So why should you invest in Textura?The market opportunity is huge.For 70% of our business we have no competitor globally and over 40 patents. We sell to a small group of owners and GCs for most of our solutions and drive revenue from the entire network of participants resulting in very low sales costs and very high financial leverage.Clients love our service levels and see significant tangible value. Our solutions are mission critical and non discretionary.Revenue growth rates are high and are predictable.I have a great executive team who have been with me from the beginning. What you see is what you will continue to see and get.(new slide)
The value proposition is compelling for all participants. The case studies illustrate the compelling reduction in time and process steps.Owners and Gcsmanage large amounts of risk on very thin margins.- Owners have huge trailing lien waiver risk. So when an owner pays a GC, the owner with the current manual process is still on the hook for paying the subs until the GC pays the subs and collects the associated lien waivers. An owner could have 60 to 90 days of payment risk. So potentially millions of dollars. With CPM the owner receives the lien waivers as part of the payment process and the payment risk is fully eliminated. - Gcs are at risk for subcontractor default. One subcontractor default can eliminate the total profit on a project. Gcs use our PQM solution to collect financial and other information from their subs, analyze the data and assess risk.Subcontractors and general contractors tell that our solutions help them get paid faster. Nothing is more important in this industry.(new slide)
A few case studies:This is a new general contractor client in Denver. They are a mid size GC and our revenue will be about $300,000 a year from their project network.On the right is the client’s process flow diagram and you can see the number of steps they have crossed out by using Textura CPM. On average GCs eliminate about 60 to 70% of their steps in the monthly invoicing process and about the same in time savings.Note that the savings – the value proposition -are both tangible and easily captured.Also note the comment about better relations with their subs – we help all the participants work together.(new slide)
This is the ExxonMobil campus in Houston which is in progress. This is a huge project –well over 10 million square feet. Our client is ExxonMobil.(new slide)
Let’s begin with the financial highlights. Demonstrated strong and consistent growthCAGR in excess of 87% over the past three yearsSize of our total addressable market Creates potential for Textura to sustain high rates of growthRevenue is highly predictable and recurringVisibility into revenue from both existing clients and active projectsIn 2012, 90% + of revenue generated by clients sold in 2011 and priorTrend is consistent year to yearProvides us with visibility into our revenue, on both an annual and quarterly basis. Focused on making significant investments Areas of technology and development and sales and marketing Continue to enhance and expand our suite of solutionsIncrease our client penetration These investments will contribute to future revenue growth. Long term model will result in attractive marginsdue to high operating leveragelow sales costshigh incremental margins
Since inception, we have grown revenue each and every year. Looking at our quarterly revenuesconsistent, upwards trendrevenue has grown at a compounded annual growth rate of 92%. Calendar year 2012revenues of $24 million86% year over year growth60% was organic growth26% contributed by acquisition related revenue. (new slide)
