Textura q4 15 earnings release presentation 2.24 final

1©2016 Textura Corporation

Textura Corporation – Quarter Ended December 31, 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 February 24, 2016, and are subject to risks and uncertainties that could cause actualperformance or results to differ materially from those expressed in or suggested by the forward-looking statements. Importantfactors that could cause such differences include, but are not limited to, trends in the global and domestic economy and thecommercial construction industry; our ability to effectively manage our growth; our ability to develop the market for oursolutions; competition with our business; abnormal severe winter weather conditions; our dependence on a limited number ofclient relationships for a significant portion of our revenues; our dependence on a single software solution for a substantialportion of our revenues; the length of the selling cycle to secure new enterprise relationships for our CPM solution, whichrequires 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 inexpanding our international business and entering new industries; and the availability of suitable acquisitions or partners andour ability to achieve expected benefits from such acquisitions or partnerships. Forward-looking statements speak only as ofFebruary 24, 2016, and we assume no obligation to update forward-looking statements to reflect actual results, changes inassumptions 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 withrespect to those or other forward-looking statements. Further information on potential factors that could affect actual results isincluded under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filedon March 6, 2015, our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, which we expect to file on orabout March 4, 2016, and our other reports filed with the SEC.

This presentation should be read in conjunction with our Q4 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 Q42015 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/


Q4 2015 Highlights – Continuing to Execute our Strategy

• Year-over-year revenue growth of 33%

• Revenue of $23.7 million

• Billings (including contractual backlog) – or bookings - of $26.5 million, 34% year-over-year growth

• Approximately $202 billion in construction value active on our solutions

Strong Revenue Growth

Growth Strategy

• Improving Adjusted EBITDA, EPS and cash flow trajectory

• Adjusted EBITDA of $3.9 million, Adjusted Basic and Diluted EPS of $0.09 vs. ($0.02) in Q4 2014

• $6.1 million of cash generated from operating activities

• Adjusted Gross Margin of 84.3%, compared to 82.4% in the prior-year period

• 16% Adjusted Operating Expense year-over-year growth, compared to 33% 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

• $78.7 million cash position at December 31, 2015

• Ample liquidity to fund our growth initiatives

• Strong balance sheet with no outstanding debt


Consistently High Growth Rates

70% 54% 38%

Year-over-year growth

61% 60% 51% 49% 39% 42% 38% 33%

Year-over-year growth

46% 52% 43% 44% 39% 42% 38% 33% 45% 46% 38%

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

$40.8

$63.0

$86.7

FY 2013 FY 2014 FY 2015

$13.8 $15.0

$16.4

$17.9 $19.2

$21.3 $22.5

$23.7

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


2016 Guidance

• 23 - 29% year-over-year revenue growth

• $23.7 – $24.7 million

• Adjusted Basic and Diluted EPS of $0.07 – $0.11

• Excludes stock based comp of $3.2 million & amortization of acquired intangible assets of $0.8 million

• Assumes approximately 26.2 million and 27.2 million weighted-average common shares outstanding, respectively, for the Adjusted Basic and Diluted EPS calculations

Quarter Ending March 31,

2016

Year Ending December 31,

2016

• 22 – 28% year-over-year revenue growth

• $106.0 – $111.0 million

• Adjusted Basic EPS of $0.35 – $0.50; Adjusted Diluted EPS of $0.33 – $0.48

• Excludes stock based comp of $10.6 million & amortization of acquired intangible assets of $2.7 million

• Assumes approximately 26.6 million and 27.8 million weighted-average common shares outstanding, respectively, for the Adjusted Basic and Diluted EPS calculations

• Cash flow generated from operations of $25 - 30 million


Long-term Operating Model Yields Attractive Margins

Dec

2014

March

2015

June

2015

Sept

2015

Dec

2015 2014 2015

Guidance

2016

Target

Model

Revenue ($ millions) 17.9$ 19.2$ 21.3$ 22.5$ 23.7$ 63.0$ 86.7$ $106 - $111 $150 - 180

Adjusted Operating Expenses as a % of revenue:*

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

General and administrative 29% 28% 26% 26% 25% 33% 26% 13 - 15%

Sales and marketing 27% 26% 24% 22% 21% 29% 23% 17 - 20%

Technology and development 24% 23% 23% 22% 22% 30% 23% 15 - 17%

Total Adjusted Operating Expenses, excluding

depreciation and amortization 98% 96% 89% 86% 84% 110% 88% 55 - 65%

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

Adjusted EBITDA margin** 2% 4% 11% 14% 16% (10%) 12% 17 - 20% 35 - 45%

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

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

other expenses recognized during the period.

Fiscal YearQuarter


Appendix

Reconciliation of non-GAAP measures

to the most comparable GAAP measures


Bookings – Year over Year

2015 2014

Deferred revenue, beginning of period 45,102$ 33,647$

Deferred revenue, end of period 43,813 35,583

Net change (1,289) 1,936

Revenue recognized during the period 23,732 17,862

Billings 22,443 19,798

Contractual backlog, end of period 4,043 -

Bookings 26,486$ 19,798$

(in thousands)

Three Months Ended December 31,


Quarter Ended December 31, 2015

GAAP

Share-Based

Compensation

and Amortization

of Intangible

Assets

Other Non-

Recurring

Expenses* As Adjusted % of Revenue

Revenues 23,732$ -$ -$ 23,732$ 100%

Operating expenses

Cost of services 4,079 301 48 3,730 16%

General and administrative 13,848 5,569 2,226 6,053 25%

Sales and marketing 5,204 265 - 4,939 21%

Technology and development 5,326 191 - 5,135 22%

Depreciation and amortization 2,361 1,007 - 1,354 5%

Asset impairment 1,070 - 1,070 - 0%

Total operating expenses 31,888 7,333 3,344 21,211 89%

Total operating expenses, excluding

depreciation and amortization

29,527 6,326 3,344 19,857 84%

Loss from operations (8,156) (7,333) (3,344) 2,521

Total other expense, net 5 - - 5

Loss before income taxes (8,151) (7,333) (3,344) 2,526

Income tax provision 63 - - 63

Net loss (8,214)$ (7,333)$ (3,344)$ 2,463$

Gross profit 19,653$ 20,002$

Gross margin 83% 84%

Adjusted EBITDA** 3,875$

Adjusted EBITDA Margin 16%

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


(dollars in thousands)


Adjusted Basic EPS – Year over Year

2015 2014

Basic net loss per share (0.31)$ (0.15)$

Share-based compensation 0.24 0.08

Amortization of intangible assets 0.04 0.04

Severance expense 0.06 -

Acquisition-related and other expenses* 0.02 0.01

Asset impairment charge 0.04 -

Adjusted Basic EPS 0.09$ (0.02)$

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

Three Months Ended December 31,


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%

General and administrative 6,489 1,328 45 5,116 29%



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)

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

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$






Guidance

High End Low End High End Low End

Basic net loss per share (0.04)$ (0.08)$ -$ (0.15)$

Share-based compensation 0.12 0.12 0.40 0.40

Amortization of intangible assets 0.03 0.03 0.10 0.10

Adjusted Basic EPS 0.11$ 0.07$ 0.50$ 0.35$

Three Months Ending

March 31, 2016

Twelve Months Ending

December 31, 2016


Year Ended December 31, 2015

GAAP

Share-Based

Compensation

and Amortization

of Intangible

Assets

Other Non-

Recurring


Revenues 86,729$ -$ -$ 86,729$ 100%

Operating expenses

Cost of services 15,254 946 184 14,124 16%

General and administrative 36,661 11,308 2,496 22,857 26%

Sales and marketing 21,013 1,035 - 19,978 23%



Asset impairment 1,070 - 1,070 - 0%




94,402 14,108 3,750 76,544 88%

Loss from operations (16,301) (18,274) (3,750) 5,723


Loss before income taxes (16,289) (18,274) (3,750) 5,735


Net loss (16,596)$ (18,274)$ (3,750)$ 5,428$

Gross profit 71,475$ 72,605$








Quarter Ended September 30, 2015

GAAP

Share-Based

Compensation

and Amortization

of Intangible

Assets

Other Non-

Recurring


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

Operating expenses

Cost of services 3,847 278 - 3,569 16%








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

Loss from operations (2,384) (4,215) (67) 1,898


Loss before income taxes (2,382) (4,215) (67) 1,900


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

Gross profit 18,666$ 18,944$








Quarter Ended June 30, 2015

GAAP

Share-Based

Compensation

and Amortization

of Intangible

Assets

Other Non-

Recurring


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

Operating expenses

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








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

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


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


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

Gross profit 17,533$ 17,849$








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.



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%

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)


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

Gross profit 50,117$ 51,330$


Adjusted EBITDA** (6,054)$

Adjusted EBITDA Margin (10%)

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



Textura q4 15 earnings release presentation 2.24 final

Economy & Finance

Transcript of Textura q4 15 earnings release presentation 2.24 final