1 ©2014 Textura Corporation Textura Corporation – Quarter Ended June 30, 2014 Image: Hudson Yards Redevelopment, New York, NY – a project managed using Textura Construction Collaboration Solutions
Jan 27, 2015
1 ©2014 Textura Corporation
Textura Corporation – Quarter Ended June 30, 2014
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 August 6, 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; abnormal severe winter weather conditions; 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 August 6, 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 June 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 June 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
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. 10% 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
• Year-over-year revenue growth of 60%
• Organic revenue growth of 52%
• Approximately $135 billion in construction value active on our solutions
Pricing Power
Strong Quarterly Results
Operating Leverage
Growth Strategy
• Improving gross margin and EPS trajectory
• Gross margins improved from 79% in prior quarter to 80%
• Adjusted EPS loss improved from $0.16 in prior quarter to $0.12
• Turned cash flow positive for Q2 2014
• Increased functionality of existing solutions
• Continued integration of solutions and progress towards platform
• Launch of UK business and new strategy for Australasia
• Implemented CPM price increase for sub usage fees
• Effective on all new projects after February 1
• Adds 2 to 3 basis points of revenue on subcontracted contract value
10 ©2014 Textura Corporation
Quarter Ended June 30, 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
Quarter Ended June 30, 2014 Highlights
• 60% year-over-year revenue growth
• Organic revenue growth of 52%
Balance Sheet
Adjusted EPS
Strong Revenue Growth
Expense Trends
Adjusted EBITDA
• 30% operating expense growth
• Excludes stock-based compensation and amortization of intangible assets
• Continuing to see leverage in business model
• Continuing to invest in the development of our solution suite
• $2.2 mm Adjusted EBITDA loss vs. $3.3 mm loss in prior quarter
• Focus on supporting growth and strategic initiatives
• Loss narrowing as a percent of revenue
• $0.12 Adjusted EPS loss vs. $0.16 loss in prior quarter
• Adjusted net loss of $3.0 million vs. $4.0 million in March 2014 quarter
• Weighted-average share count increased to 25.0 million
• $67.9 million cash position at June 30, 2014
• Ample liquidity to fund our growth initiatives
12 ©2014 Textura Corporation
Consistently High Growth Rates
$12.9
$24.0
$40.8
CY11 CY12 CY13
87% 86% 70%
Year-over-year change
92% 51% 65% 65% 72% 77% 61% 60%
Year-over-year change
60% 45% 46% 38% 45% 50% 46% 52% 77% 69% 69%
Organic growth Organic growth
$6.3 $6.8
$8.5
$9.4
$10.9
$12.0
$13.8
$15.0
Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14
13 ©2014 Textura Corporation
Strong Operating Metrics
Projects Added
Client Reported Construction Value Added
Active Projects
1,175
1,048
1,245
1,467 1,511 1,466
1,712 1,729
Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14
4,731 5,046
5,263
5,701
6,225 6,580
7,052
7,578
Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14
$9.2 $7.3
$10.6
$13.6
$23.7
$17.9
$19.5 $17.7
Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14
14 ©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 activity – 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
15 ©2014 Textura Corporation
2014 Guidance
• 51 - 58% year-over-year revenue growth
• $16.4 – $17.1 million
• Includes $0.7 – $0.9 million Latista contribution
• Adjusted EPS of ($0.06) – ($0.09)
• Excludes stock based comp of $1.5 million & amortization of acquired intangible assets of $1.3 million
• Assumes ~25.3 million shares
• Includes ($0.04) - $(0.05) impact from Latista
Quarter Ended September 30,
2014
Year Ended December 31,
2014
• 56 - 61% year-over-year revenue growth
• $63.6 – $65.6 million
• Includes $3.0 – $3.7 million Latista contribution
• Adjusted EPS of ($0.32) – ($0.41)
• Excludes stock based comp of $6.8 million & amortization of acquired intangible assets of $5.0 million
• Assumes ~25.2 million shares
• Includes ($0.15) - $(0.18) impact from Latista
16 ©2014 Textura Corporation
Long-term Operating Model Yields Highly Attractive Margins
CY2013 March 2014
Quarter
June 2014
Quarter
CY2014 Guidance
Target Model
Revenue $40.8
Million $13.8
million $15.0
million $63.6 - $65.6
million $150 – 180
million
Adjusted Gross Margin* 76% 80% 81% 87% - 90%
Adjusted operating expenses* as % of revenue General and administrative Sales and marketing Technology and development Total Adjusted operating expenses*
43% 30% 41%
142%
35% 33% 37%
129%
36% 29% 30%
119%
12% - 15% 17% - 20% 15% - 17%
45% - 52%
Adjusted net loss margins* (49)% (29)% (19)% (12) - (16)% 35% - 45%
* Adjusted for stock-based compensation, acquisition-related costs, and other non-recurring expenses.
17 ©2014 Textura Corporation
Image: World Trade Center Transportation Hub, New York, NY – a project managed using Textura Construction Collaboration Solutions
Questions . . . and Thank You
18 ©2014 Textura Corporation
GAAP to Non-GAAP Reconciliations
Quarter Ended March 31, 2014
GAAP
Non-GAAP
Adjustments As Adjusted
Percent of
Revenue
Revenues 13,787$ -$ 13,787$
Operating expenses
Cost of services 2,882 (175) 2,707 20%
General and administrative 6,055 (1,242) 4,813 35%
Sales and marketing 4,843 (312) 4,531 33%
Technology and development 5,356 (281) 5,075 37%
Depreciation and amortization 1,886 (1,282) 604 4%
Total operating expenses 21,022 (3,292) 17,730 129%
Loss from operations (7,235) (3,943)
Total other expense, net 25 - 25
Loss before income taxes (7,260) (3,968)
Income tax provision 80 - 80
Net loss (7,340)$ (4,048)$ (29)%
Gross margin 10,905 11,080 80%
19 ©2014 Textura Corporation
GAAP to Non-GAAP Reconciliations
Quarter Ended June 30, 2014
GAAP
Non-GAAP
Adjustments As Adjusted
Percent of
Revenue
Revenues 14,965$ -$ 14,965$
Operating expenses
Cost of services 3,028 (170) 2,858 19%
General and administrative 6,473 (1,036) 5,437 36%
Sales and marketing 4,663 (324) 4,339 29%
Technology and development 4,819 (301) 4,518 30%
Depreciation and amortization 1,962 (1,282) 680 5%
Total operating expenses 20,945 (3,112) 17,833 119%
Loss from Operations (5,980) (2,868)
Total other expense, net 8 - 8
Loss before income taxes (5,988) (2,876)
Income tax provision 80 - 80
Net Loss (6,068)$ (2,956)$ -20%
Gross margin 11,937 12,107 81%
20 ©2014 Textura Corporation
GAAP to Non-GAAP Reconciliations
Year Ended December 31, 2013
GAAP
Non-GAAP
Adjustments As Adjusted
Percent of
Revenue
Revenues 40,766$ -$ 40,766$
Operating expenses
Cost of services 12,808 (3,094) 9,714 24%
General and administrative 25,152 (7,751) 17,401 43%
Sales and marketing 15,153 (3,097) 12,056 30%
Technology and development 20,820 (4,151) 16,669 41%
Depreciation and amortization 5,325 (3,397) 1,928 5%
Total operating expenses 79,258 (21,490) 57,768 142%
Loss from operations (38,492) (17,002)
Total other expense, net 2,530 - 2,530
Loss before income taxes (41,022) (19,532)
Income tax benefit (767) 1,086 319
Net loss (40,255)$ (19,851)$ (49)%
Gross margin 27,958 31,052 76%