CUSTOMER SUCCESS (Value + Experience) MEASUREMENT Quality-Focused Exceptional Global R&D Support Net Promoter Financial Score Strength Customer Customer- Re
Slide 20: Selected Land and Expand Customer Successes
Selected Land and Expand Customer Successes Join Starting Q4’18 Expansion Industry Solution Suite Date ARR ARR Amount CAGR % Manufacturing Business Operations Q4'15 $30,800 $375,000 $344,200 130% IT Software and Services Enterprise Sales Enablement Q3'18 $332,000 $404,004 $72,004 119% Software Enter
Slide 21: Stages of Upland's Evolution
Stages of Upland’s Evolution 4 3 2 1 Organic Margin Growth Standardize Expansion Operating AEBITDA(1): M&A for Platform 3% to 37% Critical Mass Source: Company information and management (1) See slide 32 for definition and reconciliation of Adjusted EBITDA. 3% AEBITDA as reported for Q1 2015 and 37%
Slide 22: Efficient Sales Investment
Efficient Sales Investment Sales Headcount Sales Investment + In the past 8 quarters, have more than doubled Q1’17 Q4’18 Sales HC and recurring revenue organic growth rate while increasing AEBITDA(2) margins by 1,100 Field Sales 3 28 basis points + S&M spend is currently 13% of Revenue(3) Inside Sal
Slide 23: M&A Platform
M&A Platform 23 | Company Confidential © 2019 Upland Software, Inc.
Slide 24: M&A Platform
M&A Platform Goals and Strategic Financial Deal Track Record Fit Fit Fit + Add $25-$50MM + Enterprise cloud + $5-25MM Revenue + VC owners want acquired annualized + Proven, sticky + 10-15% Organic Growth to exit revenue run-rate per technology + 90%+ NDRR + VC check size up to year + Fortune 2000 an
Slide 25: M&A Platform: Orphaned Cloud Provider Opportunity
M&A Platform: Orphaned Cloud Provider Opportunity $212 Billion VC Cloud Market opportunity investment draws significant CXM early stage capital since 2002(1) Sales Enablement Capital Document Investors lack creates good Automation compelling exits for Evergreen technologies Opportunity and acquires
Slide 26: Growing Wave of VC Investment in Software
Growing Wave of VC Investment in Software ($ and Deal Count) 3000 $40 $35 2500 Amount Invested ($’s in Billions) $30 2000 $25 Deals 1500 $20 Average founding date of Upland acquisitions = 1999 $15 1000 This is where our deals have generally come from $10 500 $5 0 $0 2002 2003 2004 2005 2006 2007 200
Slide 27: Prototype Acquisition: UplandOne Transformation
Prototype Acquisition: UplandOne Transformation 1 2 100% Customer Success Best-Practices Operational Efficiencies 5-10% Organic Move products Eliminate wasteful Growth Target to AWS spend 10-15% Common UI/UX + PSO margins from negative Organic Growth SSO to 40% Target 24/7 global Global outsourcing
Slide 28: Summary
Summary 28 | Company Confidential © 2019 Upland Software, Inc.
Slide 29: Summary
Summary UPLD EWM 1,000,000 HQ Austin, TX 9,000 1,300 Russell 2000 Index $25B $24B HQ Austin, TX Global Users Customers Major Accounts TAM Started TAM Started 2012 2012 (>$100k Avg. ARR) $194MM (1) 69% (2) 37% (3) 98% (4) 20 $1.0 Billion + Acquisitions Enterprise >90% Recurring Revenue Adj. Net To Da
Slide 30: Appendix
Appendix 30 | Company Confidential © 2019 Upland Software, Inc.
Slide 31: Operating Targets (as a % of Revenue)
Operating Targets (as a % of Revenue) Target 2Q’17 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 4Q’18 Model Revenue 100% 100% 100% 100% 100% 100% 100% 100% Non-GAAP Gross Margin(1) 72% 71% 72% 73% 74% 73% 72% 75% Research & Development 16% 14% 14% 15% 13% 13% 12% 12% Sales & Marketing 17% 16% 13% 14% 14% 14% 13% 1
Slide 32: Adjusted EBITDA Reconciliation to Net Income (Loss)
Adjusted EBITDA Reconciliation to Net Income (Loss) (in Millions) 4Q’16 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 4Q’18 Net Income (Loss) $(2.0) $(5.6) $(5.8) $(3.5) $(3.8) $(3.2) $(5.2) $(4.2) $1.8 Depreciation and amortization expense 2.3 2.4 2.6 3.1 3.8 4.2 5.0 5.4 6.7 Interest expense, net 0.8 0
Slide 33: Total Addressable Market $25B
Total Addressable Market $25B Knowledge Management $1.2B CXM $5.9B PSA $6.7B Document Project & Automation Financial $5.0B Management Sales $4.7B Enablement Sources: Magic Quadrant for Cloud-Based IT Project and Portfolio Management Services, Worldwide, Gartner, 23 May 2016. $1.6B Professional Servi
Slide 34: Acquisitions To Date
Acquisitions To Date FEB PowerSteering NOV Eclipse PPM APR RightAnswers 2012 Project Portfolio Management 2014 Project & Work Management 2017 Enterprise Knowledge Management FEB Tenrox DEC Mobile Commons JUL Waterfall 2012 Professional Services Automation 2014 Enterprise Mobile Messaging & SMS 2017
Slide 35: Customer Experience Management
Customer Experience Management Deliver outstanding customer experiences Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Energy, Utilities, Retail, • Actionable insights from real-time Hospitality, Entertainment, feedback Cloud-Based Enables contact center users to
Slide 36: Customer Experience Management
Customer Experience Management Deliver outstanding customer experiences Product Solution Key Customers Use Cases Key Buyers • Chief Customer Officer • Voice of Customer • Dir of Customer Success / Experience Cloud-Based • Voice of Employee • Dir of Customer Care Customer • Voice of Candidate Rant &
Slide 37: Enterprise Sales Enablement
Enterprise Sales Enablement Win More Deals Faster Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Enables sales & proposal professionals to automate the creation of RFP responses, proactive proposals, and other sales content to win more business by improving • Rob
Slide 38: Enterprise Sales Enablement
Enterprise Sales Enablement Win More Deals Faster Product Solution Key Customers Use Cases Key Buyers • RFP and RFI response automation • Proposal and RFP Managers RFP & Sales • Security and due diligence questionnaires • VP/Director of Sales Qvidian Proposal • Statements of work (SOWs) • VP/Directo
Slide 39: Professional Services Automation
Professional Services Automation Transform services delivery Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Gives professional and business services teams & finance departments a centralized, yet configurable, Professional IT/Management Consulting, platform to ma
Slide 40: Professional Services Automation
Professional Services Automation Transform services delivery Product Solution Key Customers Use Cases Key Buyers Professional • CFO • Professional Services Automation (PSA) Services • CIO Tenrox Automation • Resource Management • VP of Services • Project Financial Management (PSA) • VP of Operations
Slide 41: Project and Financial Management
Project and Financial Management Convert cost centers into value drivers Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Provides business leaders & PMO’s with a highly configurable top-down cloud-based PPM solution to Project Portfolio Banking & Finance, • Better
Slide 42: Project and Financial Management
Project and Financial Management Convert cost centers into value drivers Product Solution Key Customers Use Cases Key Buyers • VP Process Excellence • Lean Six Sigma • Director Continuous Improvement Project Portfolio • Project Management Office (PMO) • Black Belt/Project Manager PowerSteering Manag
Slide 43: Document Lifecycle Automation
Document Lifecycle Automation Streamline high-volume processes Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Provides IT & process owners in departments like Accounts Payable, Human Resources and Contracts • Workflow capabilities Document & Management with a use
Slide 44: Document Lifecycle Automation
Document Lifecycle Automation Streamline high-volume processes Product Solution Key Customers Use Cases Key Buyers • CFO, VP/Director of Finance, AP Director, Document & • Accounts Payable Controller FileBound Workflow • Human Resources • VP/Director of Human Resources Automation • Contract Manageme
Slide 45: Secure Document Services
Secure Document Services Ensure data security and compliance Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Empowers secure document process automation for Banking & Finance, business and process owners through distributed • Robust vertical-focused functionality
Slide 46: Secure Document Services
Secure Document Services Ensure data security and compliance Product Solution Key Customers Use Cases Key Buyers • Records Scanning & Fax Consolidation • Digital Mailroom • CIO Secure • Vendor Invoice Processing • VP/Director of IT AccuRoute Document • IP or Sensitive Documents Handling • VP/Directo
Slide 47: Enterprise Knowledge Management
Enterprise Knowledge Management Enable enterprise knowledge-sharing Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Provides call center & IT support teams with a centralized cloud knowledge hub to power all customer • Customer Success team Enterprise contact chan
Upland Software — 31st Annual ROTH Conference (March 2019) on 6ix