textura q2 15 earnings release presentation

1©2015 Textura Corporation

Textura Corporation – Quarter Ended June 30, 2015

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 our future financial performance, marketgrowth, total addressable market, demand for our solutions, and general business conditions and outlook. Any forward lookingstatements contained in this presentation are based upon our historical performance and our current expectations andprojections about future events and financial trends affecting the financial condition of our business. These forward-lookingstatements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications ofthe times at, or by, which such performance or results will be achieved. These forward-looking statements are based oninformation available to us as of July 30, 2015, and are subject to risks and uncertainties that could cause actual performance orresults to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that couldcause such differences include, but are not limited to, trends in the global and domestic economy and the commercialconstruction 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 clientrelationships for a significant portion of our revenues; our dependence on a single software solution for a substantial portion ofour revenues; the length of the selling cycle to secure new enterprise relationships for our CPM solution, which requiressignificant investment of resources; our ability to cross-sell our solutions; the continued growth of the market for on-demandsoftware solutions; our ability to develop and bring to market new solutions in a timely manner; our success in expanding ourinternational business and entering new industries; and the availability of suitable acquisitions or partners and our ability toachieve expected benefits from such acquisitions or partnerships. Forward-looking statements speak only as of July 30, 2015, andwe assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes inother factors affecting forward-looking information, except to the extent required by applicable laws. If we update one or moreforward-looking statements, no inference should be drawn that we will make additional updates with respect to those or otherforward-looking statements. Further information on potential factors that could affect actual results is included under theheading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed on March 6, 2015,and our other reports filed with the SEC.

This presentation should be read in conjunction with our Q2 2015 Earnings Release on our Investor Relations website atinvestors.texturacorp.com.

In addition to U.S. GAAP financial information, this presentation includes certain non-GAAP financial measures. These historicaland forward-looking non-GAAP measures are in addition to, not a substitute for or superior to, measures of financialperformance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP measures is included in our Q22015 Earnings Release on our Investor Relations website at investors.texturacorp.com, and at the end of this presentation.

http://investors.texturacorp.com/

http://investors.texturacorp.com/


Q2 2015 Highlights – Continuing to Execute our Strategy

• Year-over-year revenue growth of 42% (all organic)

• Revenue of $21.3MM and billings of $24.9MM (36% year-over-year growth)

• Approximately $200B in construction value active on our solutions

Strong Revenue Growth

Growth Strategy

• Improving Adjusted EBITDA, EPS and cash flow trajectory

• Adjusted EBITDA of $2.3MM, Adjusted EPS of $0.05 vs. ($0.12) in Q2 2014

• Positive operating cash flow for fifth consecutive quarter

• Adjusted gross margin of 84% compared to 81% in the prior year period

• 12% Adjusted Operating Expense growth compared to 42% revenue growth

• Increased functionality and expanding market penetration

• First EPP customers online during the quarter

• Launched PerformanceTracker™ in May 2015

• Continuing to invest in the development of our platform of solutions

• Continued focus on international growth strategy

Expense Trends and Operating Leverage

Balance Sheet

• $68.0MM cash position at June 30, 2015

• Ample liquidity to fund our growth initiatives


Consistently High Growth Rates

86% 70% 54%

Year-over-year growth

72% 77% 61% 60% 51% 49% 39% 42%

Year-over-year growth

45% 49% 46% 52% 43% 44% 39% 42% 60% 45% 46%

Year-over-year organic growth Year-over-year organic growth

$24.0

$40.8

$63.0

FY 2012 FY 2013 FY 2014

$10.9 $12.0

$13.8 $15.0

$16.4

$17.9 $19.2

$21.3

Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15


2015 Guidance

• 37 – 43% year-over-year revenue growth

• $22.4 – $23.4MM

• Adjusted EPS of $0.05 – $0.07

• Excludes stock based comp of $3.0MM & amortization of acquired intangible assets of $1.1MM

• Assumes ~25.9MM weighted-average shares outstanding

Quarter Ending September 30,

2015

Year Ending December 31,

2015

• 40 – 46% year-over-year revenue growth

• $88.0 – $92.0MM

• Adjusted EPS of $0.15 – $0.20

• Excludes stock based comp of $10.6MM & amortization of acquired intangible assets of $4.2MM

• Assumes ~25.8MM weighted-average shares outstanding

• Cash flow from operations of $16 to $20 million


Long-term Operating Model Yields Attractive Margins

June

2014

Sept

2014

Dec

2014

March

2015

June

2015 2013 2014

Guidance

2015

Target

Model

Revenue ($MMs) 15.0$ 16.4$ 17.9$ 19.2$ 21.3$ 40.8$ 63.0$ $88 - 92 $150 - 180

Adjusted Operating Expenses as a % of revenue: *

Cost of services 19% 18% 18% 18% 16% 22% 18% 10 - 13%

General and administrative 36% 31% 29% 28% 26% 44% 33% 13 - 15%

Sales and marketing 29% 29% 27% 26% 24% 30% 29% 17 - 20%

Technology and development 30% 28% 24% 23% 23% 41% 30% 15 - 17%

Total Adjusted Operating Expenses, excluding

depreciation and amortization 114% 106% 98% 95% 89% 137% 110% 55 - 65%

Adjusted Gross Margin 81% 82% 82% 82% 84% 78% 82% 87 - 90%

Adjusted EBITDA margin ** (15%) (6%) 2% 4% 11% (37%) (10%) 10 - 11% 35 - 45%

** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.

Quarter

* Adjusted Operating Expenses is calculated as total operating expenses, adjusted for share-based compensation expense, amortization expense, severance expense and

acquisition-related and other expenses recognized during the period.


Appendix

Reconciliation of non-GAAP measures

to the most comparable GAAP measures


Guidance

High End Low End High End Low End

Net loss per share (0.09)$ (0.11)$ (0.38)$ (0.43)$

Share-based compensation expense 0.12 0.12 0.41 0.41

Amortization of intangible assets 0.04 0.04 0.16 0.16

Acquisition-related and other expenses - - 0.01 0.01

Adjusted EPS 0.07$ 0.05$ 0.20$ 0.15$

Three Months Ended

September 30, 2015

Twelve Months Ended

December 31, 2015


Quarter Ended June 30, 2015

GAAP

Share-Based

Compensation

and

Amortization

of Intangible

Assets

Other Non-

Recurring

Expenses * As Adjusted % of Revenue

Revenues 21,283$ -$ -$ 21,283$ 100%

Operating expenses

Cost of services 3,750 180 136 3,434 16%

General and administrative 7,649 2,030 203 5,416 26%

Sales and marketing 5,379 233 - 5,146 24%

Technology and development 5,190 206 - 4,984 23%

Depreciation and amortization 2,089 1,053 - 1,036 5%

Total operating expenses 24,057 3,702 339 20,016 94%

Total operating expenses, excluding

depreciation and amortization

21,968 2,649 339 18,980 89%

Loss from operations (2,774) (3,702) (339) 1,267

Total other expense, net 1 - - 1

Loss before income taxes (2,773) (3,702) (339) 1,268

Income tax provision 80 - - 80

Net loss (2,853)$ (3,702)$ (339)$ 1,188$

Gross profit 17,533$ 17,849$

Gross margin 82% 84%

Adjusted EBITDA ** 2,303$

Adjusted EBITDA Margin 11%

* Other non-recurring expenses include acquisition-related and other expenses.


(dollars in thousands)


Quarter Ended June 30, 2014

GAAP

Share-Based

Compensation

and

Amortization

of Intangible

Assets As Adjusted % of Revenue

Revenues 14,965$ -$ 14,965$ 100%

Operating expenses

Cost of services 3,028 156 2,872 19%

General and administrative 6,473 1,049 5,424 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%



18,983 1,830 17,153 115%

Loss from operations (5,980) (3,112) (2,868)

Total other expense, net (8) - (8)

Loss before income taxes (5,988) (3,112) (2,876)

Income tax provision 80 - 80

Net loss (6,068)$ (3,112)$ (2,956)$

Gross profit 11,937$ 12,093$


Adjusted EBITDA * (2,188)$

Adjusted EBITDA Margin (15%)

* Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.



Adjusted EPS – Year over Year

June 30, 2015 June 30, 2014

Net loss per share (0.11)$ (0.24)$

Share-based compensation expense 0.11 0.07

Amortization of intangible assets 0.04 0.05

Acquisition-related and other expenses 0.01 -

Adjusted EPS 0.05$ (0.12)$

Three Months Ended


Quarter Ended March 31, 2015

GAAP

Share-Based

Compensation

and

Amortization

of Intangible

Assets As Adjusted % of Revenue

Revenues 19,201$ -$ 19,201$ 100%

Operating expenses

Cost of services 3,578 187 3,391 18%

General and administrative 6,832 1,316 5,516 28%

Sales and marketing 5,193 266 4,927 26%

Technology and development 4,709 202 4,507 23%

Depreciation and amortization 1,876 1,053 823 4%

Total operating expenses 22,188 3,024 19,164 100%



20,312 1,971 18,341 96%

Loss from operations (2,987) (3,024) 37

Total other expense, net 4 - 4

Loss before income taxes (2,983) (3,024) 41

Income tax provision 84 - 84

Net loss (3,067)$ (3,024)$ (43)$

Gross profit 15,623$ 15,810$


Adjusted EBITDA * 860$


* Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.



Quarter Ended September 30, 2014

GAAP

Share-Based

Compensation

and

Amortization

of Intangible

Assets

Other Non-

Recurring


Revenues 16,354$ -$ -$ 16,354$ 100%

Operating expenses

Cost of services 3,335 90 344 2,901 18%


Sales and marketing 5,869 586 592 4,691 29%

Technology and development 6,366 913 802 4,651 28%

Depreciation and amortization 1,990 1,282 - 708 4%

Total operating expenses 23,792 3,920 1,858 18,014 110%



21,802 2,638 1,858 17,306 106%

Loss from operations (7,438) (3,920) (1,858) (1,660)

Total other expense, net (22) - - (22)

Loss before income taxes (7,460) (3,920) (1,858) (1,682)


Net loss (7,540)$ (3,920)$ (1,858)$ (1,762)$

Gross profit 13,019$ 13,453$


Adjusted EBITDA ** (952)$


* Other non-recurring expenses include severance expense and acquisition-related and other expenses.




Quarter Ended December 31, 2014

GAAP

Share-Based

Compensation

and

Amortization

of Intangible

Assets

Other Non-

Recurring


Revenues 17,862$ -$ -$ 17,862$ 100%

Operating expenses

Cost of services 3,606 196 275 3,135 18%


Sales and marketing 5,143 279 - 4,864 27%

Technology and development 4,490 168 - 4,322 24%

Depreciation and amortization 1,903 1,131 - 772 4%

Total operating expenses 21,631 3,102 320 18,209 102%



19,728 1,971 320 17,437 98%

Loss from operations (3,769) (3,102) (320) (347)


Loss before income taxes (3,777) (3,102) (320) (355)


Net loss (3,907)$ (3,102)$ (320)$ (485)$

Gross profit 14,256$ 14,727$


Adjusted EBITDA ** 425$






Year Ended December 31, 2014

GAAP

Share-Based

Compensation

and

Amortization

of Intangible

Assets

Other Non-

Recurring


Revenues 62,968$ -$ -$ 62,968$ 100%

Operating expenses

Cost of services 12,851 594 619 11,638 18%


Sales and marketing 20,518 1,501 592 18,425 29%

Technology and development 21,031 1,663 802 18,566 30%





79,649 8,375 2,252 69,022 110%




Income tax provision 370 370

Net loss (24,855)$ (13,352)$ (2,252)$ (9,251)$

Gross profit 50,117$ 51,330$


Adjusted EBITDA ** (6,054)$


* Other non-recurring expenses include severance expense and acquisition-related and other expenses.




Year Ended December 31, 2013

GAAP

Share-Based

Compensation

and

Amortization

of Intangible

Assets

Other Non-

Recurring


Revenues 40,766$ -$ -$ 40,766$ 100%

Operating expenses

Cost of services 12,808 2,198 1,446 9,164 22%

General and administrative 25,152 5,700 1,501 17,951 44%

Sales and marketing 15,153 2,789 308 12,056 30%

Technology and development 20,820 2,863 1,288 16,669 41%





73,933 13,550 4,543 55,840 137%


Total other expense, net (2,530) - - (2,530)


Income tax provision (767) (1,086) 319

Net loss (40,255)$ (16,947)$ (3,457)$ (19,851)$

Gross profit 27,958$ 31,602$


Adjusted EBITDA ** (14,923)$





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