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1 *CONFIDENTIAL* *CONFIDENTIAL* Vision. Insight. Control. Selectica Investor Overview May 2015 Blaine Mathieu, CEO [email protected]
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*CONFIDENTIAL*
*CONFIDENTIAL*
Vision. Insight. Control.
Selectica Investor Overview May 2015
Blaine Mathieu, CEO [email protected]
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*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.
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*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
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*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
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Vision. Insight. Control.
Enterprise Contract Lifecycle
Management and Supply Management
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• 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
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• 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
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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
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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)
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$7 Billion* Total Addressable Market
*Source: Gartner/Forrester
$M’s
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GROWTH DRIVERS
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New Client Acquisition
New Client Channel
• Built integrated sales and marketing “machine”
• International growth
GR
OW
TH D
RIV
ER
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*CONFIDENTIAL*
Global Presence
Pune Development
San Mateo Headquarters
London Office
Odessa Development
Atlanta, Indianapolis
Offices
Paris, Marseille
Offices
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*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
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• SmartContracts (CLM) win • 9 CLM vendors competing, SAP/Ariba shop • Global rollout
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Channel Expansion
Existing Client Growth Channel
New Client Channel
• Built integrated sales and marketing “machine”
• International growth
• Majority of clients lightly penetrated
• Penetrate new divisions
• Seat expansion
• Up/cross-sell new products and services
GR
OW
TH D
RIV
ER
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240+ Enterprise Clients
Blue Chip Client Base
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($000s) ECLM SM Current Opportunity Total
$150 $500 $500
$150
$650
$200 $100 200 700 900
$600
$220 $150 370 300 670
$300
$250 $100 250 400 650
$300
$60 $100 60
200
260
$100
$1,380 $1,750 $3,130
Large Up/Cross-sell Opportunities
One of the world's largest
grocery retailers
Leader in Family Entertainment
Industry leader in credit card and financial
services
Interna;onal Systems Integrator
Top 5 global hospitality company
Up/Cross-‐Sell Poten;al Across Five Current Customers Indicates over 2x Sales Opportunity 3x
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100 More Global Clients
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Partner/SI Channel
• Untapped partner ecosystem
• Force-multiplier for other growth drivers
Partner Channel
New Client Channel
• Built integrated sales and marketing “machine”
• International growth
• Majority of clients lightly penetrated
• Penetrate new divisions
• Seat expansion
• Up/cross-sell new value-added products and services
Existing Client Growth Channel
GR
OW
TH D
RIV
ER
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Geographic, product, and partner-‐based synergies all come together to drive growth. Medium-‐term goal is 1/3rd of new revenue driven by partners
Partner Ecosystem
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SELECTICA SUMMARY FINANCIALS
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Summary Historical Income Statement (GAAP)
• Non-GAAP more meaningful in Q2/Q3 due to
purchase accounting issues
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3Recurring0revenue 3.2 3.0 3.1 2.9 12.2 2.7 4.0 4.7Nonrecurring0revenue 1.2 0.9 0.9 0.6 3.6 1.1 1.2 1.3Total0revenue 4.4 3.9 3.9 3.5 15.8 3.8 5.2 6.0
Cost0of0revenue 1.9 2.0 2.1 2.4 8.4 2.3 3.5 2.9Gross0profit0$ 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
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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!!
$0.0!
$1.0!
$2.0!
$3.0!
$4.0!
$5.0!
$6.0!
$7.0!
$8.0!
$9.0!
Q2! Q3! Q4! Q1! Q2! Q3!
FY!2015!
Billings! Non9GAAP!recurring!revenue! Deferred!revenue!
$M FY 2014
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*CONFIDENTIAL*
Market compares
Medium-growth, enterprise SaaS company valuations:
Company Solution
Qtrly/Rev/Growth/(Yr/Yr)
Operating/Margin/(TTM) EV/Rev
Callidus Sales*performance*management*software 26% 87% 5.0Cvent Meeting*management*software 28% 0% 6.8Ultimate*Software HR*management*software 21% 11% 10.0Demandware eCommerce*platform 41% 816% 12.4Paycom*Software Payroll*and*HR*software 45% 10% 11.2SPS*Commerce Supply*chain*management*software 28% 4% 7.0LogMeIn Remote*desktop*software 33% 4% 6.0
Average 32% 1% 8.3
Selectica CLM/and/supply/management/software 52% M81% 2.5
Company Solution
Qtrly/Rev/Growth/(Yr/Yr)
Operating/Margin/(TTM) EV/Rev
Callidus Sales*performance*management*software 26% 87% 5.0Cvent Meeting*management*software 28% 0% 6.8Ultimate*Software HR*management*software 21% 11% 10.0Demandware eCommerce*platform 41% 816% 12.4Paycom*Software Payroll*and*HR*software 45% 10% 11.2SPS*Commerce Supply*chain*management*software 28% 4% 7.0LogMeIn Remote*desktop*software 33% 4% 6.0
Average 32% 1% 8.3
Selectica CLM/and/supply/management/software 52% M81% 2.5
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Profit margin trends
50%$
46%$
32%$
40%$
47%$
57%$
30%$
35%$
40%$
45%$
50%$
55%$
60%$
$1.0$
$1.5$
$2.0$
$2.5$
$3.0$
$3.5$
$4.0$
Q2$ Q3$ Q4$ Q1$ Q2$ Q3$
FY$2015$
Non3GAAP$gross$profit$ Non3GAAP$gross$profit$%$
FY 2014 $M
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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
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*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
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*CONFIDENTIAL*
Reasons to Invest
Clear path to profitability and
scale
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
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THANK YOU
