Metastorm - Investor Relations Solutions

™
™
Metastorm
Bob Farrell –
B
bF
ll Chairman & CEO
Ch i
& CEO
Chris Desautelle – CFO
2009 Metastorm Inc.
1
Metastorm Overview
• BPMS enterprise software market leader
– Sell into 3 high growth software markets – EA, BPA, BPM
– Market leadership positions from Gartner and Forrester
• 2009 ‐ $67 million
– $73 million in bookings
– ~75% of revenue is software (perpetual licenses) and maintenance with 90%+ gross margins
– EBITDA $1.2 million (
EBITDA $1.2 million (exclusive of stock based compensation and unusual items)
exclusive of stock based compensation and unusual items)
• 1,200+ customers (on maintenance) in 40 countries – Cross‐vertical
Cross vertical with focus in financial services, business services, with focus in financial services business services
government, retail, life sciences • Global distribution & delivery capability
– Direct in US, UK, Asia (Hong Kong), Germany and Benelux; via distribution partners in EMEA 2009 Metastorm Inc.
2
Management Team
Name
Experience
Robert J. Farrell
Chairman and CEO
Christopher S. Desautelle
Chief Financial Officer
Eileen M.
M Garry
Chief Marketing Officer
Greg Carter
Chief Technology Officer
Janet Halma
EVP of Global Sales Operations &
Customer Support
Robin Martin
EVP & GM International
Swata Gandhi
General Counsel
2009 Metastorm Inc.
3
Metastorm Enterprise™
Metastorm Enterprise
WHAT WE DO 2009 Metastorm Inc.
4
A Distinct Approach to Process Management
See what you have and how it fits together.
Metastorm ProVision® – Without understanding where you are, how do you know where to go? Metastorm ProVision is an industry leading Enterprise and Business Architecture (EA) software tool
Business Architecture (EA) software tool that allows you to comprehensively discover and model your business strategy, goals, organization, processes, systems, information and more – and then understand the interrelationships so you d t d th i t
l ti hi
can systematically and comprehensively plan changes to the enterprise at all levels. Think about how to best execute your business.
Metastorm ProVision® BPA – Processes are ultimately the means by which you do work and deliver value. Metastorm ProVision BPA is an industry leading y (
)
Business Process Analysis (BPA) solution that allows you to discover and model your current business processes and then conduct sophisticated simulations and analysis of where and how they can be improved to deliver greater value and
be improved to deliver greater value and improved business resource optimization. Metastorm ProVision BPA also includes Metastorm Discovery ™ for human‐
centric process discovery – allowing for more accurate data collection, analysis and process improvement.
2009 Metastorm Inc.
Do things in the optimal way. Metastorm BPM
Metastorm
BPM® –– Once you understand Once you understand
where you need to go and how you want to do things, Metastorm BPM is the comprehensive, industry‐leading BPMS platform you need to rapidly and cost‐
effectively design, automate, deploy, ff
l d
d l
manage, monitor, and report on your human and system‐based business processes, so you can continuously improve them.
Metastorm Integration Manager (MIM) –
Dated back office systems and unreliable data often act as major barriers to effective execution. MIM allows you to quickly service enable
enable" and integrate into a broad and integrate into a broad
"service
range of challenging computing environments as well as easily deploy system‐based business processes, provide effective Managed File Transfer, and strengthen SOA and legacy modernization h SOA d l
d i i
efforts. 5
Our Software Solves High‐value, Process‐related Challenges for Our Customers
Anti‐Money Laundering
Engineering Change Orders
Loan Application Management Know Your Customer
New Product Introduction, Product Design
New Customer Intake
New Customer On‐boarding
SCOR, DCOR
Corporate Actions Sarbanes‐Oxley
CCOR
Agent & Loan Automation Six Sigma
Order Management & Tracking
Customer Request Management
ITIL
Sales & Operations Planning
p
g
Insurance Claims
Insurance Claims
Basel II, MIFiD
Strategic Sourcing
Customer Service/Help Desk
UK Online 2005, eFOIA
New Store Opening
Credit Issuance & Processing
HIPAA Compliance Contract/Grant Management
New Group Setup & Enrollment
Citizen Response Services
Billing & Claims Management Case Management
Pre‐surgery Patient Processing Correspondence Management Critical Incident Report Tracking Facilities Management Payer Record Management y
g
GPEA, eFOIA Compliance ,
p
Purchasing/Procurement
Homeland Security Collaboration Patient Referral DoDAF
2009 Metastorm Inc.
Referral Management Client Matter Intake Client Conflict Processing Contract Management Travel & Expense
S h d li
Scheduling Case Management 6
Proven, Documented Results
Read 80+ Success Stories on our website at www.metastorm.com/customers
2009 Metastorm Inc.
7
Customer Deployment Lifecycle
Expanding users, processes and modules within the enterprise
p
g
,p
p
$100‐$150k
2009 Metastorm Inc.
$150‐$750k multiple follow‐
multiple follow
on sales
$750 $1 500k+
$750‐$1,500k+ 8
Software Bookings from Existing Customers
74%
80%
65%
70%
72%
63%
58%
60%
43%
50%
40%
35%
30%
20%
10%
0%
2005
2009 Metastorm Inc.
2006
2007
2008
2009
4Q08
4Q09
9
Selected Enterprise Accounts
2009 Metastorm Inc.
10
Metastorm Enterprise
Enterprise™
MARKET / COMPETITIVE LANDSCAPE 2009 Metastorm Inc.
11
Forrester Market Sizing
Forecast: Worldwide BPM Market Growth, 2006 To 2011
Source: Forrester, July 2007
2009 Metastorm Inc.
12
Market Trends – BPM Executive Priority
Source: BPTRENDS February 2010 Survey
• Business executives think processes, and improving processes, are among their most pressing strategic goals
– 2005 “excited about the idea of BPMS systems
– 2009 “engaged in major process redesigns”
Organization’s current interest in BPM?
2005
2007
2009
Major strategic commitment by executive mgmt
28%
26%
19%
Significant commitment to multiple high‐level process projects
23%
24%
33%
Initial commitment to limited number of mid‐ and low‐level projects
23%
25%
29%
Exploring opportunities
20%
23%
16%
No Interest
6%
2%
3%
2009 Metastorm Inc.
13
No Surprise in Business Drivers
Source: BPTRENDS February 2010 Survey
st p
• Everyone largely agreed that their 1
y
g y g
priority was to y
save money; 2nd was increase coordination and improve customer satisfaction
Major business drivers causing you to focus on process change?
2005
2007
2009
Need to save money by reducing costs/improving productivity
y y
g
/ p
gp
y
33%
56%
58%
Need to improve existing products, create new products, enter new LOB
19%
36%
25%
One time event (M&A)
2%
4%
5%
Government or business risk management (SOX, ISO)
11%
17%
14%
Need to improve customer satisfaction
19%
37%
32%
Need to improve management coordination or responsiveness
23%
51%
45%
Need to improve management of IT resources (ERP)
9%
19%
18%
Other
9%
11%
7%
2009 Metastorm Inc.
14
BPMS Market Growth
Source: BPTRENDS February 2010 Survey
• 2005 – 7% using BPM; 11% likely to acquire in 2006
• 2007 – 24% using BPM; 25% likely to acquire in 2008
• 2009 – 37% using BPM; 21% would acquire in next 13 months
2009 Metastorm Inc.
Planned BPM product purchases in 2009/2010
2005
2007
2009
Graphic modeling tool (Visio, PPT)
20%
15%
16%
Repository based Modeling tool (MEGA, IBM, ProVision)
23%
23%
21%
BPM Suite to manage runtime execution of process
11%
25%
21%
Tools for managing rule‐based process
26%
15%
15%
Process monitoring/BI tool
15%
23%
22%
Training in process strategy, architecture or performance
22%
22%
19%
Training in process analysis and design
21%
29%
22%
Training in process redesign and methodology
27%
23%
19%
T i i in BPM systems
Training
i BPM
16%
22%
21%
Attendance at BPM conferences
33%
40%
36%
15
The Market – Innovation vs. Infrastructure
Process Framework
Independent, market-leading vendors 100% focused on
enterprise-level process innovation
Infrastructure Platform
M
Monolithic
li hi platform
l f
off highly
hi hl di
diversified
ifi d technology
h l
2009 Metastorm Inc.
16
Leadership Credentials
Enterprise Architecture
Magic Quadrant Q409
Enterprise Architecture
Enterprise
Architecture
Forrester Wave Q109
2009 Metastorm Inc.
Business Process Analysis
Magic Quadrant Q408
Business Process Management Suites
Magic Quadrant Q109
Business Process Analysis
Business
Process Analysis
Forrester Wave Q109
IT Planning
IT Planning
Forrester Wave Q109
Managed File Transfer
Magic Quadrant Q309
Business Process Management Business
Process Management
Forrester Wave Q407
17
Metastorm Enterprise™
Metastorm Enterprise
FINANCIAL OVERVIEW
2009 Metastorm Inc.
18
Financial Highlights
• Software Orientation
Software Orientation
– 73% of revenue is software (primarily perpetual licenses) and maintenance with 90%+ gross margins
– Growth – have grown revenue at a CAGR of 23% since 2004
• Strong Profitability
– EBITDA profitable since 2005 (2008 excluding one‐time charges)
– 2010 EBITDA margins expected to reach 10% • Strong balance sheet
– ~$10 million cash – Current ratio 2.5 (excluding deferred revenue)
– No debt
2009 Metastorm Inc.
19
Revenue: Increasing Market Share 4‐year CAGR of 25% exceeds market growth over same period
4‐year CAGR of 25% exceeds market growth over same period
$
$80.0 $77.6 $74.9 ($ - Millions)
$67.7 $70.0 $59.7 $60.0 $42.1 $50.0 $40.0 $25 3
$25.3 $30.0 $20.0 $10.0 $‐
2005
2009 Metastorm Inc.
2006
2007
2008
2009
2010 Forecast
20
Financials ($-thousands)
Revenue
$67,723
$77,560
Licenses
22,457
27,055
Services
18 479
18,479
21 319
21,319
Maintenance
26,787
29,185
19,337
21,767
Licenses
1,999
2,112
Services
15,671
18,261
1,667
1,394
Gross Profit
48,386
55,792
Operating Expenses (1)
47,206
54,832
EBITDA
$1,180
$960
EBITDA ex Investment
$1,180
$5,581
71%
72%
EBITDA Margin ex investment
2%
7%
Headcount
299
323
48
52
Cost of Revenue (1)
Maintenance
Gross Margin
R&D Outsource
2009 Metastorm Inc.
(1)
2010
Forecast
2009
Actual
Excludes depreciation and amortization and stock compensation expense
21
Headcount
™
™
1Q08
Q
2Q08
Q
3Q08
Q
4Q08
Q
1Q09
Q
2Q09
Q
3Q09
Q
4Q09
Q
1Q10
Q F
Sales
Management
Quota
SE/ISR
13
45
25
13
47
27
15
46
29
11
43
34
9
42
42
9
35
39
9
35
39
8
36
40
8
37
41
Business Development
1
1
1
1
1
0
0
0
0
Professional
P
f
i
l
Services/Training
89
90
85
81
79
77
78
76
74
Customer Services
21
23
23
22
14
14
13
14
13
M k ti
Marketing
31
29
27
28
21
20
20
18
23
Research &
Development
65
68
72
71
70
70
70
71
73
Other
39
40
41
39
37
36
35
36
36
Sub-total: Employees
329
338
339
330
315
300
299
299
305
Outsourced R&D
25
38
38
38
39
39
41
48
54
Total FTE
354
376
377
368
354
339
340
347
359
2009 Metastorm Inc.
22
Metastorm Enterprise™
Metastorm Enterprise
GROWTH STRATEGY
2009 Metastorm Inc.
23
Strategy ‐ Growth and Consolidation
• Generate organic growth in excess of market growth
– Maintain and organically grow market leadership by addressing converging technology of “all things process”
– Maintain EBITDA profitability and positive cash flow
Maintain EBITDA profitability and positive cash flow
• Extend
Extend organic growth through strategic organic growth through strategic
acquisitions
– Expand business footprint
E
db i
f t i t
– Acquire industry vertical expertise
– Diversity and fill out technology stack
y
f
gy
Continue to evaluate ways to increase and realize shareholder value
2009 Metastorm Inc.
24
Growth Areas
™
™
Enterprise Modeling & Business Architecture
Business Process Analysis
Process Discoveryy
Business Process Management
Business Process Integration
Business Rules Execution
Document / Content Management
Active
Governance Risk Management & Compliance
Governance, Risk Management & Compliance
Active
Vertical / Process‐based Applications
Expaansion
n Areaas
Curren
nt Productss
BPA
Active
Analytics / Process Intelligence
2009 Metastorm Inc.
Scale / Geographic Distribution
Active
25
The Unexpected Value of Business To The Power of 3
Monitor IMPACT on strategy and goals to guide
future change
BPA
Identify FOCUS
Identify
FOCUS
areas for optimal
improvement
Make the
RIGHT change
2009 Metastorm Inc.
26