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UPLD Upland Software

Participants
Jack McDonald Chairman & CEO
Tim Mattox President & COO
Mike Hill CFO
Bhavan Suri William Blair
Scott Berg Needham & Company
Jeff Van Rhee Craig-Hallum
Richard Davis Canaccord Genuity
Brian Peterson Raymond James & Associates, Inc.
Richard Baldry ROTH Capital Partners
Eric Reinert PMP
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Upland Software Third Quarter 2017 Earnings Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions]. The conference call will be simultaneously webcast on Upland's Investor Relations website, which can be accessed at investor.uplandsoftware.com.

conference being this reminder, a call recorded. is As

access conference webcast Investor earnings replay the should website completion X:XX be release, a Central the of have everyone today now, Upland's Following which will was quarter at Time. call, available Time, investor.uplandsoftware.com. X:XX By the Eastern distributed to third at approximately XXXX Relations p.m. on p.m.

now received Investor at Chairman not Software. yet Mr. the to would Relations investor.uplandsoftware.com. sir. of you've available host, the go release, Please conference If on and the website tab Upland's I our Upland over like turn it's ahead, CEO to of McDonald, Jack

Jack McDonald

and to then quarter. get Mike will call. at call the And CFO, some and Hill, statement. QX numbers. you me our highlights. Thank open Harbor Tim the But operations our summarize welcome up sales some with recent as and afternoon and XXXX Tim I'm to Mike ask to, me. let detailed our Mike to are will Mike? Safe earnings more referred we look results going our President good give before that, and the operator questions. Mattox, and After a us from we cover the started, for will read highlights the COO,

Mike Hill

measures section outlook, investor.uplandsoftware.com. financial you, the Investor well non-GAAP as on everyone. good website our of of GAAP compared The business use measures afternoon, our at and most Jack, comparable of our as available and quarterly a Thank press to Relations release results are announcing management's the reconciliation as

laws. meanings are that of include During the today's we will considered forward-looking call, within the securities statements

to or Upland undertake provided with today, to the of do refer statements, Jack. a whether duty as over forward-looking future its third XXXX XXXX. statements November uncertainties call, tools those Upland the to and forward-looking in other cause your to our forward-looking detailed response contained materially. materially conference to Annual and from are as to are risks, results the on in press made and Report We Form Quarterly actual and actual you call. contained forward-looking could statements cause are on uncertainties in in make views in statements In assumptions, risks as Risk differ that addition, based and consider filed Factors results this revisions management to with events, call questions. on us may understand or new our with that differ additional has uncertainties such subject caution to The intend we statements results, our that, certain in most of and of assumptions to press GAAP These Reports the feel our additional results. filed A not to GAAP management analytical more the combination Upland back any as non-GAAP at learn operations. measures our result to publicly that, when will to contact any please turn comparable provide used in otherwise. free We outreach Upland announcing any in quarter updates X, about To plans, our XX-Q needed updated XX-K information SEC. release our measures release investor-relations@uplandsoftware.com. today this periodically On or currently discussion I'll to on And of Form available reconciliations non-GAAP information, release could

Jack McDonald

quarter. the revenue today. impressive QX, EBITDA to One, EBITDA a and five Thanks adjusted XX% ramp in growth continued third record XX% margins Mike. major I'd headlines say adjusted an on

or we in now public. So the consecutive going XX of have beat quarters each guidance met since

Waterfall. strategic and this front accretive acquisition execution also continued had quarter We on a of M&A the with

we feel of And that the So we'll talk about this pipeline, about the number and to year three. strategic brings but total it. acquisitions accretive great

and is beating guidance greater $XX or quarter sales Tim at up and the EBITDA million. with time. few summer XXXX revenue equity minutes. credit of growth margin raising QX setting for mid-point. bear discuss that acquisition meeting million Upland way Again, expanded the XX%. margins. in and facility the will EBITDA first a rate offering and million consecutive just having are XXth follow-on now That's again, XX% this our financing our mentioned record few other M&A With achieved on annualized goal We our on results, XX% strong And $XXX has in new this run bookings, to activity notes. A which for we're for loaded quarter's full-year revenue to guidance. adjusted with expansion We $XXX long-term a I a our And a had of our raised than

of April, the pipeline Omtool, the They all year; relevant in delivering family; For M&A to the the acquisitions QX. our guidance digital million great now record been both on the in at product again The growth rate actually Three digital expected the exiting EBITDA family; engagement of AccuRoute, in renamed XX.X% and for strong. but EBITDA which Integration total is this accretive proceeding results for are year, automation well engagement $XX.X all which with XX% management them. revenues adjusted adjusted part mobile three and and families. of in is Waterfall, at part messaging that workflow product project a the revenues full-year, is product higher run mid-point, has was acquisitions. year, recurring IT RightAnswers January, again, in

growth that range, radar line to within million invited news. pipeline fight our to size on in staying have talk trending the edging being which we the we but $XX to within platform. revenue and both business below to way loyalty. an range, used is deal we opportunity. differentiated customer acquisitive about our playing these operating do the see just company of revenue model. it. $X We've operating I model that look scalable at the an opportunities million the are And We things million I you And XX We've when up; range, UplandOne are large, that love and into. gain is our delivering $XX really I opportunities customer-focused to truly that consolidation a say our I got got platform just continuing or in things a And think have got that growth up accretive accretive XX strong with our just We've would $X-plus-billion, generally, strategy. steam, size define good acquisition

so way EBITDA Services, software Low status. score we becoming a of next recurring. is move intensity, hosting, of share cash both efficient flow. play. for track XX%, focus a a record XX%, of of cash a our really XX%, moving per has to flow really will items, we complete the tax quarter revenue, think, way, terms a that's Amazon creation, A this year. our goal different high Web market intensity, XX%, vehicle. every got a more rate. as revenue this losses acquire best-in-class tax segment making for better roughly, toward transition where to that a of on companies a efficient the the high all recurring across here operating public to got business you've $XXX And So team the vehicle, run proven AWS, we tax margins, creating those free efficient today, we acquisitions, long-term so net low value EBITDA And adjusted day High very roughly adjusted We've by continue capital that in on million tax last and a capital got conversion and efficiency, multiple of adjusted be through both

I So the have again, enough But ballgame all proven still love us. I business. still of to early fact is this the way that and it's what a we've innings. model, got excited long We've to characteristics go. into for working got small am law of numbers a of are far the about we those

today. revenue $XXX run Just million rate business

potential three, us. out five, front of much years, so look you seven growth So in

So with the Mike, call the share With more and back to Mike? look to on excited and team information some again I'm detailed QX more give going numbers you turn that, QX to over will these who happy you the announce guidance. results. at very great a detailed is

Mike Hill

of you, outlook $XX.X quarter $XX.X results And revenues the to said, XXXX. subscription support third year-over-year for Thank increase million. quarter full-year the XXX% revenue Recurring $XXX,XXX and as cover, quarter for I'll cover services growth of Today our an year-over-year. was for license third million, fourth the perpetual third just the representing was grew increase. quarter $X million the Professional Jack. was Jack year-over-year for XX% from revenue and a I'll for and for Total the X% financial revenue XX%. quarter,

add of services gross at back quarter our we margin gross to amortization gross down was third margin was XX% into during of the mix. XX% gross XX% model XX% when quarter, depreciation target result businesses of bring XX%, below margin And quarters. the a or assets. P&L you over and our to coming was Professional Moving which that newly as the those equipment during is and of newly Overall strong intangible PSO expect remained product and the the teams entering acquired the acquired the third a margins. bit

in operating expense refundable G&A third revenue representing the of of expenses, total quarter. the of total the representing quarter, was research our XX% credits Sales million, third quarter, and Canadian was development was $X.X expense of third net million revenue. marketing $X.X and for $X.X Turning revenue. million to expense XX% XX% tax representing for

representing expense -- or expenses third activity. million However, or was in quarter, total excluding the net third non-cash resulting loss $X.X quarter, a million in the -- quarter compared in our $X.X same of revenue. million net $X.X Operating $X.X our XXXX. non-GAAP $X.XX from or net stock share loss XX% in acquisition non-GAAP GAAP share net $X.X third income million of in were $X.XX was XXXX. to loss was or of share in $X.X a million million the loss $X.XX GAAP per a to to XXXX. of of period third compensation net loss for Acquisition-related significant the income the share loss or quarter recent $X.X million for $X.X quarter the the or income was of third of compared $X.XX XXXX a non-GAAP per income Non-GAAP in of quarter third of net per of of compared million per G&A

million $X.X XXX% year. to EBITDA for was Our third the XXXX quarter up million, last $X.X period same compared adjusted

to cash. on sheet the cash were activities ended Cash our by with XX, third $XX for provided million Now operating million XX-months ended $X.X flows XXXX. quarter flows. statement trailing and We balance the of September in

XXXX Now cover I QX and want guidance. full-year to

XX% ending of quarter in the in revenue million $XX.X quarter at range the the XX% XX, mid-point, the XX, EBITDA be of $XX.X XXXX, representing XXXX. over Adjusted margin growth December $XX.X reported ending of the be XXX% at $X.X the to $XX ending and total of for million revenue recurring to expected million range in the to for an to support range subscription adjusted of million million, growth in Upland the $X.X December XXXX. For is of revenue mid-point expects December including XX, million quarter the to over mid-point EBITDA at

the the subscription the and support ending growth XX% $XX.X President Adjusted at to the XX, mid-point turn the XXXX. ending with total expect of $XX for growth an our the we million $XX.X XXX% the million the to December revenue of for million in EBITDA XX, be $XX.X the $XX.X be recurring December to mid-point XXXX, Tim For over year-ending XX% million representing of EBITDA range revenue reported XXXX. in to at adjusted expected in million of call in including COO. range December at And and mid-point, to the range to full-year over Mattox, I'll that, $XX.X a revenue over year XX, of margin of million, is

Tim Mattox

and areas. everyone. Thanks, product, to afternoon, sales, going operating cover and Mike, our good I'm

customers Our success continue to business enterprise on greater QX products. performance and improved relying demonstrates results achieve that of by leading our portfolio our

the on XX our business expanding customers XX We relationships Furthermore, where quarter, in of continue in achieved expansions existing expanded with revenue including expanding existing annual or more. in results recurring customers by We the XX% recurring revenue. we by over to relationships their annual XXX $XX,XXX strong major QX. with focus increased expanded customers and

give you some So per some to good and $XXX,XXX year expansions IT a that national per per automotive platform, firm of who solutions and of and include total pharmaceutical health re-committed renewals commitment the our over of to our commitment global $XXX,XXX major annual mobile business, secure well-being as that global for and front. To of well $XX,XXX to recurring over knowledge mortgage portfolio of management their and as results flavor our resource a examples industry solution automation its provider year $XXX,XXX $XX,XXX A national commitments platform in leader document over by a A expanded $XXX,XXX messaging over A our expanded platform regional to commitment respectively. on platform and integrator solutions for project management close platform process per year. for year. its to a engineering science expanded revenue. to in over

Upland, business. success where in secured account. our almost expanded existing growing from annual is our customer aggregate. in a focus In $X.X efforts million year on addition, XX And XXX we management customers per for while acquired which We $XX,XXX expanding in customers XX new recurring accounts over to major relationships, particular customers of were to knowledge platform acquire new resulted recently other saw primarily our per revenue

an water six over committed our commitment platform to in are annual and solution for the our platform, platform per Also over of year revenue year. committed to portfolio management per our international project is union $XXX,XXX $XX,XXX $XX,XXX an per For our A our international content results to committed example, customer recurring to over regional to a committed media revenue. figures success. e-commerce provider mobile of national And $XX,XXX per business committed high XXX% UplandOne an over national system annual recurring year. our for management year. for solution which messaging a business the insurance foundation labor to utility These underpinned by and for

QX execute mobile Upland including business and invest that area the Waterfall, the achieved the QX pace the hand-off continued in We to and UplandOne marketing into the of our Messaging acquired We platform completed of accelerating and in integration. acquisition SaaS integration to within leading solutions July. we for provider Mobile

that of integrations But and integration is accelerating. and speed not a we our Waterfall fast. happened all tuck-in say it be pretty Now this more will is quickly can

strategy, Web growth and We to migrate to as CapEx-light us standard Jack anticipation also fully track to AWS to a transition mentioned, We continued to a scalable from customer allows remain create in Amazon data This in platform ongoing co-location center cloud Services. our on XXXX. of model.

and Amazon Web delivered integrated management our a progressed and RightAnswers We solution Upland management improve module of agent our knowledge new cloud also improve on major release first foundation Upland's IT Upland experience, enterprise to the the and move FM Analytics self-service toward delivered consistent and We ComSci product standards. overall for cost usage offering our UI/UX with Services initiative.

invest to continue innovation. So in

and mobile Upland web addition, enhancements our In we foundation that to product improvements, and released seven and multi-part updates in platform. our performance geocoding for customer-driven around data, Mobile data platform, content legislator feature reporting new our improvements app packs management include SMS Messaging

performance improved We of workflow and the family. our also automation security

creating to to performance growth the call for Our future. consistent me the UplandOne are a operating Upland With should and back and Jack. in operating in that, continue core let and investments platform our strong the ongoing pass differentiator support

Jack McDonald

point, Thank for this open questions. and the let's up ahead call go Great. you, at Tim. Operator, And

Operator

comes Suri. line first Bhavan the question from of Your

Bhavan Suri

guys. Hey,

You okay? know me,

Jack McDonald

Yes.

Bhavan Suri

think about that if platform that a the execution. and sort how talking added customers, and were of Great. Followed follow-up, you try nice Tim, sales that lot to down, and cross-sell quarter, about last existing is XXX to growth Mike, improving; in break of Tim, but testament I I people. you've wondering of XXX expansion numbers the Jack, just there. guess of you a wanted couple through customers sort congrats the was you've it a been that's the I'm certainly also UplandOne with to to sort

you driving the would amount, at that, the adds, might that as be about think people I cross-sell? think like and think How we how not that expansion sales if what's and credit look the were look to should that it or or about of sort tremendous platform? but a split you how

Tim Mattox

of UplandOne that attribute good I aren't The Those senior are above an from terms the value to customer far more current breakdown outreach. year. It's calls. a check would question. an think platform expecting make getting of to from relationship calls sure and with a the are the is Sure. the in bulk and those the executive I aggressive and included in Yes, And larger offering have. they they're customers that, sales twice assigned of receiving it calls they're

Now relationship other as that bring develops, natural the in into it's elements discussion. other to products and

to that And so bookings that. some that, is seeing of material to cross-sell, it's looks coming which decent. not some we're pipeline activity But related today. the pipeline The our from

Mobile our formation RightAnswers added to are improve. in, the applicable We to then A Messaging of with to acquisitions broadly installed with recent the more Upland Upland it base. couple of Waterfall those and continue expect

those we bundling hit more relevant also value we'll in think at So will we're dimensions. got families exploring, XXXX. concepts And some props product now increases and that integrations, we're the with along looking product we've that some

Bhavan Suri

maybe for margin exiting Hill at say roughly helpful. That's if think, one guidance, Mr. year. or Great. Jack the there. EBITDA But look XXXX, you And XX% you're last XX%, I and then

But idea? goal, when You're that see a Or that? what line of long-term about sort I the structurally guess Thank we you there of any EBITDA impressive. the sort we'll XX% we just you. that's margin happens right obviously sand exceed get in is now reason is as why couldn't there of kind think

Jack McDonald

we when in exceed Thanks, the Bhavan. what moving And we we will, there. there's that's you from evaluate as that terms says and right now that, nothing No, get there we're but long-term goal say, structural go we where couldn't towards.

Bhavan Suri

and Appreciate again. guys. Thanks color the Great. congrats

Jack McDonald

Thank you.

Operator

the comes Berg. of next question Your Scott line from

Scott Berg

it's Trying of you first to beat Two in in little operations acquisitions become or that quarter period. what's expected? understand that's it all, maybe quarter. is a Tim are a than me. quick something up going nicely for just in don't there questions else Is the guess more or valuable more Fourth quarter. EBITDA I integrating recent everyone. numbers bit. on than Mike Jack, if quickly the the know or specifically expected? Hi, good the for material more I are driving even Congrats Or slightly

Jack McDonald

the say the So, ability mentioned new platform. terms support degree in strength support conviction thank the And data spend other sat grown. continued of model has bring addition looking now from this just delivering of lower months operating you, in XX were we're but model Scott, percentage on that of the massive just earlier, day. that, quality area the and customer significantly satisfaction. some customer seeing Tim at just customer we're and We just acquisitions of rates at improvement, that to ago. that's than our to it what effectiveness I would UplandOne was in And seeing a

area-by-area it's, seeing that's of improvement what's the in that model, So throughout we're marginal that kind upside. and driving

Scott Berg

talked it. be deal my about revenue question, Got then moving helpful. end Jack, seem And That's below up, you your $XX million range. sizes is still second top the to of

all. move you that valuations million seeing or to a valuations, to little any not little $XX you as if a company certain for a $XX may larger, seeing in pay at up, bit see, $XX As you're million you million differences but higher company, a are million to say, they get do $X from transactions? have bit Historically, we'll those that companies support

Jack McDonald

causes three the towards eight to right seeing forma -- adjusted not that end differently. now six times we're we'll the the us And EBITDA. really We between any consistently, lower five averaged at have that look since anything this pay area. pro range, of more consistently have And and IPO, said that to very we pretty times in that

has these for sustainable our is in UplandOne part for the strength, of to our and and profitable operating ability So, us platform that growth gain restructure increased. continued and businesses them as to benefit has position conviction there the

multiples so the And lower EBITDA that our paid of end helps keep at published our range.

Scott Berg

I have Thanks for moment. answering That's the it. all Got at the questions.

Jack McDonald

Scott. Thanks,

Operator

Jeff the Van Rhee. comes question next Your of from line

Jeff Van Rhee

for thanks. guys. A couple me. Thanks Great,

Jack McDonald

Jeff. Hey,

Jeff Van Rhee

thanks. Hey,

a for So few just me.

you it, surprises get with co-lo over the into plan. with further better idea On AWS of commented progressing what there to thus looks far? as pro from Is costs respect that it and well? I to little owned you think, AWS to get get of the you it on a like, I as AWS, Any all, migration first or project know operate. like con sounded

Tim Mattox

end cost the here, Tim Jeff. surprises we're Thanks the user Yes. terms as would of of features both in of the experience, say security It's well incremental things, in of both as terms Yes, advantage performance, I to for well. question. as of terms on of able opportunities in take positive some some

disrupt projected seen as measured the here. we is want customer do So But that than well performance experience. don't in a improvements. we've the moved What better products we're thoughtful we improvements as taking have march over, to cost

optimization models this, around of instances I do we think we'll to and that pricing AWS time the have. the as continue to change as invest we'll that continue And in well. optimize we

initial the continuing are with happy experience on we're this area. and So our in march forced

Jeff Van Rhee

with if Yes. of most And you three segments you to respect of segments, core strength product a showing saw for A the are the maybe able. momentum? where which more with down variance you're three increase with weeds little from momentum an the trend kind to product will, if in or in in respect decrease the either to any any respect

Tim Mattox

Sure.

management the we product quarter spans families. perspective, current from which a certainly knowledge saw two in momentum area, So actually

interest case knowledge product in the some those We companies in dimensions. call And in more more our centers. mode sits the support that's both have And of we've project relevant efficient offerings as in space, offering internally that provide that management well. are IT context there digital other that And in also that usage to then engagement support that the to companies where usage seen is And and used that that externally. IT use case. support some helps within really management and IT an provide

rates well we've So in capture, pipeline. routing workflow that's there seeing and and helped good workflow, structured Certainly good as interest take as both sure. automation, for got as we're

as customers say that deals area. some larger will as messaging good got some from fairly there across So our good to rationalize both I'd come courtesy of board. also platforms the nonprofit more the now well We've best-of-breed customers our and mobile I say in those we features And deliver those retail the continue there. out pull Waterfall. value of space, to to our even

gives that hopefully some more you So flavor.

Jeff Van Rhee

you you. one at It And respect me with I to you I pace year-end. does. the previously last look as the of to then. guys, another expectations hoping from Thank think guess, completed have were you've acquisitions, commented before

on update terms just at little with along think any understanding Just a thinking crude a the to onboarding, And looking XXXX, early of your that respect you might pipeline maybe you're sense to interesting lines? then the but those opportunities in pace capable get too that you of of precise the think XXXX, support. pace of

sort Just be might both for XXXX. this year and for we pace table into of of looking the remainder terms the as at in set we us get of the activity of

Jack McDonald

products new I and that restructure and would course, conviction onboard never more sustainable say got these that around our profitable, of acquisitions. to for pipeline ability growth. is been rapidly facility the accretive our resources with we've expansion execute the means equity credit robust, them We've really the to highly raise. And And got stronger.

So outlook about feel M&A. good we for the very

the definitely out we are the doing XXXX. time acquisitions excited four we to a look going period see outlook over doable, here think issues there. don't of as any into three I year And next operationally, about

Jeff Van Rhee

with expectation? to yet land respect specific still XXXX, that with anything hoping in the just changed has that were -- you And would does to respect that to one --

Jack McDonald

No.

can't you like With forward. get to one never timing, push M&A. to timing We you done would can M&A, but acquisition specify But more guarantee year. this continue we around

we stand. pipeline feel maintain say, So we I look and will as good opportunities. discipline at about where the really to But continue we push and and forward

Jeff Van Rhee

it. Got

guys. Thanks great. Okay,

Jack McDonald

Thank you.

Operator

next comes the from Your of Richard Davis. question line

Richard Davis

guys. Hey,

be good you're you the spot a should they XX have on work there. bemoaning part all talk because your So That's deals guys in times that off, good the be. first sweet spot PE I doing the right to right are to pay guys M&A -- so XX, EBITDA, happy to because you're

asked hard Second thing of data everyone soft is the equation of on kind has the more the because questions. side all

kind a coming It's I Thanksgiving on I'm the awesome. more for all keeps So at your plate like food of salesman mean the firm. time. it's and

Jack second, products I So you then sure of that how ingest you've a how bunch adding? you just kind think Thanks. How acquired kind how So process don't salesmen about be more of your understand that the How create more culture of you and more a what's do get do broadly, the I there? kind you're that? overwhelmed? and holistic -- that companies. do do So make corporate make training you strategic. sure And tactical then guess, would and of

Jack McDonald

Sure.

is I think products engagement, sales buyers, and common three around then the side, product sales key, management, digital within automation, workflow into families, around families. economic IT grouped grouping the cross-train and project folks those product

a really cross-sell, expansion-focused been we've and revenue has which model. to-date, at as are well drive outlook we've enterprise continuation model no different at the assumes product discounted right. and we experimenting as our license approaches cross-sell. that with And Platinum an our talked looking synergies support strong assumes about, talked of the as agreements, things of is the bundles, looking One about to It with

with Integration the Manager Upland family, right, single data Tim are product for We from for laying in to say RightAnswers interest now will real predicate earlier, as sign-on, add offering. RightAnswers the continue UI/UX, the the additional mentioned customers X we exchange, some each common this; in I cross-sell. products and products, And

for families grow, starting we're greater product now, to our cross-sell. opportunity as a So see

piece. first the that's So

success. holistic XXX% comes customer second maintaining terms the In Upland and it a in intense down piece focus really the to of on business, One our operating platform

our is so you focus existing customers. belief that And your on

over-communicate and them. communicate with You

dialogue. honest have You

concerns. their address You

executives senior have You reaching out.

out to You have administrator account managers level product. on reaching folks

through promoter net a feedback cycle. that process virtuous score, You

build customer to across customer of development, net those standardization software give that looking That's about large support, management, the that you're but Tim Maybe we for absolutely the at moments way also about to a and a You is I scalable efficiently, great the is esprit exception around of right? back invest thinking delivered promoter talking really model. and day. we're the standardized around. this, the the and UplandOne model de better it. segment procedures name large And of organization for efficiency and cloud we're again, get percentage those so. products. provide and That's what market say the XXX% products culture there's whether can culture have for corps key, concept not a the very and been focused UplandOne of a credit constantly railroad, minimize product that what in we that's And as of you office, believe of has and growth all and build, So Customer of can discussions platforms handling at we've for best in there ton satisfaction like scores got I excited to there. about to you platform; the built continuing every up business bringing strengthen real that, building them, out potential run least here, are the future the of this all a refine what satisfaction, will which success software be

Richard Davis

you. Thank helpful. very That's

Jack McDonald

you. Thank

Operator

Peterson. Brian Your from line of next question comes the

Brian Peterson

for guys. my Hey, Thanks taking question.

to question. maybe So follow-up a Richard's

understand pretty to want what's with is So so just on expansion dynamics. the those robust going I

a acquired? So have as proficiency managers the success products the acquire do as you onboard? of with success that comment lot familiar can efficiency customer managers any And you've the lot you become see or they way more on you a the there you coming customer more companies, more is

Tim Mattox

lot question, of around Yes. And a good Brian. that have metrics area. It's a we

themselves. an As Jack incredibly also around the culture we alluded to, strong customer have

will remove queue manager because there's in success really a a the so who out self-select the isn't self-selection folks area, those people day. maybe to for top And And center why usually but they not retain the the folks, come work areas in of you where them. the And other we every at bit customer as of we'll customer into sometimes run or the them. customer have of

with they're that of really the -- tend that accounts And are that so doing way. making has, the CSM and the a judged cross-sell, that they're renewal good score, in to metrics a It's promoter ones area, surface able number and net them sure work to the on to of what's way upon rates, absolutely. CSM that in respect in the expansion, we focus

sales the they that installed a too, we coming base the and sales do but new thing, they sales Upland when goes CSMs The into customers, a from to I company, those those people, now well then that as the or it's bag, reps new into. people, the a buy outreach their sales of not person point on other before, that when to else company are have sell existing executive how rep's become to the that product whole ramp they around base, as back alluded And executives in the customers. what comes have we gateway just the

a at playing very level products so level, and sometimes introducing important at And getting those they're both as level role started. in gatekeeper as well those the the executive lower relationships

acquired pipeline company an can of sales or their a they for that's new and out from So exciting how sales the coming gate. in rep right really supercharge really rep a

in integrate make of there, remove We adminstrivia yes, those just folks that we CSM finish sure We the their communication in. of the on off area, a So, to lot thought they're different plates. the clear points.

So smaller we the sometimes folks. stuff centralized those invoicing, and that renewal, in heaped do on centralized collections, all centralized just company order a gets

even to those on and do we're executives time prepared them up more resolution, customers. bringing we the then need spend more actions have NPS, for that to their business getting home with customer that calls driving So able

So area. that's that how we approach

Brian Peterson

been obviously good have so That's Jack in really Mike, And you in three the guys far closed pace operational deals that picked Tim. the Great quarter and at the say the synergies Or job are Got or recognized for the most this that I'm you with some have year, numbers. still of would XXXX? see seen up. we've it. should benefits in just that of we point? curious guys. synergy there That's this fourth color, maybe

Jack McDonald

all about target, well-integrated to XX% Well, three ramping all is would good there. I and we that planned acquisitions, contribution so margin proceeding as say feel

Mike Hill

just would them immediately I restructure contribution work say manage we Mike. is what the expect XX%. over do up time we to This to margin to and Brian. to these Yes, that then XX% is businesses

and we've year of deals to we've in process we're the to already done that three now this first quickly XX%. phase the done XX% phase on So yes, the that working

that to out there plan continue is on So the squeeze and, improvements take platform. all probably incremental here implement to yes, we longer is will from as

Brian Peterson

Thank you.

Operator

Your next question comes from the line of Richard Baldry.

Richard Baldry

integration looking the there. So cost were little in awfully in. in if then And little terms year two a quarter the impacts as last the the doing side, your recurring bit, in has high held in you your one-time into model as put come you've interest acquisitions curious line acquisitions. you'd But side steady of so expense there's a past up seemed any quarters the the it

that's a of to So one last downward out? sort that and costs over the the slower areas one see the the as that bit squeeze lines of we'd of trajectory Thanks. near-term those out little costs you probably take a is more

Mike Hill

This Yes. Mike. Hey, is Richard.

this have So we done on year facility. these interest expense, yes, acquisitions we credit as our expanded

facility Here took million credit gross million. more debt so. QX in cash or hand, around $XX outstanding net we got $XX million on the million We've $XX now actually $XX of of of in so debt to the down now

interest yes, result a So have up as a of coming been that. little bit expenses

above net very a still is conservative of of to relative million EBITDA annualized is debt. overall million rate our rate, run that now on leverage run year which sort $XX Although $XX

the firepower is debt feel credit more are like even more facility. actually So expense up, got with our levels under coming like feel We've for we we control. well though interest M&A

a future That acquisition $X acquisition of non-cash topic of a in But million. been here also here, we M&A being including doing that this this clip keep in on the of those good a P&L an Three for, here, lease costs, the that year transaction we mind charge quarter. On million out worth in $X.X this have deals M&A at million lot good-sized of a restructuring most yes, included QX. year. came pretty of commitments took that

that go obviously we sort extent That as restructuring because M&A. that do of we and assuming the M&A, some of But quickly that still did do will here. future we're coming then news line through means costs transaction on getting have item, we we'll the we some obviously more more in more again, to transactions. do outsized So But M&A, don't with really quarters. have that's down good

So hopefully that makes sense.

Richard Baldry

Thanks.

Jack McDonald

you. Thank

Operator

And question Eric your Reinert. final of

Eric Reinert

Thanks does for guys long-term? more guys. look Nice get how EBITDA you progression look But so, Or does the the over you onto AWS with the margin. and long-term progress the margin taking Hey, margin? question. when moving job on it to XX% quarter how the EBITDA platform, product the as the that

Jack McDonald

So product margins? question margins, gross your was on gross

Eric Reinert

Yes, that's right. Yes.

Jack McDonald

Yes.

XXXX. we've little talked as the still there, have to we So continue in on that bit as to complete a hundred models basis to part the gross as But margins long-term feel we get XX%. like come will couple margins and gross about, AWS, we'll a of migration efficiency to still of can scaled we points the AWS migrate overall, the improvement headwind of migration the be up which

and bit course So to million at a of the these probably scale expenses overall will well. we improvements million scale little XX% to with these of cost as obviously of operating sort margin M&A, then things to P&L, revenue. getting of improvements up are come, and down of other revenue see total EBITDA $XXX And there going in with those $XXX really will revenue the come

Eric Reinert

Okay, great. something product expect then across are in in families? what terms your the we product of three terms pipeline, balance families to And other could does see as the like of acquisition those outside would my at acquisitions? And be question of three you opportunities look look

Mike Hill

Yes. Eric, this again. is Mike

acquisition product So we've in done of the year an each families. this one

evenly year. so this So distributed it's been far

product doing or obviously acquisitions product we the family. product just in new spread. feel of But be three a acquisition forward, but to to We in million $XXX those see. grow family three staying evenly starting predict, expect it's still anticipate these new we families. an areas. three we impossible Going revenue a the product fairly more in see to these coming We can family areas, like business we'll or And it don't

Eric Reinert

guys. it. Thanks Got

Jack McDonald

you. Thank

Operator

And at time, no additional we this have questions.

Jack McDonald

XXXX time your back look And getting for look call Great. forward the afternoon. results, together forward the we for you full-year thank and Well, strong this to for year-end call, QX. a the to

Tim, Mike for to this a all and a So lot have again, us you on afternoon. night. Thanks great I and want behalf of thank joining

Operator

conference This call. concludes today's

may disconnect. You now