Upland Software, Inc. (NASDAQ:UPLD) Q3 2023 Earnings Call Transcript

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Jacob Zerbib: Hi, guys. Thank you for taking my question and congrats on the results. You mentioned the 5% organic growth target for next year. Just wondering with all the macro developments recently how that’s trending and if you still see that as an achievable goal? Thank you.

John McDonald: Yes. So 5% I stated as a goal, right? No guarantees and it’s an aspirational goal. I think we’re going to continue to execute against that. Our guidance is going to be a lot more conservative than that when we get to that point of providing a guide for 2024. As I mentioned a moment ago in my response to Scott Berg, I think, we’re going to in terms of really starting to see those results kick in it’s probably more like the end of next year. So that mid single-digit core organic growth rate goal is really more toward the end of next year as opposed to the full year and that’s our take on it as it stands today.

Jacob Zerbib: Got it. Thanks. And just a follow-up on that. Like solid execution this quarter with new large accounts. I’m just wondering in terms of the strategy with the mix between new customer acquisition versus expansion within existing customers to achieve your growth targets over the next few years? Thank you.

John McDonald: Yes. I think, we are still generating the majority of our bookings through expansion opportunities not – not a little bit more than half. And I’d rather see that balance be more like 50-50 or 60-40 new logo being the larger share of that. So that will be part of the transition over the next year here as we again get those leads that we’re creating through our new marketing efforts through the pipeline and start to generate bookings and revenue.

Jacob Zerbib: Got it. That’s it from me. Thank you.

Operator: [Operator Instructions] Our next question comes from Alex Sklar with Raymond James. Please go ahead.

Unidentified Analyst: Hi, thanks for taking my question. This is John on for Alex. Mike or Jack, can you guys update us on gross retention trends even just directionally? Do you see any improvements there with more investments you put in the product and success there over the last few quarters? And then I have a quick follow-up.

John McDonald: So on net dollar retention rate that’s a KPI that we put out annually after Q4. I think so we’ll have more detail on that on the Q4 call. In terms of trend line it’s running pretty steady.

Unidentified Analyst: Okay. Thanks. Helpful color there. And then Mike can you update us on the timeline of the Sunset Assets here? Has that timeline changed at all since you’ve gotten into the process more? Thank you.

Mike Hill: Yes. We’ve talked about it taking another couple three years for those. We’re not really in — some of the use cases we’re letting continue on for a while. Some we’ve got a little bit shorter life on them. But for the most part it’s that same trajectory that we’ve talked about on previous calls.

Unidentified Analyst: Okay. Thank you very much.

Operator: There are no further questions at this time. This will conclude our question-and-answer session. I will now turn the call back to Jack McDonald for any closing comments.

Jack McDonald: Okay. Well, thank you very much for joining and we will see you on our next earnings call.

Operator: This concludes today’s conference call.

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