EX-99.1 2 d908116dex991.htm EX-99.1 EX-99.1
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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.
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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
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Oil & Gas
Ground Transportation
Passenger Automobile
Heavy Vehicle highway
Heavy Vehicle off-road
Machinery
Aerospace
Market by Sectors
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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)
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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
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Days


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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
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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)
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Design Iterations


Highest Degree of Simulation
Accuracy
Deep Domain Expertise
Faster Turnaround Time
Return on Investment
Differentiated Go-to-market Strategy
Why We Win
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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
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Recent News Highlights
FY 15 Revenue Growth +15% 
PowerFLOW 5.1 released in Q3
Jaguar XE Paris Auto Show launch
ExaCloud launched Q3
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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
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Consistent Revenue Growth
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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
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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
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Revenue Mix
Note: Data as of FY 2015
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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
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Appendix
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Exa Corporation. All rights reserved.


*See Appendix
Key Financial Metrics
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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
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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
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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
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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
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24


Ground Transportation Applications
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