GTY Technology Holdings Inc A — GTY Technology Holdings — SPAC Merger (November 2018)
99 slides from GTY Technology Holdings Inc A's SPAC merger presentation, Nov 13, 2018
Slide 1: GTY Technology
| , Huu GTY TECHNOLOGY November 12, 2018
Slide 2: Important Information
Important Information This investor presentation (this “presentation”) is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of GTY Technology Holdings Inc. (the
Slide 3: Important Information (Cont'd) Forward-Looking Statements
Important Information (Cont’d) 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 and each Target’s actual results may differ from their expe
Slide 4: Transaction Overview
Transaction Overview • GTY Technology Holdings Inc. (NASDAQ: “GTYH”; “GTYHU”; “GTYHW”) has entered into definitive agreements to combine with Bonfire Interactive Ltd. (“Bonfire”); CityBase, Inc. (“CityBase”); eCivis, Inc. (“eCivis”); Open Counter Enterprises Inc. (“OpenCounter”); Questi ca Inc. (“Qu
Slide 5: 1. Executive Summary
1. Executive Summary 4
Slide 6: Today's Agenda
Today’s Agenda • What Are W e Doing? • Why Public Sector Now? • Financial Overview • Investment Highlights 5
Slide 7: What Are We Doing?
What Are We Doing? • GTY is creating a new wave SaaS/Cloud software company “ NewCo ” for North American State & Local Governments • Will serve 5 of the fastest growing IT opportunities in the market • Expected to be a high growth company (138% projected 2019 revenue growth over 2018 (pro forma)) wi
Slide 8: Why Public Sector Now?
Why Public Sector Now? • The d igital t ransformation journey has begun • Large market: $100bn+ state and local IT spending ( $30 - $40bn (1) of which is software) • Extremely fragmented – no company with more than 10% market share in key verticals (1) • Constituents increasingly demanding more of t
Slide 9: NewCo Vision: The Digital City Hall and Payments Platform
NewCo Vision: The Digital City Hall and Payments Platform Constituents Utilities Vendors SaaS/Cloud Budgeting Grants Management Procurement Permitting For Low Cost Operation and Data Gathering Resource Allocation & Planning Staff Day to Day Operation The Digital Town Hall Digitize Relationships, Wor
Slide 10: Current Industry State vs. The NewCo Solution
Current Industry State The NewCo Solution Payments Multiple businesses serving one client base for payments. There are 1,000+ constituent activities in a jurisdiction Digital services, web and mobile payments, and payment kiosks Regulation / Permitting Complexity leads to increased rates of noncompl
Slide 11: Digital Town Hall
Digital Town Hall Link to see all services and full capabilities Building the digital town hall of the future today, with an integrated suite of capabilities Services • Pay property taxes • Pay traffic / parking ticket • Apply for Homestead Deduction • View deduction application status • Request a p
Slide 12: Solving Future Problems Today for Our Client Base
Solving Future Problems Today for Our Client Base C loud - based collaborative eSourcing platform that helps procurement teams find, select, and manage suppliers Cloud - based grants management system for state, local, and tribal governments User - friendly software to guide applicants through compl
Slide 13: Wide Customer Base Across States, Cities, and Public Agencies
Wide Customer Base Across States, Cities, and Public Agencies Opportunities for Cross - Sell and Up - Sell to ~1,500 Existing Customers Procurement Payments Grants Management Regulation / Permitting Budgeting / Transparency Academia Public Healthcare School Districts Transit, Utilities, Other Other
Slide 14: NewCo Centers of Excellence
NewCo Centers of Excellence Denver, CO NewCo Projected 2019 Financials ARR: $86mm Revenue: $76mm Recurring Mix: 79% Revenue Growth: 138% Gross Margin: 72% EBIT Margin: (7%) UFCF Margin: (0%) Headcount (1) Employees: 338 R&D: 98 S&M: 84 San Francisco, CA Toronto, ON Chicago, IL Los Angeles, CA NewCo
Slide 15: NewCo Leadership
NewCo Leadership Stephen Rohleder Chairman and CEO Carter Glatt SVP, Corporate Development Harry You Chief Financial Officer Corry Flatt Michael Duffy James Ha Joel Mahoney TJ Parass David Farrell Procurement Grants Management Regulation/ Permitting Budgeting / Transparency Budgeting / Transparency
Slide 16: Experienced Board of Directors
Experienced Board of Directors High Quality Board of Directors with key experts to help realize the NewCo vision Bill Green Director Joe Tucci Director Harry You Director Randy Cowen Director Stephen Rohleder Chairman Paul Dacier Director Charles Wert Director • Previously served as CEO and Chairman
Slide 17: Baseline Consolidated NewCo Financial Forecast
Baseline Consolidated NewCo Financial Forecast Note: 2017 historical results are unaudited and were not prepared in accordance with GAAP. Actual audited GAAP results may differ materially. Forecast does not include any TopCo level G&A nor does it account for any potential adjustments to the capital
Slide 18: Annual Recurring Revenue Walk
Annual Recurring Revenue Walk $34 $37 $6 ($1) $11 $86 2018E ARR ARR from New Customers ARR from Upsell Lost ARR from Churn Assumed Synergies 2019E ARR Note: All figures represent projections that are unaudited and non - GAAP. Actual audited GAAP results may differ materially. Financial forecasts for
Slide 19: Cross-Selling Synergies Represent $110M+ Opportunity
Cross - Selling Synergies Represent $110M+ Opportunity Current ~1,500 Customer Base Immediate Cross - Sell Potential ~1,500 Customers ~6,800 Potential New Connections ~$16,500 Weighted Average Annual Contract Value (1) >$110 Million Cross - Sell Opportunity Cross - Sell Opportunity Sources Other 2%
Slide 20: Overview of Business Unit KPI Metrics – 2018E
Overview of Business Unit KPI Metrics – 2018E Note: Financial forecasts for 2018 were prepared using unaudited, non - GAAP historical information and may change upon the completion of the audit. See “Important Information” on pages 1 - 2. 1) Impacted by transition to higher - ACV customer base – exp
Slide 21: Capital Can Create Significant Upside Beyond Baseline Plan
Capital Can Create Significant Upside Beyond Baseline Plan Platform Expansion 8 6 % Total Implied IRR and $6.3bn incremental enterprise value (1) from future growth initiatives 1 Note: Illustrative framework. Does not imply actual projections. IRR calculated as incremental enterprise value in Year 7
Slide 22: Summary Investment Highlights
Summary Investment Highlights Attractive market with key secular tailwinds • $30 - $40 billion (1) of underpenetrated and fragmented state and local government software market opportunity in North A merica • Public sector software is anchored in legacy systems, with 95% of IT budgets spent on on - p
Slide 23: 2. Attractive Market with Secular Tailwinds
2 . Attractive Market with Secular Tailwinds 22
Slide 24: The Complex Layers of Government
The Complex Layers of Government INFORMATION INFORMATION CHANNELS CHANNELS ACTION ACTION AGENCIES (40+) AGENCIES (40 +) ORDINANCES ORDINANCES WEBSITE WORD OF MOUTH AGENCY DATABASE AGENCY DATABASE AGENCY DATABASE SUBMIT REGISTER PAY APPLY PREVIOUS EXPERIENCE ORDINANCE ORDINANCE ORDINANCE ORDINANCE 23
Slide 25: Government Software Today
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 Inconsistent Customer Service and Slow Permitting Siloed Budgeting and Agency
Slide 26: State and Local Government Software is at an Inflection Point
State and Local Government Software i s at an Inflection Point… … Driven by secular tailwinds, technological innovations, and acceleration to the cloud, creating massive opportunities for new vendors. (1) Source : “Data Suggests One - Third of State IT Systems are Old and Broken,” Government Technol
Slide 27: GTY Investment Thesis
GTY Investment Thesis • Digital transformation, the next technological wave • Bringing cutting - edge technology to an underserved industry vertical • Legacy ERP and other systems are ripe for disruption and long overdue for a massive upgrade • The shift to the SaaS/Cloud is just beginning in many v
Slide 28: Massive and Expanding Market Opportunity
Massive and Expanding Market Opportunity 1. $500 California $322 2. $244 4. $229 New York $ 185 9. $161 Texas $144 15. $129 18. $122 22. $111 Pennsylvania $91 30. $90 New York City $89 Florida $86 Ohio $78 Illinois $75 Michigan $71 New Jersey $66 46. $63 Massachusetts $60 North Carolina $55 57. $53
Slide 29: The Time is Right…
The Time is Right… • One primary citizen interface • Unified technology • Shared repository of data • Streamlined workflow • Capitalize on new technologies to replace legacy • Legacy products use decades - old technology stacks; modern programming languages are better/faster/cheaper • Modern hosting
Slide 30: 3. Compelling Products and Synergies
3 . Compelling Products and Synergies 29
Slide 31: Summary Overview
Summary Overview Payments Regulation / Permitting Budgeting / Transparency Budgeting / Transparency Procurement Grants Management Year Founded 2013 2013 1998 2004 2012 2000 Location Chicago, IL San Francisco, CA Burlington, ON Denver, CO Waterloo, ON Pasadena, CA Number of Employees 81 13 79 12 102
Slide 32: Representative Customer Case Studies
The information we get about people going through the process has been invaluable . The backend analytics have been a benefit for us from a service delivery perspective, and it means we can be proactive in following up with users . — Erik Caldwell, Economic Development Director for San Diego City of
Slide 33: Representative Customer Case Studies (Cont'd)
State of Rhode Island Metropolitan Transportation Commission (San Francisco Bay Area) State of Arizona I mplemented budget software for operating, capital, and performance management P artnered with the MTC to enable easier and more powerful evaluation processes Provided the first comprehensive stat
Slide 34: NewCo Synergy Opportunities
NewCo Synergy Opportunities Expand customer base and penetration capitalizing on cross - selling opportunities • Each operating company can provide customer references and contacts representing 1,500+ existing customers, a $110mm+ cross - sell and large up - sell opportunity • Collaborative go - to
Slide 35: Go-To-Market and Technology Integration Plan
Go - To - Market and Technology Integration Plan First 100 Day P riorities • Implement back office functionality to supplement and support client services and operations and financial reporting • Establish “ Go - To - Market ” model in order to best position and accelerate the growth of SaaS/Cloud s
Slide 36: GTY Go-To-Market Goals
GTY Go - To - Market Goals Short - term : Focus on 138% growth for 2019E (meet and beat ) • Invest in additional sales reps across Business Units (“BUs ”) • Lightweight training for sales reps on BU products • “ If you see this opportunity, call this person and you will a receive a 50% bonus on the
Slide 37: Summary of Growth Strategy
Summary of Growth Strategy • Invest in sales and marketing to accelerate growth • Leverage GTY team’s extensive experience in enterprise software sales as states, large cities, and counties increasingly require a sales approach comparable to an enterprise account in the private sector with larger, m
Slide 38: 4. Financial Overview
4 . Financial Overview 37
Slide 39: Baseline Consolidated NewCo Financial Forecast
Baseline Consolidated NewCo Financial Forecast Note: 2017 historical results are unaudited and were not prepared in accordance with GAAP. Actual audited GAAP results may differ materially. Forecast does not include any TopCo level G&A nor does it account for any potential adjustments to the capital
Slide 40: Annual Recurring Revenue Walk
Annual Recurring Revenue Walk $34 $37 $6 ($1) $11 $86 2018E ARR ARR from New Customers ARR from Upsell Lost ARR from Churn Assumed Synergies 2019E ARR Note: All figures represent projections that are unaudited and non - GAAP. Actual audited GAAP results may differ materially. Financial forecasts for
Slide 41: Cross-Selling Synergies Represent $110M+ Opportunity
Cross - Selling Synergies Represent $110M+ Opportunity Current ~1,500 Customer Base Immediate Cross - Sell Potential ~1,500 Customers ~6,800 Potential New Connections ~$16,500 Weighted Average Annual Contract Value (1) >$110 Million Cross - Sell Opportunity Cross - Sell Opportunity Sources Other 2%
Slide 42: Standalone Operating Forecast By Business Unit: Revenue
Standalone Operating Forecast By Business Unit: Revenue Note : 2017 historical results are unaudited and were not prepared in accordance with GAAP. Actual audited GAAP results may differ materially. Financial forecasts for calendar years 2018 - 2021 were prepared using unaudited, non - GAAP historic
Slide 43: Revenue Breakdown (ex-Synergies)
Revenue Breakdown (ex - Synergies) Note: 2017 historical results are unaudited and were not prepared in accordance with GAAP. Actual audited GAAP results may di ffe r materially. Financial forecasts for calendar years 2018 - 2021 were prepared using unaudited, non - GAAP historical financial informa
Slide 44: Standalone Operating Forecast By Business Unit: ARR
Standalone Operating Forecast By Business Unit: ARR Note: 2017 historical results are unaudited and were not prepared in accordance with GAAP. Actual audited GAAP results may di ffe r materially. Financial forecasts for calendar years 2018 - 2021 were prepared using unaudited, non - GAAP historical
Slide 45: Standalone Operating Forecast By Business Unit: Gross Profit
Standalone Operating Forecast By Business Unit: Gross Profit Commentary • Procurement gross margin decrease in 2018 driven by increase in sales support staff to prepare for sales ramp in 2019 and bey ond , with increasing support efficiency expected to drive gross margin expansion in outer years • P
Slide 46: Overview of Business Unit KPI Metrics – 2018E
Overview of Business Unit KPI Metrics – 2018E Note: Financial forecasts for 2018 were prepared using unaudited, non - GAAP historical information and may change upon the completion of the audit. See “Important Information” on pages 1 - 2. 1) Impacted by transition to higher - ACV customer base – exp
Slide 47: Capital Can Create Significant Upside Beyond Baseline Plan
Capital Can Create Significant Upside Beyond Baseline Plan Platform Expansion 8 6 % Total Implied IRR and $6.3bn incremental enterprise value (1) from future growth initiatives 1 Note: Illustrative framework. Does not imply actual projections. IRR calculated as incremental enterprise value in Year 7
Slide 48: 5. Business Combination Overview
5. Business Combination Overview 47
Slide 49: GTY NewCo Cap Table
GTY NewCo Cap Table Note: Capital structure is illustrative and subject to change. (1) Cash used to pay selling shareholders, transaction fees, and warrantholders . Assumes, also, $30 million of cash placed on balance sheet. (2) Assumes shares issued at $10.00/share and no additional redemptions by
Slide 50: Significant Transaction Consideration in Long-Term Equity
• Significant existing shareholder ownership at the outset with ~1/3 of the initial consideration in equity with a one - year lock u p • Equity earn - out structured for achievement of growth and profitability performance metrics; potentially doubles existing shareholder initial equity stake • Stock
Slide 51: Projected Operating Metrics vs Peers
30% 38% 35% 20% 20% 20% NA 25% 22% 21% 21% 21% 20% 20% 20% 42% 35% 35% 31% 29% 23% 18% NewCo SQ TYL SHOP COUP PLAN EGOV NEWR PS DOCU ZS AYX SMAR ZUO MDB SSNC MDSO TWOU VEEV GWRE INST QTWO Median: 31% Median: 21% Median: 20% 27% (7%) 17% 3% 3% 1% (30%) 7% 4% (1%) (3%) (13%) (16%) (22%) (27%) 34% 32%
Slide 52: Projected Valuation at a Discount to Peers
0.1x 0.7x 0.5x 0.4x 0.4x 0.3x 0.2x 0.6x 0.5x 0.5x 0.5x 0.4x 0.3x 0.3x 0.3x 1.3x 0.8x 0.5x 0.4x 0.4x 0.2x 0.2x NewCo TYL COUP SQ PLAN SHOP EGOV ZS MDB AYX DOCU NEWR SMAR ZUO PS SSNC VEEV GWRE QTWO MDSO INST TWOU Median: 0.4x Median: 0.4x Median: 0.4x 7.1x 15.3x 13.9x 10.8x 9.3x 7.1x 2.2x 17.7x 15.1x
Slide 53: Projected Valuation at a Discount to Peers (Cont'd)
0.5x 3.6x 2.5x 2.5x 1.9x 1.7x 1.5x 3.9x 3.3x 3.0x 3.0x 2.3x 2.2x 1.9x 1.9x 4.0x 3.4x 3.0x 2.3x 1.4x 1.1x 0.6x NewCo COUP PLAN TYL SHOP EGOV SQ ZS MDB AYX DOCU SMAR ZUO NEWR PS SSNC VEEV QTWO GWRE MDSO INST TWOU Median: 2.3x Median: 2.6x Median: 2.2x 31.0x 91.5x 71.0x 58.3x 53.8x 26.7x 16.7x 110.9x 9
Slide 54: Recent Software IPOs vs. NewCo
8% 45% (70%) 20% 40% 80% 16% 25% 25% 75% (10%) 21% Revenue Growth 138% Gross Margin 72% Operating Margin (7%) Long - Term Target Margin 30%+ Sticky Vertical Software ✔ 1 / 16 Recent Software IPOs vs. NewCo NewCo (2019E) Recent Software IPOs Last Twelve Months CY+1 Metrics @ IPO = Median = NewCo Sour
Slide 55: Sponsor Summary
100% 300% 500% 700% 900% 2002 2005 2007 2009 2011 2014 2016 EMC S&P 500 0% 200% 400% 600% 800% 2001 2003 2005 2007 2009 2011 2013 ACN S&P 500 Sponsor Summary Source: Annual 10 - K filings of companies presented above, websites of companies presented above, Mergermarket, FactSet. • Institutional Inve
Slide 56: Opportunity Summary
Opportunity Summary ; Large and Underpenetrated Market Opportunity ; Disruptive Business with Recurring Revenue Base Growing 100%+ and Expected Profitability by End of 2019 (1) ; Experienced Management Team with History of Value Creation ; Sponsor Support from GTY Founders with Key Public and Enterp
Slide 57: Appendix: Profiles
Appendix: Profiles 56
Slide 58: A. Procurement (Bonfire)
A. Procurement (Bonfire) 57
Slide 59: Bonfire Overview and Product Overview
Product Overview ; Bonfire develops a cloud - based collaborative eSourcing platform that helps procurement teams find, select, and manage suppliers ; Solutions offered are used for RFQ, RFT and SOW evaluations , RFP and RFx evaluations, bid and tender evaluations, supplier qualifications, EOI and R
Slide 60: Moving Decision-Making into Cloud
Moving Decision - Making into Cloud Modern RFP, quote, bid & reverse auction process Rich collaboration pre/mid/post - decision Deep automated analysis, optimization & evaluation Predictive insights (coming soon) ; ; ; ; PROCUREMENT 59
Slide 61: Bonfire Uniquely Captures and Supercharges Decision-Making Workflow
Collect Analyze Decide Bonfire Uniquely Captures and Supercharges Decision - Making Workflow in One Place Scoring Reports & Analytics Instant scorecards, consensus tracking, real - time summaries Receive Rich Supplier Data Highly - structured files, data fields, Excel data Deep Analysis & Evaluation
Slide 62: Bonfire's Model is Unique in the Procurement Landscape
Bonfire’s Model is Unique in the Procurement Landscape Collaborative: How easily and deeply can internal stakeholders participate in the sourcing process at all stages? Decision Automation: How fully is the entire sourcing process captured online for all complexities + how deeply is analysis / evalu
Slide 63: Excellent Retention and Negative Net Churn
Excellent Retention and Negative Net Churn Client Retention (%) Net ARR Retention (%) Very Negative Churn <5% YoY Client Churn 100 116 177 197 221 100 120 140 160 180 200 220 240% Start Year 1 Year 2 Year 3 Year 4 100 95 96 96 100 80 85 90 95 100 105 110% Start Year 1 Year 2 Year 3 Year 4 62
Slide 64: Consistent ARR Growth
Consistent ARR Growth Ending ARR (USD$ in mm) ; $4mm ARR ; >200% YoY ARR growth for each of last 5 years ; Capital efficient growth since inception 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 $4.0 2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016-Q1 2016-Q2 2016-Q3 2016-Q4 2017-Q1 2017-Q2 201
Slide 65: Strong Unit Economics for Capital-Efficient Growth
Strong Unit Economics for Capital - Efficient Growth Bonfire’s s trong u nit e conomics p osition it for c apital - efficient g rowth $27k ACV Trailing 18 - months $272k LTV Trailing 18 - months 90 Day Sales Cycle Avg of Trailing 18 - months for New Clients >4x LTV:CAC 95% Pre - paid Annual Contract
Slide 66: B. Payments (CityBase)
B. Payments (CityBase) 65
Slide 67: CityBase Products and Key Statistics
Digital Services ; Digital forms that improve online processes and replace manual ones ; Automated workflows, staff dashboards, and case management technology Payments ; EMV, PCI Level - 1 compliant payment platform for web, mobile, kiosk, and POS channels ; Direct integration to underlying systems
Slide 68: The Problem CityBase Solves
The Problem CityBase Solves Local government can look like 50 businesses serving one customer base. Government has become a complex web of systems that is accelerating past critical limits 50+ systems have scraps of data about the same people, properties and businesses — but they can’t talk to each
Slide 69: There are 1000+ Constituent Activities in a Community
There are 1000+ constituent activities in a community Request extra traffic patrols Apply for a homestead deduction Submit a public records request Find an incident request Record a deed Change the mailing address for your property tax bill Find your school district Search court cases Report a fault
Slide 70: The Problem CityBase Solves (Cont'd)
The Problem CityBase Solves (Cont’d) And built a configurable platform that delivers client specific solutions CityBase has reconciled 80% of needs to common patterns Submit Search Apply Register Pay Request 69
Slide 71: CityBase Makes It Easy to Find and Pay Government Services
The Problem CityBase Solves (Cont’d) CityBase makes it easy to find and pay government services CityBase also make it easy for staff to set up & process service requests 1,000+ Services …and accelerates revenue collection 80% End in Payment … which reduces administrative waste A constituent … Goes o
Slide 72: CityBase Target Markets
CityBase Target Markets City and County Governments Regional Utilities ; Markets with over 250K population ; Anchor agencies that oversee highest volume constituent interactions, such as parking and property services ; Super agencies such as technology and finance that make enterprise buying decisio
Slide 73: Large Opportunity to Revolutionize Payments in Government
Large Opportunity to Revolutionize Payments in Government Payments Digital Services State $463 $556 County 286 471 City 519 576 Utility 1,172 146 Total (I n M illions ) 2,440 1,750 Opportunity in a 250k Person City State County City Utility $2.25mm/year Payments - $1.5mm/year Digital Services - $750
Slide 74: CityBase Customer Case Studies
50k+ Pilot Site Users 100+ Content Cards 40+ Services & Payments Digitized CityBase Customer Case Studies ; Consolidated City of Indianapolis and Marion County is a leader in government operations ; CityBase was selected as the platform for its digital city hall ; Results to date: 140+ activities li
Slide 75: C. Grants Management (eCivis)
C. Grants Management (eCivis) 74
Slide 76: eCivis Overview
; Founded in 2000, eCivis provides cloud based grants management system for state, local and tribal governments ; Simplifies grant pursuance, proposal development, budgeting, program implementation, performance reporting, management of subrecipients and compliance in a single centralized enterprise
Slide 77: Demonstrated Success with Enterprise Focus
Demonstrated Success with Enterprise Focus Demonstrated Success • Detroit – 88% reduction in audit findings, zero questioned costs and over $202 million in new grants and donations in FY 2017. • Arizona – $ 500K in reduced administrative costs annually. 24 % increase in federal grant revenues, and i
Slide 78: The Flow of Grant Funding
The Flow of Grant Funding THE COST x Cumulative amount in Federal Improper Payments since 2003 exceeds $1 Trillion . $144bn in 2016. x Single Audit findings reveal States have high numbers of repeat audit findings . Over $100bn in waste, fraud and abuse in 2017 . x States fiscal health: 62% of state
Slide 79: The Importance of Grants
The Importance of Grants According to US Census Bureau, grants from the federal government represent 24 % to as much as 45% of state and local revenues. eCivis is modernizing the grants process to fund critical services across the United States. 78
Slide 80: Large TAM in Key Markets
FLORIDA Market $ 204mm ; 66 Counties ; 410 Municipalities ; 1,079 Special Districts ; 95 School Districts ; 69,310 Nonprofits TEXAS Market $ 282mm ; 254 Counties ; 1,214 Municipalities ; 2,600 Special Districts ; 1,079 School Districts ; 92,734 Nonprofits CALIFORNIA Market $ 537mm ; 57 Counties ; 48
Slide 81: Penetration Remains Low — Significant Opportunity
Penetration Remains Low — Significant Opportunity Counties Municipalities School/Special Districts and Other 0.0 1.0 2.0 3.0 4.0 5.0 6.0% 0 20 40 60 80 100 120 140 160 2017 2018 2019 2020 Customers Market Share 0.0 0.1 0.2 0.3 0.4 0.5% 0 50 100 150 200 250 2017 2018 2019 2020 Customers Market Share
Slide 82: Significant Market Traction
Significant Market Traction Market Traction Key Net New Accounts FY18 ; Expand into all local govs in Arizona ; Expand in California, Florida, Puerto Rico and Texas ; Expand in Colorado and Maryland January 2018 x Launch of Puerto Rico Department of Economic Development. March 2018 x Launch of first
Slide 83: D. Regulation / Permitting (OpenCounter)
D. Regulation / Permitting (OpenCounter) 82
Slide 84: OpenCounter Overview
OpenCounter Overview ; OpenCounter builds user - friendly software to guide applicants through complex permitting and licensing procedures ; They guide applicants through the process, by estimating the total fees and requirements for the project, and allowing applicants to apply and pay for permits
Slide 85: OpenCounter Our Products
OpenCounter Zoning Portal Help applicants to understand how the zoning ordinance will impact site selection and project requirements OpenCounter Residential Portal Show homeowners how to stay in compliance on home improvement projects OpenCounter Special Events Portal Guide event planners through th
Slide 86: Customer Footprint
Customer Footprint Bozeman, MT Boise, ID Salt Lake City, UT Oakland, CA San Diego, CA Las Cruces, NM Denton, TX Charlotte/ Mecklenburg, NC Orlando, FL Indianapolis, IN Cincinnati, OH Atlanta, GA 85
Slide 87: Customer Acquisition
Customer Acquisition City Population Count 2013 2014 2015 2016 2017 2018 (1) Market > 1m 9 1 11.1% 500k - 1m 24 1 1 1 3 25.0% 250k - 500k 47 4 3 1 4 25.5% 100k - 250k 214 1 3 4 3 3 6.5% 50k - 100k 457 1 5 4 5 3 3.9% 25k - 50k 1053 2 1 3 1 2 0.9% 10k - 25k 2372 3 2 1 1 0.3% Total 4176 5 5 15 17 10 15
Slide 88: E. Budget / Transparency (Questica)
E. Budget / Transparency (Questica) 87
Slide 89: Questica Overview
Questica Overview ; Questica offers budgeting software, performance management, and transparency and data visualization solutions ; Products offered eliminate the need for spreadsheets, enable smarter planning, budgeting, management and information sharing ; Caters to 675+ local governments, college
Slide 90: Questica Overview (Cont'd)
Years in Business 20 Offices Burlington, ON Huntington Beach, CA Public Sector Focused 675 + Customers Government Higher Education K - 12 Schools Healthcare 46 States 9 Provinces/ Territories 25 + Financial System Integrations Budgeting, performance, data visualization software 4B 5M to + 60 NPS Net
Slide 91: Customer Map
Customer Map 56 1 1 4 20 56 11 2 25 12 3 16 1 11 7 6 2 1 14 18 1 7 8 3 81 38 32 2 4 3 1 1 8 11 11 9 10 7 4 9 2 1 8 8 1 8 4 12 12 32 19 28 14 5 International 2 1 8 HI 90
Slide 92: Representative Customer Case Studies
City of Denver, CO City of Largo, FL Questica provided a budgeting solution that was flexible and comprehensive Questica provided an integrated budgeting and transparency solution to further budget planning • 682,500+ population with an annual budget of $2.3+ billion • Issued an RFP for a budget rep
Slide 93: Representative Customer Case Studies (Cont'd)
City of Palo Alto, CA CSU Humboldt State University, CA Questica provided integrated budgeting solution for workflow, reporting and performance management Questica provided an integrated budgeting and transparency solution to further budget planning • 80,000+ population with an annual budget of $470
Slide 94: What Customers Say About Questica
What Customers Say About Questica “Implementing Questica Budget has saved us over $85,000 in productivity savings annually.” Palo Alto, CA “The customer service provided by the Questica staff has been excellent - always very professional and pro - active in adapting their product to our needs.” Shel
Slide 95: What Sets Questica Apart
What Sets Questica Apart Implementation Process Public Sector Verticals Completeness of Vision • Stable leadership • R&D focus • Transparency, BudgetBook, Financial Statements, constituent Engagement • # budgettransformation Ability to Deliver & Configurability • True COTS • Feature rich • 100% Publ
Slide 96: F. Budget / Transparency (Sherpa)
F. Budget / Transparency (Sherpa) 95
Slide 97: Sherpa Overview
Sherpa Overview Product Overview ; Sherpa Government Solutions is a provider of public sector budgeting software and consulting services ; Offers a differentiated approach, including the ability to take complex clients live within 3 months, as well as having one project team from sales to implementa
Slide 98: Customer Footprint
Sacramento County San Luis Obispo County San Mateo County Contra Costa County Franklin County, OH Humboldt County Portland, OR City of Fresno Gaithersburg, MD State of Rhode Island Honolulu Board of Water Supply School District of Philadelphia Goleta Water District Orange County County of San Diego
Slide 99: Sherpa's Differentiated Approach
Sherpa’s Differentiated Approach Rapid Implementation Approach: Complex clients Go - Live within 3 months One Project Team: From sales to implementation to post - implementation support BFM is Highly Configurable: Simple for end users and robust for administrators Customer Service: - No change reque
GTY Technology Holdings — SPAC Merger (November 2018) on 6ix