Direct Insite Investor Presentation - Issuer Directedg1.precisionir.com/companyspotlight/NA019033/... · Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Safe Harbor Statement

Direct Insite Corp. Copyright © 2013

COMPANY CONFIDENTIAL

Direct Insite Investor Presentation



Safe Harbor Statement

“Some of the statements made today may be forward-looking in nature. If you

want to understand the risks associated with such statement, please review

our filings with the SEC.”

All material contained in this presentation is the sole property and copyright of

Direct Insite Corp. with all rights reserved. Certain statements, which are not

historical fact, may be considered forward-looking statements that involve risks

and uncertainties. Forward-looking statements include statements regarding

future business results; future sales and profitability; customer demand; and

industry and economic conditions. Various factors could cause actual results

to differ materially from what is set forth in such forward-looking statements.

These factors are set forth in our SEC filings. All are cautioned not to place

undue reliance on these forward-looking statements as the Company does not

undertake any obligation to release publicly any revisions to these forward-

looking statements to reflect future events or circumstances, or to reflect the

occurrence of unanticipated events.

May 29, 2013 2



Corporate Overview

• Direct Insite provides cloud-based, ERP-agnostic solutions that

automate AP and AR invoice processes for Fortune 3000

companies.

• We combine our SaaS based solutions with unique on-boarding

services to accelerate e-invoicing adoption, further automating the

financial supply chain while offering discount capture and early

payment options.

• As of Q1/2013, over 300,000 vendors process 7.1 million invoices

with a total value of $127B annually.

• Currently investing in additional products, services and technology

that will permit the monetization of our growing AP Network.

May 29, 2013 3



Investment Highlights

Investment Highlights • Corporate restructuring in May 2011

• Newly reconstituted Board of Directors.

• New CEO, CFO and VP of Sales & direct sales team.

• Company has gone from being growth neutral to double digit revenue

growth.

• 11 new customer wins since August 2011.

• Of the Fortune 3000, only 40% have implemented automation tools.

• Blue-chip customer base, IBM, HP, Siemens, St. Gobain, Citibank.

• Global network of 300,000+ suppliers.

• Growth opportunity in existing Vendor Network.

• Cash flow positive SaaS business.

• Net Balance Sheet Cash $1.4M.

• Over $29M in legacy NOLs available until 2018.

• Valued at 1.5x TTM revenue as of March 31st, 2013.

• 60+% insider ownership.

May 29, 2013 4



Primary Offerings and Services

May 29, 2013 5

Invoices On-Line™

Core Data Processing

Services

Scan/Capture via

Partnerships*

Company Profile

Management*

Invoice, PO and Workflow

Processing

Dynamic Discount

Management

Payment Processing

Network Participation by Partners –

Banks & Payment

Gateways.

Spend Management & Business Intelligence*

Supply Chain Financing*

Invoices On-Line™ Middleware Modules and Service Offerings

Direct Insite automates the entire financial supply chain! * Currently under development or provided with partners



Opportunity

May 29, 2013 6

90% of U.S. companies manually enter invoice data and they pay invoices

with $30 trillion worth of paper checks! Source: Gartner AR Study 2011



Benefits of AP and AR Automation

May 29, 2013 7

Direct Insite provides a SaaS platform with a low upfront cost and then helps clients

board suppliers and customers to maximize accuracy and cost savings across the

supply chain!

Source: Gartner AR Study 2011



Global Vendor Network

May 29, 2013

Direct Insite Corporation

Copyright 2009

Confidential & Proprietary

8

Direct Insite Supplier Network: 300,000+ Suppliers, 110+ Countries, 17 Languages, 35 Currencies

8



Adoption & Growth

May 29, 2013 9

5.6

6.8 7.1

0

1

2

3

4

5

6

7

8

2011 qrtly avg 2012 qrtly avg 2013 Q1

Invoices processed (in millions)

22.3

27.4

0

5

10

15

20

25

30

FY 2011 FY 2012

Invoices processed (in millions)

100

300

0

100

200

300

400

FY 2011 FY 2012

# of AP vendors (in thousands)



Customer Profile

Customer Profile

• Invoice volume >10K per month.

• Complex outbound invoice processes.

• North American or Global operations.

• Corporate-wide Shared Services Organizations with multiple divisions

sharing one back office.

• Multiple legacy financial systems/multiple ERP instances.

• Desire for end-to-end financial automation capabilities including AR,

AP, vendor management, and customer service.

• Inability to optimize and capture payment discounts.

• Payment Card Industry compliance issues.

• “AP Transformation” initiative to migrate away from paper to on-line

submission and automation process.

May 29, 2013 10



Business Goals

Automate AR processing.

Enhance customer service.

Improve overall invoice processing efficiency.

Reduce Day’s Sales Outstanding (DSO).

Business Results

Reduced Costs – Reduced paper invoices by 75%, slashing the cost per invoice on these items from between $600 - $1,500 per invoice to less than $25 per invoice.

Improved Staff Efficiency – Reduced invoice disputes by 65 percent.

Reduced DSO – Reduced DSO by approximately 4 days, resulting in an $50 million increase in treasury cash available and $4 million in annual savings in interest expense on these DSO funds.

Enhanced supplier relationships – Customer satisfaction with IBM’s invoicing process jumped from 27% to 72% within 6 months of implementation.

Customer Profile:

• 100 year-old company with approx. $100 billion in revenues

• Generates millions of invoices each year across over 100 countries and 15 languages

• Selected Direct Insite’s IOL platform to provide: Web-based line item presentment; dispute management; attachments

IBM Case Study

11 May 29, 2013



Business Goals

Automate AP invoice processing.

Reduce inquiries from suppliers.

Improve relationships with suppliers.

Save money.

Business Results

Reduced Costs – Reduced average cost to process an invoice by 24%.

Improved Staff Efficiency – Receives 73% of its invoices electronically and posts payments for 63% of its invoices without operator intervention.

Increased Productivity – Reduced work flow time from a more than four days to less than 12 hours for electronic invoices and less than 2.5 days for paper invoices.

Enhanced supplier relationships – Reduced supplier inquiries by 67%.

“Invoices On-Line has proven to be an effective tool in the transformation

of our Accounts Payable automation initiatives with a goal of reducing

paper handling, invoicing costs and supplier inquiries.”

Roderick Fields, GSS NA Director of Disbursement Services

Customer Profile:

• Shared services environment for the global powerhouse

• Supports more than 50 Siemens business units

• Processes over 2.4 million invoices per year

• 60,000 suppliers

Siemens Global Shared Services Case Study

12 May 29, 2013



Business Model

Business Model

• Cloud-based SaaS business model

• No hardware or software capital expense.

• No IT resource burden.

• Integration with any ERP or legacy system.

• Ability to accept any invoice, in any format, from any source.

• Manage boarding process and supplier migration from paper to

electronic.

• Transaction-based pricing with discount tiers based on volume

• Nominal fee for images and file attachments.

• No charge to suppliers/customers to use the portal.

• Nominal setup/instance fee.

• No additional hosting fees.

May 29, 2013 13



Financial Highlights

Financial Highlights

• Recurring revenue model

• Positive cash flow

• No net debt as cash exceeds debt plus capital leases

• Successfully managed legacy roll-off and shrink

• 11 customer wins since new team took over

• Robust and growing sales pipeline

• Commitment to building supplier network and recurring revenue

• Transparent, shareholder-friendly management

May 29, 2013 14



Robust Supply Chain Finance M&A

May 29, 2013 15

As larger networks consolidate invoices, customers and supplier networks,

supply chain finance M&A activity has been robust with

the average EV/Revenue multiple in transactions of approximately 3.3x.

Date Acquirer Target

Revenues

(in mm)

Price or EV

(in mm) EV/Revenues

2010 Ariba Quadrem 65 150 2.3

2011 Ariba b-Process 11 35 3.2

2012 Basware CertiPost 8.4 18.2 2.2

2012 Basware First BusinessPost 2.4 12.2 5.1

2011

Bottomline

Technologies

Logical

Progression/IDT 1 2.9 2.9

2011

Bottomline

Technologies DDL 3.5 10.9 3.1

2013 Readsoft Expert Systems 13 40 3.1

M&A Average 14.9 38.46 3.3

3/31/2012 Direct Insite 8.8 11 1.25



Overview

Established • September 2001 / Ticker Symbol: DIRI

Corporate Headquarters • Ft. Lauderdale, FL

Customers • Global 2000 / Customers and Vendors

Global Experience • 100+ countries, 17 languages, 35 currencies

• 300,000+ supplier network

• 27+ million annual e-invoices worth $130+ billion in value

Certifications

Primary Offerings • Invoices On-Line (IOL) Accounts Payable Automation

• Invoices On-Line (IOL) Accounts Receivable Automation

• Invoices On-Line (IOL) ePayment Services

May 29, 2013 16

http://www.gm.com/



Matthew Oakes

President & CEO

[email protected]

631-873-2932

www.directinsite.com

Contact Information

Documents

Direct Insite Investor Presentation - Issuer Directedg1.precisionir.com/companyspotlight/NA019033/... · Direct Insite Corp. Copyright © 2013 COMPANY CONFIDENTIAL Safe Harbor Statement