Textura f1 q14 earnings slides final
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Transcript of Textura f1 q14 earnings slides final
1 ©2014 Textura Corporation
Textura Corporation – Fiscal First Quarter 2014 Results
Image: Hudson Yards Redevelopment, New York, NY – a project managed using Textura Construction Collaboration Solutions
2 ©2014 Textura Corporation
Safe Harbor This presentation includes forward-looking statements, including statements regarding Textura's future financial performance,
market growth, demand for Textura's solutions, and general business conditions. Any forward looking statements contained in this presentation are based upon Textura's historical performance and its current expectations and projections about future events and financial trends affecting the financial condition of its business. These forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. These forward-looking statements are based on information available to Textura as of January 30, 2014, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to, trends in the global and domestic economy and the commercial construction industry; our ability to effectively manage our growth; our ability to develop the market for our solutions; competition with our business; our dependence on a limited number of client relationships for a significant portion of our revenues; our dependence on a single software solution for a substantial portion of our revenues; the length of the selling cycle to secure new enterprise relationships for our CPM solution, which requires significant investment of resources; our ability to cross-sell our solutions; the continued growth of the market for on-demand software solutions; our ability to develop and bring to market new solutions in a timely manner; our success in expanding our international business and entering new industries; and the availability of suitable acquisitions or partners and our ability to achieve expected benefits from such acquisitions or partnerships, including our acquisition of PlanSwift in January 2013 and LATISTA in December 2013. Forward-looking statements speak only as of January 30, 2014 and we assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Further information on potential factors that could affect actual results is included under the heading “Risk Factors” in our Annual Report on Form 10-K filed on November 26, 2013 and our other reports filed with the SEC.
This presentation should be read in conjunction with Textura’s Q1 2014 Earnings Release on the Company’s Investor Relations website at investors.texturacorp.com.
In addition to U.S. GAAP financial information, this presentation includes certain non-GAAP financial measures. These historical and forward-looking non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP measures is included in Textura’s Q1 2014 Earnings Release on the Company’s Investor Relations website at investors.texturacorp.com.
3 ©2014 Textura Corporation
Introduction and Review of Key Highlights
Image: Hudson Yards Redevelopment, New York, NY – a project managed using Textura Construction Collaboration Solutions
Patrick Allin Chairman, CEO, Co-founder
4 ©2014 Textura Corporation
Investment Highlights
Global market opportunity
Compelling client value proposition
CPM – no competition
High EBITDA margin potential
Exceptional revenue growth
Experienced
team
5 ©2014 Textura Corporation
Current Business Processes – Complex, Error Prone, Inefficient
Banks / Insurers
Title Company
Owner / Developer
Sub-contractors Engineers
Architects
General Contractors
Suppliers
Architects Financing Companies
Insurance Companies
Owner/ Developer
GC
Prime Sub Prime Sub
Sub
Material Supplier
Sub Sub Sub
Sub-tier Sub-tier
Sub-tier
Etc.
. . . Material Supplier
Material Supplier . . .
Sub . . .
Prime Sub . . .
Title Companies Engineers . . .
Design Pre-qualification Bid Contracting Construction Close-out
6 ©2014 Textura Corporation
Textura Solutions – Addressing the Project Lifecycle
Design Pre-qualification Bid Contracting Construction Close-out
CPM
PlanSwift Submittal Exchange
GradeBeam
PQM Submittal Exchange
Construction Collaboration Solutions®
LATISTA BidOrganizer
7 ©2014 Textura Corporation
Over $28 billion of Total Addressable Market
Market Expansion Monetization Huge Total
Addressable Market
Target Global
Markets >$4.8t
Current Markets >$1.3t Current
Solutions ~30 bps
Total Addressable
Market >$28.0b
Current Markets
and Solutions
>$4.4b
Global Platform ~50 bps
Key Strategies: • North America market
penetration • Global expansion to Asia
and Western Europe
Key Strategies: • Cross-sell solutions • Strategic acquisitions • Solution expansion • Solutions to platform • Pricing
Result: • Potential for long
term very high revenue growth rates
Target Global
Opportunity ~55-60 bps Current
Opportunity ~34 bps
Mobile +5–10 bps
Mobile +4 bps
~$3.9b
Mobile +$0.5b
~$24.0b
+$4.0b
8 ©2014 Textura Corporation
Multiple Long-term Growth Opportunities
Market penetration
Cross-sell solutions
Global expansion
Related markets
Strategic acquisitions New
products
Future
US, Canada, Australia
Western Europe,
Developed Asia
Mining
Oil and Gas
Data
Financing
Price
• Approx. 8% penetration
• 7 primary solutions
• Few multi-product clients
• Bundled sales/ pricing
• Platform strategy
• Project lifecycle from design to operation
• Integrated
solution suite
Submittal Exchange
GradeBeam
PlanSwift
CPM
PlanSwift Submittal Exchange
GradeBeam
PQM
BidOrganizer
LATISTA
9 ©2014 Textura Corporation
Recent Highlights – Continuing to Execute our Strategy
• Accelerating revenue growth to 77% • Organic revenue growth of 50% • $17.9 billion construction value added – 145% growth
Acquisitions
Pricing Power
Strong Fiscal 1Q Results
CPM Penetration
Solutions Integration
• Key customer wins for CPM • F.A. Peinado, Streetlights Residential, Callahan, and Ryder Construction
in US; Equiset in Australia
• Increased investment to integrate solutions • Integration of GradeBeam and PQM delivered in quarter • Enhanced value to our clients will allow more effective management of
their businesses • Announced CPM price increase for subcontractor usage fees
• Effective on all new projects after February 1 • Adds 2 to 3 basis points of revenue on subcontracted contract value
• Closed $35 million LATISTA acquisition in December • Mobile solutions for project management in the field
10 ©2014 Textura Corporation
Fiscal First Quarter 2014 Financial Overview
Image: Denver International Airport South Terminal Redevelopment, Denver, CO – a project managed using Textura Construction Collaboration Solutions
Jillian Sheehan EVP and CFO
11 ©2014 Textura Corporation
Fiscal First Quarter 2014 Highlights
• 77% revenue growth • Organic revenue growth of 50%
Balance Sheet
Adjusted EPS
Accelerating Revenue Growth
Expense Trends
Adjusted EBITDA
• 72% non-GAAP operating expense growth • Beginning to see leverage in business model • Continuing to invest in technology & development and sales &
marketing
• $4.0 mm Adjusted EBITDA loss vs. $2.3 mm loss in Q1 2013 • Focus on supporting growth and strategic initiatives
• $0.19 Adjusted EPS loss vs. $0.55 loss in Q1 2013 • Relatively stable adjusted net loss of $4.8 million • Weighted average share count increased to 24.7 million
• $77.1 million cash position at December 31, 2013 • Reflects $35 million LATISTA acquisition and $10 million
repayment of debt
12 ©2014 Textura Corporation
Consistently High Growth Rates
$6.0
$10.5
$21.7
$35.5
FY10 FY11 FY12 FY13
90% 75% 106% 64% Year-over-year change
$4.5 $5.2 $5.7 $6.3 $6.8
$8.5 $9.4
$10.9 $12.0
Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13
110% 119% 109% 92% 51% 65% 65% 72% 77%
Year-over-year change
76% 74% 70% 60% 45% 46% 38% 45% 50% 90% 75% 69% 44%
Organic growth Organic growth
13 ©2014 Textura Corporation
Revenue Model – Broad Base of Paying Customers
• Revenue from all users • Fees are invoiced and
collected in advance • Highly sticky, recurring,
and visible
CPM
PlanSwift
Submittal Exchange
GradeBeam
PQM
Activity-driven • Owners/GCs
• Subscription fees based on project portfolio – total number of projects/construction value
• Subcontractors • Project usage fee – varies by
value of contract
Organization-driven
• Primarily organization annual subscription fees
• Fees based on: • Construction volume,
number of offices/subcontractors
BidOrganizer
LATISTA
14 ©2014 Textura Corporation
Fiscal 2014 Guidance • 61 - 65% year-over-year revenue growth
• $13.7 – $14.0 million
• Includes $0.4 – $0.6 million LATISTA contribution
• Adjusted EPS of ($0.20) – ($0.22)
• Excludes stock based comp of $1.9 million & amortization of acquired intangible assets of $1.3 million
• Assumes ~24.8 million shares
• Includes $(0.05) - $(0.06) impact from LATISTA
--------------------------------------------------------------------------------
Second Quarter FY 2014
FY 2014
• 62 - 70% year-over-year revenue growth
• $57.5 – $60.5 million
• Includes $1.5 – $2.0 million LATISTA contribution
• Adjusted EPS of ($0.55) – ($0.62)
• Excludes stock based comp of $7.0 million & amortization of acquired intangible assets of $4.8 million
• Assumes ~25.0 million shares
• Includes ($0.23) - $(0.24) impact from LATISTA
15 ©2014 Textura Corporation
Image: World Trade Center Transportation Hub, New York, NY – a project managed using Textura Construction Collaboration Solutions
Questions . . . and Thank You