Upland Software, Inc. · NASDAQ:UPLD

Upland Software — 22nd Annual Needham Growth Conference (January 2020)

43 slides from Upland Software's conference presentation, Jan 15, 2020

Slide 1: Upland Overview
Upland Overview January 2020
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 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) (3) $259MM 49% $99MM 98% 21 25 $127MM (1) (2) (4) Annual Rev Run-rate Revenue Adjusted Net Consecutive Acquisitions Revs via Ac
Slide 7: Upland's Enterprise Work Management Solutions
Upland’s Enterprise Work Management Solutions Cloud-Based Solutions That Automate and Integrate Enterprise Workflows Customer Experience Enterprise Sales Project & IT Document Cloud Management & Marketing Management Workflow Cloud Cloud Cloud Cloud Orchestrate Synchronize Deliver Cost Streamline Vol
Slide 8: Customers
Upland’s Enterprise Work Management Solutions Cloud-Based Solutions That Automate and Integrate Enterprise Workflows Customer Experience Enterprise Sales Project & IT Document Cloud Management & Marketing Management Workflow Cloud Cloud Cloud Cloud IT, Accounts Payable, HR, Use Cases Contact Center,
Slide 9: $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
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 chip customers at highly accretive multiples Clouds Singular Focus on Operating  Professionalize operations via transformation Platform: playbook, increase margins + customer
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 Customer Experience Enterprise Sales Project & Document 4 Enterprise Single Sign On Management & Marketing IT Management Workflow Clouds (SSO) Cloud Cloud Cloud Cloud Uplan
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 “orphans”
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: Proven Ability To Drive Strategic Relationships
Proven Ability To Drive Strategic Relationships Cloud Customer Problem Delivered Results Launched interactive mobile Experience + Expanded customer loyalty program to Customer Broken customer loyalty messaging campaigns using Cloud >2MM subscribers Large US Retailer program Upland’s Mobile Messaging
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 19: Financial Highlights
Financial Highlights  43% revenue growth CAGR (‘16A-’19E)(1) , now at $259MM(2) scale  >93% recurring revenue, growing 49%(3)  98% net dollar retention rate(4) Capital Stewardship +  37% Adjusted EBITDA margin(5) and growing (target 40% at scale) Value Creation  High adjusted FCF conversion: ca
Slide 20: Stages of Upland's Evolution
Stages of Upland’s Evolution M&A for Critical Standardize Operating Margin Organic Mass Platform Expansion Growth 20 | Company Confidential © 2020 Upland Software, Inc.
Slide 21: Annual Revenue Growth Trend
To be discussed: • Mike asked if we should show 2016-19 only? Annual Revenue • Mike asked quarterly or annually? Annual AnnualRevenue Revenue($ in millions) • Added bullet about diverse product rev $219.3 Growth Trend ($Totalin millions) Prof. Serv. Recurring (3) & License Recurring(3) Growth Driver
Slide 22: Adjusted EBITDA Growth Trend
Adjusted EBITDA Quarterly Adjusted EBITDA Growth Trend ($ in millions) $24.1 Consistent Margin Expansion $20.7 $19.1 + Driven by UplandOne operating $17.8 platform and scale efficiencies $16.7 $13.1 + Adjusted EBITDAexpansion from $12.5 $10.8 3% at IPO to 38% 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 25: Acquisition Related Expenses Are Temporary
Acquisition Related Expenses Are Temporary Example Mix of Acq Related Expenses Example Timing of Acq Related Exp on P&L for Each Acq • Legal, accounting, tax diligence experts • Office lease terminations 50% • Banking fees • Vendor cancellations • Indemnity insurance • Datacenter lift & shift 45% •
Slide 26: Theoretical AEBITDA to FCF Bridge
Theoretical AEBITDA to FCF Bridge 1 2 3 4 5 6 Source: Company information and management (1) Based on the annualized run-rate of Adjusted EBITDA pro-forma for recent acquisitions after completing transformations to get the acquired businesses into model, as disclosed in the October 7, 2019 Form 8-K.
Slide 27: Organic Growth Rate
Organic Growth Rate + GAAP Recurring Revenue + Operating assets owned for full prior year comparison period, excl. divested/sunset assets + Deferred revenue discount can inflate reported organic growth rate + Disclosed in 10-Q/K’s and tied out by external independent ”…subscription and support audit
Slide 28: Adjusted EBITDA Reconciliation to Net Income (Loss)
Adjusted EBITDA Reconciliation to Net Income (Loss) (in Millions) 3Q’16 4Q’16 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 4Q’18 1Q’19 2Q’19 3Q’19 Net Income (Loss) $(2.4) $(2.0) $(5.6) $(5.8) $(3.5) $(3.8) $(3.2) $(5.2) $(4.2) $1.8 $(7.8) $(5.4) $(12.3) Depreciation and amortization expense 2.4 2.3 2.
Slide 29: 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 30: Customer Experience Management Cloud
Customer Experience Management Cloud Orchestrate Customer Journeys 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 cent
Slide 31: Customer Experience Management Cloud
Customer Experience Management Cloud Orchestrate Customer Journeys Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Provides call center & IT support teams with a centralized cloud • Customer success team Enterprise knowledge hub to power all customer contact chann
Slide 32: Customer Experience Management Cloud
Customer Experience Management Cloud Orchestrate Customer Journeys 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 & Rave
Slide 33: Customer Experience Management Cloud
Customer Experience Management Cloud Orchestrate Customer Journeys Product Solution Key Customers Use Cases Key Buyers Enterprise • Enterprise search to find answers in all repositories • Director, IT Service Management • Self-service portal to deflect calls from contact center Knowledge • VP/Direct
Slide 34: Enterprise Sales and Marketing Cloud
Enterprise Sales and Marketing Cloud Synchronize Revenue Teams 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 oppo
Slide 35: Enterprise Sales and Marketing Cloud
Enterprise Sales and Marketing Cloud Synchronize Revenue Teams Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Energy, Utilities, Retail, • Actionable insights from real-time feedback Hospitality, Entertainment, Cloud-Based Enables contact center users to capture,
Slide 36: Enterprise Sales and Marketing Cloud
Enterprise Sales and Marketing Cloud Synchronize Revenue Teams 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 • Oppo
Slide 37: Enterprise Sales and Marketing Cloud
Enterprise Sales and Marketing Cloud Synchronize Revenue Teams 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 & Rave Enga
Slide 38: Project & IT Management Cloud
Project & IT Management Cloud Deliver Cost Transparency 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 visibility and r
Slide 39: Project & IT Management Cloud
Project & IT Management Cloud Deliver Cost Transparency 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 manage
Slide 40: Project & IT Management Cloud
Project & IT Management Cloud Deliver Cost Transparency 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 Management • New Produ
Slide 41: Project & IT Management Cloud
Project & IT Management Cloud Deliver Cost Transparency Product Solution Key Customers Use Cases Key Buyers Professional • CFO • Professional Services Automation (PSA) Services • CIO PSA Automation • Resource Management • VP of Services • Project Financial Management (PSA) • VP of Operations • RFP a
Slide 42: Document Workflow Cloud
Document Workflow Cloud Streamline 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 user-friendly,
Slide 43: Document Workflow Cloud
Document Workflow Cloud Streamline 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 Management • VP/Dir

Upland Software — 22nd Annual Needham Growth Conference (January 2020) on 6ix

Upland Software — 22nd Annual Needham Growth Conference (January 2020)

Slide 1: Upland Overview

Slide 2: Safe Harbor Statement

Slide 3: Upland Management Team

Slide 4: Company Overview

Slide 5: Investment Highlights

Slide 6: Upland Software at a Glance

Slide 7: Upland's Enterprise Work Management Solutions

Slide 8: Customers

Slide 9: $25B+ Market Driven by Secular Tailwinds

Slide 10: 3 Key Drivers of the Upland Growth Flywheel

Slide 11: UplandOne = A Better Way to Run a Software Business

Slide 12: Upland's Unified Product Platform

Slide 13: Upland's M&A Platform: Target Screening Objectives

Slide 14: Upland's M&A Platform: Market Opportunity

Slide 15: Diversified Base of 9,000+ Customers

Slide 16: Proven Ability To Drive Strategic Relationships

Slide 17: Experienced Management Team with Track Record of Successful Execution

Slide 18: Financial Overview

Slide 19: Financial Highlights

Slide 20: Stages of Upland's Evolution

Slide 21: Annual Revenue Growth Trend

Slide 22: Adjusted EBITDA Growth Trend

Slide 23: Investment Highlights

Slide 24: Appendix

Slide 25: Acquisition Related Expenses Are Temporary

Slide 26: Theoretical AEBITDA to FCF Bridge

Slide 27: Organic Growth Rate

Slide 28: Adjusted EBITDA Reconciliation to Net Income (Loss)

Slide 29: Acquisitions To Date

Slide 30: Customer Experience Management Cloud

Slide 31: Customer Experience Management Cloud

Slide 32: Customer Experience Management Cloud

Slide 33: Customer Experience Management Cloud

Slide 34: Enterprise Sales and Marketing Cloud

Slide 35: Enterprise Sales and Marketing Cloud

Slide 36: Enterprise Sales and Marketing Cloud

Slide 37: Enterprise Sales and Marketing Cloud

Slide 38: Project & IT Management Cloud

Slide 39: Project & IT Management Cloud

Slide 40: Project & IT Management Cloud

Slide 41: Project & IT Management Cloud

Slide 42: Document Workflow Cloud

Slide 43: Document Workflow Cloud