2. FORWARD-LOOKING STATEMENTS
1
This presentation contains forward-looking statements. Forward-looking statements include information concerning SciQuest’s
possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment,
potential growth opportunities, potential market opportunities, the effects of competition and other factors that could impact future
performance. In particular, forward-looking statements include references to future finance performance. Forward-looking
statements consist of statements that are not historical facts and can be identified by terms such as, but not limited to,
“accelerates”, “anticipates,” “believes,” “could,” “seeks,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,”
“projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be
materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Certain of these risks are discussed in “Part I, Item 1A, Risk Factors” and elsewhere in SciQuest’s most recent Annual Report on
Form 10-K and other reports, as filed with the United States Securities and Exchange Commission (“SEC”). In particular, we call
your attention to the risk factors in our Annual Report on Form 10-K entitled “Our actual operating results may differ significantly
from our guidance”, “If we are unable to attract new customers, or if our existing customers do not purchase additional products or
services, the growth of our business and cash flows will be adversely affected”, “Our failure to sustain our historical renewal rates,
pricing and terms of our customer contracts would adversely affect our operating results” and “We are subject to a lengthy sales
cycle and delays or failures to complete sales may harm our business and result in slower growth.” The company’s SEC reports
are available free of charge on the SEC's website at http://www.sec.gov or on the company’s website at www.sciquest.com. All
forward-looking statements in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Also, forward-looking statements represent management’s beliefs and assumptions only as of the date of this
presentation. Except as required by law, SciQuest assumes no obligation to update these forward-looking statements publicly or
to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new
information becomes available in the future. Given these risks and uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.
3. FAST FACTS
Research Triangle Park, NC
~500 employees
Largest publicly-held pure play in our space
Founded in 1995 / IPO in 2010
VISION
be the provider
of choice for
cloud-based
business
automation
solutions for
spend
management
2
LEADING PROVIDER OF SPEND
MANAGEMENT SOFTWARE
4. OUR BUSINESS
3
What we do: value beyond savings
Reduce procurement spend
Gain control, mitigate risk and increase compliance
Optimize efficiency and collaboration through automation
Increase visibility and actionable intelligence
Provide a unified view and “single source of truth”
How we create customer value:
cloud-based solutions
Broad, unified suite and stand-alone offerings
Compelling value proposition
SaaS model and end-to-end network
Highly configurable software with high-touch
service model
5. Leading provider of spend management software
Differentiated, cloud-based platform
Large, growing and underpenetrated addressable
market
Proven ROI / high customer satisfaction
High recurring revenue / multi-year subscriptions
Strong cash flow conversion
Attractive, long-term growth opportunity
NASDAQ:
SQI
4
INVESTMENT HIGHLIGHTS
6. SIGNIFICANT GROWTH OPPORTUNITY
5
Commercial
Higher Education
State and Local Government
Healthcare
$3,400
Uncaptured
Spend
Captured Spend $4.4Bn(1)
Large, growing and underpenetrated market
1) Pie chart labels in millions.
Internal estimates for addressable market sizing based on Gartner’s “Forecast: Enterprise
Software Markets, Worldwide, 2012-2019, 4Q15 Update”. Captured spend estimate
excludes federal government spending. Total addressable market based on Gartner data
and SciQuest analysis.
Total Addressable Market $14Bn
8. 7
Depth / Breadth + Supplier Network
• Singular focus on spend management
• Easy to use / highly configurable
• Enterprise-grade SaaS platform / infrastructure
(99.996% uptime)
• Broad, deep and cohesive suite
• Loyal, satisfied customers
• No per user or transaction fees;
• No-fee supplier network
• Public – transparent and strong financials
• Proven technology with track record for
innovation and thought leadership
WHY CUSTOMERS CHOOSE SCIQUEST
u
Point solution
providers
Suite Players /
ERPs
9. VALUE OF SCIQUEST SUPPLIER NETWORK
Value Propositions:
Customers
Simple, fast and efficient
Manage and share accurate data
Automate supplier onboarding
Suppliers
SQI is the “supplier preferred” network
Single application to manage customer
communications and commerce
Access to local supplier enablement team
SciQuest
Highly scalable network
Minimize number of connections and
spread costs over many customers
8
Hub and Spoke System:
Efficient, transparent, and cost effective
10. PROVEN RESULTS DRIVING CUSTOMER ROI
9
“Normalized and categorized more than
75,000 suppliers, and classified $3 billion
of spend (>98%) within 12 weeks. Dramatically
reduced time required to produce reports and analysis.
Usage of SciQuest’s solution helped to identify several
additional opportunities for savings.”
Vulcan Materials Company
Reduction of maverick spend (i.e.,
direct more spend to preferred vendors)
Improve contracts – enhance existing
and obtain new
Enhanced business intelligence
Greater efficiency and
improved cycle times
Enhanced visibility and control
over processes
Better risk management and compliance
“We plan to save $200 million over five
years with SciQuest.”
University of California
“Achieved average savings of up to 22 percent on IT,
office supplies and lab purchases in only eight months.”
Bryn Mawr College
“Greater than 100 percent return on investment.
Increased contract compliance by 35 percent. 92
percent of searches result in one or more product
matches”
Top Global Pharmaceutical Company
“We've had a deep, strategic relationship [with SciQuest]
since 2006. Since then we estimate that we've realized
approximately $1.5 billion in savings using their
software.”
Leading consumer packaged goods company
Many solutions generate an average ROI of 10x
11. MORE THAN 500 CUSTOMERS . . .
AND GROWING
10
Commercial Market Higher Ed. & Government
14. FINANCIAL HIGHLIGHTS
13
• High recurring revenue retention rates
– Customer retention rate slowly rising; in-line with expectations
– Churn decreased to 4% in 2015 (from 5% in 2014)
– Recurring revenue retention rate increased to 98% in 2015
(from 96% in 2014)
• Gradually improving revenue growth
– Unified platform. Higher average number of modules per new
customer and new customer ASPs
– Improving sales force productivity
– Growth of annualized recurring revenue increased to 6% in
2015 (from 5% in 2014)
• Strong margins and free cash flow
– Expect improving annual adjusted EBITDA margins and
growing free cash flow
15. QUARTERLY RESULTS & GUIDANCE
SUMMARY
14
1) Based on guidance provided on February 4, 2016.
2) Based on guidance provided on April 28, 2016.
3) Represents non-GAAP financial measures. Please see relevant Current Reports on
Form 8-K for reconciliations of non-GAAP measures to the closest GAAP figures.
Metric
1Q16
Results
1Q16
Guidance(1)
2Q16
Guidance(2)
Revenue $26.9 $26.7 - $26.9 $27.0 - $27.2
Non-GAAP Diluted EPS(3) 9¢ 7¢ - 8¢ 7¢ - 8¢
Adj. EBITDA Margin(3) 21.2% N/A N/A
Adj. Free Cash Flow(3) ($5.9) N/A N/A
$ millions (except for EPS)
Met or exceeded top end of quarterly guidance ranges
16. ON-TRACK TO ACHIEVE FY16 GUIDANCE
15
1) Based on guidance provided on February 4, 2016 and April 28, 2016.
2) Represents non-GAAP financial measures.
Please see relevant Current Reports on Form 8-K for reconciliations of non-GAAP
measures to the closest GAAP figures.
Metric
Prior and Current
FY16 Guidance(1)
Revenue $109 - $111
Adj. EBITDA Margin(2) approx. 21.5%
Non-GAAP Diluted EPS(2) 32¢ - 34¢
Adj. Free Cash Flow(2) $11 - $13
$ millions (except for EPS)
17. Leading provider of spend management software
Differentiated, cloud-based platform
Large, growing and underpenetrated addressable
market
Proven ROI / high customer satisfaction
High recurring revenue / multi-year subscriptions
Strong cash flow conversion
Attractive, long-term growth opportunity
NASDAQ:
SQI
16
INVESTMENT HIGHLIGHTS