Upland Software, Inc. · NASDAQ:UPLD
Upland Software — Investor Presentation (January 2016)
38 slides from Upland Software's investor presentation, Jan 28, 2016
Slide 1: Sneak Peek at the 2016 Professional Services Benchmark Report from SPI
Run smoothly. Change quickly. Achieve more. Cloud-based enterprise work management software Sneak Peek at the 2016 Professional Services Benchmark Report from SPI
Slide 2: Agenda
Agenda 1. Service Performance Insight (SPI) 2. Upland Software and Tenrox PSA 3. Question & Answer Period 2
Slide 3: Housekeeping
Housekeeping To submit a question: Type in your Click Send question here 3
Slide 4: Today's Speakers
Today’s Speakers Jeanne K. Urich, Managing Director, Service Performance Insight Neil Stolovitsky Senior Solution Consultant, Upland Software 4
Slide 5: A Sneak Peek at the 2016 Professional Services Maturity Benchmark
A Sneak Peek at the 2016 Professional Services Maturity™ Benchmark January 28, 2016 R. David Hofferberth, P.E. Managing Director, Service Performance Insight 5
Slide 6: Introduction
Introduction Service Performance Insight (SPI Research) is a global research, consulting and training organization dedicated to help professional service organizations (PSOs) make quantum improvements in productivity and profit. In 2007, SPI developed the PS Maturity Model™ as a strategic planning a
Slide 7: Today's Agenda
Today’s Agenda • The Professional Services Maturity™ Benchmark • Market Trends • High-performing Organizations • Take Advantage of PSA • Conclusions & Recommendations 7
Slide 8: 2016 Professional Services Maturity Benchmark
2016 Professional Services Maturity™ Benchmark 549 PSOs completed the survey in 2015 • 67% Americas • 26% EMEA • 7% APac 8
Slide 9: Success Depends on Everyone Working Together
Success Depends on Everyone Working Together Growth Client Leadership Satisfaction Confidence Employee Backlog Attrition Deal Resource Clear Pipeline Management On-time Communication Delivery Employee Compensation Project EBITDA Margin Bid-to-win Ratio Standardized Delivery Bill Rates Employee Overh
Slide 10: Performance Maturity Matters!
Performance Maturity Matters! Level 1 Level 2 Level 3 Level 4 Level 5 Initiated Piloted Deployed Institution Optimized A standardized delivery methodology is used 54.3% 62.4% 67.8% 74.0% 75.0% Effectiveness of resource management process (1-5) 3.00 3.57 3.80 4.01 4.21 Employee billable utilization 6
Slide 11: 2016 PS Maturity Benchmark – Many Challenges!
2016 PS Maturity Benchmark – Many Challenges! Stagnant growth Stronger competition Lower Bid-to-win Lower Pipeline Much higher attrition Reduced service success Lower on-time delivery Lower project profitability But….. Profit rose! 11
Slide 12: Market Dynamics
Market Dynamics • How things can change so rapidly 2011 was about Execution 2012 is about Talent 2013 was about Profit 2014 was about Sales 2015 was Talent and Rates! • Executives must prepare Create loyal clients Develop flexible workforce Deliver on time and at high levels of quali
Slide 13: Four Major Trends Impacting Performance & Profit
Four Major Trends Impacting Performance & Profit Pipeline Bid-to-win ratio 210% 5.25 200% 5.20 203% 199% 5.15 5.21 190% 5.19 193% 190% 5.10 180% 5.05 5.00 170% 172% 4.95 160% 4.90 4.96 4.95 4.92 4.85 150% 4.80 140% 4.75 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Year Year Attrition Revenue Gr
Slide 14: Profit Heads Upward
Profit Heads Upward Earnings before Interest, Taxes, Depreciation & Amortization 18% 16% 16.8% 14% 15.5% 12% 13.5% 13.2% 10% 11.4% 8% 6% 4% 2% 0% 2011 2012 2013 2014 2015 Year 14
Slide 15: 2016 Planned Steps Taken to Improve Profitability
2016 Planned Steps Taken to Improve Profitability Steps Taken to Improve Profitability 2013 2014 2015 Increases rates 2.83 2.90 3.85 Improve hiring and ramping 3.51 3.48 3.85 Improve methods and tools 3.69 3.60 3.85 Reduce non-billable time 3.34 3.26 3.83 Improve solution portfolio 3.59 3.59 3.78 Im
Slide 16: Get the red out of service delivery!
Get the red out of service delivery! Peer Survey Service Execution Performance Indicator Consultants Rus Level 1 Level 2 Level 3 Level 4 Level 5 Average Average Average project staffing time (days) Over 20 days 10.1 10.9 Concurrent projects managed by PM 3-5 5.23 5.76 Average project staff (people)
Slide 17: High-performing Organizations Perform!
High-performing Organizations Perform! 549 organizations Key Performance Indicator (KPI) Top 20% Others ▲ YoY change in PS revenue 18.1% 8.2% 122% Use of a standardized delivery meth. 74.7% 61.8% 21% Employee billable utilization 75.7% 69.2% 9% Projects delivered on-time 83.2% 74.2% 12% Ann. revenue
Slide 18: Professional Services Maturity
Professional Services Maturity Lack of specific Standardize and Leverage information focus, heroic people, refine business across the entire PSO Manual systems processes, on a real-time basis to integrate systems continually improve Introduce business processes, Business processes in begin to specia
Slide 19: Use PSA Across the Organization
Use PSA Across the Organization Determine the services with Plan Optimally the highest potential for growth & profit Sell services with available skill sets, Increase Sales price to optimize revenue and profit Focus on skills in demand, Optimize Talent develop compensation & training to minimize att
Slide 20: PSA drives service delivery performance higher
PSA drives service delivery performance higher With W/o Key Performance Indicator (KPI) ▲ PSA PSA Concurrent projects managed by PM 5.94 5.23 14% Average project staff (people) 4.74 4.43 7% Average project duration (months) 6.21 6.02 3% Projects delivered on-time 76.4% 74.3% 3% Projects canceled 2.6
Slide 21: PSA also improves Talent Management
PSA also improves Talent Management…… With W/o Key Performance Indicator (KPI) ▲ PSA PSA Management to employee ratio 11.6 11.0 5% Days to recruit and hire for standard 59.7 63.8 6% positions Guaranteed annual training days per 9.23 7.63 21% employee Well-understood career path for all 3.32 3.15 6%
Slide 22: Most executives like PSA's impact on financial performance
….Most executives like PSA’s impact on financial performance With W/o Key Performance Indicator (KPI) ▲ PSA PSA Year-over-year change in PS 11.2% 6.3% 78% revenue Ann. revenue per billable consultant $199 $191 4% (k) Ann. revenue per employee (k) $159 $147 8% Average revenue per project (k) $230 $18
Slide 23: PSA Integration
PSA Integration • Map client needs • Optimize resource pool • Forecast revenue • Up-sell / cross-sell potential • Manage employee cost • Manage cash flow • Optimize selling price • Dev. compensation structure • Improve DSO • Build pipeline • Improve employee development • Improve margins • Improve c
Slide 24: The Value of Integrated PSA
The Value of Integrated PSA % of employees billable or 63.7% 70.8% 72.1% chargeable Deal pipeline relative to qtr. 144% 169% 182% bookings forecast Employee Billable Utilization 67.3% 68.7% 72.1% Annual revenue per employee (k) $147 $153 $158 Profit (EBITDA) 12.8% 13.4% 14.6% 24
Slide 25: Conclusions & Recommendations
Conclusions & Recommendations • Understand market dynamics and assess your competitive position • Develop services that align with vision ands personnel • Find, hire and RETAIN key employees • Improve & standardize business processes to deliver efficiently and effectively with an eye toward quality
Slide 26: Service Performance Insight
Pr le oc op SPI es Pe Research s Capital Service Performance Insight ® Accelerate Service Productivity & Profit™ Follow us on: www.SPIresearch.com 26
Slide 27: Upland Software Tenrox PSA
UPLAND SOFTWARE TENROX PSA by upland
Slide 28: Overview
OVERVIEW + Leading provider of cloud-based Enterprise Work Management software + Supporting over 1,600 customers and 225,000 global users + IPO in 2014 + Headquartered in Austin, Texas 28
Slide 29: What We Do
WHAT WE DO We provide Cloud Solutions across the enterprise enabling amazing customer outcomes in: + PROJECT & IT + WORKFLOW + DIGITAL FINANCIAL AUTOMATION ENGAGEMENT MANAGEMENT 29
Slide 30: Upland Product Family
UPLAND PRODUCT FAMILY PROJECT & IT FINANCIAL WORKFLOW DIGITAL MANAGEMENT AUTOMATION ENGAGEMENT Manage your organization’s Real time productivity optimization, Effectively engage with projects, professional collaboration, and functional your customers, prospects workforce and IT costs. automation acr
Slide 31: Tenrox PSA
TENROX PSA by upland
Slide 32: Tenrox
Tenrox Corporate Key Profile Differentiators Partnerships Partnerships Showcase Clients We wrote the book on PSA 20 Years of Enterprise Market Leadership Visual workflow-driven architecture Unique Timesheet Template Designer Numerous certified connectors to back office systems Customer Suc
Slide 33: PSA Solution Overview
PSA Solution Overview PROJECT MANAGEMENT RESOURCE MANAGEMENT ERP / ACCOUNTING PAYROLL PROJECT FINANCIALS IT SERVICE MANAGEMENT val Yy E + - <x Zz <x 08 Oo Z i 4 je) a wi a TIME & EXPENSE CONTENT MANAGEMENT QUICK-CONNECT INTEGRATION PLATFORM GRAPHICAL WORKFLOW ENGINE F | Tenrox by upland
Slide 34: Dashboards at Your Fingertips
Dashboards at Your Fingertips Dashboards Ad hoc Reporting Role-based Ad hoc tables Real-time web and charts parts No coding required Include any of Real-time the other reports Pre-canned Reports Analytics 100+ to choose OLAP from Pivot tables and charts Cover all aspects of No
Slide 35: Demo
DEMO Fa lenrox by upland
Slide 36: Tenrox PSA Quick Wins
Tenrox PSA Quick Wins • Streamline project visibility • Central project repository to better manage projects; manage 14% more projects • Improve employee billable utilization by 6% • Increase average revenue per project by 22% 36
Slide 37: SPI
Pr le oc op SPI es Pe s Research Capital 37
Slide 38: Contact Us
Contact Us: Phone: – Direct: 450-688-3444 – Toll free (US and Canada): 855-944-PLAN (7526) Email: info@uplandsoftware.com Website: www.tenrox.com Connect with us: @tenrox Tenrox Company: Tenrox 38
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