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Upland Software Reports Fourth Quarter and Full Year 2021 Financial Results and Announces Acquisition of BA Insight

02/24/2022

Upland Software, Inc. (Nasdaq: UPLD), a leader in cloud-based tools for digital transformation, today announced financial and operating results for the fourth quarter and full year of 2021 and issued guidance for its first quarter and full year of 2022. Upland also announced the acquisition of BA-Insight, Inc., a leading provider of enterprise search solutions for global organizations.

Fourth Quarter 2021 Financial Highlights

  • Total revenue was $75.7 million, a decrease of 3% from $78.2 million in the fourth quarter of 2020.
  • Subscription and support revenue was $72.3 million, a decrease of 4% from $74.9 million in the fourth quarter of 2020.
  • GAAP net loss was $7.5 million, or a loss of $0.24 cents per share, compared to a GAAP net loss of $5.7 million, or a loss of $0.19 cents per share, in the fourth quarter of 2020.
  • Adjusted EBITDA was $25.1 million, or 33% of total revenue, compared to $26.6 million, or 34% of total revenue, in the fourth quarter of 2020.
  • GAAP operating cash flow was $13.1 million, compared to GAAP operating cash flow of $21.5 million in the fourth quarter of 2020. Free cash flow was $12.9 million, compared to free cash flow of $21.2 million in the fourth quarter of 2020.
  • Cash on hand as of the end of the fourth quarter of 2021 was $189.2 million.

Full Year 2021 Financial Highlights

  • Total revenue was $302.0 million, an increase of 4% from $291.8 million in 2020.
  • Subscription and support revenue was $287.6 million, an increase of 4% from $277.5 million in 2020.
  • GAAP net loss was $58.2 million, or a loss of $1.92 cents per share, compared to a GAAP net loss of $51.2 million, or a loss of $1.92 cents per share, in 2020.
  • Adjusted EBITDA was $96.7 million, or 32% of total revenue, compared to $99.9 million, or 34% of total revenue, in 2020.
  • GAAP operating cash flow was $41.7 million, an increase from $35.6 million of GAAP operating cash flow in 2020. Free cash flow was $40.6 million, an increase from $34.5 million of free cash flow in 2020.

“We are pleased to share strong Q4 results and announce the acquisition of BA Insight,” said Jack McDonald, Upland's chairman and chief executive officer. “In Q4 we came in above the midpoint of our guidance on revenue and Adjusted EBITDA, and we dramatically outperformed our targets on free cash flow,” he added. “Our net dollar retention rate came in stronger than expected at 94% and new bookings rebounded in Q4, up substantially from Q3.”

Fourth Quarter Business Highlights

  • Our Net Dollar Retention Rate as of December 31, 2021 was 94%.
  • We expanded relationships with 285 existing customers, 55 of which were major expansions. We also welcomed 121 new customers to Upland in the third quarter, including 32 new major customers.
  • Upland announced our most comprehensive FileBound product release to date, which significantly expanded our capabilities around automated workflow. With this release, customers have benefited from faster, more efficient document management processes with a stronger foundation to implement digital transformation initiatives that strategically align with a long-term, remote-hybrid business model.
  • Our Qvidian product introduced several new features designed to provide users the ability to create even more powerful RFP responses and proposals while increasing team efficiency, compliance, and win rates.
  • We launched Cimpl Cloud, a new capability from our Cimpl product built to help customers reduce cost in their complex cloud environments, minimize security vulnerabilities, and increase compliance measures.
  • After the close of the quarter, Upland closed the acquisitions of Objectif Lune, an enterprise software leader in document composition and business communication automation, and BA Insight, a leading provider of enterprise search solutions.

Acquisition of BA Insight

With the acquisition of BA Insight, Upland continues to build its knowledge management product portfolio by giving customers a powerful new way to conduct searches that span their enterprise systems to deliver relevant, personalized, and actionable results, with a technology that:

  • Eliminates the blind spots by connecting search to many different systems and applications;
  • Unifies search results with the ability to set up the correct, specialized taxonomies to organize, retrieve, and sort the most relevant documents;
  • Delivers increasingly relevant results using analytics and machine learning to make each search better; and
  • Places a search bar wherever the user wants it so they can search natively in target applications or across all the applications they use every day.

“Our acquisition of BA Insight was driven by our customers’ needs, specifically in the business services, life sciences, and legal industries, where knowledge workers are spending wasted hours using ineffective enterprise search tools trying to track down the right documents to do their work,” said Rod Favaron, President of Upland. “This is because most enterprise search technology does not connect to all relevant sources, is generic in its taxonomy when it should be specialized, and never gets better. BA Insight solves these major search challenges facing specialized knowledge teams today.”

“Our mission at BA Insight has always been to provide a personalized and connected enterprise search experience that specialized knowledge workers need to do their jobs,” said Massood Zarrabian, chairman and CEO of BA Insight. “As we join Upland, we are excited to bring our powerful open and flexible search platform to an extensive enterprise customer base and to a world class company with a long-term investment in both the knowledge management and document workflow markets.”

This acquisition marks the third in Upland’s knowledge management product portfolio.

The purchase price paid for BA Insight was $33.4 million in cash at closing (net of cash acquired), paid out of cash on hand, and a $0.6 million cash holdback payable within 15 months (subject to indemnification claims). Upland expects the acquisition to generate annual revenue of at least $8.7 million, including at least $7.5 million of recurring revenue, and will be subject to reductions for deferred revenue discount as a result of GAAP purchase accounting currently estimated at $3.0 million for the remainder of 2022. The price paid for the acquisition is within Upland’s target range of 5-8x pro forma Adjusted EBITDA and it is expected that BA Insight will generate at least $4.25 million in Adjusted EBITDA annually once fully integrated. The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share contributing at least $0.1 million of Adjusted EBITDA in the quarter ended March 31, 2022, and at least $1.6 million of Adjusted EBITDA for the full year 2022 ramping up quarterly as the acquisition is integrated into model across the calendar year.

Business Outlook

For the quarter ending March 31, 2022, Upland expects reported total revenue to be between $75.0 and $79.0 million, including subscription and support revenue between $70.9 and $74.5 million, for growth in total revenue of 4% at the mid-point over the quarter-ended March 31, 2021. First quarter 2022 Adjusted EBITDA is expected to be between $22.0 and $24.0 million, for an Adjusted EBITDA margin of 30% at the mid-point. This Adjusted EBITDA guide at the mid-point is an increase of 1% from the quarter-ended March 31, 2021.

For the full year ending December 31, 2022, Upland expects reported total revenue to be between $313.0 and $329.0 million, including subscription and support revenue between $293.1 and $307.5 million, for growth in total revenue of 6% at the mid-point over the year ended December 31, 2021. Full year 2022 Adjusted EBITDA is expected to be between $95.0 and $103.0 million, for an Adjusted EBITDA margin of 31% at the mid-point. This Adjusted EBITDA guide at the midpoint is an increase of 2% 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 1-844-200-6205 in the United States or +1-929-526-1599 if outside the United States. Attendees will need to use access code 018623 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 1,700+ 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.

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, sustain or increase profitability or predict future results; our ability to attract and retain customers; our ability to deliver high-quality customer service; the growth of demand for enterprise work management applications; our plans regarding, and our ability to effectively manage, our growth; our plans regarding future acquisitions and our ability to consummate and integrate acquisitions; maintaining our senior management and key personnel; our ability to maintain and expand our direct sales organization; our ability to obtain financing in the future on acceptable terms or at all; the performance of our resellers; our ability to adapt to changing market conditions and competition; our ability to successfully enter new markets and manage our international expansion; the operation and reliability of our third-party data centers and other service providers; our ability to adapt to technological change and continue to innovate; our ability to integrate our applications with other software applications; our ability to comply with privacy laws and regulations; 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.

 

Upland Software, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2021

 

2020

 

2021

 

2020

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

Revenue:

 

 

 

 

 

 

 

Subscription and support

$

72,299

 

 

$

74,922

 

 

$

287,621

 

 

$

277,504

 

Perpetual license

 

699

 

 

 

621

 

 

 

2,150

 

 

 

1,884

 

Total product revenue

 

72,998

 

 

 

75,543

 

 

 

289,771

 

 

 

279,388

 

Professional services

 

2,732

 

 

 

2,704

 

 

 

12,245

 

 

 

12,390

 

Total revenue

 

75,730

 

 

 

78,247

 

 

 

302,016

 

 

 

291,778

 

Cost of revenue:

 

 

 

 

 

 

 

Subscription and support

 

23,357

 

 

 

25,179

 

 

 

92,168

 

 

 

89,880

 

Professional services and other

 

1,841

 

 

 

1,811

 

 

 

7,285

 

 

 

8,566

 

Total cost of revenue

 

25,198

 

 

 

26,990

 

 

 

99,453

 

 

 

98,446

 

Gross profit

 

50,532

 

 

 

51,257

 

 

 

202,563

 

 

 

193,332

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

14,003

 

 

 

11,566

 

 

 

55,097

 

 

 

46,077

 

Research and development

 

10,199

 

 

 

9,623

 

 

 

42,693

 

 

 

39,002

 

General and administrative

 

15,615

 

 

 

16,877

 

 

 

76,901

 

 

 

68,072

 

Depreciation and amortization

 

10,530

 

 

 

9,494

 

 

 

41,315

 

 

 

36,919

 

Acquisition-related expenses

 

2,429

 

 

 

2,562

 

 

 

21,234

 

 

 

27,075

 

Total operating expenses

 

52,776

 

 

 

50,122

 

 

 

237,240

 

 

 

217,145

 

Income (loss) from operations

 

(2,244

)

 

 

1,135

 

 

 

(34,677

)

 

 

(23,813

)

Other expense:

 

 

 

 

 

 

 

Interest expense, net

 

(7,926

)

 

 

(7,935

)

 

 

(31,626

)

 

 

(31,529

)

Other income (expense), net

 

559

 

 

 

708

 

 

 

(253

)

 

 

(111

)

Total other expense

 

(7,367

)

 

 

(7,227

)

 

 

(31,879

)

 

 

(31,640

)

Loss before benefit from income taxes

 

(9,611

)

 

 

(6,092

)

 

 

(66,556

)

 

 

(55,453

)

Benefit from income taxes

 

2,140

 

 

 

423

 

 

 

8,344

 

 

 

4,234

 

Net loss

$

(7,471

)

 

$

(5,669

)

 

$

(58,212

)

 

$

(51,219

)

Net loss per common share, basic and diluted

$

(0.24

)

 

$

(0.19

)

 

$

(1.92

)

 

$

(1.92

)

Weighted-average common shares outstanding, basic and diluted

 

30,677,368

 

 

 

29,403,603

 

 

 

30,295,769

 

 

 

26,632,116

 

 

Upland Software, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

 

December 31,

 

December 31,

 

2021

 

2020

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

189,158

 

 

$

250,029

 

Accounts receivable, net of allowance

 

50,499

 

 

 

44,472

 

Deferred commissions, current

 

9,824

 

 

 

5,784

 

Unbilled receivables

 

4,801

 

 

 

4,561

 

Prepaid and other

 

8,709

 

 

 

12,694

 

Total current assets

 

262,991

 

 

 

317,540

 

Tax credits receivable

 

3,345

 

 

 

2,427

 

Property and equipment, net

 

2,667

 

 

 

2,778

 

Operating lease right-of-use asset

 

6,454

 

 

 

10,124

 

Intangible assets, net

 

279,920

 

 

 

279,975

 

Goodwill

 

457,472

 

 

 

383,598

 

Deferred commissions, noncurrent

 

14,808

 

 

 

12,962

 

Other assets

 

1,350

 

 

 

1,816

 

Total assets

$

1,029,007

 

 

$

1,011,220

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

20,362

 

 

$

5,395

 

Accrued compensation

 

9,829

 

 

 

8,138

 

Accrued expenses and other current liabilities

 

9,086

 

 

 

13,438

 

Deferred revenue

 

102,847

 

 

 

87,552

 

Liabilities due to sellers of businesses

 

7,607

 

 

 

416

 

Operating lease liabilities, current

 

3,546

 

 

 

3,315

 

Current maturities of notes payable

 

3,167

 

 

 

3,166

 

Total current liabilities

 

156,444

 

 

 

121,420

 

Notes payable, less current maturities

 

515,163

 

 

 

518,437

 

Deferred revenue, noncurrent

 

2,058

 

 

 

1,587

 

Operating lease liabilities, noncurrent

 

6,773

 

 

 

8,387

 

Noncurrent deferred tax liability, net

 

22,793

 

 

 

24,092

 

Interest rate swap liabilities

 

8,409

 

 

 

30,032

 

Other long-term liabilities

 

1,079

 

 

 

650

 

Total liabilities

 

712,719

 

 

 

704,605

 

Stockholders’ equity:

 

 

 

Common stock

 

3

 

 

 

3

 

Additional paid-in capital

 

568,384

 

 

 

515,219

 

Accumulated other comprehensive loss

 

(11,514

)

 

 

(26,234

)

Accumulated deficit

 

(240,585

)

 

 

(182,373

)

Total stockholders’ equity

 

316,288

 

 

 

306,615

 

Total liabilities and stockholders’ equity

$

1,029,007

 

 

$

1,011,220

 

 

Upland Software, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2021

 

2020

 

2021

 

2020

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

Operating activities

 

 

 

 

 

 

 

Net loss

$

(7,471

)

 

$

(5,669

)

 

$

(58,212

)

 

$

(51,219

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

13,508

 

 

 

12,073

 

 

 

52,928

 

 

 

47,164

 

Change in fair value of liabilities due to sellers of businesses

 

(1,007

)

 

 

(340

)

 

 

(4,510

)

 

 

(340

)

Deferred income taxes

 

(3,453

)

 

 

(4,187

)

 

 

(11,179

)

 

 

(7,533

)

Amortization of deferred costs

 

2,665

 

 

 

1,512

 

 

 

8,948

 

 

 

4,684

 

Foreign currency re-measurement loss

 

7

 

 

 

(39

)

 

 

25

 

 

 

272

 

Non-cash interest and other expense

 

567

 

 

 

564

 

 

 

2,249

 

 

 

2,233

 

Non-cash stock compensation expense

 

10,452

 

 

 

10,429

 

 

 

53,873

 

 

 

41,692

 

Non-cash loss on retirement of fixed assets

 

 

 

 

162

 

 

 

 

 

 

635

 

Changes in operating assets and liabilities, net of purchase business combinations:

 

 

 

 

 

 

 

Accounts receivable

 

(13,413

)

 

 

(2,785

)

 

 

(1,665

)

 

 

10,355

 

Prepaids and other

 

(3,829

)

 

 

1,511

 

 

 

(7,499

)

 

 

(8,582

)

Accounts payable

 

4,218

 

 

 

(1,299

)

 

 

10,865

 

 

 

(3,081

)

Accrued expenses and other liabilities

 

(1,549

)

 

 

1,304

 

 

 

(9,660

)

 

 

(7,485

)

Deferred revenue

 

12,397

 

 

 

8,232

 

 

 

5,575

 

 

 

6,825

 

Net cash provided by operating activities

 

13,092

 

 

 

21,468

 

 

 

41,738

 

 

 

35,620

 

Investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

 

(150

)

 

 

(281

)

 

 

(1,115

)

 

 

(1,114

)

Purchase of customer relationships

 

 

 

 

 

 

 

 

 

 

(201

)

Purchase business combinations, net of cash acquired

 

 

 

 

(4

)

 

 

(92,417

)

 

 

(67,655

)

Net cash used in investing activities

 

(150

)

 

 

(285

)

 

 

(93,532

)

 

 

(68,970

)

Financing activities

 

 

 

 

 

 

 

Payments on finance leases

 

 

 

 

(2

)

 

 

(12

)

 

 

(88

)

Proceeds from notes payable, net of issuance costs

 

(2

)

 

 

(134

)

 

 

(122

)

 

 

(303

)

Payments on notes payable

 

(1,350

)

 

 

(1,350

)

 

 

(5,400

)

 

 

(5,400

)

Taxes paid related to net share settlement of equity awards

 

(609

)

 

 

1

 

 

 

(982

)

 

 

(2,139

)

Issuance of common stock, net of issuance costs

 

46

 

 

 

365

 

 

 

274

 

 

 

130,539

 

Additional consideration paid to sellers of businesses

 

(1,169

)

 

 

(3,058

)

 

 

(1,938

)

 

 

(14,710

)

Net cash provided by (used in) financing activities

 

(3,084

)

 

 

(4,178

)

 

 

(8,180

)

 

 

107,899

 

Effect of exchange rate fluctuations on cash

 

(284

)

 

 

52

 

 

 

(897

)

 

 

456

 

Change in cash and cash equivalents

 

9,574

 

 

 

17,057

 

 

 

(60,871

)

 

 

75,005

 

Cash and cash equivalents, beginning of period

 

179,584

 

 

 

232,972

 

 

 

250,029

 

 

 

175,024

 

Cash and cash equivalents, end of period

$

189,158

 

 

$

250,029

 

 

$

189,158

 

 

$

250,029

 

 

Upland Software, Inc.

Reconciliation of Adjusted EBITDA

(in thousands, unaudited)

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2021

 

2020

 

2021

 

2020

Reconciliation of net loss to Adjusted EBITDA:

 

 

 

 

 

 

 

Net loss

$

(7,471

)

 

$

(5,669

)

 

$

(58,212

)

 

$

(51,219

)

Add:

 

 

 

 

 

 

 

Depreciation and amortization expense

 

13,508

 

 

 

12,073

 

 

 

52,928

 

 

 

47,164

 

Interest expense, net

 

7,926

 

 

 

7,935

 

 

 

31,626

 

 

 

31,529

 

Other expense (income), net

 

(559

)

 

 

(708

)

 

 

253

 

 

 

111

 

Benefit from income taxes

 

(2,140

)

 

 

(423

)

 

 

(8,344

)

 

 

(4,234

)

Stock-based compensation expense

 

10,452

 

 

 

10,429

 

 

 

53,873

 

 

 

41,692

 

Acquisition-related expense

 

2,429

 

 

 

2,562

 

 

 

21,234

 

 

 

27,075

 

Purchase accounting deferred revenue discount

 

924

 

 

 

404

 

 

 

3,299

 

 

 

7,785

 

Adjusted EBITDA

$

25,069

 

 

$

26,603

 

 

$

96,657

 

 

$

99,903

 

 

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 December 31,

 

Twelve Months Ended December 31,

 

2021

 

2020

 

2021

 

2020

Reconciliation of net loss to non-GAAP net income:

 

 

 

 

 

 

 

Net loss

$

(7,471

)

 

$

(5,669

)

 

$

(58,212

)

 

$

(51,219

)

Add:

 

 

 

 

 

 

 

Stock-based compensation expense

 

10,452

 

 

 

10,429

 

 

 

53,873

 

 

 

41,692

 

Amortization of purchased intangibles

 

12,984

 

 

 

11,350

 

 

 

50,930

 

 

 

44,937

 

Amortization of debt discount

 

567

 

 

 

563

 

 

 

2,249

 

 

 

2,232

 

Acquisition-related expense

 

2,429

 

 

 

2,562

 

 

 

21,234

 

 

 

27,075

 

Purchase accounting deferred revenue discount

 

924

 

 

 

404

 

 

 

3,299

 

 

 

7,785

 

Tax effect of adjustments above

 

(1,415

)

 

 

(1,233

)

 

 

(6,063

)

 

 

(5,671

)

Non-GAAP net income

$

18,470

 

 

$

18,406

 

 

$

67,310

 

 

$

66,831

 

 

 

 

 

 

 

 

 

Weighted average ordinary shares outstanding, basic

 

30,677,368

 

 

 

29,403,603

 

 

 

30,295,769

 

 

 

26,632,116

 

Weighted average ordinary shares outstanding, diluted

 

31,000,387

 

 

 

30,275,963

 

 

 

30,846,412

 

 

 

27,159,114

 

Non-GAAP earnings per share, basic

$

0.60

 

 

$

0.63

 

 

$

2.22

 

 

$

2.51

 

Non-GAAP earnings per share, diluted

$

0.60

 

 

$

0.61

 

 

$

2.18

 

 

$

2.46

 

 

Upland Software, Inc.

Reconciliation of Operating Cash Flow to Free Cash Flow

(in thousands, unaudited)

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2021

 

2020

 

2021

 

2020

Reconciliation of Operating Cash Flow to Free Cash Flow:

 

 

 

 

 

 

 

Net cash provided by operating activities

$

13,092

 

 

$

21,468

 

 

$

41,738

 

 

$

35,620

 

Less: Purchase of Property and Equipment

 

(150

)

 

 

(281

)

 

 

(1,115

)

 

 

(1,114

)

Free Cash Flow

$

12,942

 

 

$

21,187

 

 

$

40,623

 

 

$

34,506

 

     

Upland Software, Inc.

Supplemental Financial Information

(in thousands)

     

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2021

 

2020

 

2021

 

2020

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

Stock-based compensation:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

$

544

 

 

$

439

 

 

$

2,088

 

 

$

1,951

 

Research and development

 

758

 

 

 

752

 

 

 

3,085

 

 

 

3,391

 

Sales and marketing

 

1,565

 

 

 

1,035

 

 

 

5,957

 

 

 

3,450

 

General and administrative

 

7,585

 

 

 

8,203

 

 

 

42,743

 

 

 

32,900

 

Total

$

10,452

 

 

$

10,429

 

 

$

53,873

 

 

$

41,692

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2021

 

2020

 

2021

 

2020

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

Depreciation:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

$

3

 

 

$

17

 

 

$

30

 

 

$

170

 

Operating expense

 

521

 

 

 

706

 

 

 

1,968

 

 

 

2,057

 

Total

$

524

 

 

$

723

 

 

$

1,998

 

 

$

2,227

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

$

2,975

 

 

$

2,562

 

 

$

11,583

 

 

$

10,075

 

Operating expense

 

10,009

 

 

 

8,788

 

 

 

39,347

 

 

 

34,862

 

Total

$

12,984

 

 

$

11,350

 

 

$

50,930

 

 

$

44,937

 

 

Investor Relations Contact:
Mike Hill
investor-relations@uplandsoftware.com
512-960-1031

Media Contact:
Kendell Kelton
media@uplandsoftware.com
678-575-7428

Source: Upland Software Inc.

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