Tear Sheet: Hyland Software Inc.

Hyland recently announced a plan to cut expenses, which will reduce its workforce by about 20% across all departments and levels. We expect these cost cutting efforts will materially improve the company?s EBITDA margins over the next 12 months and bring its S&P Global Ratings-adjusted EBITDA margins up to around 29% by the end of 2023, well above the 24% S&P Global Ratings-adjusted EBITDA margin achieved in 2022. We do not expect the cuts to be disruptive to Hyland?s growth profile as the workforce reductions were geared at removing layers of management, adjusting team sizes, and reassigning responsibilities across departments and levels. We continue to expect mid-single-digit percent revenue growth supported by Hyland?s good market position and ability to capitalize

...We expect Hyland's announced restructuring plan will alleviate profitability headwinds through headcount reduction. Hyland recently announced a plan to cut expenses, which will reduce its workforce by about 20% across all departments and levels. We expect these cost cutting efforts will materially improve the company's EBITDA margins over the next 12 months and bring its S&P Global Ratings-adjusted EBITDA margins up to around 29% by the end of 2023, well above the 24% S&P Global Ratings-adjusted EBITDA margin achieved in 2022. We do not expect the cuts to be disruptive to Hyland's growth profile as the workforce reductions were geared at removing layers of management, adjusting team sizes, and reassigning responsibilities across departments and levels. Improving EBITDA margins and consistent revenue growth may provide a clearer path back to positive cash generation in 2024. We continue to expect mid-single-digit percent revenue growth supported by Hyland's good market position and ability...

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