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Patrick Allin
Chairman, CEO, Co-founder

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 currently available to
Textura, 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 our acquisition of Latista in December 2013. Forward-looking statements speak only as of the date hereof 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.



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 at the end
of this presentation and is also included in Textura’s Q4 2013 Earnings Release on the Company’s Investor Relations website at
investors.texturacorp.com.

©2013 Textura Corporation

2
Investment Highlights

Global market
opportunity

Compelling
client value
proposition

CPM – no
competition

Exceptional
revenue growth

High EBITDA
margin potential

Experienced
team

©2013 Textura Corporation

3
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

4

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

5

Construction

Close-out
Significant Benefits to our Clients

Cost
efficiencies

Faster
payment

Risk
management

Process
management

©2013 Textura Corporation

6
Client Case Study #1 – Strong ROI
•

•

Internal Study Findings:

Denver-based
General Contractor

Textura CPM eliminates
15 out of 20 process steps

• “Textura CPM saves 260-330 hours a month”

• “Time savings for our risk administrator and the project
managers”
• “Improves accuracy of paperwork”
• “Greatly improves subcontractor relations”
• “Creating capacity is essential to avoid having to hire
additional staff”
General Contractor ROI:
• Estimated savings: $360,000 annually

• Estimated by the general contractor to cost them
4 basis points of construction value: $74,000 annually
Estimated Total Network Revenue to Textura:
• ~$300,000 annually

• 75% of subs already CPM users

©2013 Textura Corporation

7
Client Case Study #2 – Broad Relationships, Very Sticky

•

4,055
monthly
invoice
cycles

32,044
electronic
payments

©2013 Textura Corporation

8,862
subcontracts

ERP
system
integration

$3.43
billion
disbursed

655
active
users

8

Textura is integrated with
their mission-critical
business processes
Enterprise-wide
implementation - all
projects

•

475
projects
on-system

•

•

4 years
on
CPM

General Contractor
o
$2 million annual
network revenue

Adding 10 to 15 new
projects a month – no
Textura sales activity

•

Switching back to manual
processes would be . . .
difficult – stickier than a
subscription
Sustainable Competitive Advantages Protect CPM
Patent
portfolio

• 41 patents for CPM and 50 pending

Installed
user base

• 300 GCs and Owners
• 80,000 subcontractor organizations

Complex
functionality

• Configurable by project
• 250,000 major ways

Integration to
client systems

• 300+ interfaces to client ERP
systems

Neutral 3rd party
SaaS offering

• No significant competitor exists as a SaaS
neutral collaboration platform

©2013 Textura Corporation

9
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
10

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

11

Oil and Gas
Western
Europe,
Developed
Asia

Global
expansion

Related
markets

Future
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

12
Financial Highlights

Strong
growth

Investing
for growth

©2013 Textura Corporation

Predictable
highly visible
growth

High operating
leverage

13
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%

109%

92%

51%

65%

65%

72%

Organic growth
77%

76%

74%

FY11

FY12

FY13

Year-over-year change

Year-over-year change
77%

FY10

90%

75%

106%

64%

69%

44%

Organic growth
70%

©2013 Textura Corporation

60%

45%

46%

38%

14

45%

90%

75%
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

15

• Revenue from all users
• Fees are invoiced and
collected in advance
• Highly sticky, recurring,
and visible
CPM Revenue Model – Providing Value to All Participants
Project Fee Plus
Monthly Subscription Fee
(Based on Project Size)

Usage
Fees
(15 basis
points of
Full
Contract
Value)

Owner/
General Contractor
($25 million project)

Prime
Prime
Prime
Prime
Subcontractor Subcontractor Subcontractor Subcontractor
($7 million)

($2 million)

($5 million)

($6 million)

Sub Tier

Sub Tier

Sub Tier

Sub Tier

($2 million)

Flat
$50
Fee

Sub Tier

($1.5 million)

($1 million)

($2 million)

($1 million)

Sub Tier

Sub Tier

Sub Tier

($1 million)

($.5 million)

($.5 million)

©2013 Textura Corporation

16
Implementing Clients Drive Predictable Multi-period Growth
Case Study Client #1

Case Study Client #2

In Implementation

Fully
Implemented

In Implementation

500

300

400

Fully
Implemented

250

Business growth

300

200

Business growth
150

200
100

Steady revenue ramp

100

Steady revenue ramp
50

0

0

Active projects
©2013 Textura Corporation

17
Construction Value Added

New Projects Added
Millions

Millions

Continued Success Implementing Clients

1,511

1,467
1,245

$13.6

1,048
$7.3

Dec 12

Mar 13

Jun 13

Dec 12

Sep 13

$10.6

Mar 13

Number of Organizations
10,114
8,210
5,412

Dec 12
©2013 Textura Corporation

6,997

Mar 13

Jun 13
18

$23.7

Sep 13

Jun 13

Sep 13
Long-term Operating Model Yields Highly Attractive Margins
FY2012

FY2013

3 -4 Year
Target

Revenue Mix
Activity-driven
Organization-driven

88%
12%

79%
21%

70%
30%

Non- GAAP Gross Margin

73%

78%

87% - 90%

Non-GAAP operating expenses as % of
revenue
General and Administrative
Sales and marketing
Technology and development
Total Non-GAAP operating expenses

40%
26%
49%
115%

48%
28%
40%
116%

12% - 15%
17% - 20%
15% - 17%
45% - 52%

Adjusted EBITDA

(43)%

(38)%

35% - 45%

©2013 Textura Corporation

19
Questions . . . and Thank You

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

©2013 Textura Corporation

20
GAAP to Non-GAAP Reconciliation
Fiscal Year Ended September 30, 2012

Fiscal Year Ended September 30, 2013

GAAP

Pro-Forma
Adjustments

Pro-Forma
Operating
Expenses

GAAP

Pro-Forma
Adjustments

Pro-Forma
Operating
Expenses

%

%

21,681

0

21,681

100.00%

35,534

0

35,534

100.00%

Cost of services

6,152

(203)

5,949

27.44%

11,754

(3,793)

7,961

22.40%

General and administrative

11,105

(2,329)

8,776

40.48%

23,479

(6,328)

17,151

48.27%

Sales and marketing

5,995

(298)

5,697

26.28%

12,707

(2,779)

9,928

27.94%

Technology and development

11,123

(587)

10,536

48.60%

18,148

(4,004)

14,144

39.80%

Depreciation and amortization

4,080

(4,080)

0

4,525

(4,525)

0

Total operating expenses

38,455

(7,497)

30,958

142.79%

70,613

(21,429)

49,184

138.41%

(16,774)

7,497

(9,277)

-42.79%

(35,079)

21,429

(13,650)

-38.41%

(in thousands)
Revenues

Operating expenses

Loss from Operations

©2013 Textura Corporation

21

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Textura needham conference jan2014

  • 1. Patrick Allin Chairman, CEO, Co-founder 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 currently available to Textura, 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 our acquisition of Latista in December 2013. Forward-looking statements speak only as of the date hereof 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.  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 at the end of this presentation and is also included in Textura’s Q4 2013 Earnings Release on the Company’s Investor Relations website at investors.texturacorp.com. ©2013 Textura Corporation 2
  • 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 3
  • 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 4 Construction Close-out
  • 5. 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 5 Construction Close-out
  • 6. Significant Benefits to our Clients Cost efficiencies Faster payment Risk management Process management ©2013 Textura Corporation 6
  • 7. Client Case Study #1 – Strong ROI • • Internal Study Findings: Denver-based General Contractor Textura CPM eliminates 15 out of 20 process steps • “Textura CPM saves 260-330 hours a month” • “Time savings for our risk administrator and the project managers” • “Improves accuracy of paperwork” • “Greatly improves subcontractor relations” • “Creating capacity is essential to avoid having to hire additional staff” General Contractor ROI: • Estimated savings: $360,000 annually • Estimated by the general contractor to cost them 4 basis points of construction value: $74,000 annually Estimated Total Network Revenue to Textura: • ~$300,000 annually • 75% of subs already CPM users ©2013 Textura Corporation 7
  • 8. Client Case Study #2 – Broad Relationships, Very Sticky • 4,055 monthly invoice cycles 32,044 electronic payments ©2013 Textura Corporation 8,862 subcontracts ERP system integration $3.43 billion disbursed 655 active users 8 Textura is integrated with their mission-critical business processes Enterprise-wide implementation - all projects • 475 projects on-system • • 4 years on CPM General Contractor o $2 million annual network revenue Adding 10 to 15 new projects a month – no Textura sales activity • Switching back to manual processes would be . . . difficult – stickier than a subscription
  • 9. Sustainable Competitive Advantages Protect CPM Patent portfolio • 41 patents for CPM and 50 pending Installed user base • 300 GCs and Owners • 80,000 subcontractor organizations Complex functionality • Configurable by project • 250,000 major ways Integration to client systems • 300+ interfaces to client ERP systems Neutral 3rd party SaaS offering • No significant competitor exists as a SaaS neutral collaboration platform ©2013 Textura Corporation 9
  • 10. 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 10 Result: • Potential for long term very high revenue growth rates
  • 11. 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 11 Oil and Gas Western Europe, Developed Asia Global expansion Related markets Future
  • 12. 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 12
  • 13. Financial Highlights Strong growth Investing for growth ©2013 Textura Corporation Predictable highly visible growth High operating leverage 13
  • 14. 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% 109% 92% 51% 65% 65% 72% Organic growth 77% 76% 74% FY11 FY12 FY13 Year-over-year change Year-over-year change 77% FY10 90% 75% 106% 64% 69% 44% Organic growth 70% ©2013 Textura Corporation 60% 45% 46% 38% 14 45% 90% 75%
  • 15. 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 15 • Revenue from all users • Fees are invoiced and collected in advance • Highly sticky, recurring, and visible
  • 16. CPM Revenue Model – Providing Value to All Participants Project Fee Plus Monthly Subscription Fee (Based on Project Size) Usage Fees (15 basis points of Full Contract Value) Owner/ General Contractor ($25 million project) Prime Prime Prime Prime Subcontractor Subcontractor Subcontractor Subcontractor ($7 million) ($2 million) ($5 million) ($6 million) Sub Tier Sub Tier Sub Tier Sub Tier ($2 million) Flat $50 Fee Sub Tier ($1.5 million) ($1 million) ($2 million) ($1 million) Sub Tier Sub Tier Sub Tier ($1 million) ($.5 million) ($.5 million) ©2013 Textura Corporation 16
  • 17. Implementing Clients Drive Predictable Multi-period Growth Case Study Client #1 Case Study Client #2 In Implementation Fully Implemented In Implementation 500 300 400 Fully Implemented 250 Business growth 300 200 Business growth 150 200 100 Steady revenue ramp 100 Steady revenue ramp 50 0 0 Active projects ©2013 Textura Corporation 17
  • 18. Construction Value Added New Projects Added Millions Millions Continued Success Implementing Clients 1,511 1,467 1,245 $13.6 1,048 $7.3 Dec 12 Mar 13 Jun 13 Dec 12 Sep 13 $10.6 Mar 13 Number of Organizations 10,114 8,210 5,412 Dec 12 ©2013 Textura Corporation 6,997 Mar 13 Jun 13 18 $23.7 Sep 13 Jun 13 Sep 13
  • 19. Long-term Operating Model Yields Highly Attractive Margins FY2012 FY2013 3 -4 Year Target Revenue Mix Activity-driven Organization-driven 88% 12% 79% 21% 70% 30% Non- GAAP Gross Margin 73% 78% 87% - 90% Non-GAAP operating expenses as % of revenue General and Administrative Sales and marketing Technology and development Total Non-GAAP operating expenses 40% 26% 49% 115% 48% 28% 40% 116% 12% - 15% 17% - 20% 15% - 17% 45% - 52% Adjusted EBITDA (43)% (38)% 35% - 45% ©2013 Textura Corporation 19
  • 20. Questions . . . and Thank You Image: World Trade Center Transportation Hub, New York, NY – a project managed using Textura Construction Collaboration Solutions ©2013 Textura Corporation 20
  • 21. GAAP to Non-GAAP Reconciliation Fiscal Year Ended September 30, 2012 Fiscal Year Ended September 30, 2013 GAAP Pro-Forma Adjustments Pro-Forma Operating Expenses GAAP Pro-Forma Adjustments Pro-Forma Operating Expenses % % 21,681 0 21,681 100.00% 35,534 0 35,534 100.00% Cost of services 6,152 (203) 5,949 27.44% 11,754 (3,793) 7,961 22.40% General and administrative 11,105 (2,329) 8,776 40.48% 23,479 (6,328) 17,151 48.27% Sales and marketing 5,995 (298) 5,697 26.28% 12,707 (2,779) 9,928 27.94% Technology and development 11,123 (587) 10,536 48.60% 18,148 (4,004) 14,144 39.80% Depreciation and amortization 4,080 (4,080) 0 4,525 (4,525) 0 Total operating expenses 38,455 (7,497) 30,958 142.79% 70,613 (21,429) 49,184 138.41% (16,774) 7,497 (9,277) -42.79% (35,079) 21,429 (13,650) -38.41% (in thousands) Revenues Operating expenses Loss from Operations ©2013 Textura Corporation 21