SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 8, 2013
EXA CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware | 001-35584 | 04-3139906 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
55 Network Drive, Burlington, Massachusetts 01803
(Address of principal executive offices) (Zip Code)
(781) 564-0200
(Registrants telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below).
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01 | Regulation FD Disclosure. |
A copy of the Companys current investor presentation is attached to this Current Report on Form 8-K as Exhibit 99.1. A copy of the investor presentation is also available on the Companys website.
In accordance with General Instruction B.2 of Form 8-K, the information contained in Item 7.01 of this Current Report on Form 8-K, including the Exhibit attached hereto, shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 7.01 of this Current Report on Form 8-K shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits.
99.1 | Investor Presentation |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
EXA CORPORATION | ||
By: | /s/ Stephen P. Sarno | |
Stephen P. Sarno | ||
Vice President of Finance and Chief Accounting Officer |
Date: July 8, 2013
3
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Investor Presentation |
4
©
Exa Corporation Confidential
Investor Presentation
July 2013
Exhibit 99.1 |
Safe
Harbor Statement ©
Exa Corporation Confidential
2
Todays 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, 2013, as filed with the SEC on April 9,
2013. 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
Leading Provider of Software that Enables
Simulation-Driven Product Design
Vehicle
Manufacturers
as Customers
90+
14 of the top 15 passenger
vehicle manufacturers
240+
Years of
Revenue Growth
10+
EBITDA positive past 3 years
Highly recurring and visible
business model
Employees
Global
Offices
10
HQ in Burlington, MA
Detroit, Japan, Germany,
Korea, France, China
3
©
Exa Corporation Confidential
Aerodynamics
Thermal Acoustics |
©
Exa Corporation Confidential
4
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
Top-tier Global Customers
Key Investment Highlights |
Transportation Market
Requirements ©
Exa Corporation. All rights reserved.
5
Aerodynamics
Aerodynamics
Faster Turnaround
Faster Turnaround
Time
Time
Weight Reduction
Weight Reduction
Fewer Prototypes
Fewer Prototypes
Increased
Increased
Automation
Automation
New Powertrains
New Powertrains
Efficiency2
Simulation-based
Simulation-based
Design
Design
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 |
Traditional Development Process
©
Exa Corporation. All rights reserved.
6
Expensive ($bn),
Expensive ($bn),
cumbersome
cumbersome
& time-consuming
& time-consuming
Brute-force
Brute-force
approach
approach |
Exas Vehicle Development Process
©
Exa Corporation. All rights reserved.
7
Days
Geometric Complexity
Accurate Results
Proprietary Algorithms |
Global Customer Base
©
Exa Corporation Confidential
8
Passenger Vehicle
Truck & Off-Highway
Supplier/Other
Aerospace |
How
JLR Uses Exas PowerFLOW The Problem
Reduce joint fleet CO2 to meet global
emissions target by 2020+
Portfolio Diversification
Reduce cost of prototypes
Enable digital sign-off
9
©
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
10
©
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 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 (Consumption-based License)
12
©
Exa Corporation Confidential
Simulation Preparation
(User-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
PowerINSIGHT
Streamline & automate the
results generation,
analysis, and reporting process
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
PowerACOUSTICS
®
Analyze and predict acoustic noise
transmission to the interior
PowerVIZ
®
Analyze results and flow structures
with interactive 3D data
visualization, movies, & graphs
Design Iterations |
©
Exa Corporation Confidential
13
Highest Degree of Simulation Accuracy
Deep Domain Expertise
Faster Turnaround Time
Return on Investment
Differentiated Go-to-market Strategy
Why We Win |
Growth Strategy
©
Exa Corporation Confidential
14
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 |
Key
Financial Highlights ©
Exa Corporation Confidential
15
Strong, Consistent Revenue Growth
Recurring & Predictable Business Model
Profitable & Cash Flow Positive
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. 8.0
12.8
16.3
20.3
28.0
34.1
35.6
37.9
45.9
48.9
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Revenue ($M) |
History of Profitability
17
©
Exa Corporation Confidential
Adjusted EBITDA Margin
Adjusted EBITDA ($M)
FYE Jan 31
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, 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
Note: We compute our license revenue renewal rate for any fiscal
year by identifying the customers from whom we derived license revenue in the prior fiscal
year and dividing the dollar amount of license revenue that we receive in the current
fiscal year from those customers by the dollar amount of license revenue we received
from them in the prior fiscal year. Revenue Visibility
FY13 |
©
Exa Corporation Confidential
19
Revenue Mix
Note: Data as of FY 2013 |
Managing
business with focus on revenue growth combined with steady improvement in Adjusted
EBITDA margin Continue to invest in Sales team to deepen existing customer
penetration and add new customers
Improve
margins
due
to
operating
leverage,
especially
in
R&D
and
G&A
Targeting long-term adjusted EBITDA margin in low to mid 20% range
20
©
Exa Corporation. All rights reserved.
Target Model |
Appendix
©
Exa Corporation Confidential |
©
Exa Corporation Confidential
22
*See Appendix
Key Financial Metrics
FY11
FY12
FY13
1Q14
Revenue
License
$30.6
$38.8
$41.2
$10.7
Project
7.3
7.2
7.7
1.8
Total Revenue
$37.9
$45.9
$48.9
$12.5
Revenue Growth
6%
21%
6%
11%
Operating Expenses
Cost of Revenues
9.9
12.1
14.2
3.7
Sales & Marketing
6.1
6.2
7.1
2.1
Research & Development
12.8
14.5
16.7
4.4
General & Administrative
6.0
8.1
9.0
2.8
Non
-GAAP Operating Income*
$3.4
$5.7
$3.3
($0.1)
Adj. EBITDA*
$4.8
$7.2
$4.9
$0.3 |
Note:
To supplement our consolidated financial statements, which are presented on a GAAP basis, we
disclose Non-GAAP Operating Income and Adjusted EBITDA, non-GAAP 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, and 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. Adjusted EBITDA and Non-GAAP Operating Income
Definitions and Reconciliations
23
©
Exa Corporation. All rights reserved.
Non-GAAP Operating Income
April 30,
July 31,
October 31,
January 31,
April 30,
(In thousands)
2011
2012
2013
2012
2012
2012
2013
2013
Operating (loss) income
3,116
$
5,035
$
1,960
$
373
$
887
$
891
$
(191)
$
(457)
$
Add back:
Stock based compensation expense
281
636
924
241
234
235
214
245
Amortization of acquired intangible assets
0
65
383
97
97
98
91
88
Non-GAAP operating income
3,397
$
5,736
$
3,267
$
711
$
1,218
$
1,224
$
114
$
(124)
$
Year Ended January 31,
Three Months Ended
Adjusted EBITDA Reconciliation
April 30,
July 31,
October 31,
January 31,
April 30,
(In thousands)
2011
2012
2013
2012
2012
2012
2012
2013
Net (loss) Income
691
$
14,138
$
763
$
62
$
882
$
159
$
(340)
$
(541)
$
Depreciation and amortization
1,356
1,502
2,009
409
423
489
688
496
Interest expense, net
1,411
1,284
1,631
412
409
402
408
377
Other (income) expense
(10)
213
(529)
(66)
(445)
(2)
(16)
(2)
Foreign exchange loss (gain)
198
106
(17)
0
(326)
115
194
(37)
Provision for income tax
826
(10,706)
112
(35)
367
217
(437)
(254)
EBITDA
4,472
6,537
3,969
782
1,310
1,380
497
39
281
636
924
241
234
235
214
245
Adjusted EBITDA
4,753
$
7,173
$
4,893
$
1,023
$
1,544
$
1,615
$
711
$
284
$
Year Ended January 31,
Non-cash, share based
compensation expense
Three Months Ended
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. |
Ground Transportation Applications
©
Exa Corporation Confidential
24 |
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