Textura q4 15 earnings release presentation 2.24 final
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Transcript of Textura q4 15 earnings release presentation 2.24 final
1©2016 Textura Corporation
Textura Corporation – Quarter Ended December 31, 2015
Image: Hudson Yards Redevelopment, New York, NY –a project managed using Textura Construction Collaboration Solutions
2©2016 Textura Corporation
Safe Harbor
This presentation includes forward-looking statements, including statements regarding our future financial performance, marketgrowth, total addressable market, demand for our solutions, and general business conditions and outlook. Any forward lookingstatements contained in this presentation are based upon our historical performance and our current expectations andprojections about future events and financial trends affecting the financial condition of our business. These forward-lookingstatements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications ofthe times at, or by, which such performance or results will be achieved. These forward-looking statements are based oninformation available to us as of February 24, 2016, and are subject to risks and uncertainties that could cause actualperformance or results to differ materially from those expressed in or suggested by the forward-looking statements. Importantfactors that could cause such differences include, but are not limited to, trends in the global and domestic economy and thecommercial construction industry; our ability to effectively manage our growth; our ability to develop the market for oursolutions; competition with our business; abnormal severe winter weather conditions; our dependence on a limited number ofclient relationships for a significant portion of our revenues; our dependence on a single software solution for a substantialportion of our revenues; the length of the selling cycle to secure new enterprise relationships for our CPM solution, whichrequires 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 inexpanding our international business and entering new industries; and the availability of suitable acquisitions or partners andour ability to achieve expected benefits from such acquisitions or partnerships. Forward-looking statements speak only as ofFebruary 24, 2016, and we assume no obligation to update forward-looking statements to reflect actual results, changes inassumptions 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 withrespect to those or other forward-looking statements. Further information on potential factors that could affect actual results isincluded under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filedon March 6, 2015, our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, which we expect to file on orabout March 4, 2016, and our other reports filed with the SEC.
This presentation should be read in conjunction with our Q4 2015 Earnings Release on our Investor Relations website atinvestors.texturacorp.com.
In addition to U.S. GAAP financial information, this presentation includes certain non-GAAP financial measures. These historicaland forward-looking non-GAAP measures are in addition to, not a substitute for or superior to, measures of financialperformance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP measures is included in our Q42015 Earnings Release on our Investor Relations website at investors.texturacorp.com, and at the end of this presentation.
3©2016 Textura Corporation
Q4 2015 Highlights – Continuing to Execute our Strategy
• Year-over-year revenue growth of 33%
• Revenue of $23.7 million
• Billings (including contractual backlog) – or bookings - of $26.5 million, 34% year-over-year growth
• Approximately $202 billion in construction value active on our solutions
Strong Revenue Growth
Growth Strategy
• Improving Adjusted EBITDA, EPS and cash flow trajectory
• Adjusted EBITDA of $3.9 million, Adjusted Basic and Diluted EPS of $0.09 vs. ($0.02) in Q4 2014
• $6.1 million of cash generated from operating activities
• Adjusted Gross Margin of 84.3%, compared to 82.4% in the prior-year period
• 16% Adjusted Operating Expense year-over-year growth, compared to 33% revenue growth
• Increased functionality and expanding market penetration
• Increased utilization of EPP by our customers
• Continuing to invest in our solutions
• Continued focus on international growth strategy
Expense Trends and Operating Leverage
Balance Sheet
• $78.7 million cash position at December 31, 2015
• Ample liquidity to fund our growth initiatives
• Strong balance sheet with no outstanding debt
4©2016 Textura Corporation
Consistently High Growth Rates
70% 54% 38%
Year-over-year growth
61% 60% 51% 49% 39% 42% 38% 33%
Year-over-year growth
46% 52% 43% 44% 39% 42% 38% 33% 45% 46% 38%
Year-over-year organic growth Year-over-year organic growth
$40.8
$63.0
$86.7
FY 2013 FY 2014 FY 2015
$13.8 $15.0
$16.4
$17.9 $19.2
$21.3 $22.5
$23.7
Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15
5©2016 Textura Corporation
2016 Guidance
• 23 - 29% year-over-year revenue growth
• $23.7 – $24.7 million
• Adjusted Basic and Diluted EPS of $0.07 – $0.11
• Excludes stock based comp of $3.2 million & amortization of acquired intangible assets of $0.8 million
• Assumes approximately 26.2 million and 27.2 million weighted-average common shares outstanding, respectively, for the Adjusted Basic and Diluted EPS calculations
Quarter Ending March 31,
2016
Year Ending December 31,
2016
• 22 – 28% year-over-year revenue growth
• $106.0 – $111.0 million
• Adjusted Basic EPS of $0.35 – $0.50; Adjusted Diluted EPS of $0.33 – $0.48
• Excludes stock based comp of $10.6 million & amortization of acquired intangible assets of $2.7 million
• Assumes approximately 26.6 million and 27.8 million weighted-average common shares outstanding, respectively, for the Adjusted Basic and Diluted EPS calculations
• Cash flow generated from operations of $25 - 30 million
6©2016 Textura Corporation
Long-term Operating Model Yields Attractive Margins
Dec
2014
March
2015
June
2015
Sept
2015
Dec
2015 2014 2015
Guidance
2016
Target
Model
Revenue ($ millions) 17.9$ 19.2$ 21.3$ 22.5$ 23.7$ 63.0$ 86.7$ $106 - $111 $150 - 180
Adjusted Operating Expenses as a % of revenue:*
Cost of services 18% 18% 16% 16% 16% 18% 16% 10 - 13%
General and administrative 29% 28% 26% 26% 25% 33% 26% 13 - 15%
Sales and marketing 27% 26% 24% 22% 21% 29% 23% 17 - 20%
Technology and development 24% 23% 23% 22% 22% 30% 23% 15 - 17%
Total Adjusted Operating Expenses, excluding
depreciation and amortization 98% 96% 89% 86% 84% 110% 88% 55 - 65%
Adjusted Gross Margin 82% 82% 84% 84% 84% 82% 84% 87 - 90%
Adjusted EBITDA margin** 2% 4% 11% 14% 16% (10%) 12% 17 - 20% 35 - 45%
** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.
* Adjusted Operating Expenses is calculated as total operating expenses, adjusted for share-based compensation, amortization expense, severance expense and acquisition-related and
other expenses recognized during the period.
Fiscal YearQuarter
7©2016 Textura Corporation
Appendix
Reconciliation of non-GAAP measures
to the most comparable GAAP measures
8©2016 Textura Corporation
Bookings – Year over Year
2015 2014
Deferred revenue, beginning of period 45,102$ 33,647$
Deferred revenue, end of period 43,813 35,583
Net change (1,289) 1,936
Revenue recognized during the period 23,732 17,862
Billings 22,443 19,798
Contractual backlog, end of period 4,043 -
Bookings 26,486$ 19,798$
(in thousands)
Three Months Ended December 31,
9©2016 Textura Corporation
Quarter Ended December 31, 2015
GAAP
Share-Based
Compensation
and Amortization
of Intangible
Assets
Other Non-
Recurring
Expenses* As Adjusted % of Revenue
Revenues 23,732$ -$ -$ 23,732$ 100%
Operating expenses
Cost of services 4,079 301 48 3,730 16%
General and administrative 13,848 5,569 2,226 6,053 25%
Sales and marketing 5,204 265 - 4,939 21%
Technology and development 5,326 191 - 5,135 22%
Depreciation and amortization 2,361 1,007 - 1,354 5%
Asset impairment 1,070 - 1,070 - 0%
Total operating expenses 31,888 7,333 3,344 21,211 89%
Total operating expenses, excluding
depreciation and amortization
29,527 6,326 3,344 19,857 84%
Loss from operations (8,156) (7,333) (3,344) 2,521
Total other expense, net 5 - - 5
Loss before income taxes (8,151) (7,333) (3,344) 2,526
Income tax provision 63 - - 63
Net loss (8,214)$ (7,333)$ (3,344)$ 2,463$
Gross profit 19,653$ 20,002$
Gross margin 83% 84%
Adjusted EBITDA** 3,875$
Adjusted EBITDA Margin 16%
* Other non-recurring expenses include acquisition-related and other expenses.
** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.
(dollars in thousands)
10©2016 Textura Corporation
Adjusted Basic EPS – Year over Year
2015 2014
Basic net loss per share (0.31)$ (0.15)$
Share-based compensation 0.24 0.08
Amortization of intangible assets 0.04 0.04
Severance expense 0.06 -
Acquisition-related and other expenses* 0.02 0.01
Asset impairment charge 0.04 -
Adjusted Basic EPS 0.09$ (0.02)$
* Acquisition-related and other expenses represent strategic transaction and certain tax-related costs.
Three Months Ended December 31,
11©2016 Textura Corporation
Quarter Ended December 31, 2014
GAAP
Share-Based
Compensation
and Amortization
of Intangible
Assets
Other Non-
Recurring
Expenses* As Adjusted % of Revenue
Revenues 17,862$ -$ -$ 17,862$ 100%
Operating expenses
Cost of services 3,606 196 275 3,135 18%
General and administrative 6,489 1,328 45 5,116 29%
Sales and marketing 5,143 279 - 4,864 27%
Technology and development 4,490 168 - 4,322 24%
Depreciation and amortization 1,903 1,131 - 772 4%
Total operating expenses 21,631 3,102 320 18,209 102%
Total operating expenses, excluding
depreciation and amortization
19,728 1,971 320 17,437 98%
Loss from operations (3,769) (3,102) (320) (347)
Total other expense, net (8) - - (8)
Loss before income taxes (3,777) (3,102) (320) (355)
Income tax provision 130 - - 130
Net loss (3,907)$ (3,102)$ (320)$ (485)$
Gross profit 14,256$ 14,727$
Gross margin 80% 82%
Adjusted EBITDA** 425$
Adjusted EBITDA Margin 2%
* Other non-recurring expenses include acquisition-related and other expenses.
** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.
(dollars in thousands)
12©2016 Textura Corporation
Guidance
High End Low End High End Low End
Basic net loss per share (0.04)$ (0.08)$ -$ (0.15)$
Share-based compensation 0.12 0.12 0.40 0.40
Amortization of intangible assets 0.03 0.03 0.10 0.10
Adjusted Basic EPS 0.11$ 0.07$ 0.50$ 0.35$
Three Months Ending
March 31, 2016
Twelve Months Ending
December 31, 2016
13©2016 Textura Corporation
Year Ended December 31, 2015
GAAP
Share-Based
Compensation
and Amortization
of Intangible
Assets
Other Non-
Recurring
Expenses* As Adjusted % of Revenue
Revenues 86,729$ -$ -$ 86,729$ 100%
Operating expenses
Cost of services 15,254 946 184 14,124 16%
General and administrative 36,661 11,308 2,496 22,857 26%
Sales and marketing 21,013 1,035 - 19,978 23%
Technology and development 20,404 819 - 19,585 23%
Depreciation and amortization 8,628 4,166 - 4,462 5%
Asset impairment 1,070 - 1,070 - 0%
Total operating expenses 103,030 18,274 3,750 81,006 93%
Total operating expenses, excluding
depreciation and amortization
94,402 14,108 3,750 76,544 88%
Loss from operations (16,301) (18,274) (3,750) 5,723
Total other expense, net 12 - - 12
Loss before income taxes (16,289) (18,274) (3,750) 5,735
Income tax provision 307 - - 307
Net loss (16,596)$ (18,274)$ (3,750)$ 5,428$
Gross profit 71,475$ 72,605$
Gross margin 82% 84%
Adjusted EBITDA** 10,185$
Adjusted EBITDA Margin 12%
* Other non-recurring expenses include acquisition-related and other expenses.
** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.
(dollars in thousands)
14©2016 Textura Corporation
Quarter Ended September 30, 2015
GAAP
Share-Based
Compensation
and Amortization
of Intangible
Assets
Other Non-
Recurring
Expenses* As Adjusted % of Revenue
Revenues 22,513$ -$ -$ 22,513$ 100%
Operating expenses
Cost of services 3,847 278 - 3,569 16%
General and administrative 8,332 2,393 67 5,872 26%
Sales and marketing 5,237 271 - 4,966 22%
Technology and development 5,179 220 - 4,959 22%
Depreciation and amortization 2,302 1,053 - 1,249 6%
Total operating expenses 24,897 4,215 67 20,615 92%
Total operating expenses, excluding
depreciation and amortization
22,595 3,162 67 19,366 86%
Loss from operations (2,384) (4,215) (67) 1,898
Total other expense, net 2 - - 2
Loss before income taxes (2,382) (4,215) (67) 1,900
Income tax provision 80 - - 80
Net loss (2,462)$ (4,215)$ (67)$ 1,820$
Gross profit 18,666$ 18,944$
Gross margin 83% 84%
Adjusted EBITDA** 3,147$
Adjusted EBITDA Margin 14%
* Other non-recurring expenses include acquisition-related and other expenses.
** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.
(dollars in thousands)
15©2016 Textura Corporation
Quarter Ended June 30, 2015
GAAP
Share-Based
Compensation
and Amortization
of Intangible
Assets
Other Non-
Recurring
Expenses* As Adjusted % of Revenue
Revenues 21,283$ -$ -$ 21,283$ 100%
Operating expenses
Cost of services 3,750 180 136 3,434 16%
General and administrative 7,649 2,030 203 5,416 26%
Sales and marketing 5,379 233 - 5,146 24%
Technology and development 5,190 206 - 4,984 23%
Depreciation and amortization 2,089 1,053 - 1,036 5%
Total operating expenses 24,057 3,702 339 20,016 94%
Total operating expenses, excluding
depreciation and amortization
21,968 2,649 339 18,980 89%
Loss from operations (2,774) (3,702) (339) 1,267
Total other expense, net 1 - - 1
Loss before income taxes (2,773) (3,702) (339) 1,268
Income tax provision 80 - - 80
Net loss (2,853)$ (3,702)$ (339)$ 1,188$
Gross profit 17,533$ 17,849$
Gross margin 82% 84%
Adjusted EBITDA** 2,303$
Adjusted EBITDA Margin 11%
* Other non-recurring expenses include acquisition-related and other expenses.
** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.
(dollars in thousands)
16©2016 Textura Corporation
Quarter Ended March 31, 2015
GAAP
Share-Based
Compensation
and Amortization
of Intangible
Assets As Adjusted % of Revenue
Revenues 19,201$ -$ 19,201$ 100%
Operating expenses
Cost of services 3,578 187 3,391 18%
General and administrative 6,832 1,316 5,516 28%
Sales and marketing 5,193 266 4,927 26%
Technology and development 4,709 202 4,507 23%
Depreciation and amortization 1,876 1,053 823 4%
Total operating expenses 22,188 3,024 19,164 100%
Total operating expenses, excluding
depreciation and amortization
20,312 1,971 18,341 96%
Loss from operations (2,987) (3,024) 37
Total other expense, net 4 - 4
Loss before income taxes (2,983) (3,024) 41
Income tax provision 84 - 84
Net loss (3,067)$ (3,024)$ (43)$
Gross profit 15,623$ 15,810$
Gross margin 81% 82%
Adjusted EBITDA* 860$
Adjusted EBITDA Margin 4%
* Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.
(dollars in thousands)
17©2016 Textura Corporation
Year Ended December 31, 2014
GAAP
Share-Based
Compensation
and
Amortization
of Intangible
Assets
Other Non-
Recurring
Expenses* As Adjusted % of Revenue
Revenues 62,968$ -$ -$ 62,968$ 100%
Operating expenses
Cost of services 12,851 594 619 11,638 18%
General and administrative 25,249 4,617 239 20,393 33%
Sales and marketing 20,518 1,501 592 18,425 29%
Technology and development 21,031 1,663 802 18,566 30%
Depreciation and amortization 7,741 4,977 - 2,764 4%
Total operating expenses 87,390 13,352 2,252 71,786 114%
Total operating expenses, excluding
depreciation and amortization
79,649 8,375 2,252 69,022 110%
Loss from operations (24,422) (13,352) (2,252) (8,818)
Total other expense, net (63) - - (63)
Loss before income taxes (24,485) (13,352) (2,252) (8,881)
Income tax provision 370 - - 370
Net loss (24,855)$ (13,352)$ (2,252)$ (9,251)$
Gross profit 50,117$ 51,330$
Gross margin 80% 82%
Adjusted EBITDA** (6,054)$
Adjusted EBITDA Margin (10%)
* Other non-recurring expenses include severance expense and acquisition-related and other expenses.
** Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.
(dollars in thousands)