Have now met or exceeded guidance in each of the seven quarters since going public
Upland Software, Inc. (Nasdaq: UPLD) today reported its financial results for the first quarter ended March 31, 2016, and provided guidance for its second quarter of 2016.
First Quarter 2016 Financial Highlights
- Total revenue was $17.6 million, compared to $17.5 million in the first quarter of 2015. On a constant currency basis, year-over-year growth in total revenue was 3%.
- Subscription and support revenue was $15.2 million, an increase of 6% from subscription and support revenue of $14.3 million in the first quarter of 2015. On a constant currency basis, year-over-year growth in subscription and support revenue was 9%.
- GAAP net loss was $5.6 million compared to a net loss of $3.7 million in the first quarter of 2015 primarily due to one-time acquisition and divestiture costs in the first quarter of 2016 relative to the first quarter of 2015.
- Adjusted EBITDA was $2.0 million, or $0.13 per share, an increase of 338% compared to Adjusted EBITDA of $0.5 million, or $0.03 per share, in the first quarter of 2015. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, is provided in the financial tables that accompany this release.
- Cash on hand as of the end of the first quarter was $13.6 million.
“We started 2016 with strength, delivering record Adjusted EBITDA and two accretive acquisitions,” said Jack McDonald, chairman and CEO of Upland Software. “We have now met or exceeded guidance in each of the seven quarters we’ve reported since going public, and our quarterly ramp in Adjusted EBIDTA is nicely underway.”
First Quarter 2016 Business Highlights
- Announced two acquisitions that expanded our Digital Engagement product family by adding a powerful new cloud-based web analytics offering and growing our Mobile Commons cloud-based mobile messaging platform with the addition of Hipcricket.
- Continued customer-driven innovation with three major feature releases, including:
- Project and IT Management applications, with improved program management capability and usability.
- Workflow Automation applications, with enhanced forms, portal, and integration.
- Digital Engagement applications, with improved performance, usability, and handling of media objects.
- Added over 80 new customer relationships, including 5 major accounts. In addition, expanded over 100 existing customer relationships, including 11 major expansions.
- Hosted Upland’s Workflow Automation conference with over 50 partners attending.
- Featured at The Customer Success Summit, and presented strategies that have dramatically improved the Upland customer experience, success, and net promoter score (NPS).
For the quarter ending June 30, 2016, Upland expects reported total revenue to be in the range of $17.3 million to $18.3 million including subscription and support revenue in the range of $15.4 million to $16.4 million, for growth in recurring revenue of 14% (16% growth on a constant currency basis) at the mid-point over the quarter ended June 30, 2015. Adjusted EBITDA is expected to be in the range of $2.1 million to $2.7 million, for an Adjusted EBITDA margin of 13% at the mid-point, representing growth of 198% at the mid-point over the quarter-ended June 30, 2015.
For the full year ending December 31, 2016, Upland expects reported total revenue to be in the range of $70.0 million to $74.0 million including subscription and support revenue in the range of $61.7 million to $65.7 million, for growth in recurring revenue of 11% at the mid-point over the year ended December 31, 2015. Adjusted EBITDA is expected to be in the range of $9.5 million to $11.5 million, for an Adjusted EBITDA margin of 15% at the mid-point, representing growth of 148% at the mid-point over the year-ended December 31, 2015.