Upland Software, Inc. · NASDAQ:UPLD
Upland Software — Investor Presentation (January 2019)
35 slides from Upland Software's investor presentation, Jan 14, 2019
Slide 1: Upland Software, Inc. Management Presentation
PRIVATE & CONFIDENTIAL Upland Software, Inc. Management Presentation January 2019
Slide 2: Safe Harbor Statement
PRIVATE & CONFIDENTIAL 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 plac
Slide 3: Agenda
PRIVATE & CONFIDENTIAL Agenda I Capital Structure Overview II Company Overview, Key Investor Highlights & Core Strategies III Historical Financial Summary IV Appendix 3 ©2019 Upland Software, Inc.
Slide 4: Capital Structure Overview
PRIVATE & CONFIDENTIAL Capital Structure Overview
Slide 5: Capital Structure Overview
PRIVATE & CONFIDENTIAL Capital Structure Overview + Upland Software, Inc. (“Upland” or the “Company”) is Potential Sources & Uses potentially seeking to raise a new, $350 million 7-year ($ in Millions) Senior Secured Term Loan B (the “Term Loan B” or “TLB”). Sources Uses New $30 Million Revolver due
Slide 6: Company Overview, Key Investor Highlights & Core Strategies
PRIVATE & CONFIDENTIAL Company Overview, Key Investor Highlights & Core Strategies
Slide 7: Senior Management
PRIVATE & CONFIDENTIAL Senior Management Founder, Chairman and CEO + Founded Upland in 2012; made $5.4 million personal cash equity investment + Chairman and CEO Perficient, Inc. (NASDAQ: PRFT) (1999-2009) + Grew business from eight to 1200 employees, startup to $250 million in revenues + Completed
Slide 8: Upland Software at a Glance
PRIVATE & CONFIDENTIAL Upland Software at a Glance + Upland Software, Inc. (“Upland” or the “Company”) provides cloud- based enterprise work management software globally Revenue by Type (2) Professional Services + Upland serves 1,300 major customers across a broad range of Perpetual License 7% 2% in
Slide 9: Reasons to Invest in UPLD
PRIVATE & CONFIDENTIAL 11 Reasons to Invest in 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 vehicl
Slide 10: Enterprise Work Management: Solutions
PRIVATE & CONFIDENTIAL 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 Re
Slide 11: Proven M&A Platform, with History of Consistently Successful Integrations
Proven M&A Platform, with History of PRIVATE & CONFIDENTIAL Consistently Successful Integrations FEB 2012 MAY 2013 NOV 2014 NOV 2015 JAN 2016 JAN 2017 MAR 2018 PowerSteering FileBound Eclipse Ultriva LeadLander AccuRoute (Omtool) InterFAX Program & Portfolio Document & Workflow Project Portfolio Sup
Slide 12: Proven M&A Platform, with History of Consistently Successful Integrations (con’t)
Proven M&A Platform, with History of PRIVATE & CONFIDENTIAL Consistently Successful Integrations (con’t) + Proven M&A capability and track record with 20 complementary software businesses to Upland’s platform successfully identified, acquired, integrated and restructured in order to maximize go-forw
Slide 13: Proven M&A Platform, with History of Consistently Successful Integrations (con’t)
Proven M&A Platform, with History of PRIVATE & CONFIDENTIAL Consistently Successful Integrations (con’t) Upland’s focus on existing customer success yields profitability, customer retention and product improvements by cost realignment to existing customer needs and integration of newly acquired busi
Slide 14: One Unified Operating Platform sets the foundation for customer success
PRIVATE & CONFIDENTIAL One Unified Operating Platform sets the foundation for customer success Customer Success (1) Loyalty Adj. EBITDA ↑ High-Touch Customer Expert Professional Success Program Services Renewal Expansion Quality-Focused 24x7 R&D Global Support Cross-Sell Referral Customer-Driven Ent
Slide 15: Large and Diversified Customer Base and Family of Cloud-based Applications
Large and Diversified Customer Base PRIVATE & CONFIDENTIAL and Family of Cloud-based Applications + Highly diverse customer base of over 9,000 Revenue by Customer (2) customers and ~1,300,000 end users 10.4% 1-10 4.4% 11-20 spanning many industry verticals worldwide 3.7% 21-30 3.1% 31-40 2.6% 41-50
Slide 16: Large and Diversified Customer Base and Family of Cloud-based Applications (con’t)
Large and Diversified Customer Base PRIVATE & CONFIDENTIAL and Family of Cloud-based Applications (con’t) Financial Services Technology Government, Non-Profit, Education Healthcare Manufacturing, Industrial Media Corporate Services Consumer 16 ©2019 Upland Software, Inc.
Slide 17: Why Customers Choose Upland
PRIVATE & CONFIDENTIAL Why Customers Choose Upland Immediately improving operating margins, cash flows, performance and security of the product and customer satisfaction Award-Winning Cloud Products You get the award-winning cloud solution that’s purpose-built for your business need, not bloated sui
Slide 18: Strong Contractually Recurring Revenue Model with High Visibility
Strong Contractually Recurring Revenue PRIVATE & CONFIDENTIAL Model with High Visibility + Operating model characterized by predictable, stable recurring revenue stream driven by subscription-based revenue which now accounts for over 90% of revenue annually + Cloud-based nature of business model can
Slide 19: Best-in-Class Management Team, with Strong Execution Track Record
Best-in-Class Management Team, with PRIVATE & CONFIDENTIAL Strong Execution Track Record Industry Key Management Position at Upland Prior Experience Experience Chairman & Jack McDonald >30 years Chief Executive Officer President & Tim Mattox >25 years Chief Operating Officer Mike Hill Chief Financia
Slide 20: Upland’s Core Strategies
PRIVATE & CONFIDENTIAL Upland’s Core Strategies + Continually build robust M&A pipeline, evaluating targets meeting all relevant financial criteria and adding complementary technologies, products and businesses to the existing Upland platform Acquire Complementary + Acquisitions allow Upland to expa
Slide 21: Historical Financial Summary
PRIVATE & CONFIDENTIAL Historical Financial Summary
Slide 22: Financial Policy at Upland
PRIVATE & CONFIDENTIAL Financial Policy at Upland Re-invest Excess Free Cash Flow 1 into the Business to Drive Growth and Delever Maintain Appropriate Liquidity Levels to Support Business Operations, 2 Strategic Acquisition Initiatives and Upland’s Core Strategies 3 Continue Disciplined, Value-Orien
Slide 23: Consistent and Strong Revenue Growth
PRIVATE & CONFIDENTIAL Consistent and Strong Revenue Growth Annual Revenue 5 Key Revenue Growth Drivers ($ in Millions) 1 Improve Net Dollar Retention Rate Recurring Non-Recurring $188 Acquire cloud-based EWM applications and restructure 2 them for improved profitability & sustainable growth $15
Slide 24: Consistent Improvement in Profitability
PRIVATE & CONFIDENTIAL Consistent Improvement in Profitability ($ in Millions) Sales & Marketing % Revenue $19 $15 $15 + Continuing to realize Sales & Marketing Sales $13 $12 efficiencies when onboarding & Marketing acquisitions, focusing on profitability 23% Expenses 19% 16% 16% 14% + Recent retent
Slide 25: Scalable and Profitable Business Model with Strong Adj. Free Cash Flow Generation
Scalable and Profitable Business Model PRIVATE & CONFIDENTIAL with Strong Adj. Free Cash Flow Generation Adj. EBITDA(1) + Healthy Adj. EBITDA(1) and strong margin growth along with a ($ in Millions) business model that allows for robust margin expansion (2) Adj. EBITDA Margin $70 + High degree of vi
Slide 26: Appendix
PRIVATE & CONFIDENTIAL Appendix
Slide 27: Corporate Organizational Structure
PRIVATE & CONFIDENTIAL Corporate Organizational Structure Legend: Revolver & Revolver & Foreign TLB TLB New $30 Million Revolver Upland Software, Borrower Guarantor Subsidiary Inc. New $350 Million Term Loan B Upland Software Inc./Logicels Upland Software Upland Software Upland Software Waterfal
Slide 28: Adj. EBITDA Reconciliation
PRIVATE & CONFIDENTIAL Adj. EBITDA Reconciliation Upland Adjusted EBITDA Reconciliation $ in millions 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 FY 2016 FY 2017 LQA 3Q18 Net Loss ($5.6) ($3.6) ($2.4) ($2.0) ($5.6) ($5.8) ($3.5) ($3.8) ($3.2) ($5.2) ($4.3) ($13.5) ($18.7) Depreciation and
Slide 29: Project & IT Management
PRIVATE & CONFIDENTIAL 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 H
Slide 30: Project & IT Management (con’t)
PRIVATE & CONFIDENTIAL Project & IT Management (con’t) 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 s
Slide 31: Workflow Automation
PRIVATE & CONFIDENTIAL 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 W
Slide 32: Workflow Automation (con’t)
PRIVATE & CONFIDENTIAL Workflow Automation (con’t) 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 Competito
Slide 33: Digital Engagement
PRIVATE & CONFIDENTIAL 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
Slide 34: Digital Engagement (con’t)
PRIVATE & CONFIDENTIAL Digital Engagement (con’t) 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 • Abili
Slide 35: Total Addressable Market $23.5B
PRIVATE & CONFIDENTIAL Total Addressable Market $23.5B Workflow Automation Cloud Fax $1.5 B Workflow $5.0B Automation Customer $3.5 B Experience CXM PPM $5.9B $5.9 B $2.0 B KM $1.2 B PSA Project and IT $6.7 B ITFM Management $2.7 B $12.6B Sources: Magic Quadrant for Cloud-Based IT Project and Portfo
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