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Patrick Allin Chairman, CEO, Co-founder. Image: Hudson Yards Redevelopment, New York, NY – a project managed using Textura Construction Collaboration Solutions. Safe Harbor.
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Patrick Allin Chairman, CEO, Co-founder Image: Hudson Yards Redevelopment, New York, NY – a project managed using Textura Construction Collaboration Solutions
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 currently available to Textura, 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 our anticipated acquisition of LATISTA in December 2013. Forward-looking statements speak only as of the date hereof 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.
2013 Highlights • Revenue growth • Organic growth – 48% • Total Growth – 64% • Commercial construction is improving • Sales funnel is full and active • Post IPO quarters • June – 40% organic, 65% total • September – 45% organic, 72% total • December – 50% organic, 77% total • Acquisitions in 2013 • PlanSwift – February 1st • LATISTA – December 2nd • Australian JV • Launched January 1st • Solution available – May • New products • BidOrganizer – September • CPM Business - August
2013 Highlights • IPO • June 7th • Priced at $15.00 • 18 times oversubscribed • All primary - 5.75 million shares • Cash raised $77,703,000 • Follow-on offering • September 20th • Priced at $38.00 • 3 times oversubscribed • Secondary shares • AON, First Midwest Bank, large shareholders • Primary shares 1,687,000 • Cash raised $59,777,000
Investment Highlights Global market opportunity Compelling client value proposition CPM – no competition Exceptional revenue growth High EBITDA margin potential Experienced team
Current Business Processes – Complex, Error Prone, Inefficient Owner / Developer GeneralContractors Banks / Insurers Architects Suppliers Title Company Engineers Sub-contractors
Textura Solutions – Addressing the Project Lifecycle CPM GradeBeam Construction Collaboration Solutions® SubmittalExchange PQM PlanSwift SubmittalExchange BidOrganizer LATISTA
Significant Benefits to our Clients Cost efficiencies Faster payment Riskmanagement Process management
Client Case Study #1 – Strong ROI • Internal Study Findings: • “Textura CPM saves 260-330 hours a month” • “Time savings for our risk administrator and the project managers” • “Improves accuracy of paperwork” • “Greatly improves subcontractor relations” • “Creating capacity is essential to avoid having to hire additional staff” • General Contractor ROI: • Estimated savings: $360,000 annually • Estimated by the general contractor to cost them4 basis points of construction value: $74,000 annually • Estimated Total Network Revenue to Textura: • ~$300,000 annually • 75% of subs already CPM users • Denver-based General Contractor • Textura CPM eliminates 15 out of 20 process steps
Over $28 billion of Total Addressable Market Market Expansion Monetization Huge Total Addressable Market TotalAddressable Market >$28.0b Target Global Opportunity ~55-60 bps Target Global Markets >$4.8t Current Markets and Solutions >$4.4b Current Opportunity ~34 bps Mobile +5–10 bps +$4.0b Mobile +4 bps Current Markets >$1.3t Global Platform ~50 bps ~$24.0b Mobile +$0.5b Current Solutions ~30 bps ~$3.9b • 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
Multiple Long-term Growth Opportunities CPM GradeBeam • Project lifecyclefrom design to operation • Integrated solutionsuite Data US, Canada, Australia PlanSwift SubmittalExchange Mining LATISTA PQM GradeBeam Price BidOrganizer Financing • 7 primary solutions • Few multi-product clients SubmittalExchange Future Oil and Gas Western Europe, Developed Asia Related markets PlanSwift US, Canada, Australia • Bundled sales/pricing • Platform strategy Global expansion Strategic acquisitions • Approx. 8% penetration New products Cross-sell solutions Market penetration
Image: ExxonMobil Corporate Campus, Houston, TX – a project managed using Textura Construction Collaboration Solutions
Jillian Sheehan EVP and CFO Image: Denver International Airport South Terminal Redevelopment, Denver, CO – a project managed using Textura Construction Collaboration Solutions Financial Overview
Financial Highlights Stronggrowth Predictable highly visiblegrowth Investing for growth High operating leverage
Consistently High Growth Rates Revenue CAGR: 77% Revenue CAGR: 73% Year-over-year change Year-over-year change Organic growth Organic growth
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 • 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 FY 2014
Questions . . . and Thank You Image: World Trade Center Transportation Hub, New York, NY – a project managed using Textura Construction Collaboration Solutions