Upland Software (UPLD) 4 May 232023 Q1 Earnings call transcript

Thank you for standing by and welcome to the Upland Software First Quarter 2023 Earnings Call. At this time all participants are in a listen-only mode. Later we will conduct a question and answer session. Instructions will be given at that time. The conference call will be recorded webcast at investor.uplandsoftware.com, and a replay will be available there for 12 months.

have was the p.m. distributed should earnings quarter everyone which release, today now, access first to XXXX By at X Standard Time. Eastern

website. If available the received Upland's you've release, not on it's

over now to of I'd Software. ahead. go Sir, turn to the Upland Jack Chairman and like McDonald, CEO call

and All right. QX am I our going provide our But start harbor with After we will some welcome and open detail and QX I'm up following will call. call, earnings could Mike Thank On Mike numbers by it the today's Mike we'll guidance. you on it, review, statement. Mike? safe that joined that Hill, to XXXX for our before CFO. read to Q&A. the start

Jack. you, Thank

forward-looking undertake We not provided Difficulty] refer Upland So announcing during today's reconciliations duty call, any to we Difficulty] [Technical will [Technical Difficulty.] Difficulty] [Technical considered non-GAAP intend do within Upland or include has of release are our results to [Technical statements [Technical will first quarter release financial Difficulty] press that

back I'll And with the Jack. over turn to that, call

Mike. right. All Thanks,

our So beat the for in and midpoints. revenue quarter QX EBITDA we headlines adjusted the guidance QX

relationships in $XX.X Our $XXX million generating indicated. the cash were major free XX as cash XXX have March free XXXX anticipate customers, we with million expanded $XX again expansions. existing And first was previously of In $XX hand cash after that's on million of we and as XX quarter flow of generating QX. to of million flow which we in

new new including XXX Upland quarter, XX also the customers. customers in to welcomed first major We

industry across distributed were New customer deals and products verticals. our

with time beta release to I'll webinar which the API's knowledge and and future QX of discuss bases knowledge summarization and their the at the and real full answers a simply identification the ChatGPT in note knowledge that of hand, topic right Upland's AI front workers management key new receiving related by Forrester is a product that knowledge of open content assistant article to of response content, streamline release AI we featuring creation the hosted On can requesting words. to utilizes beta

enterprise an of then integrations and All is and enterprise record to into knowledge with workflows. systems key system of fed base that an

FileBound once gold a the medalist recognized side and leader reviews management management quadrant were enterprise and again report content workflow data On capabilities. we from in as automation for in and the document software

personally highly AccuRoute, API expands Lexmark. another with have visibility, and regulated quarter in DMS It ensure extends I release support such quarter MFP fax the industries, as in this identifiable increases information security of healthcare. to release the integrations

a Insight, excited knowledge about BA product XXX companies that in that KMWorld's we're was of list matter very by recognized XXXX management.

remain process. think building the the our about look to on we it's sharing forward growth appropriate progress value plan, shareholder I on excited But plan. still overall and And on in as we go. are we on growth our time. progress prospects the through making early we updates And

I'm that, Mike. call with the to going So turn over to

first for I'll Jack. thank Well, the you, results the cover financial quarter.

year full year-over-year quarter, positive. growth revenue Recurring revenue recurring roughly for million reaffirm subscription quarter $XX.X without Statement, been XXXX. would our for support from would FX growth was X% decreased and without the $XX.X impact outlook have flat. decrease guidance the second first I'll for the impact, Our FX million X% have and total representing to been

operating stock $XX.X gross the price triggered Professional [Technical expenses, were expenses, strong related related [Technical which quarter XX% margin should for Difficulty] get across was we million Difficulty] [Technical her quarter stock for in into was acquisition margin had acquisition $X.X not our license [Technical Difficulty] by professional [Technical [Technical million gross but remained expenses had Difficulty] depreciation $XXX.X our XX% price also first border, Difficulty] excluding quarter, and the have as the plan. expected, in services generally would our were million decreased revenue with when product at to Difficulty] depreciation the [Technical decreased Difficulty] during overall not the Difficulty] and dip line [Technical revenue adding XX% [Technical back Difficulty]

[Technical first XXXX. further are quarter Difficulty] was in should Difficulty] activity relatively here until total XX% [Technical in for QX small $XX.X acquisition of adjusted amount Difficulty] related and XX% picks to expenses EBITDA or quarter [Technical remain acquisition of QX revenue million after the first declines our XXXX

of which flow [Technical generation the accounts of [Technical XXXX [Technical our GAAP in for Difficulty] working $X.X $XX.X cash first free was Difficulty] improved quarter million QX. temporarily flow was operating million. Difficulty] approximately capital flow cash cash free

not do million XXXX, Difficulty] after of [Technical [Technical cash undrawn plus million, approximately we difference out revolver. positive XX, $XXX these factoring our in balance our We $XX $XXX expect [Technical March on million temporary Difficulty] balance on Difficulty] million sheet. timing our $XXX had cash

adjusted revenue midpoint Difficulty] XX, ending EBITDA XXXX expected a December is support year call to Jack. ended [Technical guide and and total $XX.X margin in [Technical XX, Difficulty] adjusted decrease quarter XXXX expense, ending XX, [Technical subscriptions the June adjusted I'll XXXX EBITDA Difficulty] XXXX Difficulty] million subscriptions expected [Technical the back upon XXXX. Difficulty] [Technical including second between June between to decline revenue is and year issuing XX million and June turn [Technical Difficulty] EBITDA QX Full for revenue $XX.X full ended at XXX is at of Difficulty] be X% [Technical revenue Difficulty] are quarter midpoint adjusted of XXXX $XX.X XXX we including quarter support [Technical [Technical at [Technical XX, Difficulty] guidance EBITDA total between Difficulty] XX% quarter midpoint Difficulty] million the [Technical guidance the

to open call All the Mike, Q&A. for are ready thanks, we right, up

from Jeff [Operator Instructions] the question Rhee. Your comes first Van of line

Jack Great, thanks, for couple the new plan. me. growth guys. A

annualized did of done that of QX to quarter I think a in get you're that amount just in was €XX namely, you last spend, terms about putting for what reasons, spent? variety thinking that are in million the outline work of where terms you

moving but early, still added and in a It's and number urgency. folks We've of we're DSRs. digital marketing STRS with

we see we're as driving can. really soon as energy. And results obviously So great

Yes, I guess more half three just – and we're talking saying is take I what give so or a was if

going growth not [Technical out break amount we the the Difficulty]. dollar plan on that to spent I'm

G&A you from Could on sequentially? to being XX million comment up XX million

quarter-to-quarter. Well, things yes, Jeff, those we accruals have some, this some to quarter added did in G&A was fluctuate But is that bonus Mike. on Yes, accruals. it, the from tend to

So there's a in wouldn't that's but Difficulty] noise Difficulty]. QX of [Technical bit little [Technical

we're did hearing a conditions, quarter the What end in behavior. observe buyer macro you Okay, and of of lot then? changes since

with from out bookings perspective. how We were quarter turned pretty pleased the

outlook But coming. what's things terms of they in cautious rest our what So to the on we we here. because come in. of came obviously, where know don't the year would happened again, hoping we're in were But bookings QX

Okay, that's it for me. Thanks.

your And from last Roberge. question Jake line of comes

about the taking I to just environment? how prioritize on as any pieces during talked some and faster are some growing of that tracking with the prioritized, products just my questions. been sunsetted. changing for to that or the there be looking But you curious this products your product moving know thanks Hey, need less to demand macro manage more have for given transition that suites as well

we environment rest moment regard in So we'll In say I had QX brings. I relatively came what in the mentioned year of demand the that as quarter. much a a as see ago, it pretty we would the that, good and expected

say We again, we're anything put products. prioritize plan have significant behind that that But there. to we still a will growth across activity have see in products think variety we seeing our our opportunities and to here I potential a product of report groups. those management investment highest place early the nice in some too knowledge

these the of is and valuations? until on to and Just compressions you or that investments that put we're just then, over Great. year to go for next there looking uncertainty seeing Are the sunset And your is plans or actively you're do macro that's update still so? Thanks. at on market something in that any looking that deals make M&A? given products pause kind the you

haven't got the the at in adjustment want see. and definitely still private course, control actively market. capital, I'd values price and timing. market I to seen of And We're looking we've that we We're the deals.

to of enough of right but price when Difficulty] seen I adjust super going [Technical move patient we're haven't and a excited, But now, So coming. as sense. it makes I'm it's be sure

taking Thanks Great. my questions. for

at time. McDonald, questions this to you'd Mr. further no are like close. There

Well, you on Great. All you will next right. thank so and see much, we call. earnings the

Thank concludes and Ladies conference this call. you. today's gentlemen,

may now You disconnect.