Upland Software Reports Third Quarter 2022 Financial Results

11/03/2022

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.

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

 

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

 

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

 

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

 

Nonrecurring litigation expense

 

15

 

 

 

 

 

 

15

 

 

 

 

Purchase accounting deferred revenue discount

 

1,174

 

 

 

1,275

 

 

 

4,766

 

 

 

2,375

 

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

 

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.