Investor Presentation

Transcription

1 Investor Presentation January, 2008

2 Forward Looking Statements This presentation contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any projections of financial information; any statements about historical results that may suggest trends for our business and results of operations; any statements of the plans, strategies and objectives of management for future operations; any statements of expectation or belief regarding future events, technology developments, or enforceability of our intellectual property rights; and any statements of assumptions underlying any of the foregoing. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including but not limited to: quarterly fluctuations in our business and results of operations; our ability to address market needs and sell our applications and services successfully; and the effects of competition. These and other risks and uncertainties associated with our business are described on Form S-1/A filed with the SEC on December 19, 2007, and available via We assume no obligation and do not intend to update these forward-looking statements. NetSuite, The "N" in NetSuite Logo and One System, No Limits, are registered trademarks or service marks of NetSuite Inc. in the United States and other countries. This presentation also contains additional trademarks and service marks of ours and of other companies. We do not intend our use or display of other companies trademarks or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies. 1

3 Suite SaaS 2 NetSuite: The Enterprise-Class Application for the Mid-market SMB Three Big Ideas

4 $70 $60 $50 $40 $30 $20 $10 $0 The Suite Spot of the Market A leading vendor of on-demand, integrated business management application suites for small and medium-sized businesses Annual Revenue Revenue Momentum Quarterly Log-ins ($ in millions) ($ in millions) Revenue for Nine Months Ended 900,000 $ , , ,000 $ , , , , ,000 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY /30/2006 9/30/ Sep-04 Sep-05 Sep-06 Sep-07 3

5 Big Idea #1 Target SMBs The Last Great Software Market 4

6 Suite + SaaS Fills the Midmarket Gap Large Enterprise Employees 8,643 Companies Medium Enterprise Employees No clear SMB leader 1,253,979 Companies Few examples of a software application successfully moving down market Faster growing than enterprise market Need ease of use and power at low cost Small Enterprise 1-9 Employees 3,821,128 Companies Note: Number of companies as of 2004 Source: U.S. Small Business Administration, Office of Advocacy? 5

7 Big Idea #2 SMB One System to Run a Business The Suite Trumps Point Products 6

8 Large Enterprise Circa 1995: Point Products Web Support Finance Sales 7

9 Large Enterprise Today: The Suite Is Dominant Web Support NetWeaver Finance Sales 8

10 The Suite Has Long-Term Staying Power Annual Revenue Since IPO 23-Mar-1989 IPO 16-Mar Mar Mar Feb Feb Feb Years Since IPO 9 Annual Revenue

11 Medium Enterprise Today Multiple Silos of Data Warehousing Web SFA Accounting Support 10

12 Vendors Ecommerce Manager Shipping Manager CEO Order Management Marketing Campaigns Sales Force Automation Payroll Customer Support Partner Relationships SINGLE DATA REPOSITORY Vendor Portal Customer Portal Web Site Web Store Purchasing Accounting/ Financials Shipping Inventory Customers CFO NetSuite: One System for Running a Business Partners 11 Support Manager Sales Rep /Manager

13 CEO Dashboard 12

14 Sales Dashboard 13

15 Warehouse Dashboard 14

16 CFO Dashboard 15

17 Customer View A Complete Website 16

18 Highly Customizable The Ultimate Platform for Business Process Customization Ecommerce CRM Acct/ERP Empowers customers, partners and developers 17 SUITEFLEX SuiteScript SuiteTalk Enables extension of core functionality Facilitates industry-specific customization SuiteBuilder Repeatable and reusable across multiple customers

19 Independent Software Vendors (ISVs) Use SuiteFlex to Create Vertical NetSuite Editions 18

20 SMB Big Idea #3 Suite 19 A More Efficient Way to Serve SMBs Delivered Over the Web

21 Serving the High Growth Segment of the Market Worldwide SaaS Revenue ($ in billions) $13.2 $14.8 $11.1 $8.4 $5.7 $ % CAGR Source: IDC, July 2007

22 NetSuite: Manage Your Business, Not Your Software Manage It Yourself Style HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION License HARDWARE License DESKTOP License OS SERVER License OS DATABASE License APPLICATION License License License License License Maintain License Maintain License Maintain License Maintain License Back-up License Maintain Maintain Maintain Maintain Back-up Patch Maintain Patch Maintain Patch Maintain Tune Maintain Upgrade Back-up Patch Patch Patch Tune Upgrade Replace Patch Replace Patch Replace Patch Upgrade Tune Migrate Upgrade Replace Replace Replace Upgrade Migrate ERP NetSuite Style HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION Subscribe One System CRM E-Commerce Replace Replace Replace Upgrade Migrate 21

23 Suite SaaS 22 NetSuite: The Enterprise-Class Application for the Mid-market SMB Three Big Ideas

24 Suite, Modules and Vertical Editions Enable Flexibility, Customer Growth Annual List Price for 40 Users $120,000 Suite Silver Support Modules $80,000 $40,000 $0 NetSuite NetSuite NetSuite with Modules (2) Software Co. Vertical Edition Note: Excludes professional services (1) Often the actual price paid by NetSuite customers differs from the list price due to discounting (2) Based on four modules: Advanced Inventory, Advanced Financials, Site Builder and Commissions Management (3) Includes Silver Support for no additional fee Per User NetSuite CRM (3) 23 List Price (1)

25 Sales Model Direct 130 direct sales reps as of September 30, 2007 Highly efficient and cost-effective sales model Primarily telesales-based selling with online demos Occasional face-to-face selling involved in larger, more complex transactions Typical sales cycle varies from 30 to 180 days depending on size of customer Marketing activities designed to drive demand and generate qualified leads through measurable marketing programs Indirect Established worldwide network of over 130 Resellers and Solution Providers 24

26 The Fortune 5,000,000 NetSuite has over 5,400 active customers in a wide variety of industries 25

27 Customer Case Studies Epicor (U.S. & International) QuickBooks GoldMine Before NetSuite In-house CRM Changepoint (project tracking) Salesforce.com Callidus (incentive mgmt) Current Deployment NetSuite Software Company Edition Plus modules: Project Accounting Commissions Management NetSuite Plus modules: Advanced Inventory Commissions Management NetSuite CRM+ Users 160 Users 236 Users 67 Users; 15,000 resellers Financial consolidation Better AR management 25% gain in resellers Results Streamlined operations and better visibility Faster turnaround time on key business processes Global order visibility Better sales management and forecasting 70% better forecasting Self-service for partners 26

28 Multiple Growth Opportunities NetSuite Has Built a Powerful Platform For Continued Growth Expand Leadership in Large Under- Penetrated Market Increase Usage Within Existing Customer Accounts Expand Indirect Channel Introduce New Industry- Specific Capabilities Continue Developing ISV Partner Network Extend Support for International Markets 27

29 Larry Ellison Relationship Co-Founder Larry Ellison, CEO of Oracle Corporation, co-founded NetSuite with Evan Goldberg in 1998 Ownership Mr. Ellison and his family own 66% of NetSuite s common stock following our Initial Public Offering Transfer of Voting Control Mr. Ellison transferred all of the shares formerly held directly by Tako Ventures, representing 55% of NetSuite s common stock following our Initial Public Offering to a limited liability company Mr. Ellison relinquished most discretion over how his NetSuite shares are voted for as long as he serves as a director or officer of Oracle Other than for a change of control and certain other events, his shares will be voted in proportion to the voting of the rest of the shareholders, excluding family members and 13D filers 28

30 Experienced Leadership Team Management Name Title Background Zach Nelson President & CEO Oracle, Sun Microsystems, McAfee Jim McGeever CFO Clontech Laboratories, Photon Dynamics Evan Goldberg Founder, CTO & Chairman of the Board Oracle, mbed Software Dean Mansfield President, Worldwide Sales & Distribution Brocade Communications, Plumtree Software, Network Associates Tim Dilley EVP, Services Informatica, Andersen Consulting (Accenture) Board of Directors Name Background Evan Goldberg Chairman, Founder & CTO Zach Nelson President & CEO Billy Beane VP & General Manager, Oakland Athletics Deborah Farrington Partner, StarVest Partners Keith Grinstein Partner, Second Avenue Partners; Former CEO, Nextel International Kevin Thompson CFO & COO, SolarWinds; Former CFO, Red Hat & SAS 29