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1©2014 Textura Corporation
Textura Corporation – Quarter Ended March 31, 2014
Image: Hudson Yards Redevelopment, New York, NY –
a project managed using Textura Construction Collaboration Solutions
2©2014 Textura Corporation
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
May 7, 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; abnormal
severe winter weather conditions; 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 May 7, 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 March 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 March 2014 Earnings Release on the Company’s Investor Relations website at investors.texturacorp.com.
3©2014 Textura Corporation
Introduction and Review of Key Highlights
Image: Hudson Yards Redevelopment, New York, NY –
a project managed using Textura Construction Collaboration Solutions
Patrick Allin
Chairman, CEO, Co-founder
4©2014 Textura Corporation
Investment Highlights
Global market
opportunity
Compelling
client value
proposition
CPM – no
competition
High EBITDA
margin potential
Exceptional
revenue growth
Experienced
team
5©2014 Textura Corporation
Current Business Processes – Complex, Error Prone, Inefficient
Banks / Insurers
Title Company
Owner / Developer
Sub-contractors
Engineers
Architects
General
Contractors
Suppliers
Architects
Financing
Companies
Insurance
Companies
Owner/
Developer
GC
Prime Sub Prime Sub
Sub
Material
Supplier
Sub Sub Sub
Sub-tier Sub-tier
Sub-tier
Etc.
. . .
Material
Supplier
Material
Supplier
. . .
Sub . . .
Prime Sub . . .
Title
Companies
Engineers . . .
Design
Pre-
qualification
Bid Contracting Construction Close-out
6©2014 Textura Corporation
Textura Solutions – Addressing the Project Lifecycle
Design
Pre-
qualification
Bid Contracting Construction Close-out
CPM
PlanSwift
Submittal
Exchange
GradeBeam
PQM
Submittal
Exchange
Construction Collaboration Solutions®
LATISTABidOrganizer
7©2014 Textura Corporation
Over $28 billion of Total Addressable Market
Market
Expansion
Monetization
Huge Total
Addressable Market
Target
Global
Markets
>$4.8t
Current
Markets
>$1.3t
Current
Solutions
~30 bps
Total
Addressable
Market
>$28.0b
Current
Markets
and
Solutions
>$4.4b
Global
Platform
~50 bps
Key Strategies:
• North America market
penetration
• Global expansion to Asia
and Western Europe
Key Strategies:
• Cross-sell solutions
• Strategic acquisitions
• Solution expansion
• Solutions to platform
• Pricing
Result:
• Potential for long
term very high
revenue
growth rates
Target
Global
Opportunity
~55-60 bpsCurrent
Opportunity
~34 bps
Mobile
+5–10 bps
Mobile
+4 bps
~$3.9b
Mobile
+$0.5b
~$24.0b
+$4.0b
8©2014 Textura Corporation
Multiple Long-term Growth Opportunities
Market
penetration
Cross-sell
solutions
Global
expansion
Related
markets
Strategic
acquisitions
New
products
Future
US, Canada,
Australia
Western
Europe,
Developed
Asia
Mining
Oil and Gas
Data
Financing
Price
• Approx. 9%
penetration
• 7 primary
solutions
• Few multi-
product
clients
• Bundled
sales/
pricing
• Platform
strategy
• Project
lifecycle
from design
to operation
• Integrated
solution
suite
Submittal
Exchange
GradeBeam
PlanSwift
CPM
PlanSwiftSubmittal
Exchange
GradeBeam
PQM
BidOrganizer
LATISTA
9©2014 Textura Corporation
Recent Highlights – Continuing to Execute our Strategy
• Year-over year revenue growth of 61%
• Organic revenue growth of 46%
• $19.5 billion construction value added – 84% growth
Pricing Power
Strong Quarterly
Results
Operating
Leverage
Enhanced
Solutions
• Improving gross margin and EPS trajectory
• Gross margins improved from 77% in prior quarter to 79%
• Adjusted EPS loss improved from ($0.19) in prior quarter to ($0.16)
• Increased functionality of existing solutions
• LATISTA adds integrated business intelligence reporting solution
• Continued integration of solutions and progress towards platform
• Implemented CPM price increase for sub usage fees
• Effective on all new projects after February 1
• Adds 2 to 3 basis points of revenue on subcontracted contract value
10©2014 Textura Corporation
Quarter Ended March 31, 2014
Financial Overview
Image: Denver International Airport South Terminal Redevelopment, Denver, CO
– a project managed using Textura Construction Collaboration Solutions
Jillian Sheehan
EVP and CFO
11©2014 Textura Corporation
Quarter Ended March 31, 2014 Highlights
• 61% year-over-year revenue growth
• Organic revenue growth of 46%
Balance Sheet
Adjusted EPS
Strong Revenue
Growth
Expense Trends
Adjusted EBITDA
• 50% operating expense growth
• Excludes stock based compensation and amortization of intangible assets
• Beginning to see leverage in business model
• Continuing to invest in technology & development and sales & marketing
• $3.3 mm Adjusted EBITDA loss vs. $2.6 mm loss in prior year
• Focus on supporting growth and strategic initiatives
• Loss narrowing as a percent of revenue
• $0.16 Adjusted EPS loss vs. $0.35 loss in prior year
• Adjusted net loss of $4.0 million vs. $3.4 million in March 2013 quarter
• Weighted average share count increased to 24.8 million
• $72.7 million cash position at March 31, 2014
• Ample liquidity to fund our growth initiatives
12©2014 Textura Corporation
$5.7
$6.3
$6.8
$8.5
$9.4
$10.9
$12.0
$13.8
Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14
Consistently High Growth Rates
$12.9
$24.0
$40.8
CY11 CY12 CY13
87% 86% 70%
Year-over-year change
109% 92% 51% 65% 65% 72% 77% 61%
Year-over-year change
70% 60% 45% 46% 38% 45% 50% 46% 77% 69% 69%
Organic growth Organic growth
13©2014 Textura Corporation
Strong Operating Metrics
1,226
1,175
1,048
1,245
1,467
1,511 1,466
1,712
Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14
Projects Added
3,850
4,366
4,624
5,263
5,701
6,225
6,580
7,052
Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14
Active Projects
$8.5 $9.2
$7.3
$10.6
$13.6
$23.7
$17.9
$19.5
Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14
Client Reported
Construction Value Added
14©2014 Textura Corporation
Revenue Model – Broad Base of Paying Customers
• Revenue from all users
• Fees are invoiced and
collected in advance
• Highly sticky, recurring,
and visible
CPM
PlanSwift
Submittal
Exchange
GradeBeam
PQM
Activity-driven
• Owners/GCs
• Subscription fees based on
project activity –
total number of
projects/construction value
• Subcontractors
• Project usage fee – varies by
value of contract
Organization-driven
• Primarily organization annual
subscription fees
• Fees based on:
• Construction volume,
number of
offices/subcontractors
BidOrganizer
LATISTA
15©2014 Textura Corporation
Calendar 2014 Guidance
• 57 - 60% year-over-year revenue growth
• $14.7 – $15.0 million
• Includes $0.6 – $0.8 million LATISTA contribution
• Adjusted EPS of ($0.12) – ($0.14)
• Excludes stock based comp of $1.8 million & amortization of
acquired intangible assets of $1.3 million
• Assumes ~25.0 million shares
• Includes ($0.04) - $(0.05) impact from LATISTA
Quarter Ended
June 30, 2014
Calendar Year
2014
• Updated for change in fiscal year end to December 31st
• 56 - 61% year-over-year revenue growth
• $63.6 – $65.6 million
• Includes $3.0 – $3.7 million LATISTA contribution
• Adjusted EPS of ($0.32) – ($0.41)
• Excludes stock based comp of $6.8 million & amortization of
acquired intangible assets of $5.0 million
• Assumes ~25.3 million shares
• Includes ($0.15) - $(0.18) impact from LATISTA
16©2014 Textura Corporation
Long-term Operating Model Yields Highly Attractive Margins
CY2013
March 2014
Quarter
CY2014
Guidance
Target
Model
Revenue
$40.8
Million
$13.8
million
$63.6 - $65.6
million
$150 – 180
million
Adjusted Gross Margin* 76% 80% 87% - 90%
Adjusted operating expenses* as % of
revenue
General and administrative
Sales and marketing
Technology and development
Total Adjusted operating expenses*
43%
30%
41%
142%
35%
33%
37%
129%
12% - 15%
17% - 20%
15% - 17%
45% - 52%
Adjusted net loss margins* (49)% (29)% (12) - (16)% 35% - 45%
* Adjusted for stock-based compensation, acquisition-related costs, and other non-recurring expenses.
17©2014 Textura Corporation
Image: World Trade Center Transportation Hub, New York, NY –
a project managed using Textura Construction Collaboration Solutions
Questions . . . and Thank You
18©2014 Textura Corporation
GAAP to Non-GAAP Reconciliations
Quarter Ended March 31, 2014
GAAP
Non-GAAP
Adjustments As Adjusted
Percent of
Revenue
Revenues 13,787$ -$ 13,787$
Operating expenses
Cost of services 2,882 (175) 2,707 20%
General and administrative 6,055 (1,242) 4,813 35%
Sales and marketing 4,843 (312) 4,531 33%
Technology and development 5,356 (281) 5,075 37%
Depreciation and amortization 1,886 (1,282) 604 4%
Total operating expenses 21,022 (3,292) 17,730 129%
Loss from operations (7,235) (3,943)
Total other expense, net 25 - 25
Loss before income taxes (7,260) (3,968)
Income tax provision 80 - 80
Net loss (7,340)$ (4,048)$ (29)%
Gross margin 10,905 11,080 80%
19©2014 Textura Corporation
GAAP to Non-GAAP Reconciliations
Year Ended December 31, 2013
GAAP
Non-GAAP
Adjustments As Adjusted
Percent of
Revenue
Revenues 40,766$ -$ 40,766$
Operating expenses
Cost of services 12,808 (3,094) 9,714 24%
General and administrative 25,152 (7,751) 17,401 43%
Sales and marketing 15,153 (3,097) 12,056 30%
Technology and development 20,820 (4,151) 16,669 41%
Depreciation and amortization 5,325 (3,397) 1,928 5%
Total operating expenses 79,258 (21,490) 57,768 142%
Loss from operations (38,492) (17,002)
Total other expense, net 2,530 - 2,530
Loss before income taxes (41,022) (19,532)
Income tax benefit (767) 1,086 319
Net loss (40,255)$ (19,851)$ (49)%
Gross margin 27,958 31,052 76%

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Textura march 2014 quarter earnings slides v final

  • 1. 1©2014 Textura Corporation Textura Corporation – Quarter Ended March 31, 2014 Image: Hudson Yards Redevelopment, New York, NY – a project managed using Textura Construction Collaboration Solutions
  • 2. 2©2014 Textura Corporation 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 May 7, 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; abnormal severe winter weather conditions; 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 May 7, 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 March 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 March 2014 Earnings Release on the Company’s Investor Relations website at investors.texturacorp.com.
  • 3. 3©2014 Textura Corporation Introduction and Review of Key Highlights Image: Hudson Yards Redevelopment, New York, NY – a project managed using Textura Construction Collaboration Solutions Patrick Allin Chairman, CEO, Co-founder
  • 4. 4©2014 Textura Corporation Investment Highlights Global market opportunity Compelling client value proposition CPM – no competition High EBITDA margin potential Exceptional revenue growth Experienced team
  • 5. 5©2014 Textura Corporation Current Business Processes – Complex, Error Prone, Inefficient Banks / Insurers Title Company Owner / Developer Sub-contractors Engineers Architects General Contractors Suppliers Architects Financing Companies Insurance Companies Owner/ Developer GC Prime Sub Prime Sub Sub Material Supplier Sub Sub Sub Sub-tier Sub-tier Sub-tier Etc. . . . Material Supplier Material Supplier . . . Sub . . . Prime Sub . . . Title Companies Engineers . . . Design Pre- qualification Bid Contracting Construction Close-out
  • 6. 6©2014 Textura Corporation Textura Solutions – Addressing the Project Lifecycle Design Pre- qualification Bid Contracting Construction Close-out CPM PlanSwift Submittal Exchange GradeBeam PQM Submittal Exchange Construction Collaboration Solutions® LATISTABidOrganizer
  • 7. 7©2014 Textura Corporation Over $28 billion of Total Addressable Market Market Expansion Monetization Huge Total Addressable Market Target Global Markets >$4.8t Current Markets >$1.3t Current Solutions ~30 bps Total Addressable Market >$28.0b Current Markets and Solutions >$4.4b Global Platform ~50 bps Key Strategies: • North America market penetration • Global expansion to Asia and Western Europe Key Strategies: • Cross-sell solutions • Strategic acquisitions • Solution expansion • Solutions to platform • Pricing Result: • Potential for long term very high revenue growth rates Target Global Opportunity ~55-60 bpsCurrent Opportunity ~34 bps Mobile +5–10 bps Mobile +4 bps ~$3.9b Mobile +$0.5b ~$24.0b +$4.0b
  • 8. 8©2014 Textura Corporation Multiple Long-term Growth Opportunities Market penetration Cross-sell solutions Global expansion Related markets Strategic acquisitions New products Future US, Canada, Australia Western Europe, Developed Asia Mining Oil and Gas Data Financing Price • Approx. 9% penetration • 7 primary solutions • Few multi- product clients • Bundled sales/ pricing • Platform strategy • Project lifecycle from design to operation • Integrated solution suite Submittal Exchange GradeBeam PlanSwift CPM PlanSwiftSubmittal Exchange GradeBeam PQM BidOrganizer LATISTA
  • 9. 9©2014 Textura Corporation Recent Highlights – Continuing to Execute our Strategy • Year-over year revenue growth of 61% • Organic revenue growth of 46% • $19.5 billion construction value added – 84% growth Pricing Power Strong Quarterly Results Operating Leverage Enhanced Solutions • Improving gross margin and EPS trajectory • Gross margins improved from 77% in prior quarter to 79% • Adjusted EPS loss improved from ($0.19) in prior quarter to ($0.16) • Increased functionality of existing solutions • LATISTA adds integrated business intelligence reporting solution • Continued integration of solutions and progress towards platform • Implemented CPM price increase for sub usage fees • Effective on all new projects after February 1 • Adds 2 to 3 basis points of revenue on subcontracted contract value
  • 10. 10©2014 Textura Corporation Quarter Ended March 31, 2014 Financial Overview Image: Denver International Airport South Terminal Redevelopment, Denver, CO – a project managed using Textura Construction Collaboration Solutions Jillian Sheehan EVP and CFO
  • 11. 11©2014 Textura Corporation Quarter Ended March 31, 2014 Highlights • 61% year-over-year revenue growth • Organic revenue growth of 46% Balance Sheet Adjusted EPS Strong Revenue Growth Expense Trends Adjusted EBITDA • 50% operating expense growth • Excludes stock based compensation and amortization of intangible assets • Beginning to see leverage in business model • Continuing to invest in technology & development and sales & marketing • $3.3 mm Adjusted EBITDA loss vs. $2.6 mm loss in prior year • Focus on supporting growth and strategic initiatives • Loss narrowing as a percent of revenue • $0.16 Adjusted EPS loss vs. $0.35 loss in prior year • Adjusted net loss of $4.0 million vs. $3.4 million in March 2013 quarter • Weighted average share count increased to 24.8 million • $72.7 million cash position at March 31, 2014 • Ample liquidity to fund our growth initiatives
  • 12. 12©2014 Textura Corporation $5.7 $6.3 $6.8 $8.5 $9.4 $10.9 $12.0 $13.8 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Consistently High Growth Rates $12.9 $24.0 $40.8 CY11 CY12 CY13 87% 86% 70% Year-over-year change 109% 92% 51% 65% 65% 72% 77% 61% Year-over-year change 70% 60% 45% 46% 38% 45% 50% 46% 77% 69% 69% Organic growth Organic growth
  • 13. 13©2014 Textura Corporation Strong Operating Metrics 1,226 1,175 1,048 1,245 1,467 1,511 1,466 1,712 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Projects Added 3,850 4,366 4,624 5,263 5,701 6,225 6,580 7,052 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Active Projects $8.5 $9.2 $7.3 $10.6 $13.6 $23.7 $17.9 $19.5 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Client Reported Construction Value Added
  • 14. 14©2014 Textura Corporation Revenue Model – Broad Base of Paying Customers • Revenue from all users • Fees are invoiced and collected in advance • Highly sticky, recurring, and visible CPM PlanSwift Submittal Exchange GradeBeam PQM Activity-driven • Owners/GCs • Subscription fees based on project activity – total number of projects/construction value • Subcontractors • Project usage fee – varies by value of contract Organization-driven • Primarily organization annual subscription fees • Fees based on: • Construction volume, number of offices/subcontractors BidOrganizer LATISTA
  • 15. 15©2014 Textura Corporation Calendar 2014 Guidance • 57 - 60% year-over-year revenue growth • $14.7 – $15.0 million • Includes $0.6 – $0.8 million LATISTA contribution • Adjusted EPS of ($0.12) – ($0.14) • Excludes stock based comp of $1.8 million & amortization of acquired intangible assets of $1.3 million • Assumes ~25.0 million shares • Includes ($0.04) - $(0.05) impact from LATISTA Quarter Ended June 30, 2014 Calendar Year 2014 • Updated for change in fiscal year end to December 31st • 56 - 61% year-over-year revenue growth • $63.6 – $65.6 million • Includes $3.0 – $3.7 million LATISTA contribution • Adjusted EPS of ($0.32) – ($0.41) • Excludes stock based comp of $6.8 million & amortization of acquired intangible assets of $5.0 million • Assumes ~25.3 million shares • Includes ($0.15) - $(0.18) impact from LATISTA
  • 16. 16©2014 Textura Corporation Long-term Operating Model Yields Highly Attractive Margins CY2013 March 2014 Quarter CY2014 Guidance Target Model Revenue $40.8 Million $13.8 million $63.6 - $65.6 million $150 – 180 million Adjusted Gross Margin* 76% 80% 87% - 90% Adjusted operating expenses* as % of revenue General and administrative Sales and marketing Technology and development Total Adjusted operating expenses* 43% 30% 41% 142% 35% 33% 37% 129% 12% - 15% 17% - 20% 15% - 17% 45% - 52% Adjusted net loss margins* (49)% (29)% (12) - (16)% 35% - 45% * Adjusted for stock-based compensation, acquisition-related costs, and other non-recurring expenses.
  • 17. 17©2014 Textura Corporation Image: World Trade Center Transportation Hub, New York, NY – a project managed using Textura Construction Collaboration Solutions Questions . . . and Thank You
  • 18. 18©2014 Textura Corporation GAAP to Non-GAAP Reconciliations Quarter Ended March 31, 2014 GAAP Non-GAAP Adjustments As Adjusted Percent of Revenue Revenues 13,787$ -$ 13,787$ Operating expenses Cost of services 2,882 (175) 2,707 20% General and administrative 6,055 (1,242) 4,813 35% Sales and marketing 4,843 (312) 4,531 33% Technology and development 5,356 (281) 5,075 37% Depreciation and amortization 1,886 (1,282) 604 4% Total operating expenses 21,022 (3,292) 17,730 129% Loss from operations (7,235) (3,943) Total other expense, net 25 - 25 Loss before income taxes (7,260) (3,968) Income tax provision 80 - 80 Net loss (7,340)$ (4,048)$ (29)% Gross margin 10,905 11,080 80%
  • 19. 19©2014 Textura Corporation GAAP to Non-GAAP Reconciliations Year Ended December 31, 2013 GAAP Non-GAAP Adjustments As Adjusted Percent of Revenue Revenues 40,766$ -$ 40,766$ Operating expenses Cost of services 12,808 (3,094) 9,714 24% General and administrative 25,152 (7,751) 17,401 43% Sales and marketing 15,153 (3,097) 12,056 30% Technology and development 20,820 (4,151) 16,669 41% Depreciation and amortization 5,325 (3,397) 1,928 5% Total operating expenses 79,258 (21,490) 57,768 142% Loss from operations (38,492) (17,002) Total other expense, net 2,530 - 2,530 Loss before income taxes (41,022) (19,532) Income tax benefit (767) 1,086 319 Net loss (40,255)$ (19,851)$ (49)% Gross margin 27,958 31,052 76%