SLTC Mgmt Presentation May 2015 - Determine, Inc. · 19 CONFIDENTIAL ($000s) ECLM SM Current,,...

transcript

*CONFIDENTIAL*

Vision. Insight. Control.

Selectica Investor Overview May 2015

Blaine Mathieu, CEO bmathieu@selectica.com

*CONFIDENTIAL*

Forward Looking Statements

Certain statements in this release and elsewhere by Selectica are forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements about business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the Company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of Company operations, or the performance or achievements of the Company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to the fluctuations in demand for Selectica’s products and services; government policies and regulations, including, but not limited to those affecting the Company’s industry. Selectica undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional risk factors concerning the Company can be found in the Company’s most recent Form 10-K, filed by the Company with the Securities and Exchange Commission.

*CONFIDENTIAL*

•  A Leading provider of SaaS so8ware solu;ons for enterprise contract and supply management

•  Validated by large, brand name, Global 2000 customers

•  New management team has successfully completed a turnaround with renewed growth and a clear path to profitability

•  Recent acquisi;ons have accelerated growth and improved ability to achieve profitability and scale

•  Market is large, fragmented and growing

Investment Highlights

*CONFIDENTIAL*

Blaine Mathieu President & CEO

Jeff Grosman COO

Todd Spartz CFO

Patrick Stakenas Chief Strategy Officer

Julien Nadaud* Chief Products Officer

Leo Sigal CTO

Rose Lee SVP Marke;ng

David Bush Chief Sales Officer

Experienced Leadership Team

* Pending close of b-‐pack acquisi;on

*CONFIDENTIAL*

Vision. Insight. Control.

Enterprise Contract Lifecycle

Management and Supply Management

*CONFIDENTIAL*

•  Ra;onalizes every step of life cycle for all contracts •  Discovery, authoring, approval, nego;a;on, repor;ng •  Clients average 10,000+ contracts under management

Enterprise Contract Lifecycle Management

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•  Onboarding, managing, and analyzing spend with suppliers

•  Selec;ca par;cularly regarded for complete supply management analy;cs suite

Supply Management: Upstream Procurement

*CONFIDENTIAL*

•  Actually doing the buying against the supplier contracts

•  Includes eCatalogs, order management, and invoice management

•  Some;mes referred to as P2P (Purchase-‐to-‐Pay)

Supply Management: Downstream Procurement

*CONFIDENTIAL*

Selec;ca Enterprise Contract Lifecycle Management and Supply Management solu;ons allow enterprises the vision, insight, and control necessary to: •  mi;gate risk •  reduce cost, and •  drive revenue

Solving Real Pain

*CONFIDENTIAL*

We Win With Completeness, Insight & Focus

SelecKca Ariba Emptoris Bravo SciQuest ApNus Coupa

Completeness of Enterprise CLM

Completeness of Procurement Suite

Depth of Analy;cs and Insights

Configurability of Solu;on

Focus on the mid-‐enterprise market

Excep;onal Capability

High Capability

Some Capability

Minor Capability

No Capability

Selec;ca’s deeply integrated analy;cs are differen;ated and our client focus is greater than the integrated goliaths (SAP/Ariba and IBM/Emptoris)

*CONFIDENTIAL*

$7 Billion* Total Addressable Market

*Source: Gartner/Forrester

$M’s

*CONFIDENTIAL*

GROWTH DRIVERS

*CONFIDENTIAL*

New Client Acquisition

New Client Channel

•  Built integrated sales and marketing “machine”

•  International growth

*CONFIDENTIAL*

Global Presence

Pune Development

San Mateo Headquarters

London Office

Odessa Development

Atlanta, Indianapolis

Offices

Paris, Marseille

Offices

*CONFIDENTIAL*

Recent Wins

•  Comprehensive review of Sourcing solutions

•  Enhanced visibility into spend

•  First cross-sell client •  Sourcing to CLM

•  Ease-of-use and depth of functionality

•  Ariba replacement

*CONFIDENTIAL*

•  SmartContracts (CLM) win •  9 CLM vendors competing, SAP/Ariba shop •  Global rollout

*CONFIDENTIAL*

Channel Expansion

Existing Client Growth Channel

New Client Channel

•  Majority of clients lightly penetrated

•  Penetrate new divisions

•  Seat expansion

•  Up/cross-sell new products and services

*CONFIDENTIAL*

240+ Enterprise Clients

Blue Chip Client Base

*CONFIDENTIAL*

($000s) ECLM SM Current Opportunity Total

$150 $500 $500

$200 $100 200 700 900

$220 $150 370 300 670

$250 $100 250 400 650

$60 $100 60

$1,380 $1,750 $3,130

Large Up/Cross-sell Opportunities

One of the world's largest

grocery retailers

Leader in Family Entertainment

Industry leader in credit card and financial

services

Interna;onal Systems Integrator

Top 5 global hospitality company

Up/Cross-‐Sell Poten;al Across Five Current Customers Indicates over 2x Sales Opportunity 3x

*CONFIDENTIAL*

100 More Global Clients

*CONFIDENTIAL*

Partner/SI Channel

•  Untapped partner ecosystem

•  Force-multiplier for other growth drivers

Partner Channel

New Client Channel

•  Majority of clients lightly penetrated

•  Penetrate new divisions

•  Seat expansion

•  Up/cross-sell new value-added products and services

Existing Client Growth Channel

*CONFIDENTIAL*

Geographic, product, and partner-‐based synergies all come together to drive growth. Medium-‐term goal is 1/3rd of new revenue driven by partners

Partner Ecosystem

*CONFIDENTIAL*

SELECTICA SUMMARY FINANCIALS

*CONFIDENTIAL*

Summary Historical Income Statement (GAAP)

•  Non-GAAP more meaningful in Q2/Q3 due to

purchase accounting issues

Q1 Q2 Q3 Q4 FY Q1 Q2 Q3Recurring0revenue 3.2 3.0 3.1 2.9 12.2 2.7 4.0 4.7Nonrecurring0revenue 1.2 0.9 0.9 0.6 3.6 1.1 1.2 1.3Total0revenue 4.4 3.9 3.9 3.5 15.8 3.8 5.2 6.0

Cost0of0revenue 1.9 2.0 2.1 2.4 8.4 2.3 3.5 2.9Gross0profit0$ 2.5 2.0 1.8 1.1 7.4 1.5 1.8 3.1Gross0profit0% 56.4% 50.4% 46.0% 31.6% 47.8% 40.1% 33.7% 51.5%

Operating0expenses 4.7 3.5 4.0 4.3 16.5 4.5 7.4 7.0Operating0income/(loss) (2.3) (1.6) (2.2) (3.1) (9.2) (2.9) (5.6) (3.9)

Other0income/(expense) (0.6) 1.1 0.0 0.0 0.5 0.0 3.0 0.1Net0income/(loss) (2.9) (0.5) (2.2) (3.1) (8.7) (2.9) (2.7) (3.8)

FYE03/31/2014 FYE03/31/2015

*CONFIDENTIAL*

Revenue trends

!3.3!!

!3.9!!

!3.2!! !3.0!!

!7.1!!!7.4!!

!3.0!! !3.1!! !2.9!!!2.7!!

!4.8!!!5.0!!

!6.1!! !6.1!!!5.7!!

!5.0!!

!6.9!!

!8.1!!

Q2! Q3! Q4! Q1! Q2! Q3!

FY!2015!

Billings! Non9GAAP!recurring!revenue! Deferred!revenue!

$M FY 2014

*CONFIDENTIAL*

Market compares

Medium-growth, enterprise SaaS company valuations:

Company Solution

Qtrly/Rev/Growth/(Yr/Yr)

Operating/Margin/(TTM) EV/Rev

Callidus Sales*performance*management*software 26% 87% 5.0Cvent Meeting*management*software 28% 0% 6.8Ultimate*Software HR*management*software 21% 11% 10.0Demandware eCommerce*platform 41% 816% 12.4Paycom*Software Payroll*and*HR*software 45% 10% 11.2SPS*Commerce Supply*chain*management*software 28% 4% 7.0LogMeIn Remote*desktop*software 33% 4% 6.0

Average 32% 1% 8.3

Selectica CLM/and/supply/management/software 52% M81% 2.5

Company Solution

Qtrly/Rev/Growth/(Yr/Yr)

Operating/Margin/(TTM) EV/Rev

Callidus Sales*performance*management*software 26% 87% 5.0Cvent Meeting*management*software 28% 0% 6.8Ultimate*Software HR*management*software 21% 11% 10.0Demandware eCommerce*platform 41% 816% 12.4Paycom*Software Payroll*and*HR*software 45% 10% 11.2SPS*Commerce Supply*chain*management*software 28% 4% 7.0LogMeIn Remote*desktop*software 33% 4% 6.0

Average 32% 1% 8.3

Selectica CLM/and/supply/management/software 52% M81% 2.5

*CONFIDENTIAL*

Profit margin trends

Q2$ Q3$ Q4$ Q1$ Q2$ Q3$

FY$2015$

Non3GAAP$gross$profit$ Non3GAAP$gross$profit$%$

FY 2014 $M

*CONFIDENTIAL*

Earnings trends

!$0.37''

!$0.43''

!$0.66''

!$0.44''!$0.41''

!$0.32''

!$0.7'

!$0.6'

!$0.5'

!$0.4'

!$0.3'

!$0.2'

!$0.1'

$0.0'Q2' Q3' Q4' Q1' Q2' Q3'

FY'2015'

Non!GAAP'EPS'

FY 2014

*CONFIDENTIAL*

Summary Balance Sheet

Cash $8,475 Credit facility $6,989 Accounts Receivable 4,705 Accounts payable 1,881 Prepaid expenses & other current assets

1,347 Accrued liabilities 3,035

Total current assets 14,527 Deferred revenue 8,069 Total current liabilities 19,974

Long-term deferred revenue 65 Property & equipment, net 354 Other long-term liabilities 0 Capitalized software 2,227 Total liabilities 20,039 Goodwill 8,353

Intangibles, net 6,802

Other assets 288 Total stockholders’ equity 12,562 Total assets $32,601 Total liabilities & stockholders’ equity $32,601

•  Above does not include: •  $10.9M cash raise in February

•  $5.9M equity •  $5.0M in debt

•  B-pack acquisition

*CONFIDENTIAL*

Reasons to Invest

Clear path to profitability and

Leader in enterprise contract and supply

management

Large addressable market and clear

vision

Underpenetrated customer base

Drivers of organic and

inorganic growth

Investment Highlights

Experienced new management team with

strong results

*CONFIDENTIAL*

THANK YOU

SLTC Mgmt Presentation May 2015 - Determine, Inc. · 19 *CONFIDENTIAL* ($000s) ECLM SM Current,,...

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SLTC Mgmt Presentation May 2015 - Determine, Inc. · 19 CONFIDENTIAL ($000s) ECLM SM Current,,...