Upland Software Reports Fourth Quarter and Full Year 2015 Financial Results
Upland Software, Inc. (Nasdaq: UPLD) today reported its financial results for the fourth quarter and full year ended December 31, 2015, and provided guidance for its first quarter and full year 2016.
Fourth Quarter 2015 Financial Highlights
- Total revenue was $17.6 million, an increase of 7% from total revenue of $16.5 million in the fourth quarter of 2014. On a constant currency basis, year-over-year growth in total revenue was 12%.
- Subscription and support revenue was $14.7 million, an increase of 16% from subscription and support revenue of $12.7 million in the fourth quarter of 2014. On a constant currency basis, year-over-year growth in subscription and support revenue was 20%.
- GAAP net loss was $4.3 million compared to a net loss of $2.7 million in the fourth quarter of 2014.
- Adjusted EBITDA was $1.8 million, an increase of 125% compared to $0.8 million in the fourth quarter of 2014. 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 fourth quarter was $18.5 million.
Full Year 2015 Financial Highlights
- Total revenue was $69.9 million, an increase of 8% compared to total revenue of $64.6 million in 2014. On a constant currency basis, year-over-year growth in total revenue was 13%.
- Subscription and support revenue was $57.2 million, an increase of 18% compared to subscription and support revenue of $48.6 million in 2014. On a constant currency basis, year-over-year growth in subscription and support revenue was 23%.
- GAAP net loss was $13.7 million compared to a net loss of $20.1 million in 2014.
- Adjusted EBITDA was $4.1 million compared to $4.2 million in 2014. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, is provided in the financial tables that accompany this release.
“In 2015, we built a focused product and operating platform and strengthened our acquisition pipeline while delivering 23% growth in recurring revenues and increasing Adjusted EBITDA margins from 2% in Q1 to 10% in Q4,” said Jack McDonald, chairman and CEO of Upland Software. “2016 will be a pivotal year as we leverage that foundation to drive recurring revenue growth and expanded Adjusted EBITDA margins.”
Fourth Quarter and Full Year 2015 Business Highlights
- Simplified our product and acquisition focus into three areas: Project & IT Management, Workflow Automation, and Digital Engagement.
- Launched 11 major feature releases in full year 2015.
- Continued customer-driven innovation with 4 major productivity-enhancing feature releases in the fourth quarter, including new releases of our:
- Project & IT Management applications, with improved mobile capabilities, API access, timesheet functionality, reporting features, usability, and analytics;
- Workflow Automation applications, with enhanced reporting, process transparency, and value delivery;
- Digital Engagement applications, with expanded chat functionality and interactive application-to-person communication with multiple mobile subscribers at one time.
- Added 65 new customer relationships, including 9 major accounts, during the fourth quarter for a total addition of 319 new customer relationships, including 36 major accounts, for the full year 2015.
- Delivered 90% annual dollar renewal rate (DRR) for the full year 2015.
- Increased our contracted annualized recurring revenue (CARR) to $61.5 million from $57.9 million on a constant currency basis at year-end 2015.
- Announced a partnership with Dell Boomi to deliver Upland Integration Manager, which will simplify the integration between customer business systems and Upland’s enterprise work management applications.
- Expanded our product family by acquiring Ultriva, a cloud-based manufacturing and supply chain work management offering.
Business Outlook
For the quarter ending March 31, 2016, Upland expects reported total revenue to be in the range of $17.1 million to $18.1 million including recurring revenue in the range of $14.6 million to $15.6 million, for growth in recurring revenue of 6% (9% growth on a constant currency basis) at the mid-point over the quarter ended March 31, 2015. Adjusted EBITDA is expected to be in the range of $1.7 to $2.3 million, for an Adjusted EBITDA margin of 11% at the mid-point, representing growth of 480% at the mid-point over the quarter-ended March 31, 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 recurring revenue in the range of $61.3 million to $65.3 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 $9.0 to $11.0 million, for an Adjusted EBITDA margin of 14% at the mid-point, representing growth of 156% at the mid-point over the year-ended December 31, 2015.