Upland Software, Inc. · NASDAQ:UPLD
Upland Software — Investor Presentation (October 2019)
41 slides from Upland Software's investor presentation, Oct 18, 2019
Slide 1: Upland Overview
Upland Overview October 2019
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 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 >
Slide 4: Company Overview
Company Overview 4 | Company Confidential © 2019 Upland Software, Inc.
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
Slide 6: Upland Software at a Glance
Upland Software at a Glance UPLD EWM 1,000,000+ 9,000+ 1,500+ Russell 2000 Index $25B HQ Austin, TX Global Users Customers Major Accounts TAM Started 2012 (>$135k Avg. ARR) (1) (2) (3) (4) $259MM 49% $99MM 98% 20 25 $127MM Annual Rev Run-rate Revenue Adjusted Net Consecutive Acquisitions Revs via Ac
Slide 7: Upland's Enterprise Work Management Cloud
Upland’s Enterprise Work Management Cloud Value Delivered Enterprise Cloud Solution Suites Customer Experience Cloud DRIVE REVENUE Enterprise Customer Contact by delivering outstanding customer Sales Experience Center experiences and sales productivity Optimization Management Productivity Document L
Slide 8: Upland Customer Experience Cloud
Upland Customer Experience Cloud Used by 2200+ customers worldwide Unite Your Teams Capabilities ✓ Voice of Customer Enterprise Sales Customer Experience Contact Center ✓ Voice of Employee Optimization Management Productivity ✓ Marketing Automation ✓ Proposal Automation ✓ Omni-Channel Engagement ✓ C
Slide 9: $25B+ Market Driven by Secular Tailwinds
$25B+ Market Driven by Secular Tailwinds Knowledge Management Need for automated solutions $1.2B CXM $5.9B 1 Digital Transformation that are scalable and integrated, versus siloed and manual PSA $6.7B Still early innings in the digital 2 Transition to Cloud transformation of the enterprise, driving
Slide 10: 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
Slide 11: 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
Slide 12: Upland's Unified Product Platform
Upland’s Unified Product Platform ✓Integrated Platform ✓Seamless Experience ✓Deep Functionality ✓ Enterprise-Grade Common UI/UX 8 Enterprise Solution Suites Single Sign On Customer Enterprise Contact Professional Project and Document Secure Enterprise (SSO) Experience Sales Center Services Financial
Slide 13: 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
Slide 14: 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 Out of “o
Slide 15: 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 1,500+ accounts Healthcare >$135K ARR Technology Consumer, Restaurant, Retail 85%+ recurring Telecom & Med
Slide 16: 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
Slide 17: 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,
Slide 18: Financial Overview
Financial Overview 18 | Company Confidential © 2019 Upland Software, Inc.
Slide 19: Financial Highlights
Financial Highlights ✓ 43% revenue growth CAGR (‘16A-’19E)(1) , now at $259MM(2) scale ✓ >92% recurring revenue, growing 49%(3) ✓ 98% net dollar retention rate(4) Capital Stewardship + ✓ 37% Adjusted EBITDA margin(5) and growing (target 40% at scale) Value Creation ✓ High adjusted FCF conversion: ca
Slide 20: Stages of Upland's Evolution
Stages of Upland’s Evolution M&A for Standardize Organic Critical Operating Margin Mass Platform Expansion Growth 20 | Company Confidential © 2019 Upland Software, Inc.
Slide 21: Annual Revenue Growth Trend
To be discussed: • Mike asked if we should show 2016-19 only? • Mike asked quarterly or annually? Annual Revenue Annual AnnualRevenue Revenue($ in millions) ($Totalin millions) • Added bullet about diverse product rev $219.3 Growth Trend Prof. Serv. Recurring (3) & License Recurring(3) Growth Driver
Slide 22: Adjusted EBITDA Growth Trend
Adjusted EBITDA Quarterly Adjusted EBITDA ($ in millions) Growth Trend $24.1 Consistent Margin Expansion $20.6 $19.1 + Driven by UplandOne operating $17.8 $16.7 platform and scale efficiencies $13.1 + Adjusted EBITDAexpansion from $12.5 $10.8 3% at IPO to 37% today(2) $9.7 $8.3 $6.8 + Increased Adj.
Slide 23: 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
Slide 24: Appendix
Appendix 24 | Company Confidential © 2019 Upland Software, Inc.
Slide 25: Adjusted EBITDA Reconciliation to Net Income (Loss)
Adjusted EBITDA Reconciliation to Net Income (Loss) (in Millions) 2Q’16 2Q’16 4Q’16 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 4Q’18 1Q’19 2Q’19 Net Income (Loss) $(3.6) $(2.4) $(2.0) $(5.6) $(5.8) $(3.5) $(3.8) $(3.2) $(5.2) $(4.2) $1.8 $(7.8) $(5.4) Depreciation and amortization expense 2.6 2.4 2.3
Slide 26: Acquisitions To Date
Acquisitions To Date FEB PowerSteering JAN LeadLander OCT Rant & Rave 2012 Project Portfolio Management 2016 Website Visitor Analytics & Reporting 2018 Cloud-Based Customer Engagement FEB Tenrox MAR Hipcricket DEC Adestra 2012 Professional Services Automation 2016 Enterprise Mobile Messaging & SMS 2
Slide 27: Customer Experience Management
Customer Experience Management Deliver outstanding customer experiences Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win • Actionable insights from real-time Energy, Utilities, Retail, Hospitality, feedback Cloud-Based Entertainment, Finance, Public Enables contact
Slide 28: 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 29: Enterprise Sales Productivity
Enterprise Sales Productivity Win More Deals Faster Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Helps sales and the extended revenue team build customer contacts, qualify deals, identify new and up-sell • Help enterprises win opportunities that opportunities,
Slide 30: Enterprise Sales Productivity
Enterprise Sales Productivity Win More Deals Faster Product Solution Key Customers Use Cases Key Buyers • Chief Revenue Officer • Chief Customer Officer Customer • Enterprise account planning • VP of Sales Altify Revenue • Sales process management • VP Sales Operations Optimization • Opportunity man
Slide 31: Contact Center Productivity
Contact Center Productivity Increase Agent Productivity Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Provides sales and service teams with a single pane of Finance & Banking, glass for voice interactions inside the CRM, through a Healthcare, Manufacturing & • E
Slide 32: Contact Center Productivity
Contact Center Productivity Increase Agent Productivity Product Solution Key Customers Use Cases Key Buyers • Call Center Director/Manager • Contact Center Director/Manager • Productivity tools for sales and service teams Computer • CRM Administrator • Inbound and outbound call handling features for
Slide 33: 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 34: 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 • Resource Management Automation • VP of Services • Project Financial Management (PSA) • VP of Operations
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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
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