Upland Software, Inc. · NASDAQ:UPLD

Upland Software — Needham Emerging Technology Conference 2019

25 slides from Upland Software's conference presentation, May 21, 2019

  1. Slide 1: Needham Emerging Tech

    Needham Emerging Tech May 2019

  2. 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

  3. Slide 3: Upland Management Team

    Upland Management Team Jack McDonald Mike Hill Founder, Chairman, and CEO CFO + Serial entrepreneur, winner of E&Y Entrepreneur of The YearTM Award + Member of Upland founding team + Led two successful NASDAQ IPOs (UPLD + PRFT) + CFO of Perficient (NASDAQ: PRFT) (2004-2007) from $30MM to + Created >

  4. Slide 4: Company Overview

    Company Overview 4 | Company Confidential © 2019 Upland Software, Inc.

  5. Slide 5: Investment Highlights

    Leading Enterprise Work Management Cloud for automated and integrated workflows Attractive market opportunity driven by cloud, digital transformation, and VC investment tailwinds Growth flywheel: Product + Operating + M&A Platforms UplandOne operating platform provides unique and proven ability to e

  6. Slide 6: Upland Software at a Glance

    Upland Software at a Glance UPLD EWM 1,000,000+ 9,000+ 1,300+ Russell 2000 Index $25B HQ Austin, TX Global Users Customers Major Accounts TAM Started 2012 (>$100k Avg. ARR) $205MM 62% 37% 98% 19 21 >$100MM (1) (2) (3) (4) Annual Rev Run-rate Revenue Adjusted Net Consecutive Acquisitions ARR via Acqu

  7. Slide 7: Upland's Enterprise Work Management Cloud

    Upland’s Enterprise Work Management Cloud Value Delivered Enterprise Cloud Solution Suites Sales & Marketing DRIVE REVENUE Customer Enterprise by delivering outstanding customer Experience Sales experiences and sales productivity Management Enablement Document Lifecycle REDUCE COSTS by streamlining

  8. Slide 8: $25B+ Market Driven by Secular Tailwinds

    $25B+ Market Driven by Secular Tailwinds Knowledge 1 Management Need for automated solutions that are scalable and $1.2B CXM Digital Transformation integrated, versus siloed and $5.9B manual PSA $6.7B 2 Still early innings in the digital transformation of the Transition to Cloud enterprise, driving

  9. Slide 9: 3 Key Drivers of the Upland Growth Flywheel

    3 Key Drivers of the Upland Growth Flywheel Product Platform:  Acquire thematic, proven cloud products with blue Enterprise Cloud chip customers at highly accretive multiples Solution Suites Singular Focus on Operating  Professionalize operations via transformation Platform: playbook, increase mar

  10. Slide 10: UplandOne = A Better Way to Run a Software Business

    UplandOne = A Better Way to Run a Software Business 1 100% Customer Success Culture Proven, programmatic, efficient customer outreach and account management 2 Enterprise Grade Delivery Global 24/7 customer support + PSO + AWS Satisfied Customers Analytics and Automation 98% Net Dollar Retention Rate

  11. Slide 11: Upland's Unified Product Platform

    Upland’s Unified Product Platform Integrated Platform Seamless Experience Deep Functionality  Enterprise-Grade Common UI/UX 7 Enterprise Solution Suites Single Sign On Customer Sales Professional Project and Document Secure Content Enterprise (SSO) Experience Enablement Services Financial Lifecy

  12. Slide 12: Upland's M&A Platform: Target Screening Objectives

    Upland’s M&A Platform: Target Screening Objectives Goals and Strategic Financial Track Record Fit Fit + Innovate through acquisition + Cloud-native + $5-25MM Revenue + Add $25-$50MM revenue + Build out solution suites + Sticky, with 90%+ NDRR run-rate per year + Solutions our existing + 70%+ Gross M

  13. Slide 13: Upland's M&A Platform: Market Opportunity

    Upland’s M&A Platform: Market Opportunity Massive and Growing VC Investment Targeting “Orphaned” VC Investments 3,000 in Software and Cloud $40 2,500 Amount Invested ($bn) # of Deals $30 CXM 2,000 Sales Enablement 1,500 $20 Document Automation 1,000 IPO or Strategic $10 Exit 500 Investment “orphans”

  14. Slide 14: Diversified Base of 9,000+ Customers

    Diversified Base of 9,000+ Customers Financial Services Manufacturing, Industrial Building lasting and strategic relationships with customers Government, Nonprofit, Education Corporate Services 1,300+ accounts Healthcare >$100K ARR Technology Consumer, Restaurant, Retail 80%+ Media revenue from majo

  15. Slide 15: UplandOne Driving Penetration in Strategic Accounts

    UplandOne Driving Penetration in Strategic Accounts Large European IT Services Corporation Large Medical Device Manufacturer Enterprise Sales Enablement Suite Project and Financial Management Suite Problem: Problem: • Low win-rate and lengthy response times for RFPs • Lack of cost control and projec

  16. Slide 16: Experienced Management Team with Track Record of Successful Execution

    Experienced Management Team with Track Record of Successful Execution Jack McDonald Tim Mattox Mike Hill Founder, Chairman & CEO President & COO CFO + Leads overall strategic direction, + Leads sales, marketing, + Leads Upland’s finance & acquisition, integration, and growth development, operations,

  17. Slide 17: Financial Overview

    Financial Overview 17 | Company Confidential © 2019 Upland Software, Inc.

  18. Slide 18: Financial Highlights

    Financial Highlights  40% revenue growth CAGR (‘16A-’19E)(1) over $200MM scale  >90% recurring revenue, growing 62% last year  98% net dollar retention rate(2) Capital Stewardship +  37% Adjusted EBITDA(3) margin and growing (target 40% at scale) Value Creation  High adjusted FCF conversion: ca

  19. Slide 19: Stages of Upland's Evolution

    Stages of Upland’s Evolution 4 3 2 1 Continued Margin Accretive M&A Expansion Growth Standardized UplandOne M&A for + Operating Critical Mass Platform Organic Growth 19 | Company Confidential © 2019 Upland Software, Inc.

  20. Slide 20: Annual Revenue Growth Trend

    To be discussed: • Mike asked if we should show 2016-19 only? Annual Revenue • Mike asked quarterly or annually? Annual AnnualRevenue Revenue($ in millions) • Added bullet about diverse product rev Growth Trend ($Totalin millions) $204.4 Prof. Serv. Recurring (3) & License Recurring(3) Growth Driver

  21. Slide 21: Adjusted EBITDA Growth Trend

    Adjusted EBITDA Quarterly Adjusted EBITDA(2) $17.8 $18.2 Growth Trend ($ in millions) $16.7 Consistent Margin Expansion $13.1 $12.5 + Driven by UplandOne operating $10.8 platform and scale efficiencies $9.7 $8.3 (2) + Adjusted EBITDA expansion from $6.8 3% at IPO to 37% today $5.5 $4.3 + Increased A

  22. Slide 22: Investment Highlights

    Leading Enterprise Work Management Cloud for automated and integrated workflows Attractive market opportunity driven by cloud, digital transformation, and VC investment tailwinds Growth flywheel: Product + Operating + M&A Platforms UplandOne operating platform provides unique and proven ability to e

  23. Slide 23: Appendix

    Appendix 23 | Company Confidential © 2019 Upland Software, Inc.

  24. Slide 24: Adjusted EBITDA Reconciliation to Net Income (Loss)

    Adjusted EBITDA Reconciliation to Net Income (Loss) (in Millions) 1Q’16 2Q’16 2Q’16 4Q’16 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 4Q’18 1Q’19 Net Income (Loss) $(5.6) $(3.6) $(2.4) $(2.0) $(5.6) $(5.8) $(3.5) $(3.8) $(3.2) $(5.2) $(4.2) $1.8 $(7.8) Depreciation and amortization expense 2.5 2.6 2.4

  25. Slide 25: Acquisitions To Date

    Acquisitions To Date FEB PowerSteering DEC Mobile Commons JUL Waterfall 2012 Project Portfolio Management 2014 Enterprise Mobile Messaging & SMS 2017 Enterprise Mobile Messaging & SMS FEB Tenrox NOV Ultriva NOV Qvidian 2012 Professional Services Automation 2015 Supply Chain Management 2017 RFP & Sal

Upland Software — Needham Emerging Technology Conference 2019 on 6ix