Rally Investor Presentation Q4 FY2015

Transcription

1 Rally Investor Presentation Q4 FY2015

2 Safe Harbor/Forward Looking Statements This presentation contains forward-looking statements that are based on our management s beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, potential market opportunities and the effects of competition.! Forward-looking statements include all statements that are not historical facts and can be identified by terms such as anticipates, believes, could, seeks, estimates, intends, may, plans, potential, predicts, projects, should, will, would or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our management s beliefs and assumptions only as of the date of this presentation. You should read the prospectus, including the Risk Factors set forth therein and the documents that we have filed as exhibits to the registration statement, of which the prospectus is a part, completely and with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.! 2015 Rally Software Development Corp. All rights reserved. Rally, Rally Software, the Rally Software logo, RallyON!, Flowdock, AgileZen, Agile Advantage, and 6th Sense Analytics are trademarks or registered trademarks of Rally Software Development Corp. in the United States and/or other countries. All other trademarks are properties of their respective owners.

3 !! Rally at a Glance Leading global provider of cloud-based solutions for managing Agile software development! Founded in 2001; HQ in Boulder, CO Revenue! ($ IN MILLIONS)! 41 % CAGR $74.3 $87.5 $56.8 1,100+ customers, 35+ of Fortune 100 $ employees across 4 continents $29.7 ~262,000 paid seats $11.1 $18.4 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Q4-FY15 Reported Actuals

4 Key Metrics as of Q4 FY15 261,982 paid seats 113% renewal rate* Over 1,100 customers 58% Y/Y seat growth in top 15 customers All data sourced from Q4 FY15 CFO Commentary available at investors.rallydev.com * includes non-renewals, downgrades and upgrades as of Q4 FY15

5 What We Offer

6 Three Waves Cloud & SAAS! & Internet of Things! Agile vs.! Waterfall Software is! Eating the World

7 New vs. Old Agile! Waterfall! Short cycles Visibility Waterfall Regimented Simplicity Adaptability Traditional Micromanaged

8 Rally s Complete Agile Platform

9 Scale Agility Horizontally and Vertically

10 Rally Software continues its leadership in Agile/ Lean. Rally is an ALM Leader for ability to execute and completeness of vision. Leader Application Life-Cycle Management Wave (1) Leader Below-the-Line Project/Portfolio Management Wave (2) Strong Performer Above-the-Line Project/Portfolio Management Wave (2) Leader Application Development Lifecycle Management Magic Quadrant (3) (1) The Forrester Wave : Application Life-Cycle Management, Q October 2012 (2) The Forrester Wave : Project/Program Portfolio Management, Q December 2012 (3) Magic Quadrant for Application Development Life Cycle Management November

11 Current ALM Competitive landscape Agile ALM! Incumbents! Rational! Quality Control! Clarity Agile!

12 Worldwide ALM Market Size % CAGR! 2017 ALM $5.6B Agile ALM $0.3B 40% CAGR! ALM $7.2B Agile ALM $1.1B Agile ALM Vendor 2012 Revenue 2012 Share 2012 YoY Growth Rally $48.3M 22.8% 42.8% VersionOne $19.0M 8.9% 35.4% Atlassian $17.4M 8.2% 21.5% IBM $16.1M 7.6% 12.7% Microsoft $13.8M 6.5% 23.8% Source: IDC Worldwide Agile Application Life-Cycle Management Software Forecast and 2012 Vendor Shares: Quick Access Drives Adoption and Business Agility May 2014.

13 Rally Sales Headcount 4 Regions! 90 FY12! 112 FY13! 156 FY14! 160 FY15! Rally Total Sales Headcount at Year-end FY15

14 Rally Customers by Market Segment Enterprise Software & Applications Telecom & Mobile / Servers & Network Healthcare Financial Services & Insurance Web Services & Content Technology Manufacturing / Logistics Retail / Distribution & Ecommerce Media / Entertainment Federal

15 Land & Expand Top 15 Customers First Order Date First Order Seats Seats as of Q4 FY15 Y/Y Seat Growth Customer 1 September , % Customer 2 March ,600 0% Customer 3 June ,000 0% Customer 4 May , % Customer 5 September ,500 7, % Customer 6 June ,500 0% Customer 7 January ,248 20% Customer 8 March , % Customer 9 October ,949 37% Customer 10 April ,600 56% Customer 11 September ,607 22% Customer 12 November ,500 4,500 New Customer 13 December ,003-2% Customer 14 November ,000 3,000 New Customer 15 September ,986 45% TOTAL 10, ,493 58% From Q4 FY15 CFO Commentary available at investors.rallydev.com

16 Customer Penetration Top 15 Top 100 Over 7,300 seats on average Over 1,900 seats on average ~40% Average Penetration ~32% Average Penetration Top 15 average sourced from CFO Commentary Q4 FY15 Top 100 average from Rally internal records. Penetration estimates based Rally internal estimates.

17 Rally Management Team Office of the CEO Tim Miller Ryan Martens Jim Lejeal Angela Tucci CEO CTO CFO CRO David Huberman Liz Andora General Counsel VP, People

18 Additional Q4 Metrics and Commentary $ 24.6M Total Revenue: 24% YoY growth NG-EPS: $(0.28) per share Outlook On Operating Cash Flow: FY17 Postive $34.5M calculated billings: 29% YoY growth All data sourced from either Q4 FY15 CFO Commentary or Q4 Earnings Call Prepared Remarks available at investors.rallydev.com