Upland Software, Inc. · NASDAQ:UPLD
Upland Software — Canaccord Genuity 39th Annual Growth Conference 2019
38 slides from Upland Software's conference presentation, August 2019
Slide 1: Canaccord Genuity 39th Annual Growth Conference
Canaccord Genuity 39th Annual August 2019 Growth Conference
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+ 1,400+ Russell 2000 Index $25B HQ Austin, TX Global Users Customers Major Accounts TAM Started 2012 (>$115k Avg. ARR) (1) (2) (3) (4) $220MM 62% 37% 98% 19 22 >$105MM Annual Rev Run-rate Revenue Adjusted Net Consecutive Acquisitions ARR via Acqu
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
Slide 8: $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 9: 3 Key Drivers of the Upland Growth Flywheel
3 Key Drivers of the Upland Growth Flywheel Product Platform: ü Acquire thematic, proven cloud products with blue Enterprise Cloud chip customers at highly accretive multiples Solution Suites Singular Focus on Operating ü Professionalize operations via transformation Platform: playbook, increase mar
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
Slide 11: Upland's Unified Product Platform
Upland’s Unified Product Platform üIntegrated Platform üSeamless Experience üDeep Functionality ü 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
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
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”
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 1,400+ accounts Healthcare $>115K ARR Technology Consumer, Restaurant, Retail 80%+ Media revenue from majo
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
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,
Slide 17: Financial Overview
Financial Overview 17 | Company Confidential © 2019 Upland Software, Inc.
Slide 18: Financial Highlights
Financial Highlights ü 41% revenue growth CAGR (‘16A-’19E)(1) over $200MM scale ü >92% recurring revenue, growing 62% last year ü 98% net dollar retention rate(2) Capital Stewardship + ü 37% Adjusted EBITDA margin(3) and growing (target 40% at scale) Value Creation ü High adjusted FCF conversion: ca
Slide 19: Stages of Upland's Evolution
Stages of Upland’s Evolution 4 3 2 1 Continued Margin Accretive M&A Expansion Growth Standardized UplandOne M&A for + Operating Critical Mass Platform Organic Growth 19 | Company Confidential © 2019 Upland Software, Inc.
Slide 20: Annual Revenue Growth Trend
To be discussed: • Mike asked if we should show 2016-19 only? • Mike asked quarterly or annually? Annual Revenue Annual AnnualRevenue Revenue($ in millions) ($Totalin millions) • Added bullet about diverse product rev $211.0 Growth Trend Prof. Serv. Recurring (3) & License Recurring(3) Growth Driver
Slide 21: Adjusted EBITDA Growth Trend
Adjusted EBITDA Quarterly Adjusted EBITDA(2) ($ in millions) $17.8 $18.4 Growth Trend $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(3) $5.5 $4.3 + Increase
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
Slide 23: Appendix
Appendix 23 | Company Confidential © 2019 Upland Software, Inc.
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
Slide 25: Acquisitions To Date
Acquisitions To Date JUL Waterfall FEB PowerSteering DEC Mobile Commons 2017 Enterprise Mobile Messaging & SMS 2012 Project Portfolio Management 2014 Enterprise Mobile Messaging & SMS NOV Qvidian Tenrox Ultriva 2017 RFP & Sales Proposal Automation FEB NOV 2012 Professional Services Automation 2015 S
Slide 26: 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 27: 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 28: Enterprise Sales Enablement
Enterprise Sales Enablement Win More Deals Faster Product Solution Who It Helps and How Primary Industries Key Competitors Why We Win Enables sales & proposal professionals to automate the creation of RFP responses, proactive proposals, and other sales content to win more business by improving • Rob
Slide 29: Enterprise Sales Enablement
Enterprise Sales Enablement Win More Deals Faster Product Solution Key Customers Use Cases Key Buyers • RFP and RFI response automation • Proposal and RFP Managers RFP & Sales • Security and due diligence questionnaires • VP/Director of Sales Qvidian Proposal • Statements of work (SOWs) • VP/Directo
Slide 30: 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 31: 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 Automation • Resource Management • VP of Services • Project Financial Management (PSA) • VP of Operations
Slide 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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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