Better Billing, More Cash There’s an easy button for that.

John Bruce Manager, Sales Engineering, Zuora

Kristin Hagan Senior Sales Engineer, Zuora

Clete Werts Zuora Partner Manager, Avalara

Disclaimer  •  This  session  may  contain  product  features  that  are  currently  under  

development.  •  This  session/overview  of  new  technology  represents  no  commitment  

from  Zuora  to  deliver  these  features  in  generally  available  product.  •  Customers  who  purchase  services  should  make  the  purchase  decisions  

based  upon  features  that  are  currently  available.    •  Technical  feasibility  and  market  demand  will  affect  final  delivery.  •  Pricing  and  packaging  for  any  new  technologies  or  features  discussed  or  

presented  have  not  been  determined.  

The Nine Keys for Subscription Success H O W D O T H E Y A F F E C T Y O U R B U S I N E S S ?

$

PRICE   ACQUIRE   BILL   COLLECT  

NURTURE   ACCOUNT   MEASURE   ITERATE   SCALE  

Your world I N T H E S U B S C R I P T I O N E C O N O M Y

Launch You’ve launched a product… Now what?

Bill Your first customer signed up! How do you bill and collect payment?

Manage You now have thousands of customers! How do you grow efficiently?

q  Products

One-time, Recurring & Usage ü  Flexible Billing Periods: Monthly,

Quarterly, Annual and More… ü  Multiple Currencies ü  Taxation

q  Discounts ü  Percentage-based ü  Flat-rate ü  Time-constrained Offers

q  Multiple Sales Channels ü  Self-service ü  Assisted via Salesforce

Launch P R I C E A N D A C Q U I R E

Demo

q  Account & Subscriptions ü  Account Hierarchies ü  Monthly or Anniversary Date Billing ü  Upgrade, Downgrade & Co-Terminate

q  Invoicing ü  Customizable Templates (pdf, csv) ü  Fully Automated or Ad-hoc ü  Invoice and Payment Preview

q  Payments & Collections Automation ü  CC, ACH, Check, Wire… ü  Retry Rules & Payment Updater ü  Flexible Payment Terms

Bill Y O U R C U S T O M E R S

Demo

Standard Invoices

Simple Statements

Receipts

q  Customer Retention ü  Refunds & Credits ü  Invoice Adjustments

q  Real-Time Updates ü  Email Notifications ü  Call-outs (XML)

q  Auditability ü  Transaction Details ü  In-depth Payments ü  Full Audit-Log

Manage Y O U R C U S T O M E R B A S E

Demo

Better Billing, More Cash Taxation

Clete Werts Zuora Partner Manager

Sales Tax Compliance

The Zuora & Avalara Partnership

Automate with Technology

Solution

Sales Tax Compliance: The Challenge

ZUORA    CUSTOMER  

 

Increased State Enforcement Federal Legislation

Use Tax

International Requirements

Constantly Changing Rates, Rules, & Boundaries

Product Taxability

Nexus (Physical Presence)

Filing & Returns

 States  define  Nexus  as  a  ‘tangible  physical  presence’  which  creates  the  requirement  to  collect  &  remit  Sales  Tax.        Nexus  triggering  events  can  include:    Traveling  Salespeople    Employees  on  Payroll      Training    Trade  Show  AFendance    Drop  Shippers  /  Warehousing      Affiliates          

Sales Tax Challenge: What is Nexus?

Product  Taxability  in  States  &  JurisdicNons  is  not  consistent  throughout  the  United  States.  

The  following  industries  have  varying  taxability  rules:  Software / Hardware (SAAS) Digital Goods (media/publishing) Medical device / equipment And many other industries / products!

Sales Tax Challenge: Product Taxability

Sales  Tax  Challenge:  Accuracy  

       Amazon  Laws  

–  Expanded  definiJon  of  NEXUS  

 US  Federal  LegislaNve  AcNon  – Marketplace  Fairness  Act  

•  Just  Passed  the  Senate  &  could  have  a  significant  impact  on  Zuora’s  exisJng  customers  

Sales Tax Compliance: The Challenge

Sales Tax Compliance: MFA

The Marketplace Fairness Act is a bill passed by the U.S. Senate on May 6, 2013.

 Strong,  bi-­‐parJsan  support,  passing  69  –  27.    Gives  federal  permission  for  states  to  require  collecJon  of  sales  tax  by  remote  vendors.      

MFA: What Does It Do?

Can affect companies that do interstate retail transactions or “remote sales” Puts a $ threshold on remote sellers Uses Destination-based sourcing for transactions Requires states to simplify filing

MFA: What’s Next? The bill moves to the U.S. House of Representatives.

–  A vote could be as early as June or as late as October. If passed by the House, it is expected to be signed into Law by the President. Could go into effect within 180 days of enactment Law could be challenged which could delay enactment

Sales Tax Compliance

The Zuora & Avalara Partnership

Automate with Technology

Solution

Gateways  

CRM   WEB  

AccounNng/GL  

AnalyNcs  TaxaNon  

Pricing  Catalog   SubscripNon  Mgmt  

SubscripNon  Metrics   Account  Mgmt  

MulJ-­‐Tenancy     PCI  Level  1   SSAE  16  Type  II  

CustomizaJon  

APIs  

NoJficaJons  And  Callouts   Data  Export/Import  User  AdministraJon  

Avalara Integration: Where Does It Fit?

Granularity  of  Sales  Tax  CalculaJon     GeolocaJon  (roo`op  technology)  

Response  &  Efficiency     200-­‐400  millisecond  round  trip  calculaJon  Security    

Ability  to  Scale     Capable  to  manage  172  million  transacJons  daily  

2048-­‐bit  SSL  for  data  in-­‐flight  256-­‐SHA  encrypJon  for  data  at  rest  Monthly  penetraJon  tesJng  by  external  service  CISSP  security  expert  on  staff  

Leader in Technology

Prebuilt  connector  to  Zuora  

Single  interface  to  manage    enJre  sales  tax  process  

No  hardware  or  so`ware    requirements  

Ability  to  launch  in  days  

Implementation & Integration

Sales Tax Compliance

The Zuora & Avalara Partnership

Automate with Technology

Solution

Automation: Sales Tax Filing Reporting: Filing begins with a review & reconciliation of tax collection data

Return Preparation: Automatically populates all appropriate tax return forms.

Filing & Remittance: Sales Tax forms are filed as required by states a single payment via ACH transfer.

Return Archiving: Digital archiving & storage is managed with easy access to previous years’ information.

Notice Management: Enable immediate responsiveness to tax notices

Q&A

Thank You!