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Textura Corporation – Fiscal First Quarter 2014 Results

Image: Hudson Yards Redevelopment, New York, NY –
a project managed using Textura Construction Collaboration Solutions
©2014 Textura Corporation

1
Safe Harbor





This presentation includes forward-looking statements, including statements regarding Textura's future financial performance,
market growth, demand for Textura's solutions, and general business conditions. Any forward looking statements contained in
this presentation are based upon Textura's historical performance and its current expectations and projections about future
events and financial trends affecting the financial condition of its 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 Textura as of
January 30, 2014, 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; 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, including our
acquisition of PlanSwift in January 2013 and LATISTA in December 2013. Forward-looking statements speak only as of January
30, 2014 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 filed on November 26, 2013 and our other reports filed with the SEC.
This presentation should be read in conjunction with Textura’s Q1 2014 Earnings Release on the Company’s 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
Textura’s Q1 2014 Earnings Release on the Company’s Investor Relations website at investors.texturacorp.com.

©2014 Textura Corporation

2
Introduction and Review of Key Highlights
Patrick Allin
Chairman, CEO, Co-founder

Image: Hudson Yards Redevelopment, New York, NY –
a project managed using Textura Construction Collaboration Solutions
©2014 Textura Corporation

3
Investment Highlights

Global market
opportunity

Compelling
client value
proposition

CPM – no
competition

Exceptional
revenue growth

High EBITDA
margin potential

Experienced
team

©2014 Textura Corporation

4
Current Business Processes – Complex, Error Prone, Inefficient
Owner / Developer
Architects

Financing
Companies

Insurance
Companies

Title
Companies

Engineers

...

General
Contractors

Owner/
Developer
GC

Banks / Insurers
Prime Sub
Sub

Title Company

Material
Supplier

Sub
Sub-tier

Prime Sub

Sub

Architects
Prime Sub
Sub

Sub-tier

...

...
...

Sub
Material
Supplier

Material
Supplier

...

Suppliers

Sub-tier
Etc.

Engineers

Sub-contractors

Design
©2014 Textura Corporation

Prequalification

Bid

Contracting

5

Construction

Close-out
Textura Solutions – Addressing the Project Lifecycle

Construction Collaboration Solutions®

Submittal
Exchange
Design
©2014 Textura Corporation

CPM

GradeBeam

PQM

Prequalification

Submittal
Exchange

PlanSwift

BidOrganizer
Bid

Contracting

6

LATISTA

Construction

Close-out
Over $28 billion of Total Addressable Market
Market
Expansion
Target
Global
Markets
>$4.8t

Current
Markets
>$1.3t
Key Strategies:
• North America market
penetration
• Global expansion to Asia
and Western Europe
©2014 Textura Corporation

Monetization
Target
Global
Opportunity
~55-60 bps
Mobile
+5–10 bps

Current
Opportunity
~34 bps
Mobile
+4 bps

Global
Platform
~50 bps

Current
Solutions
~30 bps

Key Strategies:
• Cross-sell solutions
• Strategic acquisitions
• Solution expansion
• Solutions to platform
• Pricing
7

Huge Total
Addressable Market

Current
Markets
and
Solutions
>$4.4b
Mobile
+$0.5b

~$3.9b

Result:

•

Total
Addressable
Market
>$28.0b
+$4.0b

~$24.0b

Potential for long
term very high
revenue
growth rates
Multiple Long-term Growth Opportunities
CPM

GradeBeam

LATISTA

PQM

Submittal
Exchange

PlanSwift

BidOrganizer

• 7 primary
solutions
• Few multiproduct
clients

• Project
lifecycle
from design
to operation

• Approx. 8%
penetration

Market
penetration

Cross-sell
solutions

©2014 Textura Corporation

Mining

GradeBeam

Price

Future

Financing

• Integrated
solution
suite

Submittal
Exchange

PlanSwift
• Bundled
sales/
pricing
• Platform
strategy

Data

US, Canada,
Australia

New
products

Strategic
acquisitions

8

Oil and Gas
Western
Europe,
Developed
Asia

Global
expansion

Related
markets
Recent Highlights – Continuing to Execute our Strategy
Strong Fiscal 1Q
Results
CPM Penetration
Solutions
Integration
Pricing Power

Acquisitions
©2014 Textura Corporation

• Organic revenue growth of 50%

• Accelerating revenue growth to 77%

• $17.9 billion construction value added – 145% growth

• F.A. Peinado, Streetlights Residential, Callahan, and Ryder Construction
in US; Equiset in Australia

• Key customer wins for CPM

• Integration of GradeBeam and PQM delivered in quarter

• Increased investment to integrate solutions

• Enhanced value to our clients will allow more effective management of
their businesses
• Effective on all new projects after February 1

• Announced CPM price increase for subcontractor usage fees
• Adds 2 to 3 basis points of revenue on subcontracted contract value
• Mobile solutions for project management in the field

• Closed $35 million LATISTA acquisition in December

9
Fiscal First Quarter 2014
Financial Overview

Jillian Sheehan
EVP and CFO

Image: Denver International Airport South Terminal Redevelopment, Denver, CO
– a project managed using Textura Construction Collaboration Solutions
©2014 Textura Corporation

10
Fiscal First Quarter 2014 Highlights
Accelerating
Revenue Growth

• Organic revenue growth of 50%

• 77% revenue growth

• Beginning to see leverage in business model

• 72% non-GAAP operating expense growth

Expense Trends

Adjusted EBITDA

Adjusted EPS

Balance Sheet
©2014 Textura Corporation

• Continuing to invest in technology & development and sales &
marketing
• Focus on supporting growth and strategic initiatives

• $4.0 mm Adjusted EBITDA loss vs. $2.3 mm loss in Q1 2013
• Relatively stable adjusted net loss of $4.8 million

• $0.19 Adjusted EPS loss vs. $0.55 loss in Q1 2013
• Weighted average share count increased to 24.7 million

• Reflects $35 million LATISTA acquisition and $10 million
repayment of debt

• $77.1 million cash position at December 31, 2013

11
Consistently High Growth Rates
$35.5

$12.0
$10.9
$8.5

$4.5

$5.2

$5.7

$6.3

$9.4
$21.7

$6.8
$10.5
$6.0

Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13
Year-over-year change

110%

119%

109%

92%

51%

65%

65%

72%

77%

Organic growth
76%

74%

70%

FY10

FY11

FY12

FY13

90%

75%

106%

64%

69%

44%

Year-over-year change
Organic growth

60%

©2014 Textura Corporation

45%

46%

38%

45%
12

50%

90%

75%
Revenue Model – Broad Base of Paying Customers
CPM
Submittal
Exchange
LATISTA

PlanSwift

• Owners/GCs
• Subscription fees based on
project portfolio –
total number of
projects/construction value

Activity-driven

• Subcontractors
• Project usage fee – varies by
value of contract

Organization-driven
GradeBeam

PQM

BidOrganizer

©2014 Textura Corporation

•

•

Primarily organization annual
subscription fees
Fees based on:
• Construction volume,
number of
offices/subcontractors

13

• Revenue from all users
• Fees are invoiced and
collected in advance

• Highly sticky, recurring,
and visible
Fiscal 2014 Guidance
• $13.7 – $14.0 million

• 61 - 65% year-over-year revenue growth

Second Quarter
FY 2014

• Includes $0.4 – $0.6 million LATISTA contribution

• Excludes stock based comp of $1.9 million & amortization of
acquired intangible assets of $1.3 million

• Adjusted EPS of ($0.20) – ($0.22)

• Assumes ~24.8 million shares

• Includes $(0.05) - $(0.06) impact from LATISTA

-------------------------------------------------------------------------------• $57.5 – $60.5 million

• 62 - 70% year-over-year revenue growth

FY
2014

• Includes $1.5 – $2.0 million LATISTA contribution

• Excludes stock based comp of $7.0 million & amortization of
acquired intangible assets of $4.8 million

• Adjusted EPS of ($0.55) – ($0.62)

• Assumes ~25.0 million shares
©2014 Textura Corporation

• Includes ($0.23) - $(0.24) impact from LATISTA
14
Questions . . . and Thank You

Image: World Trade Center Transportation Hub, New York, NY –
a project managed using Textura Construction Collaboration Solutions
©2014 Textura Corporation

15

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Textura Q1 2014 Results Show Accelerating Revenue Growth of 77

  • 1. Textura Corporation – Fiscal First Quarter 2014 Results Image: Hudson Yards Redevelopment, New York, NY – a project managed using Textura Construction Collaboration Solutions ©2014 Textura Corporation 1
  • 2. Safe Harbor    This presentation includes forward-looking statements, including statements regarding Textura's future financial performance, market growth, demand for Textura's solutions, and general business conditions. Any forward looking statements contained in this presentation are based upon Textura's historical performance and its current expectations and projections about future events and financial trends affecting the financial condition of its 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 Textura as of January 30, 2014, 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; 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, including our acquisition of PlanSwift in January 2013 and LATISTA in December 2013. Forward-looking statements speak only as of January 30, 2014 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 filed on November 26, 2013 and our other reports filed with the SEC. This presentation should be read in conjunction with Textura’s Q1 2014 Earnings Release on the Company’s 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 Textura’s Q1 2014 Earnings Release on the Company’s Investor Relations website at investors.texturacorp.com. ©2014 Textura Corporation 2
  • 3. Introduction and Review of Key Highlights Patrick Allin Chairman, CEO, Co-founder Image: Hudson Yards Redevelopment, New York, NY – a project managed using Textura Construction Collaboration Solutions ©2014 Textura Corporation 3
  • 4. Investment Highlights Global market opportunity Compelling client value proposition CPM – no competition Exceptional revenue growth High EBITDA margin potential Experienced team ©2014 Textura Corporation 4
  • 5. Current Business Processes – Complex, Error Prone, Inefficient Owner / Developer Architects Financing Companies Insurance Companies Title Companies Engineers ... General Contractors Owner/ Developer GC Banks / Insurers Prime Sub Sub Title Company Material Supplier Sub Sub-tier Prime Sub Sub Architects Prime Sub Sub Sub-tier ... ... ... Sub Material Supplier Material Supplier ... Suppliers Sub-tier Etc. Engineers Sub-contractors Design ©2014 Textura Corporation Prequalification Bid Contracting 5 Construction Close-out
  • 6. Textura Solutions – Addressing the Project Lifecycle Construction Collaboration Solutions® Submittal Exchange Design ©2014 Textura Corporation CPM GradeBeam PQM Prequalification Submittal Exchange PlanSwift BidOrganizer Bid Contracting 6 LATISTA Construction Close-out
  • 7. Over $28 billion of Total Addressable Market Market Expansion Target Global Markets >$4.8t Current Markets >$1.3t Key Strategies: • North America market penetration • Global expansion to Asia and Western Europe ©2014 Textura Corporation Monetization Target Global Opportunity ~55-60 bps Mobile +5–10 bps Current Opportunity ~34 bps Mobile +4 bps Global Platform ~50 bps Current Solutions ~30 bps Key Strategies: • Cross-sell solutions • Strategic acquisitions • Solution expansion • Solutions to platform • Pricing 7 Huge Total Addressable Market Current Markets and Solutions >$4.4b Mobile +$0.5b ~$3.9b Result: • Total Addressable Market >$28.0b +$4.0b ~$24.0b Potential for long term very high revenue growth rates
  • 8. Multiple Long-term Growth Opportunities CPM GradeBeam LATISTA PQM Submittal Exchange PlanSwift BidOrganizer • 7 primary solutions • Few multiproduct clients • Project lifecycle from design to operation • Approx. 8% penetration Market penetration Cross-sell solutions ©2014 Textura Corporation Mining GradeBeam Price Future Financing • Integrated solution suite Submittal Exchange PlanSwift • Bundled sales/ pricing • Platform strategy Data US, Canada, Australia New products Strategic acquisitions 8 Oil and Gas Western Europe, Developed Asia Global expansion Related markets
  • 9. Recent Highlights – Continuing to Execute our Strategy Strong Fiscal 1Q Results CPM Penetration Solutions Integration Pricing Power Acquisitions ©2014 Textura Corporation • Organic revenue growth of 50% • Accelerating revenue growth to 77% • $17.9 billion construction value added – 145% growth • F.A. Peinado, Streetlights Residential, Callahan, and Ryder Construction in US; Equiset in Australia • Key customer wins for CPM • Integration of GradeBeam and PQM delivered in quarter • Increased investment to integrate solutions • Enhanced value to our clients will allow more effective management of their businesses • Effective on all new projects after February 1 • Announced CPM price increase for subcontractor usage fees • Adds 2 to 3 basis points of revenue on subcontracted contract value • Mobile solutions for project management in the field • Closed $35 million LATISTA acquisition in December 9
  • 10. Fiscal First Quarter 2014 Financial Overview Jillian Sheehan EVP and CFO Image: Denver International Airport South Terminal Redevelopment, Denver, CO – a project managed using Textura Construction Collaboration Solutions ©2014 Textura Corporation 10
  • 11. Fiscal First Quarter 2014 Highlights Accelerating Revenue Growth • Organic revenue growth of 50% • 77% revenue growth • Beginning to see leverage in business model • 72% non-GAAP operating expense growth Expense Trends Adjusted EBITDA Adjusted EPS Balance Sheet ©2014 Textura Corporation • Continuing to invest in technology & development and sales & marketing • Focus on supporting growth and strategic initiatives • $4.0 mm Adjusted EBITDA loss vs. $2.3 mm loss in Q1 2013 • Relatively stable adjusted net loss of $4.8 million • $0.19 Adjusted EPS loss vs. $0.55 loss in Q1 2013 • Weighted average share count increased to 24.7 million • Reflects $35 million LATISTA acquisition and $10 million repayment of debt • $77.1 million cash position at December 31, 2013 11
  • 12. Consistently High Growth Rates $35.5 $12.0 $10.9 $8.5 $4.5 $5.2 $5.7 $6.3 $9.4 $21.7 $6.8 $10.5 $6.0 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Year-over-year change 110% 119% 109% 92% 51% 65% 65% 72% 77% Organic growth 76% 74% 70% FY10 FY11 FY12 FY13 90% 75% 106% 64% 69% 44% Year-over-year change Organic growth 60% ©2014 Textura Corporation 45% 46% 38% 45% 12 50% 90% 75%
  • 13. Revenue Model – Broad Base of Paying Customers CPM Submittal Exchange LATISTA PlanSwift • Owners/GCs • Subscription fees based on project portfolio – total number of projects/construction value Activity-driven • Subcontractors • Project usage fee – varies by value of contract Organization-driven GradeBeam PQM BidOrganizer ©2014 Textura Corporation • • Primarily organization annual subscription fees Fees based on: • Construction volume, number of offices/subcontractors 13 • Revenue from all users • Fees are invoiced and collected in advance • Highly sticky, recurring, and visible
  • 14. Fiscal 2014 Guidance • $13.7 – $14.0 million • 61 - 65% year-over-year revenue growth Second Quarter FY 2014 • Includes $0.4 – $0.6 million LATISTA contribution • Excludes stock based comp of $1.9 million & amortization of acquired intangible assets of $1.3 million • Adjusted EPS of ($0.20) – ($0.22) • Assumes ~24.8 million shares • Includes $(0.05) - $(0.06) impact from LATISTA -------------------------------------------------------------------------------• $57.5 – $60.5 million • 62 - 70% year-over-year revenue growth FY 2014 • Includes $1.5 – $2.0 million LATISTA contribution • Excludes stock based comp of $7.0 million & amortization of acquired intangible assets of $4.8 million • Adjusted EPS of ($0.55) – ($0.62) • Assumes ~25.0 million shares ©2014 Textura Corporation • Includes ($0.23) - $(0.24) impact from LATISTA 14
  • 15. Questions . . . and Thank You Image: World Trade Center Transportation Hub, New York, NY – a project managed using Textura Construction Collaboration Solutions ©2014 Textura Corporation 15