DocumentEXHIBIT 99.1
Upland Software Reports Third Quarter 2022 Financial Results
November 3, 2022, 04:01 PM Eastern Standard Time
AUSTIN, Texas--(BUSINESS WIRE)-- Upland Software, Inc. (Nasdaq: UPLD), a leader in cloud-based tools for digital transformation, today announced financial and operating results for the third quarter 2022 and issued guidance for its fourth quarter and full year of 2022.
Third Quarter 2022 Financial Highlights
•Total revenue was $79.5 million, an increase of 5% from $76.1 million in the third quarter of 2021. Total revenue growth includes a negative impact of 3% from changes in foreign currency exchange rates ("FX").
•Subscription and support revenue was $75.1 million, an increase of 4% from $72.3 million in the third quarter of 2021. Subscription and support revenue growth includes a negative impact of 3% from FX.
•GAAP net loss was $6.5 million compared to a GAAP net loss of $11.0 million in the third quarter of 2021. GAAP net loss attributable to common stockholders was $7.1 million compared to GAAP net loss attributable to common stockholders of $11.0 million in the third quarter of 2021. GAAP net loss per share attributable to common stockholders was $0.22 per share, compared to a GAAP net loss per share attributable to common stockholders of $0.36 per share in the third quarter of 2021.
•Adjusted EBITDA was $24.9 million, or 31% of total revenue, compared to $25.0 million, or 33% of total revenue, in the third quarter of 2021.
•GAAP operating cash flow was $1.9 million, compared to GAAP operating cash flow of $5.3 million in the third quarter of 2021. Free cash flow was $1.5 million, compared to free cash flow of $4.9 million in the third quarter of 2021.
•Cash on hand as of the end of the third quarter of 2022 was $241.7 million.
"In Q3, we beat our guidance midpoints on revenue and Adjusted EBITDA, even after FX headwinds," said Jack McDonald, Upland's chairman and chief executive officer. "We also announced a host of product news and closed a $115 million strategic equity investment from HGGC, which brings incremental capital for potential M&A opportunities and provides additional strategic and operational support as we look to drive value for our shareholders over the next several years.”
Third Quarter Business Highlights
•We expanded relationships with 305 existing customers, 28 of which were major expansions. We also welcomed 171 new customers to Upland in the third quarter, including 17 new major customers.
•Waterfall announced that it has expanded its SMS marketing footprint into the United Kingdom. Powering millions of text messages weekly, Waterfall enables brands to automate and schedule two-way SMS conversations and use SMS as an effective channel for timely notifications and promotions.
•BA Insight was recognized in KMWorld’s “Trend-Setting Products of 2022” list, which features tried-and-true products that help enterprises address the challenges of modern knowledge management.
•On August 23, 2022, Upland closed a $115 million strategic equity investment from HGGC, in a new class of preferred stock convertible into shares of Upland common stock at a conversion price of $17.50 per share.
Business Outlook
Upland's forward guidance remains unchanged in constant currency. Since our last guidance issued on August 3, 2022, the U.S. dollar has strengthened, resulting in a larger FX headwind in the fourth quarter of 2022 (the total additional FX impact is estimated to be a 2.2% currency headwind for the fourth quarter of 2022 revenue growth and a $0.5 million currency headwind for the fourth quarter of 2022 Adjusted EBITDA). The following adjusted guidance includes the impact of those FX headwinds in the fourth quarter.
For the quarter ending December 31, 2022, Upland expects reported total revenue to be between $74.1 and $80.1 million, including subscription and support revenue between $69.2 and $74.6 million, for growth in total revenue of 2% at the mid-point over the quarter-ended December 31, 2021. Fourth quarter 2022 Adjusted EBITDA is expected to be between $22.9 and $25.9 million, for an Adjusted EBITDA margin of 32% at the mid-point. This Adjusted EBITDA guide at the mid-point is a decrease of 3% from the quarter-ended December 31, 2021.
For the full year ending December 31, 2022, Upland expects reported total revenue to be between $312.6 and $318.6 million, including subscription and support revenue between $292.9 and $298.3 million, for growth in total revenue of 4% at the mid-point over the year ended December 31, 2021. Full year 2022 Adjusted EBITDA is expected to be between $95.7 and $98.7 million, for an Adjusted EBITDA margin of 31% at the mid-point. This Adjusted EBITDA guide at the midpoint is an increase of 1% over the year ended December 31, 2021.
Conference Call Details
Upland's executive team will host a live conference call and webcast at 4:00 p.m. Central Time, 5:00 p.m. Eastern Time today to review Upland’s financial results and outlook for the business. The call can be accessed via a webcast on investor.uplandsoftware.com, or by dialing 1-888-800-8770 in North America or +1-646-307-1953 if outside North America, international rates apply. Attendees will need to use access code 6485253 to join the call. This webcast will contain forward-looking statements and other material information regarding Upland’s financial and operating results.
Following the completion of the conference call, a recording of the webcast will be made available at investor.uplandsoftware.com for twelve months.
About Upland Software
Upland helps global businesses accelerate digital transformation with a powerful cloud software library that provides choice, flexibility, and value. Our growing library of products delivers the "last mile" plug-in processes, reporting, and job specific workflows that major cloud platforms and homegrown systems don’t provide. We focus on specific business challenges and support every corner of the organization, operating at scale and delivering quick time to value for our 1,800+ enterprise customers. To learn more, visit www.uplandsoftware.com.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted EBITDA, non-GAAP net income (loss), non-GAAP net income (loss) per share and free cash flow.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our recurring core business operating results, such as our revenues excluding the impact for foreign currency fluctuations or our operating performance excluding not only non-cash charges, but also discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-
making and they are used by our institutional investors and the analyst community to help them analyze the health of our business. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the tables provided below in this release.
We are unable to reconcile any forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort. Additionally, we are unable to quantify the impact of foreign currency exchange fluctuations on components of our income statement beyond revenues because the information which is needed to do so is unavailable at this time without unreasonable effort.
Upland defines Adjusted EBITDA as net income (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-based compensation expense, acquisition-related expenses, non-recurring litigation costs, and purchase accounting adjustments for deferred revenue.
Upland defines non-GAAP net income (loss) as net income (loss), calculated in accordance with GAAP, plus, amortization of purchased intangible assets, amortization of debt discount, loss on debt extinguishment, stock-based compensation expenses, acquisition-related expenses, non-recurring litigation expenses, purchase accounting adjustments for deferred revenue, non-recurring provision for income tax, and the related tax effect of the adjustments above.
Upland defines free cash flow as GAAP operating cash flow less purchases of property and equipment.
Upland defines major accounts as accounts with greater than or equal to $25,000 in annual recurring revenue.
Upland defines major expansions as existing customers who expanded the amount of annual recurring revenue under their contract by at least $25,000.
Upland defines cash gross margin as product revenue less subscription and support cost of sales, excluding depreciation & amortization.
Forward-looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance, including our guidance related to future performance, and are subject to substantial risks, uncertainties and assumptions. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make. Accordingly, you should not place undue reliance on these forward-looking statements. Forward-looking statements include any statement that does not directly relate to any historical or current fact and often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "hope," "predict," "could," "should," "would," "project," or the negative or plural of these words or similar expressions, although not all forward-looking statements contain these words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but are not limited to:our financial performance and our ability to achieve or sustain profitability or predict future results; our plans regarding future acquisitions and our ability to consummate and integrate acquisitions; our ability to expand our go to market operations, including our marketing and sales organization, and successfully increase sales of our products; our ability to obtain financing in the future on acceptable terms or at all; our expectations with respect to revenue, cost of revenue and operating expenses in
future periods; our expectations with regard to revenue from perpetual licenses and professional services; our ability to adapt to the impacts on the global economy associated with the ongoing COVID-19 pandemic; our ability to attract and retain customers; our ability to successfully enter new markets and manage our international expansion; our ability to comply with privacy laws and regulations; our ability to deliver high-quality customer service; our plans regarding, and our ability to effectively manage, our growth; maintaining our senior management team and key personnel; the performance of our resellers; our ability to adapt to changing market conditions and competition; our ability to adapt to technological change and continue to innovate; global economic and financial market conditions and uncertainties; the growth of demand for cloud-based, digital transformation applications; our ability to integrate our applications with other software applications; maintaining and expanding our relationships with third parties; costs associated with defending intellectual property infringement and other claims; our ability to maintain, protect and enhance our brand and intellectual property; our expectations with regard to trends, such as seasonality, which affect our business; our plans with respect to foreign currency exchange risk and inflation; impairments to goodwill and other intangible assets; our beliefs regarding how our applications benefit customers and what our competitive strengths are; the operation, reliability and security of our third-party data centers; the risk that we did not consider another contingency included in this list; our expectations as to the payment of dividends ; and factors that could affect our business and financial results identified in Upland's filings with the Securities and Exchange Commission (the "SEC"), including Upland's most recent 10-K filed with the SEC. Additional information will also be set forth in Upland's future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Upland makes with the SEC. The forward-looking statements herein represent Upland's views as of the date of this press release, and these views could change. However, while Upland may elect to update these forward-looking statements at some point in the future, Upland specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing the views of Upland as of any date subsequent to the date of this press release.
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Investor Relations Contact:
Mike Hill
investor-relations@uplandsoftware.com
512-960-1031
Media Contact:
Kendell Kelton
media@uplandsoftware.com
678-575-7428
Upland Software, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) |
| Revenue: | | | | | | | |
| Subscription and support | $ | 75,095 | | | $ | 72,264 | | | $ | 223,739 | | | $ | 215,322 | |
| Perpetual license | 1,684 | | | 684 | | | 5,320 | | | 1,451 | |
| Total product revenue | 76,779 | | | 72,948 | | | 229,059 | | | 216,773 | |
| Professional services | 2,770 | | | 3,105 | | | 9,433 | | | 9,513 | |
| Total revenue | 79,549 | | | 76,053 | | | 238,492 | | | 226,286 | |
| Cost of revenue: | | | | | | | |
| Subscription and support | 23,553 | | | 22,968 | | | 69,747 | | | 68,811 | |
| Professional services and other | 2,173 | | | 1,848 | | | 7,287 | | | 5,444 | |
| Total cost of revenue | 25,726 | | | 24,816 | | | 77,034 | | | 74,255 | |
| Gross profit | 53,823 | | | 51,237 | | | 161,458 | | | 152,031 | |
| Operating expenses: | | | | | | | |
| Sales and marketing | 14,361 | | | 14,364 | | | 45,285 | | | 41,094 | |
| Research and development | 11,645 | | | 10,441 | | | 35,388 | | | 32,494 | |
| | | | | | | |
| General and administrative | 14,668 | | | 17,725 | | | 56,110 | | | 61,286 | |
| Depreciation and amortization | 10,117 | | | 10,764 | | | 31,970 | | | 30,785 | |
| Acquisition-related expenses | 3,586 | | | 3,685 | | | 18,924 | | | 18,805 | |
| Total operating expenses | 54,377 | | | 56,979 | | | 187,677 | | | 184,464 | |
| Loss from operations | (554) | | | (5,742) | | | (26,219) | | | (32,433) | |
| Other expense: | | | | | | | |
| Interest expense, net | (7,354) | | | (7,971) | | | (22,870) | | | (23,700) | |
| | | | | | | |
| Other income (expense), net | 339 | | | (650) | | | 1,698 | | | (812) | |
| Total other expense | (7,015) | | | (8,621) | | | (21,172) | | | (24,512) | |
| Loss before benefit from income taxes | (7,569) | | | (14,363) | | | (47,391) | | | (56,945) | |
| Benefit from income taxes | 1,056 | | | 3,348 | | | 1,654 | | | 6,204 | |
| | | | | | | |
| | | | | | | |
| Net loss | $ | (6,513) | | | $ | (11,015) | | | $ | (45,737) | | | $ | (50,741) | |
| Preferred stock dividends | (546) | | | — | | | (546) | | | — | |
| Net loss attributable to common stockholders | $ | (7,059) | | | $ | (11,015) | | | $ | (46,283) | | | $ | (50,741) | |
| Net income (loss) per common share: | | | | | | | |
| Net loss per common share, basic and diluted | $ | (0.22) | | | $ | (0.36) | | | $ | (1.47) | | | $ | (1.68) | |
| | | | | | | |
| | | | | | | |
| Weighted-average common shares outstanding, basic and diluted | 31,655,206 | | | 30,428,675 | | | 31,401,463 | | | 30,167,171 | |
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Upland Software, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
| | | | | | | | | | | | | | | |
| September 30, | | December 31, | | | | |
| 2022 | | 2021 | | | | |
| | (unaudited) | | | | | | |
| ASSETS | | | | | | | |
| Current assets: | | | | | | | |
| Cash and cash equivalents | $ | 241,720 | | | $ | 189,158 | | | | | |
| Accounts receivable, net of allowance | 38,174 | | | 50,499 | | | | | |
| Deferred commissions, current | 10,091 | | | 9,824 | | | | | |
| Unbilled receivables | 5,991 | | | 4,801 | | | | | |
| Prepaid expenses and other current assets | 12,679 | | | 8,709 | | | | | |
| Total current assets | 308,655 | | | 262,991 | | | | | |
| Tax credits receivable | 3,256 | | | 3,345 | | | | | |
| Property and equipment, net | 2,040 | | | 2,667 | | | | | |
| Operating lease right-of-use asset | 6,395 | | | 6,454 | | | | | |
| Intangible assets, net | 254,040 | | | 279,920 | | | | | |
| Goodwill | 479,642 | | | 457,472 | | | | | |
| Deferred commissions, noncurrent | 14,321 | | | 14,808 | | | | | |
| Interest rate swap assets | 43,947 | | | — | | | | | |
| Other assets | 1,332 | | | 1,350 | | | | | |
| Total assets | $ | 1,113,628 | | | $ | 1,029,007 | | | | | |
| LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable | $ | 20,157 | | | $ | 20,362 | | | | | |
| Accrued compensation | 10,050 | | | 9,829 | | | | | |
| Accrued expenses and other current liabilities | 10,658 | | | 9,086 | | | | | |
| Deferred revenue | 98,676 | | | 102,847 | | | | | |
| Liabilities due to sellers of businesses | 5,941 | | | 7,607 | | | | | |
| Operating lease liabilities, current | 3,601 | | | 3,546 | | | | | |
| Current maturities of notes payable | 3,131 | | | 3,167 | | | | | |
| Total current liabilities | 152,214 | | | 156,444 | | | | | |
| | | | | | | |
| Notes payable, less current maturities | 512,635 | | | 515,163 | | | | | |
| Deferred revenue, noncurrent | 3,028 | | | 2,058 | | | | | |
| Operating lease liabilities, noncurrent | 5,504 | | | 6,773 | | | | | |
| Noncurrent deferred tax liability, net | 19,080 | | | 22,793 | | | | | |
| Interest rate swap liabilities | — | | | 8,409 | | | | | |
| Other long-term liabilities | 1,168 | | | 1,079 | | | | | |
| Total liabilities | 693,629 | | | 712,719 | | | | | |
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| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Mezzanine Equity | | | | | | | |
| Series A Convertible Preferred Stock | 111,066 | | | — | | | | | |
| Stockholders’ equity: | | | | | | | |
| | | | | | | |
Common stock | 3 | | | 3 | | | | | |
| Additional paid-in capital | 600,892 | | | 568,384 | | | | | |
| Accumulated other comprehensive loss | (5,640) | | | (11,514) | | | | | |
| Accumulated deficit | (286,322) | | | (240,585) | | | | | |
| Total stockholders’ equity | 308,933 | | | 316,288 | | | | | |
| Total liabilities, convertible preferred stock and stockholders’ equity | $ | 1,113,628 | | | $ | 1,029,007 | | | | | |
Upland Software, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, | | | | |
| | 2022 | | 2021 | | 2022 | | 2021 | | | | |
| | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | | | | |
| Operating activities | | | | | | | | | | | |
| Net loss | $ | (6,513) | | | $ | (11,015) | | | $ | (45,737) | | | $ | (50,741) | | | | | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | |
| Depreciation and amortization | 13,140 | | | 13,751 | | | 41,333 | | | 39,420 | | | | | |
| Change in fair value of liabilities due to sellers of businesses | — | | | (774) | | | (75) | | | (3,503) | | | | | |
| Deferred income taxes | (884) | | | (4,337) | | | (3,291) | | | (7,726) | | | | | |
| Amortization of deferred costs | 3,158 | | | 2,435 | | | 9,041 | | | 6,283 | | | | | |
| Foreign currency re-measurement loss | 37 | | | 8 | | | 40 | | | 18 | | | | | |
| Non-cash interest and other expense | 572 | | | 567 | | | 1,687 | | | 1,682 | | | | | |
| Non-cash stock compensation expense | 7,527 | | | 12,047 | | | 34,023 | | | 43,421 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Non-cash loss on retirement of fixed assets | 26 | | | 2 | | | 26 | | | 2 | | | | | |
| | | | | | | | | | | |
| Changes in operating assets and liabilities, net of purchase business combinations: | | | | | | | | | | | |
| Accounts receivable | (3,900) | | | 1,574 | | | 18,187 | | | 11,748 | | | | | |
| Prepaid expenses and other current assets | (458) | | | (41) | | | (5,055) | | | (3,672) | | | | | |
| Accounts payable | (566) | | | 732 | | | (1,464) | | | 6,647 | | | | | |
| Accrued expenses and other liabilities | (6,102) | | | (5,687) | | | (11,256) | | | (8,111) | | | | | |
| Deferred revenue | (4,159) | | | (3,924) | | | (13,321) | | | (6,822) | | | | | |
| Net cash provided by operating activities | 1,878 | | | 5,338 | | | 24,138 | | | 28,646 | | | | | |
| Investing activities | | | | | | | | | | | |
| Purchase of property and equipment | (421) | | | (458) | | | (718) | | | (965) | | | | | |
| | | | | | | | | | | |
| Purchase business combinations, net of cash acquired | — | | | — | | | (62,356) | | | (92,417) | | | | | |
| | | | | | | | | | | |
| Net cash used in investing activities | (421) | | | (458) | | | (63,074) | | | (93,382) | | | | | |
| Financing activities | | | | | | | | | | | |
| Payments on finance leases | — | | | (8) | | | — | | | (12) | | | | | |
| Proceeds from notes payable, net of issuance costs | (180) | | | (7) | | | (200) | | | (120) | | | | | |
| Payments on notes payable | (1,350) | | | (1,350) | | | (4,050) | | | (4,050) | | | | | |
| | | | | | | | | | | |
| Issuance of Series A Convertible Preferred stock, net of issuance costs | 110,520 | | | — | | | 110,520 | | | — | | | | | |
| | | | | | | | | | | |
| Taxes paid related to net share settlement of equity awards | (177) | | | (373) | | | (1,159) | | | (373) | | | | | |
| Issuance of common stock, net of issuance costs | 8 | | | 50 | | | 190 | | | 228 | | | | | |
| | | | | | | | | | | |
| Additional consideration paid to sellers of businesses | (5,086) | | | (27) | | | (8,174) | | | (769) | | | | | |
| Net cash provided by (used in) financing activities | 103,735 | | | (1,715) | | | 97,127 | | | (5,096) | | | | | |
| Effect of exchange rate fluctuations on cash | (1,756) | | | (120) | | | (5,629) | | | (613) | | | | | |
| Change in cash and cash equivalents | 103,436 | | | 3,045 | | | 52,562 | | | (70,445) | | | | | |
| Cash and cash equivalents, beginning of period | 138,284 | | | 176,539 | | | 189,158 | | | 250,029 | | | | | |
| Cash and cash equivalents, end of period | $ | 241,720 | | | $ | 179,584 | | | $ | 241,720 | | | $ | 179,584 | | | | | |
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Upland Software, Inc.
Reconciliation of Adjusted EBITDA
(in thousands, unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
| Reconciliation of net loss to Adjusted EBITDA: | | | | | | | |
| Net loss | $ | (6,513) | | | $ | (11,015) | | | $ | (45,737) | | | $ | (50,741) | |
| Add: | | | | | | | |
| | | | | | | |
| Depreciation and amortization expense | 13,140 | | | 13,751 | | | 41,333 | | | 39,420 | |
| Interest expense, net | 7,354 | | | 7,971 | | | 22,870 | | | 23,700 | |
| Other expense (income), net | (339) | | | 650 | | | (1,698) | | | 812 | |
| | | | | | | |
| Benefit from income taxes | (1,056) | | | (3,348) | | | (1,654) | | | (6,204) | |
| Stock-based compensation expense | 7,527 | | | 12,047 | | | 34,023 | | | 43,421 | |
| Acquisition-related expense | 3,586 | | | 3,685 | | | 18,924 | | | 18,805 | |
| | | | | | | |
| Non-recurring litigation costs | 15 | | | — | | | 15 | | | — | |
| Purchase accounting deferred revenue discount | 1,174 | | | 1,275 | | | 4,766 | | | 2,375 | |
| | | | | | | |
| Adjusted EBITDA | $ | 24,888 | | | $ | 25,016 | | | $ | 72,842 | | | $ | 71,588 | |
Upland Software, Inc.
Reconciliation of Non-GAAP Net Loss and Non-GAAP EPS
(in thousands, except share and per share data, unaudited) | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
| | | | | | | |
| Reconciliation of net loss to non-GAAP net income: | | | | | | | |
| Net loss | $ | (6,513) | | | $ | (11,015) | | | $ | (45,737) | | | $ | (50,741) | |
| Add: | | | | | | | |
| | | | | | | |
| Stock-based compensation expense | 7,527 | | | 12,047 | | | 34,023 | | | 43,421 | |
| Amortization of purchased intangibles | 12,775 | | | 13,201 | | | 40,135 | | | 37,946 | |
| Amortization of debt discount | 572 | | | 567 | | | 1,687 | | | 1,682 | |
| | | | | | | |
| Acquisition-related expense | 3,586 | | | 3,685 | | | 18,924 | | | 18,805 | |
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| Nonrecurring litigation expense | 15 | | | — | | | 15 | | | — | |
| Purchase accounting deferred revenue discount | 1,174 | | | 1,275 | | | 4,766 | | | 2,375 | |
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| Tax effect of adjustments above | (1,883) | | | (1,973) | | | (6,425) | | | (4,648) | |
| | | | | | | |
| Non-GAAP net income | $ | 17,253 | | | $ | 17,787 | | | $ | 47,388 | | | $ | 48,840 | |
| | | | | | | |
| Weighted average ordinary shares outstanding, basic | 31,655,206 | | | 30,428,675 | | | 31,401,463 | | | 30,167,171 | |
| Weighted average ordinary shares outstanding, diluted | 34,456,410 | | | 30,951,123 | | | 32,456,370 | | | 30,817,435 | |
| Non-GAAP earnings per share, basic | $ | 0.55 | | | $ | 0.58 | | | $ | 1.51 | | | $ | 1.62 | |
| Non-GAAP earnings per share, diluted | $ | 0.50 | | | $ | 0.57 | | | $ | 1.46 | | | $ | 1.58 | |
Upland Software, Inc.
Reconciliation of Operating Cash Flow to Free Cash Flow
(in thousands, unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
| | | | | | | |
| Reconciliation of Operating Cash Flow to Free Cash Flow: | | | | | | | |
| Net cash provided by operating activities | $ | 1,878 | | | $ | 5,338 | | | $ | 24,138 | | | $ | 28,646 | |
| Less: Purchase of Property and Equipment | (421) | | | (458) | | | (718) | | | (965) | |
| Free Cash Flow | $ | 1,457 | | | $ | 4,880 | | | $ | 23,420 | | | $ | 27,681 | |
Upland Software, Inc.
Supplemental Financial Information
(in thousands, unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
| | | | | | | |
| Stock-based compensation: | | | | | | | |
| Cost of revenue | $ | 510 | | | $ | 539 | | | $ | 1,487 | | | $ | 1,544 | |
| Research and development | 701 | | | 671 | | | 2,107 | | | 2,327 | |
| Sales and marketing | 612 | | | 1,636 | | | 3,584 | | | 4,392 | |
| General and administrative | 5,704 | | | 9,201 | | | 26,845 | | | 35,158 | |
| Total | $ | 7,527 | | | $ | 12,047 | | | $ | 34,023 | | | $ | 43,421 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
| | | | | | | |
| Depreciation: | | | | | | | |
| Cost of revenue | $ | 2 | | | $ | 5 | | | $ | 7 | | | $ | 27 | |
| Operating expense | 363 | | | 545 | | | 1,191 | | | 1,447 | |
| Total | $ | 365 | | | $ | 550 | | | $ | 1,198 | | | $ | 1,474 | |
| | | | | | | |
| | | | | | | |
| Amortization: | | | | | | | |
| Cost of revenue | $ | 3,021 | | | $ | 2,982 | | | $ | 9,356 | | | $ | 8,608 | |
| Operating expense | 9,754 | | | 10,219 | | | 30,779 | | | 29,338 | |
| Total | $ | 12,775 | | | $ | 13,201 | | | $ | 40,135 | | | $ | 37,946 | |