textura q3 15 earnings release presentation

1©2015 Textura Corporation

Textura Corporation – Quarter Ended September 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, market

growth, total addressable market, demand for our solutions, and general business conditions and outlook. Any forward looking statements contained in this presentation are based upon our historical performance and our current expectations and projections about future events and financial trends affecting the financial condition of our 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 us as of November 9, 2015, 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. Forward-looking statements speak only as of November 9, 2015, 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 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 Q3 2015 Earnings Release on our 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 our Q3 2015 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/


Q3 2015 Highlights – Continuing to Execute our Strategy• Year-over-year revenue growth of 38% (all organic)

• Revenue of $22.5MM

• Billings of $26.1MM (39% year-over-year growth, with 7% of the growth associated with multi-year deals)

• Approximately $193B in construction value active on our solutions

Strong Revenue Growth

Growth Strategy

• Improving Adjusted EBITDA, EPS and cash flow trajectory• Adjusted EBITDA of $3.1MM, Adjusted Basic EPS of $0.07 vs. ($0.07) in Q3 2014

• $6.4MM of cash generated from operating activities (451% year-over-year growth)

• Adjusted Gross Margin of 84%, compared to 82% in the prior-year period

• 14% Adjusted Operating Expense year-over-year growth, compared to 38% revenue growth

• Increased functionality and expanding market penetration• Increased utilization of EPP by our customers

• Continuing to invest in our solutions

• Continued focus on international growth strategy

Expense Trends and Operating Leverage

Balance Sheet

• $73.2MM cash position at September 30, 2015• Ample liquidity to fund our growth initiatives

• Strong balance sheet with no outstanding debt


Consistently High Growth Rates

86% 70% 54%

Revenue CAGR: 62%

Year-over-year growth

Revenue CAGR: 43%

77%

61% 60% 51% 49% 39% 42% 38%

Year-over-year growth

49%

46% 52% 43% 44% 39% 42% 38% 60% 45% 46%

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

FY 2012 FY 2013 FY 2014

$24.0

$40.8

$63.0

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

$12.0

$13.8 $15.0

$16.4 $17.9

$19.2

$21.3 $22.5


2015 Guidance

• 29 - 34% year-over-year revenue growth

• $23.0 – $24.0MM

• Adjusted Basic EPS of $0.07 – $0.10

• Excludes stock based comp of $3.4MM & amortization of acquired intangible assets of $1.0MM

• Assumes ~26.1MM weighted-average shares outstanding

Quarter Ending December 31,

2015

Year Ending December 31,

2015

• 37 – 38% year-over-year revenue growth

• $86.0 – $87.0MM

• Adjusted Basic EPS of $0.18 – $0.21

• Excludes stock based comp of $11.2MM & amortization of acquired intangible assets of $4.2MM

• Assumes ~25.9MM weighted-average shares outstanding

• Cash flow from operations of $17 to $21 million


Long-term Operating Model Yields Attractive Margins

Sept 2014

Dec 2014

March 2015

June 2015

Sept 2015 2013 2014

Guidance2015

TargetModel

Revenue ($MMs) 16.4$ 17.9$ 19.2$ 21.3$ 22.5$ 40.8$ 63.0$ $86.0 - 87.0 $150 - 180

Adjusted Operating Expenses as a % of revenue:*Cost of services 18% 18% 18% 16% 16% 22% 18% 10 - 13%General and administrative 31% 29% 28% 26% 26% 44% 33% 13 - 15%Sales and marketing 29% 27% 26% 24% 22% 30% 29% 17 - 20%Technology and development 28% 24% 23% 23% 22% 41% 30% 15 - 17%

Total Adjusted Operating Expenses, excluding depreciation and amortization 106% 98% 95% 89% 86% 137% 110% 55 - 65%

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

Adjusted EBITDA margin** (6%) 2% 4% 11% 14% (37%) (10%) 11 - 12% 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.

Fiscal Year


Appendix

Reconciliation of non-GAAP measures

to the most comparable GAAP measures


Guidance

High End Low End High End Low End

Basic net loss per share (0.07)$ (0.10)$ (0.40)$ (0.43)$ Share-based compensation expense 0.13 0.13 0.43 0.43 Amortization of intangible assets 0.04 0.04 0.16 0.16 Acquisition-related and other expenses* - - 0.02 0.02 Adjusted Basic EPS 0.10$ 0.07$ 0.21$ 0.18$

* Acquisition-related and other expenses represent certain legal and tax-related costs.

Three Months Ending December 31, 2015

Twelve Months Ending December 31, 2015


Quarter Ended September 30, 2015

GAAP

Share-Based Compensation

and Amortization of Intangible

Assets

Other Non-Recurring Expenses* As Adjusted % of Revenue

Revenues 22,513$ -$ -$ 22,513$ 100%

Operating expensesCost of services 3,847 278 - 3,569 16%General and administrative 8,332 2,393 67 5,872 26%Sales and marketing 5,237 271 - 4,966 22%Technology and development 5,179 220 - 4,959 22%Depreciation and amortization 2,302 1,053 - 1,249 6%

Total operating expenses 24,897 4,215 67 20,615 92%

Total operating expenses, excluding depreciation and amortization

22,595 3,162 67 19,366 86%

Loss from operations (2,384) (4,215) (67) 1,898 Total other expense, net 2 - - 2

Loss before income taxes (2,382) (4,215) (67) 1,900 Income tax provision 80 - - 80

Net loss (2,462)$ (4,215)$ (67)$ 1,820$

Gross profit 18,666$ 18,944$ Gross margin 83% 84%

Adjusted EBITDA** 3,147$ Adjusted EBITDA Margin 14%

* Other non-recurring expenses include acquisition-related and other expenses.** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.

(dollars in thousands)


Quarter Ended September 30, 2014

GAAP



Assets


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

Operating expensesCost of services 3,335 90 344 2,901 18%General and administrative 6,232 1,049 120 5,063 31%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) Income tax provision 80 - - 80

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


Adjusted EBITDA** (952)$ Adjusted EBITDA Margin (6%)

* Other non-recurring expenses include severance expense and acquisition-related and other expenses.** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.



Adjusted Basic EPS – Year over Year

September 30, 2015 September 30, 2014

Basic net loss per share (0.09)$ (0.30)$ Share-based compensation expense 0.12 0.10 Amortization of intangible assets 0.04 0.05 Severance expense - 0.06 Acquisition-related and other expenses* - 0.02 Adjusted Basic EPS 0.07$ (0.07)$

* Acquisition-related and other expenses represent strategic transaction and certain tax-related costs.

Three Months Ended


Quarter Ended March 31, 2015

GAAP



Assets As Adjusted % of Revenue

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

Operating expensesCost 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)$


Adjusted EBITDA* 860$ Adjusted EBITDA Margin 4%

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



Quarter Ended June 30, 2015

GAAP



Assets


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

Operating expensesCost 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%



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$


Adjusted EBITDA** 2,303$ Adjusted EBITDA Margin 11%




Quarter Ended December 31, 2014

GAAP



Assets


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

Operating expensesCost of services 3,606 196 275 3,135 18%General and administrative 6,489 1,328 45 5,116 29%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%



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

Loss from operations (3,769) (3,102) (320) (347) Total other expense, net (8) - - (8)

Loss before income taxes (3,777) (3,102) (320) (355) Income tax provision 130 - - 130

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


Adjusted EBITDA** 425$ Adjusted EBITDA Margin 2%




Year Ended December 31, 2014

GAAP



Assets


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

Operating expensesCost of services 12,851 594 619 11,638 18%General and administrative 25,249 4,617 239 20,393 33%Sales and marketing 20,518 1,501 592 18,425 29%Technology and development 21,031 1,663 802 18,566 30%Depreciation and amortization 7,741 4,977 - 2,764 4%



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

Loss from operations (24,422) (13,352) (2,252) (8,818) Total other expense, net (63) - - (63)

Loss before income taxes (24,485) (13,352) (2,252) (8,881) Income tax provision 370 370

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


Adjusted EBITDA** (6,054)$ Adjusted EBITDA Margin (10%)

* Other non-recurring expenses include severance expense and acquisition-related and other expenses.** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.



Year Ended December 31, 2013

GAAP



Assets


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

Operating expensesCost 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%Depreciation and amortization 5,325 3,397 - 1,928 5%



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

Loss from operations (38,492) (16,947) (4,543) (17,002) Total other expense, net (2,530) - - (2,530)

Loss before income taxes (41,022) (16,947) (4,543) (19,532) Income tax provision (767) (1,086) 319

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


Adjusted EBITDA** (14,923)$ Adjusted EBITDA Margin (37%)



textura q3 15 earnings release presentation

Economy & Finance