NETSUITE GLOBAL LEADER IN CLOUD ERP NYSE: N

Transcription

1 NETSUITE GLOBAL LEADER IN CLOUD ERP NYSE: N April 28,

2 SAFE HARBOR STATEMENT This presentation contains forward-looking statements that involve risks, uncertainties and assumptions relating to expectations, plans, and prospects including expectations relating to NetSuite s future growth and the future growth of the cloud computing market. These statements are based on information available to NetSuite management at the time of this presentation. Actual results could differ materially from our current expectations as a result of many factors, including, but not limited to: the market for on-demand services may develop more slowly than expected or than it has in the past; and adverse or unpredictable macro-economic conditions or reduced investments in ondemand applications and information technology spending. These and other risks and uncertainties associated with our business are described in our annual report on Form 10-K for the period ending December 31, 2015 and any subsequently filed periodic reports on Form 10-K or 10-Q. We assume no obligation to, and do not intend to, update any forward looking statements. Customers who purchase our services should make sure that their decisions are based on features that are currently available. Please be advised that any unreleased services or features from NetSuite referenced in this presentation or other public statements are not currently available and may not be delivered on time or at all. 2 2 NetSuite Inc. 2015

3 INVESTMENT HIGHLIGHTS The World s Leading Pure-play Software-as-a-Service (SaaS) Provider of ERP Software Suites 10,000+ companies running 30,000+ subsidiaries and entities across 100+ countries Large and Expanding Addressable Market ERP has largest TAM of any business app category Suite approach expands TAM to multiple categories Decade of Sustained Revenue Growth 14+ year head-start, not even a close #2 Powerful SaaS financial model; high visibility; strong renewals Winning Growth Strategy Verticalization of the suite Moving up market and going global with OneWorld Platform Expanded to OmniChannel with SuiteCommerce Large and growing partner ecosystem 3

4 NETSUITE: WORLD S #1 CLOUD ERP BACKGROUND Founded 1998; IPO in 2007 Publicly traded on NYSE: N 4,600+ employees Offices in 12 countries $741.1M revenue in FY15 PERFORMANCE World s most deployed cloud ERP Used by 10,000+ companies, running 30,000+ subsidiaries and entities Fastest growing top 10 Financial Management Software Worldwide Used across 100+ countries #1 Cloud ERP Suite 4

5 NETSUITE: FASTEST GROWING TOP 10 FINANCIAL MANAGEMENT SYSTEM VENDOR WORLDWIDE 50.0% 45.0% Top 10 WW FMS Vendors: 2015 YoY Market Share Growth Rate % NetSuite is the only pure Cloud vendor in Top 10 NetSuite is #6 (up from #8 in 2014) overall by Market Share in % 30.0% 20.0% 10.0% 0.0% -10.0% 14.1% 10.6% 8.3% 4.2% 2.9% NetSuite Deltek Microsoft Oracle Infor Yonyou Sage Visma Software 1.0% -0.6% -9.1% -12.4% Unit4 SAP -20.0% Source: Gartner, Market Share: All Software Markets, Worldwide, Published March 31, Chart created by NetSuite based on calculations of Gartner market share data. 5

6 NETSUITE NAMED ON FORBES 2015 LIST OF WORLD S MOST INNOVATIVE GROWTH COMPANIES Rank Company 5-year Avg Sales Growth (%) Enterprise Value ($billion) Innovation Premium (%) Industry 1 Xero IT SW & SVCS 2 NetSuite IT SW & SVCS 3 DexCom Health Care Equip & Svcs 4 ASOS Retailing NetSuite Receives 90% Innovation Premium on the 2015 List of Most Innovative Growth Companies Forbes, May athenahealth Health Care Equip & Svcs 6 M Health Care Equip & Svcs 7 Ultimate Software Group IT SW & SVCS 8 Kakaku.com IT SW & SVCS 9 Start Today Retailing 10 Qlik Technologies IT SW & SVCS Source, Forbes, May 2015 List of World s Most Innovative Growth Company less than $10B market capitalization 6

7 CLOUD OPPORTUNITY: THE BIG LAND GRAB Massive Market Opportunity Cloud is the Future In Billions $40 $20 ERP $27 $27 $29 $31 $33 $35 4x Faster growth than worldwide IT market 70% #1 Technology affecting IT $ Chart created by NetSuite based on Gartner research. Source: Gartner, Forecast: Enterprise Software Markets, Worldwide , 3Q15 Update, 18 September 2015 Rapid SaaS Growth Forecast vs. On-Premise (Enterprise Resource Management (ERM) On-Premise Growth % ( ) SaaS Growth ( ) 2% 17% 0% 5% 10% 15% 20% Source: IDC, Worldwide SaaS Enterprise Applications Forecast and 2013 Vendor Shares, Dec 2014 ERM includes Financial applications, Procurement, Order management, Human Capital Management, Payroll, Enterprise asset management, Project management and Financial performance and Strategy management Sources: IDC CIO Agenda Webinar, 2015 IDC WW and Regional Public IT Cloud Service Forecast Fortune 5 Million: US Enterprise & Mid-Market SMBs Enterprise >1,000 employees ~9,000 firms Mid-Market 100-1,000 employees ~116,000 firms Small <100 employees ~6,000,000 Source: BofA Report, The Cloud Wars, May % of CIOs embrace a cloud-first strategy in 2016 Target Market 7 7 NetSuite Inc. 2015

8 NETSUITE SUITECOMMERCE: ADDRESSES ACCELERATING GLOBAL SHIFT TO ECOMMERCE (in $billions) $3,000 Global Ecommerce Sales Forecast: % = Year-over-Year Growth Rate $2, $2,000 US 14% 14% 13% 12% 12% $1,500 Europe 14% -3% 8% 12% 11% $1,000 APAC 43% 36% 34% 30% 26% $500 Latam 12% 6% 13% 13% 13% $ ROW Latam Asia Pacific Europe US ROW 15% 9% 18% 16% 15% ROW = Australia, Japan, Russia, India and Other ROW Source: BAML Global Ecommerce /Industry Forecast, January

9 A DECADE IN CLOUD LEADERSHIP NetSuite Fiscal Year Annual Revenue ($M) $965 Outlook** $741 $556 $415 NetSuite IPO $309 $67 $109 $153 $167 $193 $ E **Midpoint of the range of FY2016 outlook of $955 to $975 million provided on NetSuite s Q earnings call as of April 28,

10 STRONG RECURRING REVENUE GROWTH In Millions ($) $447.8M $593.1M 33% YoY $333.6M 34% YoY $252.9M 32% YoY $139.1M 16% YoY $163.9M 18% YoY $199.6M 22% YoY 27% YoY Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 NetSuite Annual Recurring Revenue Growth 10

11 TRUSTED BY THE FORTUNE 100 AND COMPANIES OF ALL SIZES IN EVERY INDUSTRY Total # of Companies, Subs and Organizations (NetSuite Customers) Leading Brands Across Industries 30, ,000 20,000 16,000 10,000 12, Source: NetSuite public disclosure of customer count 11

12 BEST KNOWN BRANDS RUN NETSUITE Selected and standardized on NetSuite OneWorld for business management in subsidiaries and emerging markets. Expanded to international markets with NetSuite OneWorld in under four months. Girl Scouts has made NetSuite SuiteCommerce central to its strategy to grow its online business while delivering a cohesive Web experience for all customers. Using NetSuite across 2,700+ users in 15+ countries and across 3,000+ client projects and 1,500+ products and skills. 12

13 NETSUITE SOLUTION 13

14 WEB TODAY S BUSINESSES STRUGGLE WITH AN APPLICATION HAIRBALL WAREHOUSING ACCOUNTING Excel SFA SUPPORT 14

15 External Systems Customers NETSUITE: ONE SYSTEM FOR RUNNING A BUSINESS Shipping Manager CEO WAREHOUSE MANAGEMENT INVENTORY MANAGEMENT ERP SRP CORE BUSINESS CUSTOMER MANAGEMENT ORDER MANAGEMENT GLOBAL FINANCIAL MANAGEMENT PROJECT MANAGEMENT CFO RESOURCE MANAGEMENT Sales Rep/ Manager BILLING MANAGEMENT Merchandise Manager MANUFACTURING REVENUE MANAGEMENT TIME & EXPENSE Consultant/ PS Director SUPPLY CHAIN MANAGEMENT PROJECT ACCOUNTING Vendors Partners 15

16 SOLUTION OVERVIEW NetSuite: Modular cloud business suite ERP, CRM, Ecommerce, PSA For midsize companies to large enterprises NetSuite OneWorld: Global management NetSuite SuiteCommerce: Ecommerce NetSuite OpenAir: Enterprise PSA NetSuite SuiteCloud Platform 16

17 Local Currency Quota Forecast Orders Taxation Partners Language Website Global Consolidation Sales Revenue Dashboards Currency Management Compliance Control Multiple Websites 19+ Languages, 190+ Currencies 17

18 WHY BUSINESSES CHOOSE NETSUITE Last ever ERP upgrade No version-lock Eliminates application hairball Deploys in months, not years Modern, flexible and evolving Dramatically lowers IT cost 18

19 ENTERPRISE OPPORTUNITY: TWO-TIER 19

20 NETSUITE S TWO-TIER SOLUTION NetSuite Cloud Running NetSuite OneWorld NetSuite Cloud Running NetSuite OneWorld CORPORATE Running Oracle/SAP E-Business Suite Financials SuiteCloud Connect Worldwide Operations US Operations China Vietnam 20

21 TWO-TIER: DRIVING BUSINESS VELOCITY Mergers and Acquisitions: Cost effective ERP within subsidiaries Divestitures: Shed legacy ERP with lean, customizable cloud ERP 21

22 ENTERPRISE PARTNERSHIPS TO DRIVE SUCCESS Accenture s unmatched industry expertise and NetSuite s sophisticated cloud leadership pave the way forward for global enterprises. Paul Daugherty Chief Technology Architect 22

23 SUITECOMMERCE 23

24 COMMERCE IS CHANGING EVERY INDUSTRY Retail: Omnichannel as a matter of survival Manufacturing: Direct access to customers Sell B2B, B2C, retail, on marketplaces Wholesale Distributor: B2B, digital supply chain and B2C Software: Subscription management, Usage-based billing Services: Unified billing, Internet and new media Products are becoming services 24

25 Transforms the NetSuite Operational System Into a Commerce Platform That Provides Complete Flexibility to: SUPPORT MULTIPLE TOUCHPOINTS SUPPORT ANY BUSINESS MODEL INTEGRATE THE BACK- OFFICE COMMERCE OPERATION INNOVATE RAPIDLY TO EMBRACE AN EVER-CHANGING LANDSCAPE 25

26 SUITECOMMERCE POWERS GLOBAL EXPANSION OF OMNICHANNEL WAREHOUSE MANAGEMENT INVENTORY MANAGEMENT ERP SRP CORE BUSINESS CUSTOMER MANAGEMENT ORDER MANAGEMENT GLOBAL FINANCIAL MANAGEMENT BILLING MANAGEMENT REVENUE MANAGEMENT PROJECT MANAGEMENT RESOURCE MANAGEMENT MANUFACTURING TIME & EXPENSE SUPPLY CHAIN MANAGEMENT PROJECT ACCOUNTING 26

27 FINANCIAL HIGHLIGHTS 27

28 Q FINANCIAL HIGHLIGHTS Record Q1 Revenue of $216.6 Million, a 31% Year-over- Year Increase Record Q1 Recurring Revenue of $173.3 million, a 30% Year-over-Year Increase Record Q1 Operating Cash Flow of $31.3 Million, a 12% Year-over-Year Increase Note: Reconciliation of Non-GAAP measures to the comparable GAAP measures are available in the quarterly results press releases which can be found on NetSuite s website in the investor relations section. 28

29 KEY FINANCIAL TRENDS Non-GAAP Net Income ($ Millions) $25.0 $19.1 $19.9 $17.7 $8.5 $10.8 $3.4 Non-GAAP Recurring Revenue Gross Margin % 84.3% 85.8% 85.2% 85.3% 85.3% 85.8% 85.7% Total Deferred Revenue ($ Millions) $427.7 $314.5 $224.6 $161.4 $72.7 $81.1 $ Cash Flow from Operations ($ Millions) $100.4 $74.9 $54.3 $62.2 $36.3 $18.2 $ Note: Reconciliation of Non-GAAP measures to the comparable GAAP measures are available in the quarterly results press releases which can be found on NetSuite s website in the investor relations section. 29

30 Q2 16 AND FY2016 OUTLOOK Q FY2016 Revenue $229M to $231M $955M to $975M Non-GAAP EPS $0.02 to $0.03 $0.42 to $0.47 Operating Cash Flow $27M to $29M $140M to $145M Q2 16 and FY2016 Outlook ranges provided on NetSuite s Q earnings call as of April 28, Note: Reconciliation of Non-GAAP measures to the comparable GAAP measures are available in the quarterly results press releases which can be found on NetSuite s website in the investor relations section. 30

31 NYSE: N 31