Investors Presentation

Transcription

1 March 2014 Investors Presentation ClickSoftware Technologies Ltd. (NasdaqGS: CKSW) This presentation contains information that is proprietary to ClickSoftware. Any copying, distribution, display, transmission or dissemination of the information contained in this presentation to third parties without the prior written consent of ClickSoftware is strictly prohibited. No part of this presentation may be reproduced, translated or transmitted in any form or by any means, electronic, optic or mechanical, including photocopying, recording, or any information storage or retrieval system without written prior permission from the owner of the copyright ClickSoftware Technologies Ltd. All rights reserved.

2 Safe Harbor Statement This presentation contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S Federal securities laws. These forward-looking statements include, but are not limited to, those regarding future results of operations, including our outlook for full year 2014 revenues, visibility into future periods, growth and rates of growth, expectations of future cash flows and dividends, and expectations regarding closing of contracts, receipt of orders, recognition of revenues and deferred revenues. Such forwardlooking statements involve known and unknown risks, uncertainties and other factors, which may cause actual results or performance to be materially different from those projected. ClickSoftware's achievement of these results may be affected by many factors, including among others, the following: uncertainties regarding the general economic outlook; the length of or change in the Company's sales cycle; the Company s ability to identify potential customers and to close sales to potential customers in a timely manner; the Company s ability to maintain relationships with strategic partners, the ability of the Company s professional services group to successfully complete implementations; and the Company s ability to predict and control expenses and to align revenues and expenses. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in ClickSoftware's annual report on Form 20-F for the year ended December 31, 2012 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, ClickSoftware is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Please note that ClickSoftware reports net income and net earnings per share on both a GAAP basis and on an adjusted non-gaap basis. ClickSoftware s financial reports include a reconciliation of non-gaap information to the most directly comparable GAAP information and is posted in the Investors section of the Company's Web site at 2

3 Presentation Outline Who We Are and What We Do Market and Leadership Position Our Customers and Partners Our Solutions and Unique Capabilities Cloud Transition Return On Investment Recent Developments Financials and Growth Strategy 3

4 ClickSoftware Who We Are Leadership Market leader in automated mobile workforce management and service optimization solutions Recognized by Gartner as a leader for the third consecutive year Worldwide blue-chip customers using our solutions Fundamentals NASDAQ listed CKSW since June record revenues: $103.2 million Q record revenues: $30.7 million Strong cash generation, no debt 2014 guidance: $ million Strong momentum in cloud business Q4 cloud bookings more than doubled y/y Global Presence Offices in Americas, EMEA, and APAC About 730 employees worldwide Eco system of major players, such as SAP, IBM, Accenture, Salesforce Hundreds of enterprise customers Hundreds of thousands of service people managed by ClickSoftware solutions every day 4

5 What We Do? We maximize the productive use of human resources, asset uptime, and customer satisfaction with end-to-end enterprise workforce service optimization, mobilized for every role Market: Service sector where the primary resources are people and their time Business Expertise: Workforce management, customer service, performance measurement, Service Chain Optimization (patent for Continuous Planning ) Solution: Fully mobile, connecting field services directly to the platform, and with hundreds of mobile apps, builds a truly interactive, complete, end-to-end mobile workforce platform. Available in the cloud or on-premise. Addressable Market: All service industry verticals, any size of business (small to fortune-500 companies) 5

6 Market and Leadership Position 6

7 Huge WFM Market With High Growth Potential Workforce Management (WFM) for Service Sector Mobile Workforce Management Field Service Management WFM applications revenues are estimated at $1.2 billion in 2012, with a CAGR of 12.7% (Gartner, 2013) Mobility Software solutions for mobile field service is estimated to reach $2.8 billion in 2016, from $1.7 billion in 2011 (VDC Research) Shift Planning Indoor/Outdoor Services A $2 billion market (Company estimate) Market penetration for field service applications has reached only 25% (Gartner, 2012) The global mobile worker population exceeded 1 billion in 2010 and is expected to reach 1.2 billion workers by 2014 (VDC Research) ~15% of current mobile workers are using mobile device to support an enterprise mobility application (VDC Research) 7

8 Recognized and Clear Leadership FSM ClickSoftware positioned as a LEADER for third consecutive year in the Gartner Magic Quadrant for Field Service Management ClickSoftware is the largest independent software vendor worldwide that offers field service optimization Additionally, the company offers a mobile application development platform to customize its mobile applications 8

9 Market Drivers for ClickSoftware Customers Competitive Edge Cost Pressures Tablet & Smartphone Revolution Compliance with Regulation Growth in Developing Countries Customers demand for faster, cheaper, improved and more reliable service Economically challenging times Rising fuel prices leading to higher travel costs Real-time resource optimization Demand for improved personal efficiency BYOD trend Increasingly challenging and costly regulatory compliance restrictions Rapid infrastructure projects 9

10 Our Customers and Partners 10

11 Delivering Value Across the World 11

12 Strong Partners and Channels Ecosystem System Integrators Hundreds of trained SI individuals worldwide Resellers & Partners 12

13 Our Solutions and Unique Capabilities 13

14 End-To-End Service Chain Optimization Demand Forecasting: develop future work demand forecasts for months/years in advance Resource Planning: Align resource capacities with future work demand forecasts Shift Planning: align resource availability with planned demand, and allocate resources to required shifts Job Scheduling: finding the optimal schedule Field Execution: enabling field resources to execute the work Intra-day Scheduling: managing exceptions with realtime optimization, schedule shuffles Performance Analysis: measurements and business insights 14

15 Optimized Manual Optimization The Source of Tremendous Value Manual Optimized Tight schedule, greater availability, increased utilization Reduced travel distances and time, lower emission rate Planned lunch break, increased employee satisfaction Almost zero utilization of overtime Scheduled singularly so no shuffling or rescheduling High travel distances between tasks and from home Most resources do not have a lunch break Numerous tasks are assigned during overtime 15

16 Our Scheduling & Optimization Unique Capabilities Intra-day Scheduling: constantly optimizes the schedule throughout the day according to real-time events, and real-time resource availability Customer Interaction Management: customers define and control their own service experience including web self-service appointment booking and updating, automatic customer notifications, and post-service survey. Costs go down. Satisfaction goes up. Everybody wins Single solution for multiple business lines and work types: from simple short tasks to multi-day, multi-staged jobs that require multiple resources Ability to schedule and manage any type of resources Proven scalability - support small service businesses to large enterprise field service organization (40,000+ field resources) 16

17 The ClickSoftware Mobility Suite Intelligent products for mobile employees that are constantly on the move executing the work Real-time monitoring tools with exceptions handling, including strong integration into automated decision making capabilities Powerful development environment for rapidly creating enterprise mobile applications with minimal coding 17

18 Mobile Market Trends More People in the Organization Different Role (Project Managers, Collectors, Surveyors, Sales Rep In-Store) Used Everywhere People are Bringing Their Own Devices (BYOD) 18

19 ClickAppStore Complete Platform for Enterprise Mobility Enterprise mobility app store with a unique repository of ready-to-use business mobile apps that connect business operations to field workers using mobile devices Dynamic organizations need dynamic solutions: with ClickAppStore, customers can enhance their solution, add new features and new functionality, without having to upgrade the entire suite Getting the most out of the mobile device: streamlining communications, increasing productivity and empowering mobile users with modern tools that help to provide great customer service 19

20 Clock-in from any location to start your day Time & Attendance 1 2 See day plan and best way to get there Maps & GPS View the details of your next meeting and head out Calendar 3 4 Update job details, add action items, fill reports, perform data capturing Work Orders A Day in a Life with ClickMobile Optimize ahead in front of the customer Appointment Booking 5 6 Propose specific products or services based on customer profile Upselling Navigate optimally to the next job Maps & GPS 7 8 Clock-out and drive home Time 20 & Attendance 20

21 ClickButler: Artificial Intelligence (AI) Goes Mobile What it does: AI-based personal assistant for business users Provide the mobile employee with intelligent Next Best Action recommendations: Can I call the next customer for you? Sales volume is 10% higher than normal. Shall I reserve capacity for more new installs? Context aware : business events, customers, traffic, required work Business value: Trades minutes & clicks from everyday tasks into productive time Pro-active action with greater business agility Increase employee safety (no contact lookups, no dialing & driving) Shorten time-to-service by avoiding work interruptions 21

22 Our Mobility Unique Capabilities Device Agnostic: Windows, Handhelds, Smartphones, Tablets etc Mobility Studio for Rapid Development: Implementers Friendly, visual editing tools, Developers Kits, API s Flexible Object Model to Support any Business Need: Ability to manage any type of Object for any type of Resource, for every Industry and for every purpose Proven Architecture: large to small live enterprise customers, almost infrastructure agnostic Microsoft, Sybase (ianywhere), SUP ClickAppStore for Enhancing the Solution Post- Initial Deployment : Introduce new and rich functionality to be quickly deployed in customer s existing ClickMobile environment 22

23 Shift Planning Unique Capabilities Shift Scheduling solution that helps build the most optimized employees roster for the organization Balancing the needs of the business with employee preferences in the most optimal way Organizes both in-house and mobile workforces into appropriate rosters Single solution for different categories of staff within one enterprise, e.g. field service, contact centers, retail stores etc Highly scalable solution 23

24 Cloud Transition Growing Demand in the Market We experience positive trends that is expected to increase recurring revenues and improve the visibility and predictability of our business With ten new cloud customers signed in the fourth quarter, the number of new cloud-based customers signed in 2013 has more than doubled yearover-year Bookings from our cloud business during the fourth quarter of 2013 more than doubled year-over-year The trend of large enterprise organizations considering cloud offering is on the rise. Our ability to offer a best-of-breed solution, both on premise and in the cloud, is a key competitive advantage for us 24

25 Proven, Real & Achievable Benefits The 4 Pillars of ROI Service quality improvement Days wait between report & appointment: down 45% (from 4.2 to 2.9 days) Customer waiting time: down 14M hours due to smaller appointment slots SLA compliance: increased from 50% to 90% Cost reduction Dispatcher workforce: 70% (reduced ratio of dispatchers/workers) Travel savings: $400,000/year Fleet mileage: down 12% in the 1 st year; 5-6% in each subsequent year Revenue increase Tasks per technician: 33% increase Daily inspections: 25-30% increase Preventative maintenance visits: average increased from ~4.5 to 6.5 visits/day up nearly 50% Better visibility and control Work backlog: -95%, Completed tasks logged: +39% 90% of appointments are scheduled automatically Emergency response time: 20% reduction 25

26 Recent Developments 26

27 Acquired Xora for $15 Million in All-Cash Extends ClickSoftware s leadership in Cloud-based solutions for mobile workers Considerably broadens distribution channels via major carriers Strengthens Small & Medium Size Businesses (SMB) offering A dominant distribution channel and key stakeholder in this market is the wireless carrier, who pioneered and legitimized the MWM product category during the past decade. The carriers enjoy unequaled access to the small and mid-sized business (SMB) sector, but face strong competition for large enterprise sales from desktop software vendors and systems integrators. (Frost & Sullivan) 27

28 ClickSoftware & Xora: Covering Companies of All Sizes Thousands of Resources Enterprise Hundreds of Resources Medium Tens of Resources Small 28

29 About Xora Leadership: Largest Mobile Workforce Management application provider for Small and Medium size Businesses (SMB) Recognized by Frost & Sullivan as a leader in packaged mobile apps Eco-System: Strong reseller relations with major wireless carriers in the US (such as Verizon, AT&T and Sprint) Over 15,000 cloud customers with ~130,000 mobile users Solutions: Easy to use cloud-based mobile apps for mobile workers Straightforward fleet management solution Fundamentals: Established in 1999 with a focus on MRM since 2003 Offices in Mountain View (CA), Eagan (MN) and Bangalore (India) About 130 employees 29

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31 Financials and Growth Strategy 31

32 Annual Revenue Growth (in U.S. $K) Annual Revenue Guidance for 2014* $111 to $115 million. ( * Note: The above guidance was provided on February 5, 2014 and speaks only as of such date. The Company does not intend to republish or update such guidance by inclusion herein ) 32

33 Revenue Distribution by Industry & Territory By Industry (2013) By Territory (2013) 33

34 Annual P&L Statements (Non-GAAP Results*) Revenues ($K) License Services ,181 28,679 74, ,046 34,541 65,505 87,087 31,542 55,545 71,019 25,825 45,194 Y/Y Change (%) 3% 15% 23% 16% Gross Profit ($K) 59,655 62,084 56,312 44,954 Gross Margin (%) 58% 62% 65% 63% Operating (Loss) Income ($K) (2,727) 10,522 18,172 12,191 Operating Margin (%) -3% 11% 21% 17% Net (Loss) Income ($K) (2,530) 10,197 17,027 11,950 Net Margin (%) -2% 10% 20% 17% EPS ($) (0.08) Operating Cash Flow ($K) 6,446 16,209 11,927 16,369 * Gross profit and margin, operating income and margin, net income and margin, and EPS, are non-gaap numbers 34

35 Quarterly P&L Statements (Non-GAAP Results*) 4Q 13 3Q 13 2Q 13 1Q 13 4Q 12 Revenues ($K) 30,693 23,288 24,660 24,540 28,399 License Services 10,914 19,779 4,650 18,638 6,076 18,584 7,039 17,501 10,847 17,552 Gross Profit ($K) 19,288 12,356 13,618 14,393 18,723 Gross Margin (%) 63% 53% 55% 59% 66% Operating Income (Loss) ($K) 2,243 (3,234) (2,434) 698 4,388 Operating Margin (%) 7% (14)% (10)% 3% 15% Net Income (Loss) ($K) 2,288 (3,312) (2,314) 808 4,238 Net Margin (%) 7% (14)% (9)% 3% 15% EPS ($) 0.07 (0.10) (0.07) * Gross profit and margin, operating income and margin, net income and margin, and EPS, are non-gaap numbers 35

36 Strong Balance Sheet: No Debt Dec.31, 2013 Dec.31, 2012 Dec.31, 2011 Cash and Investments ($K) 58,005 59,359 54,964 Total Assets ($K) 97,568 94,469 90,632 Deferred Revenues ($K) 13,420 9,047 9,529 Long-Term Deferred Revenues ($K) 4,642 1,503 1,828 Total Debt ($K) Shareholders Equity ($K) 56,919 62,918 59,104 36

37 Summary: Positioned for Further Growth Fast growing markets with a significant need for our solutions Capitalizing on smartphone phenomenon Industry leader with high barriers to entry: Leading technology and broad portfolio of solutions Largest number of customers in our industry with a high portion of blue chip customers Strength across diverse industries and geographies Strong and effective marketing partnerships, including with SAP, leading system integrators and platform vendors Financial strength: long-term revenue growth; strong balance sheet and cash position with no debt Clear growth strategy capitalizing on cloud trend and emerging mobility opportunity 37

38 CKSW IR App To download ClickSoftware s IR App which offers access to stock data, SEC documents, press releases, videos, audiocasts and more, scan this QR Code or search for it on Apple s AppStore or Google Play Thank You IR@clicksoftware.com 38