![]() © Exa Corporation Confidential Investor Presentation Investor Presentation April 2014 April 2014 Exhibit 99.1 |
![]() Safe Harbor Statement © Exa Corporation Confidential 2 Today’s presentation includes forward-looking statements intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995.These forward-looking statements, including statements regarding our financial expectations, demand for our solutions and growth in our markets, are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by our forward-looking statements. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K for the year ended January 31, 2014, as filed with the SEC on March 26, 2014. Forward-looking information in this presentation represents our outlook as of today, and we do not undertake any obligation to update these forward-looking statements. During today's presentation we may refer to our Adjusted EBITDA. This is a non- GAAP financial measure that has been adjusted for certain non-cash and other items, and that is not computed in accordance with generally accepted accounting principles. The GAAP measure most comparable to Adjusted EBITDA is our net income (loss). A reconciliation of our historical Adjusted EBITDA to our net income (loss) is included in our Form 10-K filed with the SEC. . |
![]() Company Overview 125+ 14 of the top 15 passenger vehicle manufacturers EBITDA positive past 5 years Highly recurring and visible business model Employees 10 HQ in Burlington, MA Detroit, Japan, Germany, Korea, France, China 3 © Exa Corporation Confidential Aerodynamics Thermal Acoustics Leading Provider of Software that Enables Simulation-Driven Product Design Years of Revenue Growth Customers Global Offices 250+ 10+ |
![]() Key Investment Highlights © Exa Corporation Confidential 4 Proprietary, Market Leading Technology Proprietary, Market Leading Technology Tangible, Immediate Value Proposition Tangible, Immediate Value Proposition Growing Multi-billion Dollar Market Growing Multi-billion Dollar Market Opportunity in Transportation Alone Opportunity in Transportation Alone Top-tier Global Customers Top-tier Global Customers Highly-Visible, Consumption-based Highly-Visible, Consumption-based Licensing Model Licensing Model Experienced Management Team Experienced Management Team |
![]() Transportation Market Requirements © Exa Corporation. All rights reserved. 5 Source: EPA (1) The United States passenger car and light truck CAFE standard continues to rise to 56.2 MPG by 2025 (1) 0 10 20 30 40 50 60 1975 1985 1995 2005 2015 2025 U.S. CAFE Simulation-based Simulation-based Design Design Aerodynamics Aerodynamics Weight Reduction Weight Reduction New Powertrains New Powertrains Fewer Prototypes Fewer Prototypes Increased Automation Increased Automation Faster Turnaround Faster Turnaround Time Time |
![]() Traditional Development Process © Exa Corporation. All rights reserved. 6 Months Brute-force Brute-force approach approach Expensive ($bn), Expensive ($bn), cumbersome cumbersome & time-consuming & time-consuming |
![]() © Exa Corporation. All rights reserved. 7 Days Proprietary Algorithms Geometric Complexity Accurate Results Exa‘s Vehicle Development Process |
![]() Global Customer Base © Exa Corporation. All rights reserved. 8 |
![]() How Tesla Uses Exa’s PowerFLOW The Problem Develop brand new zero emissions sedan 5+2 passengers World class design & performance Long driving range on a single charge 9 © Exa Corporation Confidential The Results 265 mile range – due to Cd = 0.24 0.32 0.27 0.24 Reduced wind noise |
![]() Customer Case Studies 10 © Exa Corporation. All rights reserved. The Challenge Meet EPA Tier IV emissions standards Increasing heat rejection Requiring increased cooling Meet New Noise Regulations Improve Fuel Efficiency The Results Cooling package met cooling targets Reduced Fan noise by 3+ dBA Reduced HP consumption by 25+ HP |
![]() Customer Engagement Model © Exa Corporation Confidential 11 Annual Annual Renewals Renewals Deeper Deeper Deployment Deployment Upgrades Upgrades New New Applications Applications Capacity-Based Licensing Capacity-Based Licensing OnDemand OnDemand or On Premise or On Premise |
![]() PowerFLOW Product Suite Design Iterations Design Iterations 12 © Exa Corporation Confidential Simulation Preparation (User-based License) (Consumption-based License) Simulation Simulation Analysis (User-based License) PowerDELTA ® Import, sort and organize CAD model Apply parametric mesh features Generate surface meshes & check quality PowerFLOW ® Automatic fluid discretization Automatic multi-processor parallelized simulation ~80% of license revenue PowerCASE ™ Set up simulation case parameters & boundary conditions PowerCLAY ® Morph mesh real-time for rapid design iteration & optimization PowerTHERM ® Fully-coupled 3D conduction & radiation solver PowerCOOL ® Fully-coupled cooling system model PowerINSIGHT ™ Streamline & automate the results generation, analysis, and reporting process PowerVIZ ® Analyze results and flow structures with interactive 3D data visualization, movies, & graphs PowerACOUSTICS ® Analyze and predict acoustic noise transmission to the interior |
![]() © Exa Corporation Confidential 13 Why We Win Highest Degree of Simulation Accuracy Highest Degree of Simulation Accuracy Faster Turnaround Time Faster Turnaround Time Deep Domain Expertise Deep Domain Expertise Return on Investment Return on Investment Differentiated Go-to-market Strategy Differentiated Go-to-market Strategy |
![]() Growth Strategy © Exa Corporation Confidential 14 • Migrating from physical to digital- based approaches • Identify new applications to address customer needs • Significantly underpenetrated • Adjacent markets • Expanding presence in BRIC • Core technology is extendable to Aerospace, Oil & Gas and Power Generation among others • Complementary businesses & technologies Deepen Existing Customer Base Enable Additional Applications & Solutions Add New Customers in Ground Transportation Penetrate New Geographies Explore New Verticals Selectively Pursue Acquisitions |
![]() Key Financial Highlights © Exa Corporation Confidential 15 Strong, Consistent Revenue Growth Strong, Consistent Revenue Growth Recurring & Predictable Business Model Recurring & Predictable Business Model Profitable & Cash Flow Positive Profitable & Cash Flow Positive Attractive Long-term Model Attractive Long-term Model |
![]() Consistent Revenue Growth © Exa Corporation Confidential 16 Note: We changed from a December 31 calendar year-end to a January 31st fiscal year-end at the end of December 2006. Revenue ($M) |
![]() History of Profitability 17 © Exa Corporation Confidential Adjusted EBITDA FYE Jan 31 (in millions) Adjusted EBITDA Margin FYE Jan 31 Note: Please see Appendix for detailed definition and reconciliation of Adjusted EBITDA to the comparable GAAP financial measure of net income (loss). We define EBITDA as net income (loss), excluding depreciation and amortization, interest expense, loss on extinguishment of debt, other income (expense), foreign exchange gain (loss) and provision for income taxes. We define Adjusted EBITDA as EBITDA, excluding non-cash share-based compensation expense. |
![]() 60%+ of our annual revenue was attributable to contracts in place at the beginning of the fiscal year Annual consumption-based licenses Increased consumption of simulation capacity drives growth Delivered on-premise or on-demand Ratable revenue recognition Project revenue is primarily derived from simulation capacity 18 © Exa Corporation Confidential Highly Recurring & Predictable Model Revenue Visibility FY14 |
![]() © Exa Corporation Confidential 19 Revenue Mix Note: Data as of FY 2014 |
![]() Managing business with focus on increasing revenue growth rate while maintaining positive Adjusted EBITDA Continue to invest in Sales team to deepen existing customer penetration and add new customers Invest in additional applications & solutions to deepen penetration at existing customers Expand into other verticals including Aerospace and Oil & Gas 20 © Exa Corporation. All rights reserved. Target Model |
![]() Appendix © Exa Corporation Confidential |
![]() © Exa Corporation Confidential 22 *See Appendix Key Financial Metrics FY11 FY12 FY13 FY14 Revenue License $30.6 $38.8 $41.2 $44.6 Project 7.3 7.2 7.7 9.9 Total Revenue $37.9 $45.9 $48.9 $54.5 Revenue Growth 6% 21% 6% 12% Operating Expenses Cost of Revenues $9.9 $12.1 $14.2 $16.0 Sales & Marketing 6.1 6.2 7.1 9.5 Research & Development 12.8 14.5 16.7 18.2 General & Administrative 6.0 8.1 9.0 10.9 Total Operating Expenses $34.8 $40.9 $47.0 $54.6 Non-GAAP Operating Income* $3.4 $5.7 $3.3 $1.4 Adj. EBITDA* $4.8 $7.2 $4.9 $3.3 |
![]() Adjusted EBITDA and Non-GAAP Operating Income – Definitions and Reconciliations 23 © Exa Corporation. All rights reserved. Non-GAAP Operating Income (In thousands) 2011 2012 2013 2014 Operating (loss) income 3,116 $ 5,035 $ 1,960 $ (122) $ Add back: Stock based compensation expense 281 636 924 1,210 Amortization of acquired intangible assets 0 65 383 351 Non-GAAP operating income 3,397 $ 5,736 $ 3,267 $ 1,439 $ Adjusted EBITDA Reconciliation (In thousands) 2011 2012 2013 2014 Net (loss) Income 691 $ 14,138 $ 763 $ (709) $ Depreciation and amortization 1,356 1,502 2,009 2,185 Interest expense, net 1,411 1,284 1,631 679 Loss on extinguishment of debt 0 0 0 755 Other (income) expense (10) 213 (529) (10) Foreign exchange loss (gain) 198 106 (17) 83 Provision for income tax 826 (10,706) 112 (920) EBITDA 4,472 6,537 3,969 2,063 281 636 924 1,210 Adjusted EBITDA 4,753 $ 7,173 $ 4,893 $ 3,273 $ Year Ended January 31, Year Ended January 31, Non-cash, share based compensation expense To supplement our consolidated financial statements, which are presented on a GAAP basis, we disclose Non-GAAP Operating Income and Adjusted EBITDA, non-GAAP measures that exclude certain amounts. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The GAAP measures most comparable to Non-GAAP Operating Income and Adjusted EBITDA are GAAP income from operations and GAAP net income (loss), respectively. Reconciliations of these non-GAAP financial measures to the corresponding GAAP measures are included above. We define non-GAAP operating income as GAAP operating income excluding non-cash, stock-based compensation expense and amortization of acquired intangible assets. We define EBITDA as net income (loss), excluding depreciation and amortization, interest expense, loss on extinguishment of debt, other income (expense), foreign exchange gain (loss) and provision for income taxes. We define Adjusted EBITDA as EBITDA, excluding non-cash share-based compensation expense. Note: |
![]() How JLR Uses Exa’s PowerFLOW The Problem Reduce joint fleet CO2 to meet global emissions target by 2020+ Portfolio Diversification Reduce cost of prototypes Enable digital sign-off 24 © Exa Corporation Confidential The Results Thermal Mgmt & Aerodynamic prototypes eliminated prior to production tooling release Further elimination opportunities for Aeroacoustics & water mgmt in development |
![]() Customer Case Studies 25 © Exa Corporation. All rights reserved. The Problem Demand for more fuel efficient trucks Top buying requirement The Results 24% reduction in aerodynamic drag 12% improvement in fuel economy ~$5,600 annual fuel savings per vehicle |
![]() Customer Case Studies – Trailer Devices 26 © Exa Corporation. All rights reserved. |
![]() Ground Transportation Applications © Exa Corporation Confidential 27 |