UPLD - Earnings call transcript Q2 2020

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Operator

Thank you for standing by, and welcome to the Upland Software Second Quarter 2020 Earnings Call. [Operator Instructions] The conference call will be recorded simultaneously, and simultaneously webcast on Upland’s Investor Relations website at investor.uplandsoftware.com, and a replay will be available there for 12 months. By now, everyone should have access to the second quarter 2020 earnings release, which was distributed today at 4:00 p.m. Eastern Time.

If you have not received the release, it is available on Upland’s website. to CEO call of like McDonald, to now and Chairman Upland would turn over the Jack I Software. Please go ahead, sir.

Jack McDonald

welcome highlights. Tim our well sales, and our CFO. Thank I’m results Chief Commercial Favaron, as and to going Mike XXXX and and QX product you, Hill, and earnings our joined President by recent Operating to Mattox, as Chief President I’m some Officer; our operations Officer; Rod our call. summarize today

on insights open the numbers that, for Mike safe some Following After started, will provide as harbor well we Q&A. get guidance. the the QX our will we will as up read Mike statement. But that, before call

Mike Hill

Jack. you, Thank

securities and statements differ to we today’s include laws. are uncertainties will statements the During that risks, cause are to that subject results forward-looking our actual within could assumptions considered call, These materially. the of meanings

currently detailed As on our uncertainties a to views contained forward-looking SEC. on The reports comparable report in over today and I’ll these forward-looking effort. is the because we’re reconciliation are annual With unreasonable quarterly with our to XXXX note our the non-GAAP on our financial any as in comparable based is and of discussion complete that, release statements information and of available do unavailable measures is made analytical which updated Please on financial filed on XX-Q Form press XX-K, duty are reconcile Form intend or tools results, measures risks GAAP measures assumptions provide in that financial non-GAAP We needed this at Jack. periodically additional without used their release combination of with to to when as its quarter in most section any Investor Upland this updates Relations forward-looking undertake with revisions available results, our will provided to management publicly time any any management statements. understand refer GAAP second to which today. directly measures the announcing to of to or information our On turn not non-GAAP upland website. operations. Upland Upland has call, measures to GAAP unable the to reconciliations our call that,

Jack McDonald

incredible This Mike. on growth. strong beat an was had quarter. revenue. Massive Thanks, organic We super

So let’s review that.

time background digital some seeing can organizations rapid deliver greater in Digital we value, to into at positioned. we’re in and on we’re on remains this companies our of to what they of adapt where customer organizations engagement is plug First, now Upland quickly this a pragmatic mind when quickly. more have seeing place time transformation even And more to emphasis mission-critical work current the time and The means to a remote is than top products well and ever market. environment, plug-and-play nature value. and to very

Our address or to scratch. need without of from apps portfolio every make. cloud tools digital And replatform the add to transformation our we points we with to acquisition pain build

verticals. is diversified base customer Our industry well across

only is travel our exposure retail energy hospitality, total As a to X%. leisure, reminder, and revenue and

major In period distribution recurring our model. sales abundantly total become a of $XXX,XXX And to building great we approximately with of through resilience got year business the has to course, addition revenue. per and enterprise we’ve clear are now of recurring real customer XX% is our and these X,XXX What accounts that, base driving enterprise COVID accounts. serve customer expand incredible revenue further sticky the in averaging

across the messaging diversification portfolio, When CXM during Upland upticks usage accelerating and breadth customers’ has we you across usage particular. CXM across been nature and of and where a across and for We the all digital COVID. perfect that, our of consider have solutions BXC our is example both of in cases. strong BXB use the a mission-critical and front and office we mobile high-value back operations. diverse have solutions transformation Upland seen seen of and in industries provide the Underlying range that

the did off we messaging. quarter have here, adjusted beat our terms now strong growth, results. had in a growth. we both the revenue In QX, This CXM adjusted the total public. in consensus beating blew and for revenue strong periods; beat. to performance XX% to that offset side, going And more quarter the guidance. and or that EBITDA, however, In that of churn pre-COVID quarter So EBITDA bookings XX% That’s QX, and mobile consecutive and in by relative particularly some doors particular, XXth revenue is on guidance impact was every meeting since than of we

believe efforts, back solutions our the digital As creates of we by customer a our resilience saw and and driving delivering probably bump a model and enhance in range reported our we their is a our both but X% at X%, growth are and accelerate approach tough QX investment for can growth customers’ always, in spite transformation revenues maintain that of a And a today, of an the above in ranging year. was verticals our front here validation media continued with office. growth in organic see office driven we as And conservative retail. strong sit recurring political as election in impressive came year results half outlook. so strength have the of the of this will X%. second result, in And QX we strong to organic usage in this to target next was continued and priorities from alignment it across in the campaigns a COVID-XX. we year, But we in And compare advocacy close CXM that result and

XXX front QX, expansions. which in XX sales customers, expanded the major with we On were of relationships existing

also We XXX in major new QX, Upland welcomed customers new customers. to XX including

sales enterprise against strategy our progress leadership. under We well Rod also Favaron’s continue to

strategy, progress and are seeing but and this innings runway We’re the of opportunity. still account-based against early in we our sales cross-sell

As major on feature five releases development, we prolonged of has the a this XX distributed continued era, quarter, large adjust Upland our portion workforces. of enablement which focused and remote included work to a product packs

remote So and Workflow their for introduced on Microsoft for e-signature Cloud, capabilities. solution, way resources In example, CXM mobile of example, added cloud utilizing documents, Android for iOS ability added XXX, additional again, Cloud the support the by Salesforce to camera we our telephony providing customers and devices, Dynamics within in our Document for Twilio deployment scan teams. we and additional we within

of XXXX great year and guess for nurturing year. may the things active for start And while the got who As a be term this mentioned, knows, active opportunities. deals. back is pipeline will acquisitions. M&A a busy a pipeline fourth that of We’ve are an of short we in And pausing very we up quarter my

that planned. On the proceeding activities operations as front, integration continuing of are a range we’re

and couldn’t this team, business just resilient. I of be is prouder So so our model

We’re for the COVID-XX. half seeing continued going from But, second of and to in year. course, macro early positive guarantees on maintain signs no we’re growth uncertainties our this strong of outlook given organic flowing stance the conservative

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

Mike Hill

the the third Jack. I’ll and outlook the year quarter quarter full for highlights financial second for you, Thank our cover XXXX. and

when refer Overall, support revenue for second XX% which at services acquired cash Total amortization note subscription revenue, back was adding all second these we and were the acquisition-related gross will was revenue quarter, quarter. gross which excluding equipment, XX% million. for strong expenses, without a due as for of expected. expected as or travel call, And to and $XX.X second margin A had the grew million, net mentioned year-over-year $X.X statement. would to and $X.X to as quarter’s actually benefit gross XX% I tax of remained year’s expected, like included second further noncash around margins. QX of income last million growth the QX. amortization significant of million revenue in assets, approximately to the a Recurring on Professional during in to income $XX.X expenses, continue year-over-year quarter acquisition-related dramatically were representing we XX% margin expenses to quarter last $X the was statement. XX% XX% comp, second the Operating XX%. QX costs XXXX, in was the Also of $XX.X decline or million product the and our $X the remind for depreciation to for and on depreciation, quarter, million results. to non-GAAP stock-based First, acquisitions decline, when intangible COVID-XX around from comparing onetime income quarter loss final net million you that just I as GAAP total impacts.

flow. adjusted EBITDA cash for Now and

the in XX% XXXX total million second quarter second total $XX.X XXXX. of or XX% of compared adjusted EBITDA up XX% million $XX.X revenue of Our or revenue, quarter to was

in million operating working or should forecasted in over steep capital operating cash nicely million be quarters the second expenses, million. adjusted forward decline the flow basis acquisition sequential was of XXXX, around acquisition-related in on $XX.X be free of given around our $X.X QX XX-month quarterly flow and For temporary will a coming flow for and XX% costs XXXX EBITDA cash additional would $XX.X Again, should the million. quarter adjusted our of positive flow cash reported timing Normalizing $XX cash have differences been climb operating and accounts, before acquisitions. for

Okay.

and income carryforwards, revolver. million liquidity flow With sheet our balance NOL note in ongoing $XXX currently generation $XX on balance that cash to million usable. will addition I – approximately of on million and of million existing these, the undrawn This of taxes, total sheet almost of comprised $XXX approximately to approximately has Now flow. to cash $XXX of of tax cash million $XX of our are is and regard Upland free

debt interest the XXXX, term of million annual about I million the balance are on outstanding $XXX.X As per per year. per we XXXX. our our on principal our at rate million year of after had of payments X.X%, balance $X.X year, in August our will in maturing cash with debt payments making June $XX.X remaining on note factoring $XX approximately that interest net locked is the sheet. cash million X% term The or XX, debt approximately

will out borrowings. I our financial term Additionally, covenants that on current no has point debt

Now for guidance.

attribute impact churn, are we in which As to strength Jack COVID, seeing rate. growth mentioned, new but also, we bookings organic our have seen to we and

incorporates such, reflecting dynamic. revised our guidance As this assumptions

expects million Upland million $XX revenue revenue ending recurring reported at for quarter $XX support and September XXXX, the the XX, million XX, quarter and to growth September the subscription between and $XX.X between be million, of revenue XXXX. over XX% total including in ended midpoint For $XX.X

is expected midpoint over the to adjusted the midpoint, margin EBITDA million $XX.X Third representing XX, adjusted at and XX% ended XX% be between quarter of XXXX at XXXX. an the quarter $XX.X for of EBITDA million growth September

be XX, year to over between revenue full ending $XXX.X year and $XXX.X XX% at EBITDA growth representing year and I’ll between XXXX, pass Upland to EBITDA of between revenue at the the expects expected total $XXX.X support For XXXX in December XX, adjusted be at recurring call XXXX. And the $XXX.X that, subscription ended ended XX% growth the $XX.X $XX.X midpoint for Jack. million million December midpoint, the and revenue including over XX, is million December margin over Full with year of million midpoint an and adjusted reported of million, the million XX% the for to XXXX. back

Jack McDonald

early as the quarter, conservative half a strong continuing beat environment in particularly we’re Mike. to, here again, COVID-XX. And the of of always, growth and and we with Thank strong phenomenal year, going back outlook organic see but again, the you, maintain raise. in And signs

me. open to we or Mike And again, ready please now Tim direct Mattox, free the are So or questions your Q&A. Rod for call to up Favaron to to feel

Operator

the first of from from [Operator question line Bhavan William Instructions] Your Blair. is Suri

Your open. line is

Bhavan Suri

flow one I got results, then Hey, at a both for too. and congrats, high free fantastic. cash obviously, solid level here, Jack, Rod, and think is top first, line, maybe which I’ve

Perficient was Just the bit and But you table and how sort little what what just this to to at Perficient about there. and the so is different we’re for several were sort It was people-based, But some there were of difference some this business. is cetera. a a now to totally when seeing those just through manage downturn, the real compares of seeing software-based, you’re that you of sort you experience the process. of similarities estate, talk economics, bring et during some went and cycles was

navigating I this for people sort how think to company is understand trying helpful that be the would of time.

Jack McDonald

two Sure. significant revenue. eight million through. we to than Really, that had years in really was $XXX,XXX to it, we took manage that $XXX and I crises the XX we And running people business X,XXX during people had Perficient grew in and that from revenue we

course, XXXX earlier lapse and The with what of you the those a first XXXX. cases, saw you COVID, was the Recession saw, in really cases, in dot-com bubble think, in Great both here we’re contrast second, I to And and in of was demand. seeing bursting really the two

difference was And and there looking significant in hits for Perficient. the structure who so of the they to confronted winners in, folks was out came actually that their adjusted between at base those with kind losers think fact, than in and the customer case gone you’re solid And and I the went had, and that cost the that right revenue. stronger reality

our still years, XX to XX XX which taking that pain in we’ve business of five If XX In enable years, by of and address got become more Upland revenue. ever for comprising accelerated we’ve seeing fact, set of seeing with growth as that I that the to $XXX,XXX recurring proud of. bursting, deliver six digital clients, seeing we’re fix doing setting And And range. I has built, up growth customer to we’re X% indicates, into that’s to A major at target very averaging strong of X% our growth. points recurring competitors group strong probably, then for half of dot-com organic we’re XX%-plus great that year at for a X,XXX accounts we pain demand. are of and important business, COVID. enterprises customer happened collapse continuing time our rapid and and set a here large base transformation. transformation levels transformation above accounts, which very in the with products testament But real not the And that’s turned our bubble well, best for to of digital out has the products a year. a the the contrast, guess is XX,XXX thing that years guidance our attractive out revenue, By digital into enterprises, organic been And of as value. or us a COVID, anything, points second incredibly a think small X%, solid

delivering products They require re-platforming. quickly. and require and value They can play Our be speed don’t scratch. from don’t plug building to and up

verticals. significant some a across so CXM usage, that’s And in – particularly in in resulted uptick with number of

for about in that a So made quarter with journey. eight those six We’ve and base, nurturing he’s invest customer a products that to brought market us, continuing team in our also to continuing significant Rod and it’s go investments go-to-market Favaron, to and investment in. that’s the

Bhavan Suri

Wait, I’ve about wait, wait. Jack. that. ahead, too get questions got Don’t

Jack McDonald

continuing here, take to investments But – going those. say at I would the making those let I’m what Rod No. direct a we’re doing that’s with whack those future. for

Bhavan Suri

Rod. to turn let’s So

which was just credit up chuckling. But frame. to one, So want on obviously, importantly, for the were quarter, team beat so and touching that, new a the you time it’s Rod more you why is give to you big in whether I

by driven sales impact XX sort the are immediate you, what of sort about understand to with what So that’s looking is be over love that XX and time look the resources And build I for frame, there XX, the line sales beat in an sort be maybe looking the time what XX, at should next over months, talk And next the how was of was team, milestones as effort new we this at of XXXX, to milestones additional is and both the then the months? we out but should of there like? progressing? you

Jack McDonald

the really to his immediately. Rod kind The extremely of that on differences and then Let customer and the this. the generally and have been me philosophy go-to-market I’d more and about marked leadership love felt for on say cadence, the side in outreach, team hygiene go-to-market And Rod brought talk has positive. this, were success around customer and

onboard. have to thrilled we’re team so and And the Rod

Beyond Rod your that, let question. let me answer

Rod Favaron

Yes.

with start coincided exactly almost my COVID. So

and but what that of say I’m to lot second a sure So business already. made what quarter in not the I busy very the means, is were that impacts will we

again, time, on the on we this I needed sure say QX. timing, I’ve our it really into think perfect focus which market. customers and to said We that were initial was my what last I’ll base, when you was customer make focused played in out walked

We expected our hard on because we to QX, than to And have better bookings quarter, and expansion very have base we the during a quarter too. we stronger a performance bookings which played did. out, focused that expected

we Virginia business. where that quarter, did second our and the some webinars shocked during at call out talk Through with So, I it, the we runs the really, Connected our seeing. there base the customers they really were put customer with who pivot engaged the about I in really renewals deal was a then we’ve part was in attendance customers. Miracle, impact of which put marketing there we the our they how think challenges Change, in for motion positive And there program, to of

target Made that, than of think some program. specifics, products you a of a we from training. trained new UplandOne our proud sales to that. second rolled cross-selling quarter product really we It’s across our into one out cloud out walked force we pipeline integrated across rolled part to to instance, on give methodology Altify business. really the We helped with know We our frankly, progress We cloud, quarter on selling of lot. or own and that spent closely our we and sellers called sellers Altify with It so now customers all acquisition. But a exited of business. we the and that the I a three to which account shift lot enabling we’re lot the kind guys four the and products. quarter of to building the more rolled cross-sell selling,

So running in put more did we we’re our how forecasting, changed selling that deals. we’re four to disciplined and versus quarterly – all and our sales. sales moved we so we cadence out – closed And we a in a monthly force lot changed in months. we in put our method, forecasting closed a We cadence

thing. So, the the said, of in the those work are great I’m That amount putting being of them same proud team and being really at did. not

it. for and memory we’ve So put while in making be – sort of as second quarter, going real-time a part work do. got the that to really that our on started more Jack got to here, it we’re journey is what This of is a muscle but a lot really we

it’s like said, but drove our quarter. a think Jack good I So as usage really start, product the

digital the a Some engagement lot. so products a that really had quarter, really that big and of products helped are really

Bhavan Suri

we a you’d not it do think it retentions is seeing? you’ve think about up? the like Got set at put I of Got sales measure could asking milestones rates? see XX really But time, there the again, And helpful you. and processes, next granular you. answer what what glib of that how and that’s Is even thank for you in Is guess success you’ve the And it terms months, color you the place? when milestones, over in for revenue. is fantastic, but at in level, look transparency. the the we done going it of was you’ll growth is and organic think I dollar

Rod Favaron

Yes.

lot obviously, of as selling the mentioned to we same part at but, organic are internally, next the cross-selling at more would we’re we look look products. the metrics, business. as far success. base. important at a And working as very a had lot over better more at additional feel our cross-sell retention hard of are at – really that couple and we’re products, that a cross-sell. obviously, driving we’re of a growth And the like us I into the see You of our look measuring business. selling we expansion going we certainly we would quarters that internally, And the part And I to of very of and sales mentioned business, two

Bhavan Suri

Okay. Thank guys. you,

Rod Favaron

question? Okay. Operator, have do we next

Operator

question Crédit Your Brad from line the comes from Zelnick next of Suisse.

open. is line Your

Marco Iaboni

Brad. This is Marco on Congrats the for line the for quarter.

So obviously. well. looks strong to different assumptions the maybe retention renewal rates, follow-up, some of wanted how clouds around ask just guys a line quarter. bookings, versus ask as guidance, your wanted you timing, making specifically I And that the top as about new between are to first the

Jack McDonald

Sure. in raised by that for usage. public The of strength, year year reflects the we in we that political saw a strength in also some the advocacy, business strong saw guidance our election and and QX. drove in saw of performance was particularly CXM of campaigns But half and retail. second suite, the cloud We driven the those both and of media

earnings the pointed and in mindful release, a of maintain to stance conservative COVID-XX back year. and in looking the what’s and so This guidance, trends the a signs time, raised maintaining trying we’re half from second environment, that around informing the degree strength guidance around So of business that potential seeing out usage, at of bookings, impacts guidance. of that’s informs for year. the conservatism the renewal the seeing rates which, we’re of our continuing really this the half the and we’re that the we’re around we’re as same in reflects the At again, we

Marco Iaboni

it. Got Jack, just Okay. as a follow-up.

have assets if curious are any going would you that seeing And of do understand resume M&A have pre-COVID? and in that heightened evolving to saw real-time about how I you that even M&A for quarter guys but start terms see the paused So interest as curious the what strategy considered you again, seller I’m you throughout M&A? you just pipeline you pipeline. forward,

Jack McDonald

strong. is pipeline The

call in team, place activity, in with I’m involved our the nurturing of personally terms of We pre-COVID. that had and pipeline a are We’ve both seeing interest. got seller lot M&A we

knows, is we start for in the Lord think acquisitions got banner be here. knows And who year XXXX I who QX a for going might So to pipeline up to us. against. execute

about good very feeling I’m it. So

do hatches, in to we found the on environment improve, of respect things to back solidify But year. we made. used continue of this thing we on to right part get to last again, down batten as the integrations I are we’ve based to horse to earlier it And M&A. as ready think few pausing was the the to the the with complete time systems, productively acquisitions

we So, M&A. on again, to are moving get really ready

Marco Iaboni

taking Thanks and congrats questions Thanks. the great. Okay, my on quarter. for

Operator

Your comes line next Hynes Canaccord. question from the from DJ of

Your line is open.

DJ Hynes

Hey. thanks, Congrats, nice of for Maybe numbers guys. Rod. here. set one

the we the how As about a main your of product many the kind you and think And model push question account-based sales those How their that breadth like buyers could forward. do four that? volume different getting functions, you of that of guess is think major Just of folks account? about typically cross-sell I talking do target to motion inside each the do dynamics other? is to trying kind

Rod Favaron

spent question. the say, of I CIO. a for a a little would of defining great bit second a lot buying time the set our propositions that’s Yes, Obviously, in groups value we We’ve quarter, tighter. have

service and center call for set a leadership. have We

of really with or five nice marketing a sort centers think, set the an and and in centers I of for depending for industry, in, groups is buying – vertical the motion within our four, we those account our of that our the a our ended, sales global four on sort focused within marketing solution sellers there’s value the And both to on. got propositions team we’ve selling cloud we done, job engagement. to for enterprise as quarter train as five – we bring account have buying the we’re started owners buying We as wider sets. digital motion There’s the – first and and sort of which global sell

of that sets or on different And focused very so there four are we’re with products. five

DJ Hynes

Yes.

for follow-up a maybe Mike. And Okay.

obviously, of it lots the in On the usage strength like CXM, quarter. mobile side, the sounds

remind framework or days? the model? based that me And is exposure a to how that utility kind these of Just model Is there. revenue significant business a metered

Mike Hill

Yes, DJ.

a on is typically a that we amount but contracts structure set usage So based model, of usage. annual

a subscribe And go about think extra had you then that certain that, messaging, old plans usage for minutes, to this where amount pay then you year. case, cell So you for a in phone if extra it of you example. mobile over the

do typically on-demand overage. annual have but and it’s So some contracts, we

DJ Hynes

Got it. Got it.

sense. So, visibility it’s demand. on high Makes

Congrats. all the color, Thanks for guys. Okay.

Operator

Your next Berg and question comes Scott from from the Company. of Needham line

is line open. Your

Joshua Reilly

Building Congrats strong This guys. on Scott. Josh is on the quarter. on theme Hey, for the questions. acquisition

when look talked with the of once likelihood a making that possibility XXXX Or of active of potentially comes about more something more XXXX? around pace But QX saw an in here, is XXXX like quarter what not does XXXX you’ve kind except it in we in restarting. here So acquisition acquisitions? like

Jack McDonald

It’s can because conservative maintain to acquisition like And never better a I predict always, you think, it’s don’t to precisely. get more with M&A, stance a an want we pressure ever to feel done.

get XXXX, said, a want You would those want caveats say, it. XXXX. to did it have would to to to at the goal of But measured in sort be I and closer approach we’d to see least we what

Joshua Reilly

product Have kind then differences of And during seen retention any then, of meaningful you suites And switching pandemic? gross little any is changes you retention? a Great. there – Okay. in have terms gears the in bit. seen the between

Jack McDonald

into The any this. the more usage some to and new business that seen the strength than impacts And seeing there. that from coming of retention expected what for seen retention we’ve we’re is in resilient. CXM incredibly bookings COVID with made The to vertical we logo we’ve consistent or have our is up been relating by

what So we’re that’s seeing.

Joshua Reilly

this in with then Okay. And things to there. I’m at trying out trends point things like expectations? were exiting just trends were – June – one were what versus Great. but it take the these sounds curious throw expected, line like And How – your your just you then Or sales more April? were on what here. than I’ll stronger

Jack McDonald

we than once if out. had Well, that you terms it to. sure. if – inside we lower than I guided QX, was we out at COVID environment, mean bookings put I for you they look in were we considerably came this guide ARR significantly the of stronger mean net where were of and

revenue. guidance EBITDA the So in The came results expectations, resilient. our business above the revenue clearly, on lines through and is blew

blew the I the a as guidance think, implied we’re sales second through frankly, activity quarter. Rod side. of seeing revenue indicated, for And lot our on pre-COVID

guidance And So putting our for statement strength range raised the thus, end X% significant. X% business beyond is our continuing. the again, that of we and top see up the half really year the organic second of to growth our for this X%

Joshua Reilly

Great. Thanks, guys.

Operator

Your of Van Jeff from question Craig-Hallum. Rhee line from next comes the

line is Your open.

Jeff Van Rhee

as needle? have messaging the there. benefits, well. ex Great, would that on To me thanks. X%? Or side, the been the uptick congrats My from be guys. organic, still enough would have it usage been real The Several clear, move nice to particularly

Jack McDonald

I mean, we great don’t the by customer But got is we saw resilient. organic trends think activities should be And the on of outreach. I out and business, which the rate incredibly terms growth go-to-market going things with in really of break the the totality Well, think we’ve I way viewed, segment. the

webinar Rod a strengthened As having significant customer continuity quarter indicated, number came we out relationships of change, series. of and through this this

So at it that’s great strong year. about we the outlook again, the why half look second of overall. feel the for business I the and,

Jeff Van Rhee

QX, got Rod’s and that that and a anything there? giving some going obvious but XXXX to cost momentum But cost mean, the acquisitions, in in structure, implied that’s baseline I obviously, you’re you’ve resources. in up really anything structure QX, And I forward? guidance, to know bulked QX, cost the about? On unusual implied Is about anything outside think some obviously good think more of not got QX structure?

Jack McDonald

I ahead, look, – we mean, Mike. I think – are is it go

Mike Hill

that, ahead, a just baseline. Go it Jack. is to I think good yes, was say I Yes, going

Jack McDonald

really and group the say, these I customer build team, execs, account global these that No, we’re numbers, first managers, top this of investment global who’ve making, go-to-market going was built which our accounts. account just relationships is with deepened new into senior to our

of don’t significant quarter going we’ve adding a powerful pain products that do deserves, the we’ve are And are that And those account a right? budgeted got So go-to-market in. replatforming time have executives, motion. that value is that a of to we six to from global directly transformation is we’re journey, that number additional kind frankly, that that. that of eight then quick a that set to scratch points, and here But time to plug-and-play, think require rebuilding but be got or better digital this right address just

we the done And acquisition so major logos historically. we opportunity our that your do. I just through changer. have or XX,XXX that’s right, want we but place is And add accounts. there, think that the we two think with opportunity this products journey, got conservative, know we again, here we’ve than X.X, and measured pick really customers, investment. per major are there. with and X,XXX game in We today, the significant. now, cross-sell accounts, still to I eight the quarter one And within a onboard we potential to get really be x, see grow team had never the motions so is X.X, making there. team But that six and to is his and Rod in account, to And own additional runway that point We’ve got every Less number. products major We

Jeff Van Rhee

Yes.

quarter, different on just Cash out it For sure. being into curious the pipeline the the your I’m pre-COVID the quarter? lastly, flow of the from operations stands then. contrast. maybe ones, a And in internal Two as last more then what composition the just brief of pipeline, in compare and little terms now expectations coming of meet versus kind did makeup?

Mike Hill

cash number expected. free exactly flow, cash flow. – Mike. Yes, QX for flow take the the I’ll operating cash as we Jeff, really that in had came it’s

talked will get we those we decline new in free until flow increase should in from we to to You operating some And as forward quarterly sequentially, acquisitions. move continued saw a drop the costs to about, and the quarters, acquisition-related QX we cash continue here coming and QX. significantly as see

Rod Favaron

Rod. take the is question. I’ll pipeline This

relative the it’s to surprisingly, We engagement second quarter pre-COVID, pretty think strong. could I nobody digital had, anymore. the go events to where in

virtual So ways shifted of lot shifted we top and to funnel. a webinars we of and building to of other did we events

I really strengthen And And all of little to to all throughout the quarter. attendance product since have sort so cross-sell pieces, of second bit but it’s working the of into it we top funnel that during We pre-COVID. a same improved seen and have at to down that webinars. best the counterintuitive, more pipe remotely, had expansion might new working think hop little time we the but continue break some a the buyers activities home, X: quarter, logo, multiple from the we’ve on had and

is solid would not pipeline just really pre-COVID, a So, I but place. say, change dramatic still in

Jeff Van Rhee

execution great. Well, in great Thanks. right, All the environment, tough guys.

Operator

next comes James. the from question Your line Peterson of Brian Raymond from

is Your open. line

Kevin Ruth

have tone impacted months? minimal in you’re But of to the or cadence several those past see behavior maybe any Thanks taking exposure my over And the you if curious pretty the Kevin guys. more did conversations know Hey, the seeing some of the Brian. call. verticals. those any in changes for for there on here customers. change of you I

Rod Favaron

take you me to do that? Jack, want

Jack McDonald

please? Would Yes. Thank you. one, that you take

Rod Favaron

frankly, exposure on and calling been about we we’ve I we haven’t good have I bet. base. to of expected done. things the certain just of to more of now the it in a you you heard difficult And the say our character and affected sort situations our big we out you to lot deal of customers to obviously. than have sort than But But had in COVID. – to it’s And we of such relative doing to would would read we’ve more calling small a news the see we obviously news. really talked say haven’t customers expected say hear that because I and companies who Sure, were – just influx a with industries number because was of

in pretty year-over-year, been not as really. though – solid, said earlier not the situation the renewal big a So it’s we change in call,

Jack McDonald

highly exposure to at just right? want verticals, impacted add point about just you you revenue. our one X% if if overall looking to that, – only is of So exposure, look So at

travel, So together comprise retail, whole hospitality, would group that of energy, that be about X% revenue.

relatively So exposure. limited

Kevin Ruth

Sure.

curious of feedback And was adoption WorkCenter been any that has there? Okay. product. look offering? around what rolling out on What like the early the on then some the And thoughts updated

Jack McDonald

Rod shared out product rolling been WorkCenter a that received. should initiated already that through engine. what that’s for And the core the analytics portfolio of technology. the And has are Well, review been at well next looking rolled has be now phase we and out

that come So quarters. the more to in next few on

Kevin Ruth

Thanks, All guys. right.

Operator

comes next Securities. question [Operator the line from of Terry Truist Instructions] Tillman Your from

open. Your line is

Nicholas Negulic

This Hey, on guys. is Nick Terry. for

digging strength. is sales So the a first deeper into little one the

on are to disruption any guess, value you kind your mitigate So with side? new seeing maybe to guys business or you on to you new of I might solutions side the ability be And strength potential quick business then provide more currently COVID-XX enabling in your is the seeing expansion sales? time

Jack McDonald

you those? do to want take Rod,

Rod Favaron

I Sure. I sure had in of If of of stronger focusing slightly do we the needed And they quarter. their a what bookings, remote, And expected. Like second it on as look to through our our lot like at remotely. was we spend time mix of service things products, lot they of said, expansion that’s making think work for their sort base think used COVID. a helping kind get and customers clients frankly, to I employees our

the of we quarter. during much of very the base a sort So did focus on

a don’t think same sales pipeline of saw are any in look, a the bit as the sort cross-sell in But the we we new forward base pipeline both I the as logo, more change mix. and of product I those all had strong. we expansion new the pipeline, So business cycles. – And huge a think honestly,

Nicholas Negulic

it. That’s helpful. then for a And Got follow-up just me.

could consolidation well? and that be do your breadth in So market? individual you vendor play suites, out are of theme somewhat I depth overall as product seeing and benefiting you from guys the Or portfolio guess considering the of believe potentially cloud you a

Jack McDonald

acquisition on marketing, and in I staying strategy, potential also and focused we in see benefit CXM lot our other areas No, the a activity sales acquisition in we’re a two and enterprise but in We playing. us suites. do that’s are for as execute we our think where cloud currently potential of

you get that for now I you gives adjacency, it just the first really I accounts. in to And built, of even And broader in we serve position. and managers clients account think a global continue those our make as team to to stronger think, there those increase more time, to stronger footprint accounts ability, better. case these as the this and also we them up bring have to build being value with how the great and can

So out I watch quarters say, the here. few we would space roll this next over again, as this

Nicholas Negulic

Got Thanks, it. guys.

Operator

that was our Mr. final McDonald, question.

Jack McDonald

Great.

see and you for you. Well, Thank the thank on Okay. you we next participating, call. will all earnings

Operator

call. conference today’s concludes That

disconnect. now may You

Upland Software (UPLD) 8 Aug 202020 Q2 Earnings call transcript