![]() © Exa Corporation. All rights reserved. Investor Presentation April 2015 1 Exhibit 99.1 |
![]() Safe Harbor Statement 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, 2015, as filed with the SEC on March 24, 2015. 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. © Exa Corporation. All rights reserved. 2 |
![]() Overview and Key Investment Highlights Highly-Visible, Consumption-based Licensing Model Proprietary, Market Leading Technology Growing Multi-billion Dollar Market Opportunity in Transportation Alone Tangible, Immediate Value Proposition Experienced Management Team, 300+ employees worldwide Top-tier Global Customers, 125+, 14 of 15 passenger vehicle manufacturers 10 years revenue growth, 5 years positive Adjusted EBITDA Leading Provider of Software that Enables Simulation-Driven Product Design Aerodynamics Thermal Acoustics © Exa Corporation. All rights reserved. 3 |
![]() Oil & Gas Ground Transportation Passenger Automobile Heavy Vehicle highway Heavy Vehicle off-road Machinery Aerospace Market by Sectors © Exa Corporation. All rights reserved. 4 |
![]() Transportation Market Requirements Aerodynamics Faster Turnaround Time Weight Reduction Fewer Prototypes Increased Automation New Powertrains Efficiency² Simulation-based Design Source: EPA (1) The United States passenger car and light truck CAFE standard continues to rise to 56.2 MPG by 2025 (1) © Exa Corporation. All rights reserved. 5 0 10 20 30 40 50 60 1975 1985 1995 2005 2015 2025 U.S. CAFE |
![]() Traditional vs. Exa‘s Vehicle Development Process Proprietary Algorithms Geometric Complexity Accurate Results Months Brute-force approach Expensive ($bn), cumbersome & time-consuming Traditional Exa © Exa Corporation. All rights reserved. 6 Days |
![]() © Exa Corporation. All rights reserved. 7 Passenger Vehicle Truck & Off-Highway Supplier/Other Aerospace Global Customer Base |
![]() Customer Engagement Model Annual Annual Renewals Renewals Deeper Deeper Deployment Deployment Upgrades Upgrades New New Applications Applications Capacity-Based Capacity-Based Licensing Licensing OnDemand OnDemand or On Premise or On Premise © Exa Corporation. All rights reserved. 8 |
![]() PowerFLOW Product Suite Simulation Preparation (User-based License) Simulation 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 PowerINSIGHT ™ Streamline & automate the results generation, analysis, and reporting process PowerVIZ ® Analyze results and flow structures with interactive 3D data visualization, movies, & graphs PowerTHERM ® Fully-coupled 3D conduction & radiation solver PowerCOOL ® Fully-coupled cooling system model PowerCASE ™ Set up simulation case parameters & boundary conditions PowerCLAY ® Morph mesh real-time for rapid design iteration & optimization PowerACOUSTICS ® Analyze and predict acoustic noise transmission to the interior Simulation Analysis (User-based License) (Consumption-based License) © Exa Corporation. All rights reserved. 9 Design Iterations |
![]() Highest Degree of Simulation Accuracy Deep Domain Expertise Faster Turnaround Time Return on Investment Differentiated Go-to-market Strategy Why We Win © Exa Corporation. All rights reserved. 10 |
![]() Growth Strategy • Migrating from physical to digital-based approaches Penetrate New Geographies Enable Additional Applications & Solutions Add New Customers in Ground Transportation Explore New Verticals Deepen Existing Customer Base Selectively Pursue Acquisitions • 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 © Exa Corporation. All rights reserved. 11 |
![]() Recent News Highlights FY 15 Revenue Growth +15% PowerFLOW 5.1 released in Q3 Jaguar XE Paris Auto Show launch ExaCloud launched Q3 © Exa Corporation. All rights reserved. 12 3 Consecutive quarters in 15-20% cc target range (Q2-15%, Q3-16%, Q4-18%) |
![]() Key Financial Highlights Strong, Consistent Revenue Growth Attractive Long-term Model Recurring & Predictable Business Model © Exa Corporation. All rights reserved. 13 |
![]() Consistent Revenue Growth © Exa Corporation. All rights reserved. 14 Note: We changed from a December 31 calendar year-end to a January 31st fiscal year-end at the end of December 2006. 12.8 16.3 20.3 28.0 34.1 35.6 37.9 45.9 48.9 54.5 61.4 FY' 05 FY' 06 FY' 07 FY' 08 FY' 09 FY' 10 FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 Revenue ($M) |
![]() 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. History of Profitability Adjusted EBITDA FYE Jan 31 (in millions) Adjusted EBITDA Margin FYE Jan 31 © Exa Corporation. All rights reserved. 15 |
![]() 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 Highly Recurring & Predictable Model Revenue Visibility FY15 © Exa Corporation. All rights reserved. 16 |
![]() Revenue Mix Note: Data as of FY 2015 © Exa Corporation. All rights reserved. 17 |
![]() Managing business with focus on increasing revenue growth rate while maintaining positive Adjusted EBITDA Continue to invest in Customer facing resources to deepen installed base penetration and Sales team to deepen existing customer penetration and add new customers Invest in additional applications & solutions and automation to deepen penetration at existing customers Expand into other verticals including Aerospace and Oil & Gas Target Model © Exa Corporation. All rights reserved. 18 |
![]() Appendix © Exa Corporation. All rights reserved. |
![]() *See Appendix Key Financial Metrics © Exa Corporation. All rights reserved. 20 FY 11 FY 12 FY 13 FY 14 FY 15 1Q FY15 2Q FY15 3Q FY15 4Q FY15 Revenue License 30.6 $ 38.8 $ 41.2 $ 44.6 $ 49.7 $ 11.7 $ 12.3 $ 12.9 $ 12.9 $ Project 7.3 7.1 7.7 9.9 11.7 2.1 2.5 3.1 4.0 Total Revenue 37.9 $ 45.9 $ 48.9 $ 54.5 $ 61.4 $ 13.8 $ 14.8 $ 16.0 $ 16.9 $ Revenue Growth (vs. same period of prior year) 6% 21% 6% 12% 13% 10% 17% 13% 11% Revenue Growth at Constant Currency (at FY14 fx rates) 15% 10% 15% 16% 18% Operating Expenses Cost of Revenues 9.9 $ 12.1 $ 14.1 $ 16.0 $ 18.9 $ 4.6 $ 4.7 $ 4.6 $ 5.1 $ Sales & Marketing 6.1 6.2 7.1 9.5 10.7 2.6 2.5 2.4 3.2 Research & Development 12.8 14.5 16.7 18.2 21.8 5.1 5.4 5.4 5.8 General & Administrative 6.0 8.1 9.0 10.9 12.5 3.1 3.2 3.2 3.0 Total Operating Expenses 34.8 $ 40.9 $ 46.9 $ 54.6 $ 63.9 $ 15.4 $ 15.8 $ 15.6 $ 17.1 $ Non-GAAP Operating Income/(Loss)* 3.4 $ 5.7 $ 3.3 $ 1.4 $ 0.1 $ (1.2) $ (0.3) $ 0.9 $ 0.7 $ Adj. EBITDA* 4.8 $ 7.2 $ 4.9 $ 3.3 $ 2.7 $ (0.6) $ 0.3 $ 1.6 $ 1.4 $ |
![]() Adjusted EBITDA and Non-GAAP Operating Income – Definitions and Reconciliations © Exa Corporation. All rights reserved. 21 Non-GAAP Operating Income April 30, July 31, October 31, January 31, (In thousands) 2011 2012 2013 2014 2015 2014 2014 2014 2015 Operating income (loss) 3,116 $ 5,035 $ 1,960 $ (122) $ (2,447) $ (1,617) $ (919) $ 321 $ (232) $ Add back: Stock based compensation expense 281 636 924 1,210 2,230 370 500 533 827 Amortization of acquired intangible assets 0 65 383 351 350 87 88 88 87 Non-GAAP operating income 3,397 $ 5,736 $ 3,267 $ 1,439 $ 133 $ (1,160) $ (331) $ 942 $ 682 $ Adjusted EBITDA Reconciliation April 30, July 31, October 31, January 31, (In thousands) 2011 2012 2013 2014 2015 2014 2014 2014 2015 Net (loss) Income 691 $ 14,138 $ 763 $ (709) $ (19,157) $ (17,220) $ (1,009) $ 220 $ (1,148) $ Depreciation and amortization 1,356 1,502 2,009 2,185 2,917 663 731 763 760 Interest expense, net 1,411 1,284 1,631 679 330 79 92 85 74 Loss on extinguishment of debt 0 0 0 755 0 0 0 0 0 Other (income) expense (10) 213 (529) (10) (7) 0 (3) (4) 0 Foreign exchange loss (gain) 198 106 (17) 83 (344) 44 (175) (194) (19) Provision for income tax 826 (10,706) 112 (920) 16,731 15,480 176 214 861 EBITDA 4,472 6,537 3,969 2,063 470 (954) (188) 1,084 528 281 636 924 1,210 2,230 370 500 533 827 Adjusted EBITDA 4,753 $ 7,173 $ 4,893 $ 3,273 $ 2,700 $ (584) $ 312 $ 1,617 $ 1,355 $ Year Ended January 31, Non-cash, share based compensation expense Three Months Ended Three Months Ended Year Ended January 31, To supplement our consolidated financial statements, which are presented on a GAAP basis, we disclose Non-GAAP Operating (Loss) 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 (Loss) Income and Adjusted EBITDA are GAAP (loss) income from operations and GAAP net (loss) income, respectively. Reconciliations of these non-GAAP financial measures to the corresponding GAAP measures are included above. We define non-GAAP operating (loss) income as GAAP operating (loss) income excluding non-cash, stock-based compensation expense and amortization of acquired intangible assets. We define EBITDA as net (loss) income, 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 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 The Results 265 mile range – due to Cd = 0.24 0.32 0.27 0.24 Reduced wind noise © Exa Corporation. All rights reserved. 22 |
![]() 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 © Exa Corporation. All rights reserved. 23 The Results Thermal Mgmt & Aerodynamic prototypes eliminated prior to production tooling release Further elimination opportunities for Aeroacoustics & water mgmt in development |
![]() Customer Case Studies 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 © Exa Corporation. All rights reserved. 24 |
![]() Ground Transportation Applications © Exa Corporation. All rights reserved. 25 |