upld-20240331

000150515512/312024Q1false0.5P7YP10D18,0000.001

. Related Party Transactions

The Company does not have any material related party transactions to report for the three months ended March 31, 2024

13. Subsequent Events

30800015051552024-01-012024-03-310001505155us-gaap:CommonStockMember2024-01-012024-03-310001505155upld:PreferredStockPurchaseRightsMember2024-01-012024-03-3100015051552024-04-30xbrli:shares00015051552024-03-31iso4217:USD00015051552023-12-31iso4217:USDxbrli:shares0001505155upld:SubscriptionAndSupportMember2024-01-012024-03-310001505155upld:SubscriptionAndSupportMember2023-01-012023-03-310001505155upld:PerpetualLicenseMember2024-01-012024-03-310001505155upld:PerpetualLicenseMember2023-01-012023-03-310001505155us-gaap:ProductMember2024-01-012024-03-310001505155us-gaap:ProductMember2023-01-012023-03-310001505155upld:ProfessionalServicesMember2024-01-012024-03-310001505155upld:ProfessionalServicesMember2023-01-012023-03-3100015051552023-01-012023-03-310001505155us-gaap:CommonStockMember2023-12-310001505155us-gaap:AdditionalPaidInCapitalMember2023-12-310001505155us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001505155us-gaap:RetainedEarningsMember2023-12-310001505155us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001505155us-gaap:CommonStockMember2024-01-012024-03-310001505155us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001505155us-gaap:RetainedEarningsMember2024-01-012024-03-310001505155us-gaap:CommonStockMember2024-03-310001505155us-gaap:AdditionalPaidInCapitalMember2024-03-310001505155us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001505155us-gaap:RetainedEarningsMember2024-03-3100015051552022-12-310001505155us-gaap:CommonStockMember2022-12-310001505155us-gaap:AdditionalPaidInCapitalMember2022-12-310001505155us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001505155us-gaap:RetainedEarningsMember2022-12-310001505155us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001505155us-gaap:CommonStockMember2023-01-012023-03-310001505155us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001505155us-gaap:RetainedEarningsMember2023-01-012023-03-3100015051552023-03-310001505155us-gaap:CommonStockMember2023-03-310001505155us-gaap:AdditionalPaidInCapitalMember2023-03-310001505155us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001505155us-gaap:RetainedEarningsMember2023-03-31upld:productupld:customer0001505155us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001505155us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001505155us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001505155us-gaap:FairValueMeasurementsRecurringMember2024-03-310001505155us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001505155us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001505155us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001505155us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001505155us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001505155us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001505155us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001505155us-gaap:FairValueMeasurementsRecurringMember2023-12-310001505155us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001505155us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001505155us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001505155us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001505155us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001505155us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001505155us-gaap:CustomerRelationshipsMembersrt:MinimumMember2024-03-310001505155us-gaap:CustomerRelationshipsMembersrt:MaximumMember2024-03-310001505155us-gaap:CustomerRelationshipsMember2024-03-310001505155us-gaap:TradeNamesMembersrt:MinimumMember2024-03-310001505155us-gaap:TradeNamesMembersrt:MaximumMember2024-03-310001505155us-gaap:TradeNamesMember2024-03-310001505155us-gaap:DevelopedTechnologyRightsMembersrt:MinimumMember2024-03-310001505155us-gaap:DevelopedTechnologyRightsMembersrt:MaximumMember2024-03-310001505155us-gaap:DevelopedTechnologyRightsMember2024-03-310001505155us-gaap:OffMarketFavorableLeaseMember2024-03-310001505155us-gaap:CustomerRelationshipsMembersrt:MinimumMember2023-12-310001505155us-gaap:CustomerRelationshipsMembersrt:MaximumMember2023-12-310001505155us-gaap:CustomerRelationshipsMember2023-12-310001505155us-gaap:TradeNamesMembersrt:MinimumMember2023-12-310001505155us-gaap:TradeNamesMembersrt:MaximumMember2023-12-310001505155us-gaap:TradeNamesMember2023-12-310001505155us-gaap:DevelopedTechnologyRightsMembersrt:MinimumMember2023-12-310001505155us-gaap:DevelopedTechnologyRightsMembersrt:MaximumMember2023-12-310001505155us-gaap:DevelopedTechnologyRightsMember2023-12-310001505155us-gaap:OffMarketFavorableLeaseMember2023-12-310001505155upld:SeniorSecuredNotesMember2024-03-310001505155upld:SeniorSecuredNotesMember2023-12-31xbrli:pure0001505155upld:TermLoanMemberus-gaap:SecuredDebtMember2019-01-012019-12-310001505155us-gaap:RevolvingCreditFacilityMemberupld:CreditFacilityMember2024-03-310001505155us-gaap:RevolvingCreditFacilityMemberupld:CreditFacilityMember2024-01-012024-03-310001505155us-gaap:SecuredDebtMemberupld:CreditFacilityMember2019-12-310001505155us-gaap:SecuredDebtMemberupld:CreditFacilityMemberus-gaap:BaseRateMember2024-01-012024-03-310001505155us-gaap:SecuredDebtMemberupld:CreditFacilityMembersrt:MinimumMemberupld:EurodollarDepositsRateMember2024-01-012024-03-310001505155us-gaap:SecuredDebtMemberupld:CreditFacilityMemberupld:EurodollarDepositsRateMember2024-01-012024-03-310001505155us-gaap:SecuredDebtMemberupld:CreditFacilityMembersrt:MinimumMemberus-gaap:FederalFundsEffectiveSwapRateMember2024-01-012024-03-310001505155us-gaap:EurodollarMemberus-gaap:SecuredDebtMemberupld:CreditFacilityMember2024-01-012024-03-310001505155us-gaap:SecuredDebtMember2023-09-010001505155upld:TermLoanMemberus-gaap:SecuredDebtMember2024-03-310001505155us-gaap:LetterOfCreditMemberupld:CreditFacilityMember2024-03-310001505155upld:CreditFacilityMember2024-03-310001505155upld:CreditFacilityMember2024-01-012024-03-310001505155us-gaap:SecuredDebtMember2019-12-310001505155us-gaap:SecuredDebtMember2019-01-012019-12-310001505155us-gaap:RevolvingCreditFacilityMemberupld:CreditFacilityMember2019-12-310001505155us-gaap:InterestRateSwapMember2023-08-012023-08-310001505155us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2024-01-012024-03-310001505155us-gaap:InterestRateSwapMember2024-01-012024-03-310001505155us-gaap:InterestRateSwapMember2023-01-012023-03-310001505155us-gaap:SecuredDebtMemberupld:CreditFacilityMemberus-gaap:FederalFundsEffectiveSwapRateMember2019-08-062019-08-060001505155us-gaap:EmployeeStockOptionMember2024-01-012024-03-310001505155us-gaap:EmployeeStockOptionMember2023-01-012023-03-310001505155us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001505155us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001505155us-gaap:PerformanceSharesMember2024-01-012024-03-310001505155us-gaap:PerformanceSharesMember2023-01-012023-03-310001505155us-gaap:SeriesAPreferredStockMember2024-01-012024-03-310001505155us-gaap:SeriesAPreferredStockMember2023-01-012023-03-310001505155us-gaap:SeriesAPreferredStockMember2024-03-3100015051552022-07-142022-07-1400015051552022-07-140001505155upld:BeforeSevenYearAnniversaryMember2022-07-142022-07-140001505155upld:AfterSevenYearAnniversaryMember2022-07-142022-07-14upld:directorupld:vote0001505155upld:A2023ShareRepurchaseProgramMember2023-12-310001505155upld:A2023ShareRepurchaseProgramMember2024-01-012024-03-310001505155upld:A2023ShareRepurchaseProgramMember2024-03-310001505155upld:PreferredStockPurchaseRightsMember2023-05-022023-05-020001505155upld:PreferredStockPurchaseRightsMember2023-05-0200015051552023-05-020001505155us-gaap:AccumulatedTranslationAdjustmentMember2024-03-310001505155us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310001505155upld:AccumulatedForeignCurrencyAdjustmentAttributableToParentForeignCurrencyDenominatedIntercompanyLoansMember2024-03-310001505155upld:AccumulatedForeignCurrencyAdjustmentAttributableToParentForeignCurrencyDenominatedIntercompanyLoansMember2023-12-310001505155us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-03-310001505155us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310001505155upld:AccumulatedRealizedGainLossNetCashFlowHedgeParentMember2024-03-310001505155upld:AccumulatedRealizedGainLossNetCashFlowHedgeParentMember2023-12-310001505155upld:AccumulatedForeignCurrencyAdjustmentAttributableToParentForeignCurrencyDenominatedIntercompanyLoansWithForeignSubsidiariesTaxMember2024-01-012024-03-310001505155upld:AccumulatedForeignCurrencyAdjustmentAttributableToParentForeignCurrencyDenominatedIntercompanyLoansTaxMember2024-01-012024-03-310001505155upld:AccumulatedForeignCurrencyAdjustmentAttributableToParentForeignCurrencyDenominatedIntercompanyLoansTaxMember2023-01-012023-03-310001505155upld:CostofSubscriptionandSupportRevenueMember2024-01-012024-03-310001505155upld:CostofSubscriptionandSupportRevenueMember2023-01-012023-03-310001505155us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-03-310001505155us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-03-310001505155us-gaap:SellingAndMarketingExpenseMember2024-01-012024-03-310001505155us-gaap:SellingAndMarketingExpenseMember2023-01-012023-03-310001505155us-gaap:GeneralAndAdministrativeExpenseMember2024-01-012024-03-310001505155us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-03-310001505155us-gaap:PerformanceSharesMembersrt:ChiefExecutiveOfficerMember2022-01-012024-03-310001505155us-gaap:PerformanceSharesMembersrt:MinimumMember2024-01-012024-03-310001505155us-gaap:PerformanceSharesMembersrt:MaximumMember2023-01-012023-12-310001505155us-gaap:PerformanceSharesMembersrt:MinimumMember2023-01-012023-12-310001505155us-gaap:PerformanceSharesMembersrt:MaximumMember2024-01-012024-03-310001505155us-gaap:PerformanceSharesMember2022-01-012024-03-310001505155upld:PerformanceRestrictedStockUnitsAndRestrictedStockUnitsMember2023-12-310001505155upld:PerformanceRestrictedStockUnitsAndRestrictedStockUnitsMember2024-01-012024-03-310001505155upld:PerformanceRestrictedStockUnitsAndRestrictedStockUnitsMember2024-03-310001505155us-gaap:PerformanceSharesMember2024-03-310001505155us-gaap:PerformanceSharesMember2024-01-012024-03-310001505155us-gaap:PerformanceSharesMember2022-01-012022-12-310001505155

2024-04-01

2024-03-310001505155country:USupld:SubscriptionAndSupportMember2024-01-012024-03-310001505155country:USupld:SubscriptionAndSupportMember2023-01-012023-03-310001505155country:GBupld:SubscriptionAndSupportMember2024-01-012024-03-310001505155country:GBupld:SubscriptionAndSupportMember2023-01-012023-03-310001505155country:CAupld:SubscriptionAndSupportMember2024-01-012024-03-310001505155country:CAupld:SubscriptionAndSupportMember2023-01-012023-03-310001505155upld:OtherInternationalMemberupld:SubscriptionAndSupportMember2024-01-012024-03-310001505155upld:OtherInternationalMemberupld:SubscriptionAndSupportMember2023-01-012023-03-310001505155country:USupld:PerpetualLicenseMember2024-01-012024-03-310001505155country:USupld:PerpetualLicenseMember2023-01-012023-03-310001505155country:GBupld:PerpetualLicenseMember2024-01-012024-03-310001505155country:GBupld:PerpetualLicenseMember2023-01-012023-03-310001505155country:CAupld:PerpetualLicenseMember2024-01-012024-03-310001505155country:CAupld:PerpetualLicenseMember2023-01-012023-03-310001505155upld:OtherInternationalMemberupld:PerpetualLicenseMember2024-01-012024-03-310001505155upld:OtherInternationalMemberupld:PerpetualLicenseMember2023-01-012023-03-310001505155country:USupld:ProfessionalServicesMember2024-01-012024-03-310001505155country:USupld:ProfessionalServicesMember2023-01-012023-03-310001505155country:GBupld:ProfessionalServicesMember2024-01-012024-03-310001505155country:GBupld:ProfessionalServicesMember2023-01-012023-03-310001505155country:CAupld:ProfessionalServicesMember2024-01-012024-03-310001505155country:CAupld:ProfessionalServicesMember2023-01-012023-03-310001505155upld:OtherInternationalMemberupld:ProfessionalServicesMember2024-01-012024-03-310001505155upld:OtherInternationalMemberupld:ProfessionalServicesMember2023-01-012023-03-310001505155upld:TimothyMattoxMember2024-01-012024-03-310001505155upld:TimothyMattoxMember2024-03-31

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-36720

UPLAND SOFTWARE, INC.

(Exact name of registrant as specified in its charter)


Delaware			27-2992077
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

401 Congress Ave., Suite 1850

Austin, Texas 78701

(Address, including zip code, of registrant’s principal executive offices)

(512) 960-1010

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

UPLD

The Nasdaq Global Market

Preferred Stock Purchase Rights

The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

(Do not check if a smaller reporting company)

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

As of April 30, 2024, 27,592,899 shares of the registrant’s Common Stock were outstanding.

Table of Contents

Upland Software, Inc.

Table of Contents


		Page
Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023	1
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and March 31, 2023	2
	Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2024 and March 31, 2023	3
	Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2024 and March 31, 2023	4
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and March 31, 2023	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	36
Part II.	OTHER INFORMATION	37
Item1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 5.	Other Information	37
Item 6.	Exhibits	37
Exhibit Index		38
Signature		39

Table of Contents

Upland Software, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except for share and per share amounts)

Item 1. Financial Statements




	March 31, 2024		December 31, 2023

ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	231,614	$	236,559
Accounts receivable (net of allowance of $389 and $572 at March 31, 2024, and December 31, 2023, respectively)	29,253		38,765
Deferred commissions, current	9,678		10,429
Unbilled receivables	3,213		2,701
Income tax receivable, current	5,221		3,775
Prepaid expenses and other current assets	10,215		8,004
Total current assets	289,194		300,233
Tax credits receivable	1,553		1,657
Property and equipment, net	1,803		1,932
Operating lease right-of-use asset	2,480		2,929
Intangible assets, net	166,988		182,349
Goodwill	264,012		353,778
Deferred commissions, noncurrent	12,593		12,568
Interest rate swap assets	15,889		14,270
Other assets	434		308
Total assets	$	754,946	$	870,024
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	4,642	$	8,137
Accrued compensation	7,083		7,174
Accrued expenses and other current liabilities	6,770		7,050
Deferred revenue	99,550		102,763

Operating lease liabilities, current	2,073		2,351
Current maturities of notes payable (includes unamortized discount of $2,143 and $2,228 at March 31, 2024, and December 31, 2023, respectively)	3,257		3,172
Total current liabilities	123,375		130,647

Notes payable, less current maturities (includes unamortized discount of $2,657 and $3,148 at March 31, 2024, and December 31, 2023, respectively)	472,642		473,502
Deferred revenue, noncurrent	3,428		3,860
Operating lease liabilities, noncurrent	1,224		1,597
Noncurrent deferred tax liability, net	14,696		16,025

Other long-term liabilities	447		461
Total liabilities	615,812		626,092
Mezzanine Equity
Series A Convertible Preferred stock, $0.0001 par value; 5,000,000 shares authorized; 115,000 shares issued and outstanding as of March 31, 2024, and December 31, 2023, respectively	119,013		117,638
Stockholders’ equity:
Common stock, $0.0001 par value; 75,000,000 shares authorized; 27,996,656 and 29,908,407 shares issued and outstanding as of March 31, 2024, and December 31, 2023, respectively	3		3
Additional paid-in capital	602,813		608,995
Accumulated other comprehensive income	2,307		6,168
Accumulated deficit	(585,002)		(488,872)
Total stockholders’ equity	20,121		126,294
Total liabilities, convertible preferred stock and stockholders’ equity	$	754,946	$	870,024

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Upland Software, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except for share and per share amounts)



	Three Months Ended March 31,
	2024		2023
Revenue:
Subscription and support	$	67,078	$	72,914
Perpetual license	1,470		1,571
Total product revenue	68,548		74,485
Professional services	2,188		2,571
Total revenue	70,736		77,056
Cost of revenue:
Subscription and support	19,829		23,485
Professional services and other	1,220		2,051
Total cost of revenue	21,049		25,536
Gross profit	49,687		51,520
Operating expenses:
Sales and marketing	17,018		14,289
Research and development	12,455		12,530

General and administrative	13,232		17,189
Depreciation and amortization	11,396		15,094
Acquisition-related expenses	—		1,094
Impairment of goodwill	87,227		128,755
Total operating expenses	141,328		188,951
Loss from operations	(91,641)		(137,431)
Other expense:
Interest expense, net	(4,958)		(5,461)

Other income (expense), net	(78)		1,425
Total other expense	(5,036)		(4,036)
Loss before benefit from income taxes	(96,677)		(141,467)
Benefit from income taxes	547		1,422


Net loss	$	(96,130)	$	(140,045)
Preferred stock dividends	(1,375)		(1,315)
Net loss attributable to common stockholders	$	(97,505)	$	(141,360)
Net loss per common share:
Net loss per common share, basic and diluted	$	(3.37)	$	(4.38)


Weighted-average common shares outstanding, basic and diluted	28,917,897		32,259,110

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Upland Software, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(unaudited)

(in thousands)


	Three Months Ended March 31,
	2024		2023
Net loss	$	(96,130)	$	(140,045)
Other comprehensive income (loss):
Foreign currency translation adjustment	(2,611)		15
Unrealized translation gain (loss) on foreign currency denominated intercompany loans, net of taxes	(1,412)		1,235
Interest rate swaps	162		(8,154)
Other comprehensive loss:	$	(3,861)	$	(6,904)

SEC Form 10-Q filed by Upland Software Inc.