• | Revenue increased 77% year over year to $12.0 million |
• | Organic revenue growth accelerated to 50% year over year, from 45% in prior quarter |
• | Construction value added of $17.9 billion, up 145% year over year |
• | Number of organizations more than doubled to 11,706, up 116% year over year |
• | Acquired LATISTA on December 2, 2013, the leading provider of mobile-enabled, cloud-based field management solutions in the industry |
• | Revenue: Revenue was $12.0 million, an increase of 77% over the prior year, and an acceleration from 72% year over year growth in the quarter ended September 30, 2013. Organic revenue increased by 50% year over year, an acceleration from 45% in the prior quarter. |
• | Operating Metrics: Active construction projects increased 30% year over year to 6,580, with more than 1,400 projects added during the quarter representing $17.9 billion in construction value, up 145% year over year. Number of organizations increased by 116% year over year to 11,706. |
• | Deferred Revenue: Deferred revenue at December 31, 2013 was $25.7 million, up 82% from December 31, 2012, and up 17% from $21.9 million at September 30, 2013. |
• | Net Loss: Adjusted EBITDA loss was $4.0 million and GAAP net loss was $6.7 million, increases from $2.3 million and $6.0 million, respectively, in the first quarter of fiscal 2013. Adjusted EPS loss was $0.19 and GAAP net loss per share was $0.27, decreases from $0.55 and $0.62, respectively, in the first quarter of fiscal 2013, driven by a higher share count. |
• | Total Cash and Cash Equivalents: As of December 31, 2013, total cash and cash equivalents was $77.1 million. Cash used in operations during the quarter ended December 31, 2013 was $6.2 million, driven by annual bonus payments and a one-time payment for the removal of the credit bank mechanism in our Aon agreements. Other uses of cash during the quarter included $34.9 million for our acquisition of LATISTA and $10.2 million for the repayment of our bank loan. |
• | LATISTA: The LATISTA acquisition closed on December 2, 2013 and resulted in revenue of $0.2 million in the quarter ended December 31, 2013. The impact of LATISTA included in the consolidated results was Adjusted EBITDA loss and GAAP net loss of $0.3 million and $0.5 million, respectively, and Adjusted EPS loss and GAAP net loss per share of $0.01 and $0.02, respectively. |
• | Revenue in the range of $57.5 to $60.5 million |
• | Year-over-year revenue growth in the range of 62 - 70% |
• | Adjusted EPS in the range of $(0.55) - $(0.62), excluding stock-based compensation expenses of $7.0 million and amortization of acquired intangible assets of $4.8 million, and assuming approximately 25.0 million weighted-average common shares outstanding |
• | GAAP net loss per share in the range of $(1.00) - $(1.07) |
• | Impact of LATISTA on consolidated results: |
Fiscal Year 2014 | |||||
Pre-LATISTA Guidance | LATISTA Guidance | Total Guidance | |||
Revenue range | $56.0 - $58.5 | $1.5 - $2.0 | $57.5 - $60.5 | ||
Year-over-year revenue growth range | 58 - 65% | - | 62 - 70% | ||
Adjusted EPS range | $(0.40) - $(0.46) | $(0.15) - $(0.16) | $(0.55) - $(0.62) | ||
GAAP net loss per share range | $(0.77) - $(0.83) | $(0.23) - $(0.24) | $(1.00) - $(1.07) |
• | Revenue in the range of $13.7 to $14.0 million |
• | Year-over-year revenue growth in the range of 61 - 65% |
• | Adjusted EPS in the range of $(0.20) - $(0.22), excluding stock-based compensation expenses of $1.9 million and amortization of acquired intangible assets of $1.3 million, and assuming approximately 24.8 million weighted-average common shares outstanding |
• | GAAP net loss per share in the range of $(0.33) - $(0.35) |
• | Impact of LATISTA on consolidated results: |
Three Months Ended March 31, 2014 | |||||
Pre-LATISTA Guidance | LATISTA Guidance | Total Guidance | |||
Revenue range | $13.3 - $13.4 | $0.4 - $0.6 | $13.7 - $14.0 | ||
Year-over-year revenue growth range | 56 - 58% | - | 61 - 65% | ||
Adjusted EPS range | $(0.15) - $(0.16) | $(0.05) - $(0.06) | $(0.20) - $(0.22) | ||
GAAP net loss per share range | $(0.26) - $(0.27) | $(0.07) - $(0.08) | $(0.33) - $(0.35) |
• | for planning purposes, including the preparation of the annual budget; |
• | to evaluate the effectiveness of business strategies; and |
• | as a factor when determining management's total compensation. |
December 31, 2013 | September 30, 2013 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 77,130 | $ | 127,728 | |||
Accounts receivable, net of allowance for doubtful accounts of $148 | 5,516 | 3,664 | |||||
Prepaid expenses and other current assets | 2,631 | 1,534 | |||||
Total current assets | 85,277 | 132,926 | |||||
Property and equipment, net | 21,070 | 19,807 | |||||
Restricted cash | 530 | 1,530 | |||||
Goodwill | 52,722 | 23,937 | |||||
Intangible assets, net | 17,108 | 9,381 | |||||
Other assets | 1,217 | 386 | |||||
Total assets | $ | 177,924 | $ | 187,967 | |||
Liabilities, Redeemable Securities and Stockholders’ Equity (Deficit) | |||||||
Current liabilities | |||||||
Accounts payable | $ | 1,522 | $ | 1,799 | |||
Accrued expenses | 8,011 | 10,107 | |||||
Deferred revenue, short-term | 22,422 | 19,935 | |||||
Notes and leases payable, short-term | 884 | 868 | |||||
Loan payable to related party, short-term | — | 500 | |||||
Total current liabilities | 32,839 | 33,209 | |||||
Deferred revenue, long-term | 3,283 | 1,956 | |||||
Notes and leases payable, long-term | 638 | 742 | |||||
Loan payable to related party, long-term | — | 9,719 | |||||
Other long-term liabilities | 2,324 | 546 | |||||
Total liabilities | 39,084 | 46,172 | |||||
Contingencies (Note 7) | |||||||
Redeemable non‑controlling interest | 355 | 373 | |||||
Stockholders’ equity (deficit) | |||||||
Preferred stock, $.001 par value; 10,000 authorized; 0 shares issued and outstanding | — | — | |||||
Common stock, $.001 par value; 90,000 shares authorized; 25,247 and 25,091 shares issued and 24,785 and 24,629 shares outstanding at December 31, 2013 and September 30, 2013, respectively | 25 | 25 | |||||
Additional paid in capital | 329,073 | 325,387 | |||||
Treasury stock, at cost; 462 shares | (5,831 | ) | (5,831 | ) | |||
Accumulated other comprehensive loss | (49 | ) | (23 | ) | |||
Accumulated deficit | (184,733 | ) | (178,136 | ) | |||
Total Textura Corporation stockholders’ equity (deficit) | 138,485 | 141,422 | |||||
Non-controlling interest | |||||||
Total stockholders’ equity (deficit) | 138,485 | 141,422 | |||||
Total liabilities, redeemable securities and stockholders’ equity (deficit) | $ | 177,924 | $ | 187,967 |
Three Months Ended December 31, | |||||||
2013 | 2012 | ||||||
Revenues | $ | 12,003 | $ | 6,771 | |||
Operating expenses | |||||||
Cost of services (exclusive of depreciation and amortization shown separately below) | 2,742 | 1,688 | |||||
General and administrative | 5,378 | 3,705 | |||||
Sales and marketing | 4,264 | 1,818 | |||||
Technology and development | 5,667 | 2,995 | |||||
Depreciation and amortization | 1,560 | 760 | |||||
Total operating expenses | 19,611 | 10,966 | |||||
Loss from operations | (7,608 | ) | (4,195 | ) | |||
Other expense, net | |||||||
Interest income | 26 | 1 | |||||
Interest expense | (120 | ) | (2,103 | ) | |||
Change in fair value of conversion option liability | — | 289 | |||||
Total other expense, net | (94 | ) | (1,813 | ) | |||
Loss before income taxes | (7,702 | ) | (6,008 | ) | |||
Income tax provision (benefit) | (1,026 | ) | 35 | ||||
Net loss | (6,676 | ) | (6,043 | ) | |||
Less: Net loss attributable to non-controlling interests | (79 | ) | (1,046 | ) | |||
Net loss attributable to Textura Corporation | (6,597 | ) | (4,997 | ) | |||
Accretion of redeemable Series A-1 preferred stock | — | 165 | |||||
Accretion of redeemable non‑controlling interest | 70 | 76 | |||||
Dividends on Series A-2 preferred stock | — | 120 | |||||
Net loss available to Textura Corporation common stockholders | $ | (6,667 | ) | $ | (5,358 | ) | |
Net loss per share available to Textura Corporation common stockholders, basic and diluted | $ | (0.27 | ) | $ | (0.62 | ) | |
Weighted average number of common shares outstanding, basic and diluted | 24,679 | 8,579 |
Three Months Ended December 31, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (6,676 | ) | $ | (6,043 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 1,560 | 760 | |||||
Deferred income taxes | (1,026 | ) | 35 | ||||
Non-cash interest expense | 62 | 1,934 | |||||
Change in fair value of conversion option liability | — | (288 | ) | ||||
Share‑based compensation | 1,583 | 661 | |||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (1,107 | ) | 7 | ||||
Prepaid expenses and other assets | (594 | ) | (200 | ) | |||
Deferred revenue, including long-term portion | 1,789 | (20 | ) | ||||
Accounts payable | (278 | ) | 636 | ||||
Accrued expenses and other | (1,479 | ) | 431 | ||||
Net cash used in operating activities | (6,166 | ) | (2,087 | ) | |||
Cash flows from investing activities | |||||||
Decrease in restricted cash | 1,000 | — | |||||
Purchases of property and equipment | (1,351 | ) | (19 | ) | |||
Acquisitions of businesses, net of cash acquired | (34,880 | ) | — | ||||
Net cash used in investing activities | (35,231 | ) | (19 | ) | |||
Cash flows from financing activities | |||||||
Partner’s investment in joint venture | — | 208 | |||||
Principal payments on loan payable | (10,223 | ) | — | ||||
Payments on capital leases | (190 | ) | — | ||||
Proceeds from debt issuances | 106 | — | |||||
Proceeds from exercise of options and warrants | 2,174 | — | |||||
Deferred finance and offering costs | (1,033 | ) | (386 | ) | |||
Net cash used in financing activities | (9,166 | ) | (178 | ) | |||
Effect of changes in foreign exchange rates on cash and cash equivalents | (35 | ) | — | ||||
Net decrease in cash and cash equivalents | (50,598 | ) | (2,284 | ) | |||
Cash and cash equivalents | |||||||
Beginning of period | $ | 127,728 | $ | 4,174 | |||
End of period | $ | 77,130 | $ | 1,890 |
Three Months Ended December 31, | |||||||
2013 | 2012 | ||||||
Activity‑driven revenue | $ | 9,372 | $ | 5,986 | |||
Organization‑driven revenue | 2,631 | 785 | |||||
Total revenue | $ | 12,003 | $ | 6,771 | |||
Activity‑driven revenue: | |||||||
Number of projects added | 1,466 | 1,048 | |||||
Client-reported construction value added (billions) | $ | 17.9 | $ | 7.3 | |||
Active projects during period | 6,580 | 5,046 | |||||
Organization‑driven revenue: | |||||||
Number of organizations | 11,706 | 5,412 |
Three Months Ended December 31, | |||||||
2013 | 2012 | ||||||
Net loss | $ | (6,676 | ) | $ | (6,043 | ) | |
Net interest expense | 94 | 2,102 | |||||
Income tax provision (benefit) | (1,026 | ) | 35 | ||||
Depreciation and amortization | 1,560 | 760 | |||||
EBITDA | (6,048 | ) | (3,146 | ) | |||
Share‑based compensation expense | 1,583 | 661 | |||||
Acquisition‑related expenses* | 423 | 156 | |||||
Adjusted EBITDA | $ | (4,042 | ) | $ | (2,329 | ) |
Three Months Ended December 31, | |||||||
2013 | 2012 | ||||||
Cost of services | $ | 95 | $ | 44 | |||
General and administrative | 857 | 451 | |||||
Sales and marketing | 401 | 83 | |||||
Technology and development | 230 | 83 | |||||
Total | $ | 1,583 | $ | 661 |
Three Months Ended December 31, | |||||||
2013 | 2012 | ||||||
Net loss available to Textura Corporation common shareholders | $ | (6,667 | ) | $ | (5,358 | ) | |
Accretion of redeemable Series A-1 preferred stock | — | 165 | |||||
Accretion of redeemable non-controlling interest | 70 | 76 | |||||
Dividends on Series A-2 preferred stock | — | 120 | |||||
Net loss attributable to non-controlling interest | (79 | ) | (1,046 | ) | |||
Net loss | $ | (6,676 | ) | $ | (6,043 | ) | |
Share-based compensation expense | $ | 1,583 | $ | 661 | |||
Amortization of intangible assets | 992 | 507 | |||||
Acquisition-related expenses | 423 | 156 | |||||
Acquisition-related tax benefit | (1,086 | ) | — | ||||
Adjusted net loss | $ | (4,764 | ) | $ | (4,719 | ) | |
Weighted-average common shares used in basic and diluted EPS | 24,679 | 8,579 | |||||
Adjusted EPS | $ | (0.19 | ) | $ | (0.55 | ) | |
Net loss per share | $ | (0.27 | ) | $ | (0.62 | ) | |
Accretion of redeemable Series A-1 preferred stock | — | 0.02 | |||||
Accretion of redeemable non-controlling interest | — | 0.01 | |||||
Dividends on Series A-2 preferred stock | — | 0.01 | |||||
Net loss attributable to non-controlling interest | — | (0.13 | ) | ||||
Share-based compensation expense | 0.06 | 0.08 | |||||
Amortization of intangible assets | 0.04 | 0.06 | |||||
Acquisition-related expenses | 0.02 | 0.02 | |||||
Acquisition-related tax benefit | (0.04 | ) | — | ||||
Adjusted EPS | $ | (0.19 | ) | $ | (0.55 | ) |
Fiscal Year 2014 | Q2 2014 | ||||||||||||||
Low End | High End | Low End | High End | ||||||||||||
Net loss per share | $ | (1.00 | ) | $ | (1.07 | ) | $ | (0.33 | ) | $ | (0.35 | ) | |||
Share-based compensation expense | 0.19 | 0.19 | 0.05 | 0.05 | |||||||||||
Amortization of intangible assets | 0.28 | 0.28 | 0.08 | 0.08 | |||||||||||
Acquisition-related expenses | 0.02 | 0.02 | — | — | |||||||||||
Acquisition-related tax benefit | (0.04 | ) | (0.04 | ) | — | — | |||||||||
Adjusted EPS | $ | (0.55 | ) | $ | (0.62 | ) | $ | (0.20 | ) | $ | (0.22 | ) |