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Textura Corporation – Fiscal Fourth Quarter 2013 Results

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

©2013 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
November 21, 2013, 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. Forward-looking statements speak only as of November 21, 2013 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 forwardlooking statements, no inference should be drawn that we will make additional updates with respect to those or other forwardlooking statements. Further information on potential factors that could affect actual results is included under the heading “Risk
Factors” in our prospectus filed on September 20, 2013 and our other reports filed with the SEC.



This presentation should be read in conjunction with Textura’s Q4 2013 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 Q4 2013 Earnings Release on the Company’s Investor Relations website at investors.texturacorp.com.

©2013 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

©2013 Textura Corporation

3
Investment Highlights

Global market
opportunity

Compelling
client value
proposition

CPM – no
competition

Exceptional
revenue growth

High EBITDA
margin potential

Experienced
team

©2013 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

©2013 Textura Corporation

Prequalification

Bid

Contracting

5

Construction

Close-out
Textura Solutions – Addressing the Project Lifecycle

Construction Collaboration Solutions®

CPM

GradeBeam
Submittal
Exchange

PQM

Submittal
Exchange

PlanSwift
BidOrganizer

Design

©2013 Textura Corporation

Prequalification

LATISTA

Bid

Contracting

6

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

©2013 Textura Corporation

Monetization
Target
Global
Opportunity
~55-60 bps

Current
Opportunity
~34 bps

Mobile
+5–10 bps

Mobile
+4 bps

Huge Total
Addressable Market

Current
Markets
and
Solutions
>$4.4b

Global
Platform
~50 bps

Current
Solutions
~30 bps

Total
Addressable
Market
>$28.0b
+$4.0b

~$24.0b
Mobile
+$0.5b
~$3.9b

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

Result:

•

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

GradeBeam

Submittal
Exchange

PlanSwift

LATISTA

• Project
lifecycle
from design
to operation

PQM

Data

US, Canada,
Australia
Mining

GradeBeam

BidOrganizer

• 7 primary
solutions

• Few multiproduct
clients

Financing
• Integrated
solution
suite

Submittal
Exchange

PlanSwift

• Approx. 8%
penetration

Market
penetration

• Bundled
sales/
pricing
• Platform
strategy

Cross-sell
solutions

©2013 Textura Corporation

Price

New
products

Strategic
acquisitions

8

Oil and Gas
Western
Europe,
Developed
Asia

Global
expansion

Related
markets

Future
Recent Highlights – Continuing to Execute our Strategy
Strong Fiscal 4Q
Results

• Accelerating revenue growth to 72%
• $23.7 billion construction value added – 158% growth
• 10,114 client organizations – 94% growth
• 6,225 total active projects – 32% growth

CPM Penetration

• Key customer wins for CPM
• GH Phipps, Grunley Construction, Graycor Construction
• Continued traction in Australia; expanded into Ireland

Transformative
Acquisition

• LATISTA propels Textura into mobile
• Leading provider of mobile-enabled construction solutions

• $35 million transaction expected to close early December

New Solutions

• BidOrganizer solution for contractors
• Efficiency solution for bid invitation process
• Launched September 9th

• Follow on equity offering

Capital Markets

• September 20th pricing – $38 per share
• Net proceeds – $59.8 million

©2013 Textura Corporation

9
Fiscal Fourth Quarter 2013
Financial Overview

Jillian Sheehan
EVP and CFO

Image: Denver International Airport South Terminal Redevelopment, Denver, CO
– a project managed using Textura Construction Collaboration Solutions
©2013 Textura Corporation

10
Fiscal Fourth Quarter 2013 Highlights
Accelerating
Revenue Growth

Expense Trends

Adjusted EBITDA

Adjusted EPS

• 72% revenue growth
• Activity-driven revenue up 50%
• Organization-driven revenue up 238%
• 84% operating expense growth

• Driven by investment to support growth, impact of
acquisitions and on-going costs of being a public company
• $5.3 mm Adj. EBITDA loss vs. $2.3mm loss in Q4 2012
• Focus on supporting growth and strategic initiatives
• $0.23 Adjusted EPS loss vs. $0.33 loss in Q4 2012
• Weighted average share count of 22.9 million

• $127.7 million cash position at September 30, 2013

Balance Sheet

©2013 Textura Corporation

• Follow-on offering provides added liquidity for investment

11
Consistently High Growth Rates
$35.5
$10.9
$8.5

$4.5

$5.2

$5.7 $6.3

$9.4
$21.7

$6.8
$10.5

$3.3

$6.0

Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13
110%

119%

CY11

CY12

CY13

Year-over-year change

Year-over-year change
77%

CY10

109%

©2013 Textura Corporation

92%

51%

65%

65%

12

72%

90%

75%

106%

64%
Revenue Model – Broad Base of Paying Customers
CPM
Submittal
Exchange
LATISTA

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

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

PlanSwift
Organization-driven
GradeBeam

PQM

•

Primarily organization annual
subscription fees

•

Fees based on:
• Construction volume,
number of
offices/subcontractors

BidOrganizer

©2013 Textura Corporation

13

• Revenue from all users
• Fees are invoiced and
collected in advance
• Highly sticky, recurring,
and visible
Revenue Guidance Range

Fiscal First
Quarter 2014

• 72 - 75% year-over-year growth
• $11.7 – $11.9 million
• Includes $75,000 – $100,000 LATISTA contribution

• 62 - 70% year-over-year growth

Fiscal 2014

• $57.5 – $60.5 million
• Includes $1.5 – $2.0 million LATISTA contribution

©2013 Textura Corporation

14
Questions . . . and Thank You

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

©2013 Textura Corporation

15

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Fiscal Fourth Quarter 2013 Results

  • 1. Textura Corporation – Fiscal Fourth Quarter 2013 Results Image: Hudson Yards Redevelopment, New York, NY – a project managed using Textura Construction Collaboration Solutions ©2013 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 November 21, 2013, 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. Forward-looking statements speak only as of November 21, 2013 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 forwardlooking statements, no inference should be drawn that we will make additional updates with respect to those or other forwardlooking statements. Further information on potential factors that could affect actual results is included under the heading “Risk Factors” in our prospectus filed on September 20, 2013 and our other reports filed with the SEC.  This presentation should be read in conjunction with Textura’s Q4 2013 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 Q4 2013 Earnings Release on the Company’s Investor Relations website at investors.texturacorp.com. ©2013 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 ©2013 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 ©2013 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 ©2013 Textura Corporation Prequalification Bid Contracting 5 Construction Close-out
  • 6. Textura Solutions – Addressing the Project Lifecycle Construction Collaboration Solutions® CPM GradeBeam Submittal Exchange PQM Submittal Exchange PlanSwift BidOrganizer Design ©2013 Textura Corporation Prequalification LATISTA Bid Contracting 6 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 ©2013 Textura Corporation Monetization Target Global Opportunity ~55-60 bps Current Opportunity ~34 bps Mobile +5–10 bps Mobile +4 bps Huge Total Addressable Market Current Markets and Solutions >$4.4b Global Platform ~50 bps Current Solutions ~30 bps Total Addressable Market >$28.0b +$4.0b ~$24.0b Mobile +$0.5b ~$3.9b Key Strategies: • Cross-sell solutions • Strategic acquisitions • Solution expansion • Solutions to platform • Pricing 7 Result: • Potential for long term very high revenue growth rates
  • 8. Multiple Long-term Growth Opportunities CPM GradeBeam Submittal Exchange PlanSwift LATISTA • Project lifecycle from design to operation PQM Data US, Canada, Australia Mining GradeBeam BidOrganizer • 7 primary solutions • Few multiproduct clients Financing • Integrated solution suite Submittal Exchange PlanSwift • Approx. 8% penetration Market penetration • Bundled sales/ pricing • Platform strategy Cross-sell solutions ©2013 Textura Corporation Price New products Strategic acquisitions 8 Oil and Gas Western Europe, Developed Asia Global expansion Related markets Future
  • 9. Recent Highlights – Continuing to Execute our Strategy Strong Fiscal 4Q Results • Accelerating revenue growth to 72% • $23.7 billion construction value added – 158% growth • 10,114 client organizations – 94% growth • 6,225 total active projects – 32% growth CPM Penetration • Key customer wins for CPM • GH Phipps, Grunley Construction, Graycor Construction • Continued traction in Australia; expanded into Ireland Transformative Acquisition • LATISTA propels Textura into mobile • Leading provider of mobile-enabled construction solutions • $35 million transaction expected to close early December New Solutions • BidOrganizer solution for contractors • Efficiency solution for bid invitation process • Launched September 9th • Follow on equity offering Capital Markets • September 20th pricing – $38 per share • Net proceeds – $59.8 million ©2013 Textura Corporation 9
  • 10. Fiscal Fourth Quarter 2013 Financial Overview Jillian Sheehan EVP and CFO Image: Denver International Airport South Terminal Redevelopment, Denver, CO – a project managed using Textura Construction Collaboration Solutions ©2013 Textura Corporation 10
  • 11. Fiscal Fourth Quarter 2013 Highlights Accelerating Revenue Growth Expense Trends Adjusted EBITDA Adjusted EPS • 72% revenue growth • Activity-driven revenue up 50% • Organization-driven revenue up 238% • 84% operating expense growth • Driven by investment to support growth, impact of acquisitions and on-going costs of being a public company • $5.3 mm Adj. EBITDA loss vs. $2.3mm loss in Q4 2012 • Focus on supporting growth and strategic initiatives • $0.23 Adjusted EPS loss vs. $0.33 loss in Q4 2012 • Weighted average share count of 22.9 million • $127.7 million cash position at September 30, 2013 Balance Sheet ©2013 Textura Corporation • Follow-on offering provides added liquidity for investment 11
  • 12. Consistently High Growth Rates $35.5 $10.9 $8.5 $4.5 $5.2 $5.7 $6.3 $9.4 $21.7 $6.8 $10.5 $3.3 $6.0 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 110% 119% CY11 CY12 CY13 Year-over-year change Year-over-year change 77% CY10 109% ©2013 Textura Corporation 92% 51% 65% 65% 12 72% 90% 75% 106% 64%
  • 13. Revenue Model – Broad Base of Paying Customers CPM Submittal Exchange LATISTA Activity-driven • Owners/GCs • Subscription fees based on project portfolio – total number of projects/construction value • Subcontractors • Project usage fee – varies by value of contract PlanSwift Organization-driven GradeBeam PQM • Primarily organization annual subscription fees • Fees based on: • Construction volume, number of offices/subcontractors BidOrganizer ©2013 Textura Corporation 13 • Revenue from all users • Fees are invoiced and collected in advance • Highly sticky, recurring, and visible
  • 14. Revenue Guidance Range Fiscal First Quarter 2014 • 72 - 75% year-over-year growth • $11.7 – $11.9 million • Includes $75,000 – $100,000 LATISTA contribution • 62 - 70% year-over-year growth Fiscal 2014 • $57.5 – $60.5 million • Includes $1.5 – $2.0 million LATISTA contribution ©2013 Textura Corporation 14
  • 15. Questions . . . and Thank You Image: World Trade Center Transportation Hub, New York, NY – a project managed using Textura Construction Collaboration Solutions ©2013 Textura Corporation 15