Upland Software(US:UPLD)2023-05-05 16:32Financial Data and Key Metrics Changes - Total revenue for Q1 2023 was $77.1 million, representing a decrease; without foreign exchange impact, growth would have been roughly flat [7] - Recurring revenue from subscription and support decreased 1% year-over-year to $72.9 million; without foreign exchange impact, recurring growth would have been 1% positive [7] - Adjusted EBITDA for Q1 2023 was $17.6 million, or 23% of total revenue [9] Business Line Data and Key Metrics Changes - Professional license revenue decreased, while professional services revenue was $2.6 million for the quarter [8] - The company expanded relationships with 333 existing customers, including 38 major expansions, and welcomed 207 new customers, with 20 being major customers [4] Market Data and Key Metrics Changes - The company noted a cautious outlook due to changing macro conditions and buyer behavior, but was pleased with Q1 bookings [14] Company Strategy and Development Direction - The company is focusing on a growth plan with an emphasis on digital marketing and sales resources, aiming to drive results quickly [12] - Investment prioritization is being placed on products with the highest growth potential, particularly in knowledge management [17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the outlook due to macroeconomic uncertainties but noted that Q1 bookings met expectations [14] - The company is actively looking for M&A opportunities but is waiting for more favorable price adjustments in the market [18] Other Important Information - Cash on hand as of March 31 was $258 million, after generating $15.6 million of free cash flow in Q1 [4] - The company anticipates generating $30 million to $40 million of free cash flow in 2023 [4] Q&A Session Summary Question: Update on the new growth plan and spending - Management indicated that it is still early in the process but is moving with urgency and has added resources in digital marketing and sales [12] Question: Comment on G&A expenses increase - Management noted that the increase in G&A expenses was due to accruals, which tend to fluctuate from quarter to quarter [13] Question: Observations on macro conditions and buyer behavior - Management was pleased with Q1 bookings but remains cautious about the outlook for the rest of the year [14] Question: Management of tracking for faster-growing products - Management stated that the demand environment in Q1 met expectations and that they are prioritizing investment in high-growth potential products [17] Question: Update on M&A plans - Management confirmed they are actively looking for deals but are waiting for more favorable valuations before proceeding [18]