Upland Software, Inc. · NASDAQ:UPLD
Upland Software — 4th Annual ROTH Technology Corporate Access Day, 9th Annual Craig-Hallum Alpha Select Conf (November 2018)
29 slides from Upland Software's conference presentation, November 2018
Slide 1: Upland Software
Upland Software November 2018
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 the
Slide 3: Upland Software at a Glance
Upland Software at a Glance Enterprise Work Management Cloud Software Project Information Business Sales and Human Management Technology Operations Marketing Resources Started 2012 Headquarters Austin, TX UPLD ★ (1) (2) (3) $172MM 57% 37% Revenue Revenue Growth Adj. EBITDA (4) Acquisitive Growth 4,0
Slide 4: Annual Revenue Growth Trend
Annual Revenue Growth Trend Annual Revenue ($ in millions) $172 ProForma(4) $147.5 Total Growth Drivers Recurring(3) • Strong Renewal Rates(2) $134.2 $98.0 • Installed base expansion $74.8 $85.5 • Price uplift, Platinum $64.6 $69.9 Support $65.6 $41.2 $57.2 • Cross-sell • Efficient new logo $48.6 $2
Slide 5: Quarterly Adjusted EBITDA Trend
Quarterly Adjusted EBITDA Trend Adjusted EBITDA ($ in millions) $15.7 $13.1 $12.5 Robust, Consistent $10.8 $9.7 Margin Expansion $8.3 • Driven by UplandOne $6.8 operating platform and $5.5 scale efficiencies $3.6 $4.3 • 40% Adjusted EBITDA(1) $2.8 long term margin target $1.8 $2.0 $0.8 $1.1 $0.5 1Q'
Slide 6: Recent Developments
Recent Developments RECORD Q3 ACQUISITION October 2018 46% Q3 RR Growth 35% Q3 Adj. EBITDA(1) $60MM+ Run-rate Adj. EBITDA(2) ACQUISITION ACQUISITION March 2018 June 2018 Source: Company information and management. (1) See slide 26 for the definition and reconciliation of Adjusted EBITDA. (2) Based o
Slide 7: Management Team
Management Team Founder, Chairman and CEO + Chairman and CEO Perficient, Inc. (NASDAQ: PRFT) (1999-2009) + Grew business from eight to 1200 employees, startup to $250 million in revenues + Completed seventeen acquisitions + Created $500+ million market cap on total net equity investment ~$10 million
Slide 8: We Provide Enterprise Work Management Cloud Solutions that Empower Teams
We Provide Enterprise Work Management Cloud Solutions that Empower Teams To compete knowledge workers need to act on information and collaborate with team members in real time — anytime, anywhere and from any device. 8 Company Confidential ©2018 Upland Software, Inc.
Slide 9: Enterprise Work Management Solutions
Enterprise Work Management Solutions Award-winning cloud solutions that address specific business needs and deliver powerful results – not bloated suites or costly on-premise solutions. Project Information Business Sales and Human Management Technology Operations Marketing Resources + Portfolio Mana
Slide 10: Upland Product Experience Architecture
Upland Product Experience Architecture Project Information Business Sales and Human Management Technology Operations Marketing Resources Single Sign On (SSO) Common UI/UX Mobile Upland Integration Upland Platform Analytics Enterprise Cloud Platform Key Third-Party Applications 10 Company Confidentia
Slide 11: Our Customers
Our Customers FINANCIAL SERVICES TECHNOLOGY GOVERNMENT, NON-PROFIT, EDUCATION HEALTHCARE MANUFACTURING, INDUSTRIAL MEDIA CONSUMER CORPORATE SERVICES 11 Company Confidential ©2018 Upland Software, Inc.
Slide 12: Why Customers Choose Upland
Why Customers Choose Upland Award-Winning Cloud Products You get the award-winning cloud solution that’s purpose-built for your business need, not bloated suites or costly on-premise software. We make your best-of-breed strategy a reality. Customer Success Commitment At Upland, customer success mean
Slide 13: One Unified Operating Platform sets the foundation for customer success
One Unified Operating Platform sets the foundation for customer success 100% Customer Success High-Touch Customer Expert Professional Success Program Services Loyalty EBITDA ↑ Renewal Expansion Quality-Focused 24x7 R&D Global Support Cross-Sell Referral Customer-Driven Enterprise Cloud Platform Inno
Slide 14: M&A Strategy
M&A Strategy We are building on our market leadership by acquiring built-for-purpose products that extend our depth, breadth and scale. What We Look For + Add $25MM+ revenues per year through accretive acquisitions that build out our 3 product families Financial Profile Revenues in the $5-$25 Millio
Slide 15: Reasons to Own UPLD
11 Reasons to Own UPLD 1 Acquisitive Growth Platform Company with large, accretive consolidation opportunity 2 Differentiated, scalable customer-focused operating model 3 High recurring revenue 4 High Adjusted EBITDA margins 5 Low capital intensity 6 Tax efficient vehicle 7 High Adjusted FCF convers
Slide 16: Appendix
upland Appendix
Slide 17: 100% Customer Success Commitment
100% Customer Success Commitment 17 Company Confidential ©2018 Upland Software, Inc.
Slide 18: Upland Development Platform
Upland Development Platform Upland Product Experience Architecture Project & IT Management Workflow Automation Digital Engagement Single Sign On Customer (SSO) Product Feedback Common UI/UX Delivered Mobile Upland Integration Upland Platform Analytics Product Product Enterprise Cloud Platform Roadma
Slide 19: Datacenters
Cloud Hosting Strategy 25 + All hosting to AWS by 2018 22 + Benefits include simplicity, 20 security, compliance, geo- expansion, utilization variability 15 14 and headroom, performance, market credibility Datacenters 10 + Enables seamless and rapid onboarding of new acquisitions 4 + Saves $1MM+ per
Slide 20: Operating Targets (as a % of Revenue)
Operating Targets (as a % of Revenue) Excludes Depreciation & Amortization and Stock-based compensation 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 4Q’18(3) Target Model Revenue 100% 100% 100% 100% 100% 100% 100% 100% 100% Non-GAAP Gross Margin(1) 72% 72% 71% 72% 73% 75% 75% 75% Research & Development
Slide 21: 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 depreciation and amortization expense, interest expense, net, other expense (income), net, loss on debt extinguishment, provision for income taxes, stock-based compensation expe
Slide 22: Acquisitions
Acquisitions Project and IT Workflow Digital Management Automation Engagement FEB 2012 MAY 2013 DEC 2013 PowerSteering FileBound Clickability Program & Portfolio Document & Workflow Automation Web Content Management Management NOV 2015 DEC 2014 FEB 2012 Ultriva Mobile Commons Tenrox Supply Chain Man
Slide 23: Project & IT Management
Project & IT Management Upland’s Project & IT Management product family enables you to manage your organization’s projects, knowledge, professional workforce, and IT costs. Primary Key Product Solution Who It Helps and How Why We Win Industries Competitors • Use-case specific Helps business leaders
Slide 24: Project & IT Management
Project & IT Management Upland’s Project & IT Management product family enables you to manage your organization’s projects, knowledge, professional workforce, and IT costs. Primary Key Product Solution Who It Helps and How Why We Win Industries Competitors Provides IT support teams with a centralize
Slide 25: Workflow Automation
Workflow Automation Upland’s Workflow Automation product family enables you to streamline, optimize, automate and secure document-intensive business processes across your enterprise and supply chain. Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Provides IT and
Slide 26: Workflow Automation
Workflow Automation Upland’s Workflow Automation product family enables you to streamline, optimize, automate and secure document-intensive business processes across your enterprise and supply chain. Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Provides sales a
Slide 27: Digital Engagement
Digital Engagement Upland’s Digital Engagement product family enables you to effectively engage with your customers, prospects, and community via the web and mobile technologies. Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Gives marketing teams and content • C
Slide 28: Total Addressable Market $18.6B
Total Addressable Market $18.6B Workflow Automation $3.5B Project and IT Management $11.4B Digital Engagement $3.7B Sources: Magic Quadrant for Cloud-Based IT Project and Portfolio Management Services, Worldwide, Gartner, 23 May 2016. Professional Service Automation (PSA) Software Market Size & Anal
Slide 29: Sales and Marketing
Sales and Marketing High-touch low-cost demand engine targets installed base. Customer Success teams focus on renewals, expansion, Premier Success Plans, cross-sell, and NPS improvements. ADVOCATES Customer Success CUSTOMERS Executive Outreach Customer Success 4,000+ Renewals Customers Marketing 450