Upland Software, Inc. · NASDAQ:UPLD
Upland Software — Investor Presentation (March 2020)
46 slides from Upland Software's investor presentation, March 2020
Slide 1: Upland Overview
Upland Overview. March 2020 upland
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
Enterprise Work Management Clouds for automated and integrated workflows 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 execute and scale I
Slide 6: Upland Software at a Glance
Upland Software at a Glance UPLD EWM 1,000,000+ 10,000+ 1,550+ Russell 2000 Index $25B HQ Austin, TX Global Users Customers Major Accounts TAM Started 2012 (>$150k Avg. ARR) (1) (3) $275MM 49% (2) $102MM 97%(4) 22 26 $147MM Annual Revenue Revenue Adjusted Net Consecutive Acquisitions Revs via Acquis
Slide 7: Digital Transformation Is Driving Demand
Digital Transformation Is Driving Demand Enterprises Struggle Solving Fundamental Business Issues Customer Expectations Continue to Grow § Rise of the customer experience economy – CX as today’s competitive battleground § Proliferation of customer touchpoints driving more complexity and more siloed
Slide 8: Upland's Enterprise Work Management Clouds
Upland’s Enterprise Work Management Clouds CUSTOMER EXPERIENCE ENTERPRISE SALES PROJECT & IT DOCUMENT MANAGEMENT & MARKETING MANAGEMENT WORKFLOW Orchestrate Customer Synchronize Deliver Cost Streamline Volume Journeys Revenue Teams Transparency Processes by delivering multi-channel, by optimizing th
Slide 9: 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 chip customers at highly accretive multiples Clouds Singular Operating ü Professionalize operations via transformation Focus on Platform: playbook, increase margins + customer
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 97% Net Dollar Retention Rate(1) 3 Analytics and Autom
Slide 11: Upland's Unified Product Platform
Upland’s Unified Product Platform üIntegrated Platform üSeamless Experience üDeep Functionality ü Enterprise-Grade Common UI/UX Customer Experience Enterprise Sales Project & Document 4 Enterprise Management & Marketing IT Management Workflow Clouds Single Sign On (SSO) Cloud Cloud Cloud Cloud Uplan
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 + $5-$25MM Revenue + Cloud-native + Add $25-$50MM revenue + Build out solution suites + Sticky, with 90%+ NDRR run-rate per year + Solutions our existing + 70%+ Gross
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 10,000+ Customers
Diversified Base of 10,000+ Customers Financial Services Manufacturing, Industrial Building lasting and strategic relationships with customers Government, Nonprofit, Education Corporate Services 1,550+ accounts Healthcare >$150K ARR Technology Consumer, Restaurant, Retail 85%+ recurring Telecom & Me
Slide 15: Proven Ability To Drive Strategic Relationships
Proven Ability To Drive Strategic Relationships Cloud Customer Problem Delivered Results Under performing Launched interactive mobile + Expanded customer loyalty program Large US customer loyalty messaging campaigns using from 500K > 3MM subscribers Customer Retailer program Upland’s Mobile Messagin
Slide 16: Experienced Management Team with Track Record of Successful Execution
Experienced Management Team with Track Record of Successful Execution Jack McDonald Tim Mattox Rod Favaron Mike Hill Founder, Chairman & CEO President & COO President & CCO CFO + Leads overall strategic direction, + Leads development, operations, + Leads sales, marketing, and + Leads finance & corpo
Slide 17: Financial Overview
Financial Overview 17 | Company Confidential © 2019 Upland Software, Inc.
Slide 18: Financial Highlights
Financial Highlights ü 39% revenue growth CAGR (‘16A-’20E)(1) (2) ü >93% recurring revenue, growing 49% ü 97% net dollar retention rate(3) Capital Stewardship + ü 37% Adjusted EBITDA margin(4) (target 40% at scale) Value Creation ü High adjusted FCF conversion: capital and tax efficient ü Met or bea
Slide 19: Stages of Upland's Evolution
Stages of Upland’s Evolution Drivers of Our Organic Growth Opportunity + Re-aligned sales force strategy with focus on efficiency and growth + Acquisition of more thematic, faster M&A for Standardize Margin Organic Critical Operating growing targets Mass Platform Expansion Growth + Significant digit
Slide 20: Annual Revenue Growth Trend
To be discussed: • Mike asked if we should show 2016-19 only? Annual Revenue • Mike asked quarterly or annually? Annual AnnualRevenue Revenue($ in millions) • Added bullet about diverse product rev ($Totalin millions) Growth Trend Prof. Serv. Recurring(3) & License 39% $275.5 Recurring(3) G R: Growt
Slide 21: Adjusted EBITDA Growth Trend
Adjusted EBITDA Quarterly Adjusted EBITDA ($ in millions) Growth Trend $25.0 Consistent Margin Expansion $20.7 + Driven by UplandOne operating 80% $19.1 R : $17.8 platform and scale efficiencies G $16.7 A arC ye + Adjusted EBITDAexpansion from 3% 3- $12.5 $13.1 at IPO to 37% today(1) $9.7 $10.8 $8.3
Slide 22: Investment Highlights
Enterprise Work Management Clouds for automated and integrated workflows 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 execute and scale I
Slide 23: Appendix
Appendix 23 | Company Confidential © 2019 Upland Software, Inc.
Slide 24: 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 25: Theoretical AEBITDA to FCF Bridge
Theoretical AEBITDA to FCF Bridge In Millions $120 $102 $100 $80 $(29) $(5) $60 $(7) $(1) $40 $(30) $20 $- 1 2 3 6 AEBITDA Cash Interest Cash Taxes Cash Commissions 4 Capex 5 Acq Related Exp Source: Company information and management (1) Based on the midpoint of full year 2020 guidance in the Februa
Slide 26: 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 27: Theoretical AEBITDA to Debt Service Bridge
Theoretical AEBITDA to Debt Service Bridge In Millions $120 $102 $100 $(5) $(7) $(1) $80 $60 $(29) $(5) $40 $20 $- 1 2 3 6 AEBITDA Cash Taxes Cash Commissions Capex 4 Cash Interest 5 Debt Principal Source: Company information and management (1) Based on the midpoint of full year 2020 guidance in the
Slide 28: Adjusted EBITDA Reconciliation to Net Income (Loss)
Adjusted EBITDA Reconciliation to Net Income (Loss) (in Millions) 4Q’16 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 4Q’18 1Q’19 2Q’19 3Q’19 4Q’19 Net Income (Loss) $(2.0) $(5.6) $(5.8) $(3.5) $(3.8) $(3.2) $(5.2) $(4.2) $1.8 $(7.8) $(5.4) $(12.3) $(19.9) Depreciation and amortization expense 2.3 2.4 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: Upland CXM Helps Drive a Unified Customer Experience
Upland CXM Helps Drive a Unified Customer Experience Before Upland After Upland CXM Benefits delivered: Increased NPS and customer satisfaction Increased customer ? retention and loyalty Reduced cost of complaints û Siloed data and interactions Recommended next best action Greater bookings û Every d
Slide 31: Upland CXM Driving Customer Insights
Upland CXM Driving Customer Insights for Challenges Value to Company Value to Customers Sales Marketing û 7 different VoC solutions ü Unified customer profile ü Better customer experience ü Seamless coordination û No coordination across across departments ü Understanding of needs departments and con
Slide 32: 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 Enterprise Healthcare, Government, Business Provides communications teams, marketers, & program • Enterprise-grade platform with strong CRM Mobile Se
Slide 33: 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 Enterprise Healthcare, Government, Business Provides communications teams, marketers, & program • Enterprise-grade platform with strong CRM Mobile Se
Slide 34: 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 Unites revenue teams to speak in one voice across the customer • Robust editorial planning & governance Content journey by streamlining the content d
Slide 35: Customer Experience Management Cloud
Customer Experience Management Cloud Orchestrate Customer Journeys Product Solution Key Customers Use Cases Key Buyers • Advocacy, Fundraising & Volunteer Engagement • Voter Registration • VP of Marketing/Communications Enterprise Mobile • Media Campaigns • Customer Experience Manager Mobile Messagi
Slide 36: Customer Experience Management Cloud
Customer Experience Management Cloud Orchestrate Customer Journeys Product Solution Key Customers Use Cases Key Buyers • Content management lifecycle • CMO/VP of Marketing Content • Orchestrate aligned content production across all • Director of Marketing Ops Kapost Operations for business units & t
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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