UPLD For consideration

I am not sure if you guys have heard of this tiny company Upland yet, it has a 1.16B Market Cap.
SAAS company for Cloud Based enterprise work management software.

From Their Website:
Upland’s enterprise work management cloud software enables every team in your organization to do their best work.

Whether it’s team collaboration, managing projects and costs, automating workflows or engaging prospects and customers, our enterprise work management cloud solutions address specific work needs and deliver powerful results. And because our products are cloud-based and architected for performance, scalability, and security, we keep your people connected and current—anytime, anywhere and from any device.

The stock has already appreciated this year about 75% but as I said the Market Cap is still small at 1.16B

Revenue Growth :

MAR 2019
Revenue 48.49M 53.39%

DEC 2018
Revenue 45.18M 62.24%

SEPT 2018
Revenue 37.14M 42.47%

JUNE 2018
Revenue 35.95M 54.4%

Total Yearly Rev at 166.80M

Gross Margin’s are at 68.38%

From Q1 2019:
Subscription and support revenue was $45.0 million, an increase of 62% from $27.7 million in the first quarter of 2018.
GAAP net loss was $7.8 million, or a loss of $0.38 cents per share, compared to a GAAP net loss of $3.2 million, or a loss of $0.16 cents per share, in the first quarter of 2018.
Cash on hand as of the end of the first quarter was $14.0 million.
“We have now met or exceeded guidance in each of the 19 quarters we’ve reported since going public”
During Q1 they “announced the strategic and accretive acquisition of PostUp, which strengthens our CXM Solution Suite and takes us to an annualized revenue run-rate of $205 million. Our acquisition pipeline is strong, and we continue to actively pursue opportunities in the market.”
Expanded 231 existing customer relationships, including 24 major expansions, and added 161 new customer relationships, including 28 major accounts.
For the full year ending December 31, 2019, Upland expects reported total revenue to be between $202.4 and $206.4 million

Im not sure where to find Dollar based net retention rate, in the Q1 report all I could find is this:
“Upland defines annual net dollar retention rate (NDRR) as of December 31 as the aggregate annualized recurring revenue value at December 31 from those customers that were also customers as of December 31 of the prior fiscal year, divided by the aggregate annualized recurring revenue value from all customers as of December 31 of the prior fiscal year.”

Insitutional Ownership 66.44%

P/S 6.95

The company is pretty heavily leveraged Dept/Capital is 74.86%

Company is still small and growing off a small base, Revenue growth is above 50% and lumpy, not accelerating or decelerating currently, we will know more on the next quarterly report.

This is my first company write up so I hopefully provided enough information for you all to consider this company and possibly dig in deeper if anyone wishes.

I decided to take a small starter position, just 1% to see what I want to do from there.



Please check the organic growth on this one. I saw this one a few weeks ago and found most of the growth was due to acquisition. It’s just going to get harder to buy growth in SaaS as even private companies will go for more of a premium if that’s what your company is relying on to grow.



Is a P/S 7 despite reporting 54% growth for a reason.

They’ve bought 20 companies in just a few years.


Moody’s just entered a B2 rating for Upland. This tells creditors that they have a high credit risk. They cited the number of acquisitions and highly leveraged balance sheet(debt) and low organic growth of mid to high single digits.

Organic growth is non existent and they won’t be able to fund growth with acquisitions.

This will end badly.



Thank you guys for the commentary, its very helpful.
Where do I find something like organic growth?
Knowing this I may sell out of my position because as I saw they are already highly leveraged and as you stated the combination of that and relying on acquisitions to fuel revenue growth can only go so much further. As soon as they run out of debt they are able to take on they will only be able to gain further acquisitions on stock dilution, which certainly isn’t beneficial to us.

On a side note I am very excited about Slack’s upcoming version of their Public offering but fear that the price will get too expensive immediately after going public. Following the ways of Zoom and CRWD.

From their conference call.

We had a host of new product innovations in the quarter. We also had strong organic growth. So organic growth in recurring revenues was 10%, actually 9.6% rounded to 10%. So very pleased by that, but not ready to declare that sustainable. With an easy compare, we had a number of customer go lives that increased revenue.

So we’re thrilled to have 2 double-digit organic growth quarters in a row. But it’s not the new normal. We will bounce around 10%, 5%, 8%, et cetera. And we will continue to guide conservatively at flat to 5%.