Upland Software, Inc. (NASDAQ:UPLD) Q2 2023 Earnings Call Transcript

Q – Unidentified Analyst: Hi, gentlemen. This is Johnathan McCary [ph] on for Alex. Just one, from us. So I know you kind of touched on the innovation engine already, but you’ve had the R&D center up and running for a little over a year now. You’ve had a nice cadence of new products and functionality announcements. So, what can you tell us about how we should think about how product velocity should trend over the next year? And how should we think about monetization of those investments? Thanks.

Jack McDonald: Yes, I think the first and most significant way, in which we’ll monetize those investments, is taking this business from a minus 1% minus 2% organic growth rate in 2023, to a positive mid-single digits organic growth rate next year. Now again, that’s a goal. It’s not guidance and there are no guarantees. But this organization is laser-focused on the levers that can drive that growth. I think that is a game changer, for this business. And we’re not saying that’s a ceiling. We’re saying that is a target for next year, long term. Our goal there is 5% to 10% organic, and 30% to 35% EBITDA margins. I think that’s just an absolute game changer for, how the company will be viewed and valued on an ongoing basis. And then of course, turning back on the M&A engine, and doing it in the context of a business that has a working go-to-market motion and levers to pull around the Indian COE, on the product side, and the ability to generate pipeline and the ability to not only support any acquired field sales personnel, but also to add an inside selling capacity to the products that we acquire a scaled inside selling capacity where we can now plug in, inside sales pods, on a pretty systematic basis.

So, look I’m not saying that, everything is humming right now, because we are in the process of laying this all in, but then we are seeing real and solid progress operationally on creating this capability that we believe is going to drive that growth and that return on investment. And as I mentioned, there are some early green shoots particularly around pipeline generation, that I think give us increased optimism for the future.

Q – Unidentified Analyst: Thank you.

Jack McDonald: All right. So that’s our final question. So let me just thank everyone, for joining the call and we will see you after the next quarter. So, we’ll see you on the Q3 call. Thank you very much.

Operator: Thank you, Jack. And ladies and gentlemen, that does conclude today’s call. Thank you all for joining and you may now disconnect. Have a great day, everyone.