Direct insiteinvestorpresentation

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Direct insiteinvestorpresentation

  1. 1. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Direct Insite Investor Presentation
  2. 2. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Safe Harbor Statement “Some of the statements made today may be forward-looking in nature. If you want to understand the risks associated with such statement, please review our filings with the SEC.” All material contained in this presentation is the sole property and copyright of Direct Insite Corp. with all rights reserved. Certain statements, which are not historical fact, may be considered forward-looking statements that involve risks and uncertainties. Forward-looking statements include statements regarding future business results; future sales and profitability; customer demand; and industry and economic conditions. Various factors could cause actual results to differ materially from what is set forth in such forward-looking statements. These factors are set forth in our SEC filings. All are cautioned not to place undue reliance on these forward-looking statements as the Company does not undertake any obligation to release publicly any revisions to these forward- looking statements to reflect future events or circumstances, or to reflect the occurrence of unanticipated events. May 29, 2013 2
  3. 3. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Corporate Overview • Direct Insite provides cloud-based, ERP-agnostic solutions that automate AP and AR invoice processes for Fortune 3000 companies. • We combine our SaaS based solutions with unique on-boarding services to accelerate e-invoicing adoption, further automating the financial supply chain while offering discount capture and early payment options. • As of Q1/2013, over 300,000 vendors process 7.1 million invoices with a total value of $127B annually. • Currently investing in additional products, services and technology that will permit the monetization of our growing AP Network. May 29, 2013 3
  4. 4. Direct Insite Corp. Copyright © 2012 COMPANY CONFIDENTIAL Investment Highlights Investment Highlights • Corporate restructuring in May 2011 • Newly reconstituted Board of Directors. • New CEO, CFO and VP of Sales & direct sales team. • Company has gone from being growth neutral to double digit revenue growth. • 11 new customer wins since August 2011. • Of the Fortune 3000, only 40% have implemented automation tools. • Blue-chip customer base, IBM, HP, Siemens, St. Gobain, Citibank. • Global network of 300,000+ suppliers. • Growth opportunity in existing Vendor Network. • Cash flow positive SaaS business. • Net Balance Sheet Cash $1.4M. • Over $29M in legacy NOLs available until 2018. • Valued at 1.5x TTM revenue as of March 31st, 2013. • 60+% insider ownership. May 29, 2013 4
  5. 5. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Primary Offerings and Services May 29, 2013 5 Invoices On- Line™ Core Data Processing Services Scan/Capture via Partnerships* Company Profile Management* Invoice, PO and Workflow Processing Dynamic Discount Management Payment Processing Network Participation by Partners – Banks & Payment Gateways. Spend Management & Business Intelligence* Supply Chain Financing* Invoices On-Line™ Middleware Modules and Service Offerings Direct Insite automates the entire financial supply chain! * Currently under development or provided with partners
  6. 6. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Opportunity May 29, 2013 6 90% of U.S. companies manually enter invoice data and they pay invoices with $30 trillion worth of paper checks! Source: Gartner AR Study 2011
  7. 7. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Benefits of AP and AR Automation May 29, 2013 7 Direct Insite provides a SaaS platform with a low upfront cost and then helps clients board suppliers and customers to maximize accuracy and cost savings across the supply chain! Source: Gartner AR Study 2011
  8. 8. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Global Vendor Network May 29, 2013 Direct Insite Corporation Copyright 2009 Confidential & Proprietary 8 Direct Insite Supplier Network: 300,000+ Suppliers, 110+ Countries, 17 Languages, 35 Currencies 8
  9. 9. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Adoption & Growth May 29, 2013 9 5.6 6.8 7.1 0 1 2 3 4 5 6 7 8 2011 qrtly avg 2012 qrtly avg 2013 Q1 Invoices processed (in millions) 22.3 27.4 0 5 10 15 20 25 30 FY 2011 FY 2012 Invoices processed (in millions) 100 300 0 100 200 300 400 FY 2011 FY 2012 # of AP vendors (in thousands)
  10. 10. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Customer Profile Customer Profile • Invoice volume >10K per month. • Complex outbound invoice processes. • North American or Global operations. • Corporate-wide Shared Services Organizations with multiple divisions sharing one back office. • Multiple legacy financial systems/multiple ERP instances. • Desire for end-to-end financial automation capabilities including AR, AP, vendor management, and customer service. • Inability to optimize and capture payment discounts. • Payment Card Industry compliance issues. • “AP Transformation” initiative to migrate away from paper to on-line submission and automation process. May 29, 2013 10
  11. 11. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Business Goals  Automate AR processing.  Enhance customer service.  Improve overall invoice processing efficiency.  Reduce Day’s Sales Outstanding (DSO). Business Results  Reduced Costs – Reduced paper invoices by 75%, slashing the cost per invoice on these items from between $600 - $1,500 per invoice to less than $25 per invoice.  Improved Staff Efficiency – Reduced invoice disputes by 65 percent.  Reduced DSO – Reduced DSO by approximately 4 days, resulting in an $50 million increase in treasury cash available and $4 million in annual savings in interest expense on these DSO funds.  Enhanced supplier relationships – Customer satisfaction with IBM’s invoicing process jumped from 27% to 72% within 6 months of implementation. Customer Profile: • 100 year-old company with approx. $100 billion in revenues • Generates millions of invoices each year across over 100 countries and 15 languages • Selected Direct Insite’s IOL platform to provide: Web-based line item presentment; dispute management; attachments IBM Case Study 11May 29, 2013
  12. 12. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Business Goals  Automate AP invoice processing.  Reduce inquiries from suppliers.  Improve relationships with suppliers.  Save money. Business Results  Reduced Costs – Reduced average cost to process an invoice by 24%.  Improved Staff Efficiency – Receives 73% of its invoices electronically and posts payments for 63% of its invoices without operator intervention.  Increased Productivity – Reduced work flow time from a more than four days to less than 12 hours for electronic invoices and less than 2.5 days for paper invoices.  Enhanced supplier relationships – Reduced supplier inquiries by 67%. “Invoices On-Line has proven to be an effective tool in the transformation of our Accounts Payable automation initiatives with a goal of reducing paper handling, invoicing costs and supplier inquiries.” Roderick Fields, GSS NA Director of Disbursement Services Customer Profile: • Shared services environment for the global powerhouse • Supports more than 50 Siemens business units • Processes over 2.4 million invoices per year • 60,000 suppliers Siemens Global Shared Services Case Study 12May 29, 2013
  13. 13. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Business Model Business Model • Cloud-based SaaS business model • No hardware or software capital expense. • No IT resource burden. • Integration with any ERP or legacy system. • Ability to accept any invoice, in any format, from any source. • Manage boarding process and supplier migration from paper to electronic. • Transaction-based pricing with discount tiers based on volume • Nominal fee for images and file attachments. • No charge to suppliers/customers to use the portal. • Nominal setup/instance fee. • No additional hosting fees. May 29, 2013 13
  14. 14. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Financial Highlights Financial Highlights • Recurring revenue model • Positive cash flow • No net debt as cash exceeds debt plus capital leases • Successfully managed legacy roll-off and shrink • 11 customer wins since new team took over • Robust and growing sales pipeline • Commitment to building supplier network and recurring revenue • Transparent, shareholder-friendly management May 29, 2013 14
  15. 15. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Robust Supply Chain Finance M&A May 29, 2013 15 As larger networks consolidate invoices, customers and supplier networks, supply chain finance M&A activity has been robust with the average EV/Revenue multiple in transactions of approximately 3.3x. Date Acquirer Target Revenues (in mm) Price or EV (in mm) EV/Revenues 2010 Ariba Quadrem 65 150 2.3 2011 Ariba b-Process 11 35 3.2 2012 Basware CertiPost 8.4 18.2 2.2 2012 Basware First BusinessPost 2.4 12.2 5.1 2011 Bottomline Technologies Logical Progression/IDT 1 2.9 2.9 2011 Bottomline Technologies DDL 3.5 10.9 3.1 2013 Readsoft Expert Systems 13 40 3.1 M&A Average 14.9 38.46 3.3 3/31/2012 Direct Insite 8.8 11 1.25
  16. 16. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Overview Established • September 2001 / Ticker Symbol: DIRI Corporate Headquarters • Ft. Lauderdale, FL Customers • Global 2000 / Customers and Vendors Global Experience • 100+ countries, 17 languages, 35 currencies • 300,000+ supplier network • 27+ million annual e-invoices worth $130+ billion in value Certifications Primary Offerings • Invoices On-Line (IOL) Accounts Payable Automation • Invoices On-Line (IOL) Accounts Receivable Automation • Invoices On-Line (IOL) ePayment Services May 29, 2013 16
  17. 17. Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Matthew Oakes President & CEO matthew.oakes@directinsite.com 631-873-2932 www.directinsite.com Contact Information

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