Notes from the Textura S-1 IPO Filing

Curiously, I recently saw a report of a Chicagoland Software-as-a-Service (SaaS) company called Textura filing their S-1 to go public with only $21.7 million in sales for fiscal 2012. ChannelAdvisor just had a successful IPO with only $53.6 million in trailing twelve months revenue, which is considered low by IPO standards, but it was well received nonetheless. Now, $21.7 million in sales in significantly lower than other SaaS IPO filings, so I had to dive and learn more.

Here are notes from the Textura S-1 IPO filing:

• Provides on-demand business collaboration software to the commercial construction industry (pg. 1)
• Specific modules for payment management, document management, project bid management, contractor qualification, and environmental certification processes (pg. 1)
• 12,000 commercial construction projects have been managed with the system (pg. 2)
• Revenues (pg. 2)
  2010 – $6.0 million
  2011 – $10.5 million
  2012 – $21.7 million
• Losses (pg. 2)
  2010 – $15.9 million
  2011 – $18.9 million
  2012 – $18.8 million
• Accumulated deficit of $146.2 million (pg. 12) (Note: Take ~$40 million in losses from 2011 and 2012 out of the accumulated deficit and that leaves you with ~$100 million being burned to get to the point where the business generated $6 million in revenue in 2010)
• Ten largest clients represented 41.5% of 2012 revenue (pg. 13)
• Largest client represented 10.8% of 2012 revenue (pg. 13)
• Sales cycle of a year or longer to secure a new client (pg. 15)
• $8.1 million of the new proceeds will be used to repay debt (pg. 29)
• Already built their own 63,000 sq ft corporate headquarters with a $11.9 million loan and tripped their mortgage covenant (pg. 67)
• 287 employees (pg. 92)
• CEO/co-founder 2012 cash compensation was $1,145,000 (pg. 100)
• CEO/co-founder owns 9.1% of the company (pg. 120)

Overall, this SaaS IPO filing is unusual due to the small amount of overall revenue and high revenue concentration among a small number of clients. Add in the fact that the company already built their own corporate headquarters and it doesn’t feel like the usual SaaS IPO. Textura has a big market opportunity and a great growth rate, so it’ll be interesting to see how it does in the public markets.

What else? What are some more thoughts on the Textura S-1 IPO filing?