Upland Software, Inc. · NASDAQ:UPLD
Upland Software — Needham & Company Emerging Technology Conference 2017
30 slides from Upland Software's conference presentation, May 16, 2017
Slide 1: Needham & Company Emerging Technology Conference
Needham & Company Emerging Technology Conference May 16, 2017
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 th
Slide 3: Upland Software at a Glance
Upland Software at a Glance Enterprise Work Management Cloud Software Started 2012 PROJECT & IT WORKFLOW DIGITAL MANAGEMENT AUTOMATION ENGAGEMENT Headquarters Austin, TX UPLD (3) ★ $95M 18% 30% (1) (2) Revenue Revenue Growth Adj. EBITDA Acquisitive Growth Platform Company 2,500+ ~300 Acquisitions to
Slide 4: Annual Revenue Growth Trend
Annual Revenue Growth Trend Annual Revenue 5 Growth Drivers ($ in millions) $89.0 • 95%(2) Net Dollar Retention Rate $74.8 $69.9 $77.5 • Acquire cloud-based EWM $64.6 applications and restructure $65.6 them for improved profitability $57.2 & sustainable growth $41.2 $48.6 • Installed base expansion
Slide 5: Quarterly Adjusted EBITDA Trend
Quarterly Adjusted EBITDA Trend Adjusted EBITDA ($ in millions) $6.5 $5.5 Robust, Consistent $4.3 Margin Expansion $3.6 • Driven by UplandOne $2.8 operating platform and scale efficiencies $2.0 $1.8 • 40% EBITDA long term $1.1 margin target $0.8 $0.5 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1
Slide 6: Recent Developments
Recent Developments RECORD RECORD RECORD 2017 Q1 Q2 GUDIANCE GUIDANCE • 19% RR Growth • 18% RR Growth(2) • 18% RR Growth(3) • 26% Adj. EBITDA(1) • 30% Adj. EBITDA(2) • 31% Adj. EBITDA(3) ACQUISITION ACQUISITION RAISED 40% Long Term Adjusted EBITDA January 2017 January 2017 Margin Target Source: Comp
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 ©2017 Upland Software, Inc.
Slide 9: Enterprise Work Management: Overview
Enterprise Work Management: Overview Award-winning cloud solutions that address specific business needs and deliver powerful results – not bloated suites or costly on-premise software. Project and IT Workflow Digital Management Automation Engagement Manage your Optimize, automate and Effectively eng
Slide 10: Enterprise Work Management: Brands
Enterprise Work Management: Brands Project and IT Workflow Digital Management Automation Engagement Tenrox FileBound Mobile Commons Eclipse PPM AccuRoute Clickability PowerSteering Ultriva LeadLander ComSci 10 Company Confidential ©2017 Upland Software, Inc.
Slide 11: Enterprise Work Management: Solutions
Enterprise Work Management: Solutions Project and IT Workflow Digital Management Automation Engagement Lean Six Sigma/Process Excellence Enterprise Content Management Application-to-Person Mobile Project & Portfolio Management Accounts Payable/Receivable Automation Messaging Professional Services Au
Slide 12: 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 13: Our Customers
Our Customers FINANCIAL SERVICES TECHNOLOGY GOVERNMENT, NON-PROFIT, EDUCATION HEALTHCARE MANUFACTURING, INDUSTRIAL MEDIA CONSUMER CORPORATE SERVICES 13 Company Confidential ©2017 Upland Software, Inc.
Slide 14: 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 15: 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 16: Upland Product Experience Architecture
Upland Product Experience Architecture Project and IT Management Single Sign On (SSO) Common UI/UX Digital Engagement Workflow Automation Mobile Upland Upland Integration Integration Manager Manager Enterprise- Class Cloud Enterprise Cloud Platform Key Third-Party Applications 16 Company Confidentia
Slide 17: 100% Customer Success Commitment
100% Customer Success Commitment 17 Company Confidential ©2017 Upland Software, Inc.
Slide 18: Upland Development Platform
Upland Development Platform Upland Product Experience Architecture Customer Product Feedback Delivered Product Product Roadmap Management Development Platform Code Automated Automated Automated Automated Knowledge Bug & Issue Source Code Quality Automated Unit Tests Functional QA Production Manageme
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 + Enables seamless and rapid 10 onboarding of new acquisitions 4 + Saves $1MM+ per
Slide 20: Sales and Marketing
Sales and Marketing High-touch low-cost demand engine targets installed base. Customer Success teams focus on expansion, renewals, Premier Success Plans, and NPS improvements. Customer Success Demand Engine Executive Outreach Field/Inside Sales (3/6) Customer Success (22) Solutions Consultants (6) R
Slide 21: Selected Land-and-Expand Success
Selected Land-and-Expand Success ü Cross Sell Initial Current ARR Category Company Start Date ARR$ ARR$ CAGR% Project & IT ü U. S. Multi-National Bank 2006 264,000 1,196,993 16% Management Global Enterprise Software 2009 265,127 1,140,346 23% Global Food and Beverage 2011 60,000 655,328 61% ü Global
Slide 22: 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. + Add $25MM+ revenues per year through accretive acquisitions that build out our 3 product families + 5 accretive acquisitions in last 16 months + Proven team has
Slide 23: Summary
Summary + Large growth opportunity through accretive/strategic acquisitions, installed base expansion and cross-sell, and efficient new logo acquisition + Strong top-line revenue growth through acquisitions + Recurring, predictable revenue model with high retention rates + Diversified customer base
Slide 24: Appendix
upland Appendix
Slide 25: Operating Targets (as a % of Revenue)
Operating Targets (as a % of Revenue) Excludes Depreciation & Amortization and Stock-based compensation 2Q’15 3Q’15 4Q’15 1Q’16 2Q’16 3Q’16 4Q’16 1Q’17 2Q’17(3) Target Model Revenue 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Non-GAAP Gross Margin(1) 68% 68% 66% 67% 70% 70% 70% 72% 75% Researc
Slide 26: 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 net income (loss) from discontinued operations, depreciation and amortization expense, interest expense, net, other expense (income), net, provision for income taxes, stock-base
Slide 27: Project & IT Management
Project & IT Management Upland’s Project & IT Management product family enables you to manage your organization’s projects, 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 and project
Slide 28: 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 29: 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 30: M&A Integration: UplandOne Platform
M&A Integration: UplandOne Platform + Within 90 days, acquired products brought into UplandOne model with 50% target contribution margins + One way to run every function, not n ways to run them + Building functional excellence into every area of operation + Every company we acquire is brought onto t
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