textura q4 14 earnings release final

1©2015 Textura Corporation

Textura Corporation – Quarter Ended December 31, 2014

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


Safe Harbor

This presentation includes forward-looking statements, including statements regarding our future financial performance, market growth, total addressable market, demand for our solutions, and general business conditions and outlook. Any forward looking statements contained in this presentation are based upon our historical performance and our current expectations and projections about future events and financial trends affecting the financial condition of our 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 us as of February 24, 2015, 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. Forward-looking statements speak only as of February 24, 2015, 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, our Annual Report on Form10-K for the fiscal year ended December 31, 2014, which we expect to file on or about March 6, 2015, and our other reports filed with the SEC.

This presentation should be read in conjunction with our December 2014 Earnings Release on our 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 our December 2014 Earnings Release on our Investor Relations website at investors.texturacorp.com, and at the end of this presentation.

http://investors.texturacorp.com/

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Introduction and Review of Key Highlights

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

Patrick AllinChairman, CEO, Co-founder


Current Business Processes – Complex, Error Prone, Inefficient

Banks / Insurers

Title Company

Owner / Developer

Sub-contractorsEngineers

Architects

GeneralContractors

Suppliers

ArchitectsFinancing

CompaniesInsurance

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 . . .

DesignPre-

qualificationBid Contracting Construction Close-out


Textura Solutions – Addressing the Project Lifecycle

DesignPre-

qualificationBid Contracting Construction Close-out

CPM

PlanSwift

SubmittalExchange

SubmittalExchange

Bid Organizer

EPP

Latista

PQM GradeBeam


Approx. $28 billion of Total Addressable Market *

MarketExpansion

MonetizationTotal

Addressable Market

TargetGlobal

Markets~$4.8t

Markets Currently

Served~$1.3t

CurrentSolutions~30 bps

Total Future

AddressableMarket~$28.0bCurrent

Marketsand

Solutions~$4.4b

ExpandedPlatform~50 bps

Key Strategies:• North America market

penetration• Global expansion to Asia

and Western Europe

Key Strategies:• Cross-sell solutions• Solution expansion• Integrated suite of

solutions• Pricing• Strategic acquisitions

Result:

• Potential for high long-term revenue growth rates

Expanded Platform

~55-60 bps

CurrentSolutions~34 bps

Mobile+~5–10 bps

Mobile+~4 bps

~$3.9b

Mobile+~$0.5b

~$24.0b

~$4.0b

* Information as of November 5, 2014.


Quarter Highlights – Continuing to Execute our Strategy

• Year-over-year revenue growth of 49%

• Revenue of $17.9MM, organic revenue growth of 44%

• Approximately $165B in construction value active on our solutions

• Billings of $19.8MM, year-over-year growth of 44%

Strong Quarterly Results

Operating Leverage

Growth Strategy

• Improving Adjusted EBITDA, EPS and cash flow trajectory

• Generated positive Adjusted EBITDA for Q4 2014 of $0.4MM

• Adjusted EPS improved from ($0.19) in prior-year period to ($0.02)

• Positive operating cash flow for third consecutive quarter and for the year

• Increased functionality and expanding market penetration

• Launched EPP in December 2014

• Addition of industry-leading customers such as Turner Construction, the largest general builder in North America

• Continued focus on international growth strategy


Quarter Ended December 31,

2014 Financial Overview

Image: Denver International Airport South Terminal Redevelopment, Denver, CO

– a project managed using Textura Construction Collaboration Solutions

Jillian SheehanEVP and CFO


Quarter Ended December 31, 2014 Highlights

• 49% year-over-year revenue growth

• Organic revenue growth of 44%

Balance Sheet

Strong Revenue Growth

Expense Trends

Adjusted EBITDA and EPS

• 10% Adjusted Operating Expense year-over-year increase

• Continuing to see leverage in business model

• Continuing to invest in the development of our solution suite

• $0.4MM Adjusted EBITDA vs. ($4.0MM) in prior-year period

• Focus on supporting growth and strategic initiatives

• Adjusted EPS of ($0.02) vs. ($0.19) in prior-year period

• Weighted-average share count increased to 25.5MM

• $66.8MM cash position at December 31, 2014

• Ample liquidity to fund our growth initiatives


Consistently High Growth Rates

86% 70% 54%

Year-over-year growth

65% 65% 72% 77% 61% 60% 51% 49%

Year-over-year growth

46% 38% 45% 49% 46% 52% 43% 44% 60% 45% 46%

Year-over-year organic growth Year-over-year organic growth

$8.5 $9.4

$10.9

$12.0

$13.8

$15.0

$16.4

$17.9

Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14

$24.0

$40.8

$63.0

FY 2012 FY 2013 FY 2014


Revenue Model – Broad Base of Paying Customers

• Revenue from multiple participants

• Fees are invoiced and collected in advance

• CPM - sticky, recurring, and visible

CPM

PlanSwift

SubmittalExchange

GradeBeam

PQM

Activity-driven

• Owners/GCs• Subscription fees based on

project activity –total number of projects/construction value

• Subcontractors• Contract usage fee – varies by

value of contract and subject to minimum and maximum fees

Organization-driven

• Primarily license and subscription fees

• Fees based on:• Construction volume,

number of offices/subcontractors

BidOrganizer

Latista


2015 Guidance

• 36 – 41% year-over-year revenue growth

• $18.8 – $19.4MM

• Adjusted EPS of ($0.01) – $0.01

• Excludes stock based comp of $1.9MM & amortization of acquired intangible assets of $1.1MM

• Assumes ~25.7MM shares

Quarter Ended March 31, 2015

Year Ended December 31,

2015

• 40 - 46% year-over-year revenue growth

• $88.0 – $92.0MM

• Adjusted EPS of $0.15 – $0.20

• Excludes stock based comp of $6.8MM & amortization of acquired intangible assets of $4.2MM

• Assumes ~25.9MM shares


Long-term Operating Model Yields Attractive Margins

March

2014

June

2014

Sept

2014

Dec

2014 2013 2014

Guidance

2015

Target

Model

Revenue ($MMs) 13.8$ 15.0$ 16.4$ 17.9$ 40.8$ 63.0$ $88 - 92 $150 - 180

Adjusted Operating Expenses as a % of revenue: *

Cost of services 20% 19% 18% 18% 22% 19% 10 - 13%

General and administrative 34% 36% 31% 29% 44% 32% 13 - 15%

Sales and marketing 33% 29% 29% 27% 30% 29% 17 - 20%

Technology and development 37% 31% 28% 24% 41% 30% 15 - 17%

Total Adjusted Operating Expenses, excluding

depreciation and amortization 124% 115% 106% 98% 137% 110% 55 - 65%

Adjusted Gross Margin 80% 81% 82% 82% 78% 82% 87 - 90%

Adjusted EBITDA margin ** (24%) (15%) (6%) 2% (37%) (10%) 10 - 11% 35 - 45%

Quarter Fiscal Year

** 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 expense, amortization expense, severance expense,

and acquisition-related and other expenses recognized during the period.


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

Questions


Appendix

Reconciliation of non-GAAP measures

to the most comparable GAAP measures


Quarter Ended March 31, 2014

GAAP

Share-Based

Compensation

and

Amortization of

Intangible

Assets

Other Non-

Recurring

Expenses * As Adjusted

% of

Revenue

Revenues 13,787$ -$ -$ 13,787$ 100%

Operating expenses

Cost of services 2,882 152 - 2,730 20%

General and administrative 6,055 1,191 74 4,790 34%

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 3,218 74 17,730 129%

Total operating expenses, excluding

depreciation and amortization

19,136 1,936 74 17,126 124%

Loss from operations (7,235) (3,218) (74) (3,943)

Total other expense, net (25) - - (25)

Loss before income taxes (7,260) (3,218) (74) (3,968)

Income tax provision 80 - - 80

Net loss (7,340)$ (3,218)$ (74)$ (4,048)$

Gross profit 10,905$ 11,057$

Gross margin 79% 80%

Adjusted EBITDA ** (3,339)$

Adjusted EBITDA Margin (24%)

* Other non-recurring expenses represent acquisition-related costs.


(dollars in thousands)


Quarter Ended June 30, 2014

GAAP

Share-Based

Compensation

and

Amortization of

Intangible

Assets As Adjusted

% of

Revenue

Revenues 14,965$ -$ 14,965$ 100%

Operating expenses

Cost of services 3,028 156 2,872 19%

General and administrative 6,473 1,049 5,424 36%

Sales and marketing 4,663 324 4,339 29%

Technology and development 4,819 301 4,518 31%

Depreciation and amortization 1,962 1,282 680 5%

Total operating expenses 20,945 3,112 17,833 119%



18,983 1,830 17,153 115%

Loss from operations (5,980) (3,112) (2,868)

Total other expense, net (8) - (8)

Loss before income taxes (5,988) (3,112) (2,876)

Income tax provision 80 - 80

Net loss (6,068)$ (3,112)$ (2,956)$

Gross profit 11,937$ 12,093$


Adjusted EBITDA * (2,188)$


* Adjusted EBITDA represents revenue less Adjusted Operating Expenses, excluding depreciation and amortization.



Quarter Ended September 30, 2014

GAAP

Share-Based

Compensation

and

Amortization of

Intangible

Assets

Other Non-

Recurring


% of

Revenue

Revenues 16,354$ -$ -$ 16,354$ 100%

Operating expenses

Cost of services 3,335 90 344 2,901 18%


Sales and marketing 5,869 586 592 4,691 29%

Technology and development 6,366 913 802 4,651 28%


Total operating expenses 23,792 3,920 1,858 18,014 110%



21,802 2,638 1,858 17,306 106%

Loss from operations (7,438) (3,920) (1,858) (1,660)


Loss before income taxes (7,460) (3,920) (1,858) (1,682)


Net loss (7,540)$ (3,920)$ (1,858)$ (1,762)$

Gross profit 13,019$ 13,453$


Adjusted EBITDA ** (952)$


* Other non-recurring expenses include severance expense and acquisition-related and other expenses. Acquisition-related

and other expenses represent acquisition, strategic transaction and certain tax-related costs.




Quarter Ended December 31, 2014

GAAP

Share-Based

Compensation

and

Amortization of

Intangible

Assets

Other Non-

Recurring


% of

Revenue

Revenues 17,862$ -$ -$ 17,862$ 100%

Operating expenses

Cost of services 3,606 196 275 3,135 18%








19,728 1,971 320 17,437 98%

Loss from operations (3,769) (3,102) (320) (347)


Loss before income taxes (3,777) (3,102) (320) (355)


Net loss (3,907)$ (3,102)$ (320)$ (485)$

Gross profit 14,256$ 14,727$


Adjusted EBITDA ** 425$

Adjusted EBITDA Margin 2%

* Other non-recurring expenses include severance expense and acquisition-related and other expenses. Acquisition-related





Year Ended December 31, 2014

GAAP

Share-Based

Compensation

and

Amortization

of Intangible

Assets

Other Non-

Recurring


% of

Revenue

Revenues 62,968$ -$ -$ 62,968$ 100%

Operating expenses

Cost of services 12,851 594 619 11,638 19%


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%




79,649 8,375 2,252 69,022 110%




Income tax provision 370 370

Net loss (24,855)$ (13,352)$ (2,252)$ (9,251)$

Gross profit 50,117$ 51,330$




* Other non-recurring expenses include severance expense, offering-related expense and acquisition-related and other expenses.

Acquisition-related and other expenses represent acquisition, strategic transaction and certain tax-related costs.




Quarter Ended December 31, 2013

GAAP

Share-Based

Compensation

and

Amortization of

Intangible

Assets

Other Non-

Recurring


% of

Revenue

Revenues 12,003$ -$ -$ 12,003$ 100%

Operating expenses

Cost of services 2,742 95 - 2,647 22%

General and administrative 5,378 857 423 4,098 34%



Depreciation and amortization 1,560 992 - 568 5%




18,051 1,583 423 16,045 134%

Loss from operations (7,608) (2,575) (423) (4,610)


Loss before income taxes (7,702) (2,575) (423) (4,704)

Income tax provision (1,026) - - (1,026)

Net loss (6,676)$ (2,575)$ (423)$ (3,678)$

Gross profit 9,261$ 9,356$




* Other non-recurring expenses include offering-related expense and acquisition-related and other expenses. Acquisition-related





Year Ended December 31, 2013

GAAP

Share-Based

Compensation

and

Amortization

of Intangible

Assets

Other Non-

Recurring


% of

Revenue

Revenues 40,766$ -$ -$ 40,766$ 100%

Operating expenses

Cost of services 12,808 2,198 1,446 9,164 22%

General and administrative 25,152 5,700 1,501 17,951 44%

Sales and marketing 15,153 2,789 308 12,056 30%

Technology and development 20,820 2,863 1,288 16,669 41%

Depreciation and amortization 5,325 3,397 - 1,928 5%




73,933 13,550 4,543 55,840 137%


Total other expense, net (2,530) - - (2,530)


Income tax provision (767) (1,086) 319

Net loss (40,255)$ (16,947)$ (3,457)$ (19,851)$

Gross profit 27,958$ 31,602$




* Other non-recurring expenses include offering-related expense and acquisition-related and other expenses. Acquisition-related





Adjusted EPS – Year over Year

December 31, 2014 December 31, 2013

Net loss per share (0.15)$ (0.27)$

Share-based compensation expense 0.08 0.06

Amortization of intangible assets 0.04 0.04

Acquisition-related and other expenses * 0.01 0.02

Acquisition-related tax benefit - (0.04)

Adjusted EPS (0.02)$ (0.19)$

* Acquisition-related and other expenses represent acquisition, strategic transaction and certain tax-related costs.

Three Months Ended


Guidance

High End Low End High End Low End

Net loss per share (0.10)$ (0.12)$ (0.22)$ (0.27)$

Share-based compensation expense 0.07 0.07 0.26 0.26

Amortization of intangible assets 0.04 0.04 0.16 0.16

Adjusted EPS 0.01$ (0.01)$ 0.20$ 0.15$

Three Months Ended

March 31, 2015

Twelve Months Ended

December 31, 2015

textura q4 14 earnings release final

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forwardlooking statements

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forward looking statements

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