Upland Software, Inc. (NASDAQ:UPLD) Q3 2018 Earnings Conference Call Transcript

Nov 08, 2018 • 05:00 pm ET

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Upland Software, Inc. (NASDAQ:UPLD) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Upland Software Third Quarter 2018 Financial Results. At this time all participants are in a listen-only mode. Later we'll conduct a question-and-answer session. (Operator Instructions) The conference call will be simultaneously webcast on Upland's IR website, which can be accessed at investor.uplandsoftware.com. As a reminder, this conference call is being recorded. Following the completion of the conference call, a webcast replay will be available for 12 months on Upland's IR website at investor.uplandsoftware.com.

By now, everyone should have access to the third quarter 2018 earnings release, which was distributed today at approximately 3:00 P.M. Central, 4:00 P.M. Eastern Time. If you've not received the release, it's available on the IR tab of Upland's website at investor.uplandsoftware.com.

I'd now like to turn the conference over to our host, Mr. Jack McDonald, Chairman and CEO of Upland Software. Please go ahead, sir.

Executive
Jack McDonald

Thank you. Good afternoon. Welcome to our Q3 2018 earnings call. I'm joined by Tim Mattox, our President and COO; and Mike Hill, our CFO. On today's call, I'll start by summarizing our results and some recent highlights. Mike will then give a more detailed look at the numbers and guidance for Q4. And then, Tim will cover some sales and operations highlights. After that, we'll open the call up for questions.

But before we get started, Mike, would you read the safe harbor statement?

Executive
Mike Hill

Sure, Jack, and good afternoon, everyone.

(Forward-Looking Cautionary Statements)

On this call, Upland will refer to non-GAAP financial measures that, when used in conjunction with GAAP results, provide Upland management with additional analytical tools to understand its operations. Upland has provided reconciliations of non-GAAP measures to the most comparable GAAP measures in our press release, announcing our third quarter 2018 results, which is available on the IR section of our website at investor.uplandsoftware.com.

Please note that we're 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. To learn more of about our outreach plans, please feel free to contact us at investor-relations@uplandsoftware.com.

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

Executive
Jack McDonald

Thanks, Mike. It was an amazing quarter. Upland is clearly firing on all cylinders. Let's review some of the major headlines. We had a record Q3 with better than 46% growth in recurring revenues, and we see that recurring revenue growth accelerating as we move into Q4. We had record adjusted EBITDA in the third quarter, up 57% and a 300 basis point improvement in adjusted EBITDA margins over the third quarter of 2017. We had a record quarter for both the new and expansion sales bookings, increased bookings transaction sizes. We've got great products, enterprise class, and we now have a team in place to sell them.

This is the 17th straight quarter of Upland meeting or beating guidance. That's every single quarter since going public.