What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-02-22 compared with 2023-03-01 · 30 added, 27 removed, 212 unchanged (21% of the section changed)

12 unchanged sentences

• Knowledge Management.

In addition to contact centers, we provide knowledge management applications to a variety of lines of businesses to improve employee productivity and value by providing more direct access to knowledge.

Upland knowledge solutions provide access to time-critical information from within our applications or other systems that exists within an organization and delivers a unified view of all related content.

Upland knowledge solutions provide access to time-critical information from within our applications or other systems that exist within an organization and delivers a unified view of all related content.

We also provide products that deliver knowledge-based, guided workflows for customer service environments supporting complex products in strict regulatory requirements.

15 unchanged sentences

Through a series of acquisitions and integrations, we have built a diverse family of software applications under the Upland brand.

Our total revenue increased from $302.0 million to $317.3 million from the year ended December 31, 2021 compared to the year ended December 31, 2022, representing a 5% period-over-period growth rate.

Our subscription and support revenue increased from $287.6 million to $297.9 million, from the year ended December 31, 2021 compared to the year ended December 31, 2022, representing a 4% period-over-period growth rate.

To support continued growth, we intend to continue to pursue acquisitions within our core cloud offerings of complementary technologies and businesses.

To support future growth, we intend to continue to pursue acquisitions within our core cloud offerings of complementary technologies and businesses.

We expect that this will expand our customer base and market access, resulting in increased benefits of scale.

7 unchanged sentences

prioritize the customer need, leverage a metrics-driven agile approach with visibility and accountability, and deploy up-to-date development systems and processes to ensure quality and security are built into every step of development.

In 2022, we announced the creation of our own R&D Center of Excellence in India which we are continuing to grow as we expand our cost-effective offshore product development platform in order to maintain our product competitiveness and expand our total addressable market.

In 2022, we announced the creation of our own R&D Center of Excellence in India.

In 2023, in an effort to achieve our strategic development objectives, we increased our hiring in the Center of Excellence while maintaining a similar cost structure, created development pods to partner specifically with our business units, and materially improved our development capacity and product competitiveness.

• Customer-Driven Innovation.

19 unchanged sentences

Our applications are scalable and can support large deployments while maintaining high levels of availability, performance and security levels.

Our operating results in a given period can fluctuate based on the mix of subscription and support, perpetual license and professional services revenue.

For the years ended December 31, 2022, 2021 and 2020, our subscription and support revenue represented 94%, 95% and 95% of total revenue, respectively.

Historically, we have sold certain of our applications under perpetual licenses, which also are paid in advance.

For the years ended December 31, 2022, 2021 and 2020, our perpetual license revenue represented 2%, 1% and 1% of total revenue, respectively.

The support agreements related to our perpetual licenses are typically one-year in duration and entitle the customer to support and unspecified upgrades.

The revenue related to such support agreements is included as part of our subscription and support revenue.

Professional services revenue consists of fees related to implementation, data extraction, integration and configuration, and training on our applications.

For the years ended December 31, 2022, 2021 and 2020, our professional services revenue represented 4%, 4% and 4% of total revenue, respectively.

Our Competitive Strengths

1 unchanged sentence

• Large, diversified customer base .

Our customer base is highly diverse and spans a broad array of industries, including financial services, consulting services, technology, manufacturing, media, telecommunications, government, political, non-profit, healthcare, life sciences, retail and hospitality.

Our customer base is highly diverse and spans a broad array of industries, including financial services, consulting services, technology, manufacturing, media, telecommunications, government, insurance, non-profit, healthcare, life sciences, retail and hospitality.

We service customers of varying size, ranging from large global corporations and government agencies to medium-sized businesses.

20 unchanged sentences

See “ Item 7.

Management's Discussion and Analysi s—Key Metrics ,” for our definition of annual net dollar retention rate.

Management's Discussion and Analysi s— Key Metrics and Non-GAAP Financial Measures ,” for our definition of annual net dollar retention rate.

Our commitment to customer success has enabled us to expand our footprint within customer organizations and facilitate the ongoing adoption of our enterprise software applications.

20 unchanged sentences

We service customers ranging from large global corporations and various government agencies as well as small and medium-sized businesses.

Our customers operate in a wide variety of industries, including financial services, consulting services, technology, manufacturing, media, telecommunications, government, political, non-profit, healthcare, life sciences, retail and hospitality.

Our customers operate in a wide variety of industries, including financial services, consulting services, technology, manufacturing, media, telecommunications, government, insurance, non-profit, healthcare, life sciences, retail and hospitality.

For the year ended December 31, 2023, approximately 91% of our recurring revenue was generated from what we consider to be major accounts.

8 unchanged sentences

Our marketing activities are designed to build awareness of the Upland brand and the solutions we offer, generate thought leadership, and create demand, resulting in leads and opportunities for our sales organizations.

We focus a significant portion of our marketing activities on our existing customers to drive expansion and cross-sell opportunities.

Our marketing programs target decision makers and influencers who participate in the buying cycles of various business functions inside large organizations including marketing, sales, contact centers, knowledge management, project management, information technology, business operations, human resources and legal.

We focus a significant portion of our marketing activities on new customer acquisition.

Our marketing programs target business users, influencers, and decision makers who participate in the buying cycles of various business functions inside large organizations including marketing, sales, contact centers, knowledge management, project management, information technology, business operations, human resources and legal.

Our lead and demand generation programs include:

▪ use of our website to provide information about us and our software applications, as well as educational opportunities for potential customers;

▪ website improvements to provide information about us and our cloud software products and to serve as a platform to capture interest and leads;

▪ third-party data software platform utilization to identify prospects doing research on relevant software solutions;

▪ integrated digital marketing campaigns, including email, search and social media advertising, blogs, and webinars;

▪ search engine optimization to improve organic search keyword rankings;

▪ field marketing events for customers and prospective customers;

1 unchanged sentence

▪ our online virtual user conferences;

▪ integrated digital marketing campaigns, including email, online, blogs, and webinars;

▪ public relations, analyst relations, and social media initiatives;

▪ sales representatives who respond to incoming leads to convert them into new sales opportunities.

▪ public relations, analyst relations, and organic social media initiatives;

▪ sales development representatives (“SDR”) who respond to incoming leads to convert them into new sales opportunities.

Customer Success

31 unchanged sentences

We maintain a formal and comprehensive security program designed to help preserve the security and integrity of customer data, protect against security threats or data breaches, and prevent unauthorized access to data.

Cybersecurity.

The overall markets we serve are rapidly evolving and subject to changing technology, shifting customer needs, and frequent introductions of new applications.

12 unchanged sentences

▪ level of integration among applications and with other enterprise systems.

We believe that we compete favorably on these factors.

Our ability to remain competitive will largely depend on the strength of our applications, the effectiveness of our sales and marketing efforts, the quality of our customer success organization, and our ability to acquire complementary technologies, products, and businesses to enhance the features and functionality of our applications.

23 unchanged sentences

Our team members have the flexibility to work remotely, in an office where available, or a hybrid of the two, according to their preferences.

Our total compensation and benefits packages are market competitive.

We believe that this “work anywhere” philosophy ultimately promotes global sustainability, as it has allowed us to reduce our worldwide corporate office footprint, lower employee travel and commuting – and the associated green house gas emissions.

In addition to a flexible “work anywhere” philosophy, our total compensation and benefits packages are market competitive.

Additionally, we maintain a system for providing our personnel an opportunity to express grievances or concerns, which includes an anonymous whistleblower hotline.

1 unchanged sentence

We survey team members twice a year to gather feedback on key factors of employee experience, including work/life blend, social connection and learning and development.

We have a formal Employee Resource Group program that fosters the formation of and provides support to employee-led groups dedicated to education and building community for team members with a shared characteristic or interest.

As part of our Diversity, Equity, and Inclusion initiatives, we also have a formal Employee Resource Group (“ERG”) program that fosters the formation of and provides support to employee-led groups dedicated to education and building community for team members with a shared characteristic or interest.

The current ERG programs include:

◦ Upland Women in Tech:

Our mission is to foster an inclusive equitable professional community for women at Upland by providing collaboration, resources, mentorship, and professional opportunities and development.

• Upland International:

Our mission is to build a unified global community for Uplanders and customers by empowering all to feel respected, visible, and heard.

• Upland Pride:

Our mission is to create and foster a space for LGBTQIA+ employees and allies to feel included, empowered, and recognized.

We seek to improve company policies, trainings, and culture through education, resources, and communication across Upland.

• Development and Promotion of Leaders.

1 unchanged sentence

We provide career ladders and development resources for all of our key functions.

We provide leadership training for our managers.In addition, team members that join us through regular acquisitions have access to career development and promotion opportunities that would not have been available at their smaller companies.

We provide leadership training for our managers.

In addition, team members that join us through regular acquisitions have access to career development and promotion opportunities that would not have been available at their smaller companies.

• Creating a Culture of Customer Value and Improvement.

12 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business