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©2012 ClickSoftware Technologies Ltd. All rights reserved.
March 2014
Investors Presentation
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 “forward-looking 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 www.clicksoftware.com.
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
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 2000
2013 record revenues: $103.2 million
Q4-2013 record revenues: $30.7 million
Strong cash generation, no debt
2014 guidance: $111-115 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
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)
Market and Leadership Position
Huge WFM Market With High Growth Potential
Workforce Management (WFM) for Service Sector
Mobile Workforce Management
Mobility
Software solutions for
mobile field service is
estimated to reach $2.8
billion in 2016, from $1.7
billion in 2011
(VDC Research)
Field Service
Management
WFM applications
revenues are estimated at
$1.2 billion in 2012, with
a CAGR of 12.7%
(Gartner, 2013)
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)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”
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
Market Drivers for ClickSoftware Customers
Our Customers and Partners
Delivering Value Across the World
Strong Partners and Channels Ecosystem…
System Integrators
Resellers & Partners
Hundreds of trained SI individuals worldwide
End-To-End Service Chain Optimization
14
Job Scheduling:
finding the optimal schedule
Field Execution:
enabling field resources to execute the
work
Intra-day Scheduling:
managing exceptions with
real-time optimization, schedule shuffles
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
Performance Analysis:
measurements and business
insights
Optimization – The Source of Tremendous Value
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
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
Man
u
al
Op
timiz
e
d
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)
The ClickSoftware Mobility Suite
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
Intelligent products for mobile
employees that are constantly on the
move
executing
the work
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
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
A Day in a Life with ClickMobile
20
Clock-in from
any location to
start your day
Time &
Attendance
See day plan
and best way
to get there
Maps &
GPS
Clock-out and
drive home
Time &
Attendance
Navigate
optimally to
the next job
Maps &
GPS
Update job
details, add
action items, fill
reports, perform
data capturing
Work
Orders
Optimize ahead
in front of the
customer
Appointment
Booking
Propose specific
products or
services based
on customer
profile
Upselling
1
2
View the
details of your
next meeting
and head out
Calendar
3
4
5
6
7
8
20
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
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
Shift
Scheduling solution that helps build the most
optimized employees roster for the organization
Shift Planning Unique Capabilities
Single solution for different
categories of staff within one
enterprise, e.g. field service,
contact centers, retail stores etc…
Highly scalable solution
Balancing the needs of the business
with employee preferences in the
most optimal way
Organizes both in-house and mobile
workforces into appropriate rosters
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
year-over-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
Better visibility and control
Work backlog:
-95%
, Completed tasks logged:
+39%
90%
of appointments are scheduled automatically
Emergency response time:
20% reduction
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%
Cost reduction
Dispatcher workforce:
70% (reduced ratio of dispatchers/workers)
Travel savings:
$400,000/year
Fleet mileage:
down 12% in the 1
styear; 5-6% in each subsequent year
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%
Proven, Real & Achievable Benefits – The 4 Pillars of ROI
Recent Developments
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)
ClickSoftware & Xora: Covering Companies of All Sizes
Enterprise
Medium
Small
Thousands
of Resources
Hundreds
of Resources
Tens
of Resources
28
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)
Annual Revenue Growth
(in U.S. $K)( * 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 )
Annual Revenue
Guidance for 2014*
$111 to $115 million.
Revenue Distribution by Industry & Territory
By Industry
(2013)
By Territory
Annual P&L Statements
(Non-GAAP Results*)
2013
2012
2011
2010
Revenues ($K)
License
Services
103,181
28,679
74,502
100,046
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)
0.31
0.53
0.37
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