GTY Technology Holdings Inc A — GTY Technology Holdings — Needham Growth Conference 2020
18 slides from GTY Technology Holdings Inc A's conference presentation, Jan 14, 2020
Slide 1: GTY Technology: Preeminent SaaS Solution Provider to the North American Public Sector
GTY Technology The preeminent SaaS Solution Provider to the North American Public Sector Steve Rohleder, Chairman and CEO John Curran, CFO Needham Growth Conference January 14, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes “forward - looking statements” within the meaning of the “safe harbor” provisions of the Private Securi ties Litigation Reform Act of 1995. The company’s actual results may differ from its expectations, estimates and projections and, con sequentl
Slide 3: Opportunity: Digitizing State & Local Government
OPPORTUNITY: DIGITIZING STATE & LOCAL GOVERNMENT Drivers of Change: 1. Citizen demand for a modern, user - friendly, digital experience. 2. Demographics of a retiring workforce replaced by the digital native workforce. 3. Availability of technical solutions and business models that are friendly to t
Slide 4: The Problem: Government Software Today
The Problem: Government Software Today A local government operates like dozens of separate businesses. Each agency has its own technology and means of engaging the public. Lost Funding Opportunities and Isolated Purchasing Decisions Multiple citizen engagement points = poor customer satisfaction, hi
Slide 5: Who is GTY Technology
Who is GTY Technology • Native SaaS/Cloud software company targeting North American State & Local Governments • High growth, highly recurring revenue business model • Serving a large, highly fragmented and underpenetrated market from a position of trust • Best of breed product solutions complimentin
Slide 6: GTY's Best of Breed Solutions
Staff 1 2 3 4 5 Permitting Grants Management Budgeting & Planning Payments Procurement Guides applicants through the process of applying for permits and helps city staff to process incoming applications more efficiently. Payment technology exclusively for government and utilities. The secure, cloud
Slide 7: Marketing and Sales Strategy
Direct Sales Force • Enterprise • Mid - Market MARKETING AND SALES STRATEGY $18B Applications and vertical specific software (1) (1) Source: Gartner – Local & Regional Government and Primary & Secondary Education spending on applications and vertical specific software Partner Ecosystem • Technology
Slide 8: GTY Technology Leadership Team
GTY Technology Leadership Team Corry Flatt Procurement Public Sector Experience: 10 Years Michael Duffy Payments Public Sector Experience: 6 Years James Ha Grants Management Public Sector Experience: 10 Years TJ Parass Budgeting & Transparency Public Sector Experience: 17 Years David Farrell Budgeti
Slide 9: Key Value Drivers for 2020
Key Value Drivers for 2020 Performance Improvement in Key Performance Metrics Value Driver Impact Exceptional Client Service High customer satisfaction and low churn Go - To - Market Sales productivity and revenue growth Always - On Innovation N ew Product Development Operational Efficiency Being on
Slide 10: Native SaaS Model: Recurring, Sticky, Operating vs Capital
Recurring, Sticky, Operating vs Capital NATIVE SAAS MODEL Satisfied customers result in a stable recurring revenue base. Subscription and Transaction Revenue Service Revenue Subscription and Transaction Revenue Service Revenue New Subscription Time High Satisfaction = Low Churn Excellent products in
Slide 11: Track Record of Growth
Track Record of Growth $6.8 $6.6 $7.6 $8.7 $8.8 $9.9 $9.8 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Q1 2018 (P) Q2 2018 (P) Q3 2018 (P) Q4 2018 (P) Q1 2019 (P) Q2 2019 Q3 2019 Millions Non - GAAP Revenue (1) Revenue for the first 9 months of 2019 grew by 36% when compared to the first 9 months of 2018 (1
Slide 12: 2020 Outlook
2020 Outlook Major Headlines • Non - GAAP revenues to be between $57M and $63M (1) • Growing subscription base with ARR growing faster than revenue • Operating leverage as we scale • Improving EBITDA and Free Cash Flow performance (1) 2020 values are based on Company estimates. See appendix for GAAP
Slide 13: Year in Review
Year in Review THE STORIES GTY Momentum Strong Customer Demand • Enterprise wins in budget space • Market momentum with FundMax #6 Read the Full Story -https://www.govtech.com/biz/GTY-Completes-6-Company-Gov-Tech-Merger-Trades-on-Nasdaq.html Expansion of Partner Ecosystem • Strong interest from both
Slide 14: Summary: Demand, Trusted Partner, Multi-Channel Go-To-Market
• Demand growing for Digitization of the North America Public Sector market • Trusted partner providing best of breed point solutions using a native SaaS model • Multi - Channel Go - To - Market Strategy 14
Slide 15: Appendix
Appendix 15
Slide 16: Presentation of Predecessor and Successor Revenue Results
Presentation of Predecessor and Successor Revenue Results As a result of the business combination on February 18, 2019, GTY is the acquirer for accounting purposes and Bonfire, CityBase , eCivis , Open Counter, Questica , and Sherpa are the acquirees and accounting predecessor. The company’s financi
Slide 17: GAAP and non-GAAP Historical Revenues by Quarter
GAAP and non - GAAP Historical Revenues by Quarter Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Revenues – Predecessor Period $6.8 $6.6 $7.6 $8.7 $4.9 - - Revenues – Successor Period - - - - $3.0 $8.2 $8.8 Pro forma as Adjusted Revenues $6.8 $6.6 $7.6 $8.7 $7.9 $8.2 $8.8 Purchase accounti
Slide 18: GAAP to non-GAAP reconciliation for FY2020
GAAP to non - GAAP reconciliation for FY2020 Low High GAAP revenue estimate FY2020 $56M $62M Purchase accounting adjustment to revenue FY2020 $1M $1M Non - GAAP revenue estimate FY2020 $57M $63M 18
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