corporate strategy and vision · •high level of recurring revenue with strong renewal rates...
TRANSCRIPT
Corporate Strategy and Vision
Kirill Tatarinov, President & CEO
Power a world where people, organizations, and things are securely
connected and easily accessible to make the extraordinary possible.
Our Mission
Secure IT Users Cyber Security
Citrix Secure Digital Workspace
Legacy/ Custom
Apps Secure IT Users
Citrix Secure Digital Workspace
Security & Performance Analytics
Unified Experience
“BYO”
Identity
Single Sign-on
Contextual Access
Contextual Performance
Unified Endpoint Mgmt.
App Ops
Content Control
Legacy/ Custom
Apps
Secure IT Users
Software-Defined Perimeter
• Largest Healthcare System in New England and Citrix customer for over 10 years
• Currently leveraging XenApp to securely deliver EMR with NetScaler SDX as the overall app delivery platform for Citrix and web-based applications
• Leading the way with Digital Transformation in the Healthcare Space
• Plan to redesign the Clinical Workstation, utilizing WIN10 VDI and the Healthcare Hub (HDX Pi)
• Will be migrating 10’s of thousands of users to Citrix Cloud over next 2 years
• Drivers - simplicity, flexibility, security
Citrix Workspace Service
Citrix Analytics Service
Citrix Security Practice
XenApp & XenDesktop Essentials
XenMobile for EMS
Citrix Analytics/Microsoft Intelligent Security Graph Integration
Secure Browser Essentials for Azure
Virtualized Skype for Business on Chromebook
Gsuite Integrations for ShareFile
Cisco and Nutanix join Citrix Ready HCI Workspace Appliance Program
Key Innovation Announcements
The Citrix Way
• Committed to sustained profitable growth
• Ongoing efforts to expand operating margin
• Expanding TAM
• Maximizing shareholder return
• Focused on execution and operational efficiencies
PJ Hough Senior Vice President
of Product
Technology Keynote
LEARN MORE Unified Experience Security Citrix Analytics Citrix Cloud
MUST SEE DEMOS Adaptive Workspace UX Citrix Cloud – App Layering & Admin Experience EMS Integration with XM Citrix Analytics
Join Us – Highlighting Citrix Innovation
Business & Operating Plan David Henshall | COO & CFO
This presentation contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this presentation do not constitute guarantees of future performance. Investors are cautioned that statements in this presentation, which are not strictly historical statements, including, without limitation, statements by our President and Chief Executive Officer and our Chief Financial Officer, and statements concerning our expected future performance, plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, including, without limitation, the impact of the global economy and uncertainty in the IT spending environment; the success and growth of our product lines; our product concentration and our ability to develop and commercialize new products and services; risks associated with changes and transitions in key personnel, including management personnel; risks associated with concentration of customers in our networking business; risks associated with our acquisitions; our ability to maintain and expand our business; risks in effectively controlling operating expenses; litigation; the impairment of assets; competition; and other risks detailed in our filings with the Securities and Exchange Commission. We assume no obligation to update any forward-looking information contained in this presentation.
Additionally during this presentation, we may discuss various non-GAAP financial measures as defined by the SEC’s Regulation G. More information on the non-GAAP financial measures used in this presentation can be found in the earnings press release issued today and on the Investor Relations page of our corporate website at www.citrix.com/investors.
Safe Harbor and Non-GAAP Financial Measure Provisions
Maximizing Long-term Shareholder Value
1 Delivering consistent execution
Leveraging our assets to expand TAM with Citrix Cloud 3
Growing installed base ARR through CSS and Cloud 4
Maintaining predictable return of capital 5
2 Increasing margins while driving growth
100+ Countries
10,000 Partners 2016 revenue
$3.4B*
YoY Revenue
+4%
31%*
Adj Op Margin
+500 YoY BPS
400K Enterprises
9,000+*
Employees
* Including GoTo business, divested February 2017
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Ad
just
ed E
PS
Rev
enu
e ($
M)
Access
Collaboration
Networking
Virtualization
Citrix IPO
Revenue EPS
Cloud
Mobile
Citrix Growth and Evolution* Consistently delivering results through changing market cycles
* Including GoTo business, divested February 2017
0%
4%
8%
12%
16%
20%
24%
28%
$0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
2011 2012 2013 2014 2015 2016
Short Term Long Term % LT Deferred
Def
erre
d R
even
ue
($M
) % Lo
ng-term
Deferred
… while building strong Deferred Revenue
FY’16
8% YoY
Q1’17(1)
11% YoY
(1) Deferred Revenue Q1’17 YoY excludes GoTo (unaudited) * Including GoTo business, divested February 2017
0%
4%
8%
12%
16%
20%
24%
28%
$0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
2011 2012 2013 2014 2015 2016
Short Term Long Term % LT Deferred
Def
erre
d R
even
ue
($M
) % Lo
ng-term
Deferred
… while building strong Deferred Revenue
FY’16
Long Term 16% YoY
Q1’17(1)
Long Term 22% YoY
* Including GoTo business, divested February 2017 (1) Deferred Revenue Q1’17 YoY excludes GoTo (unaudited)
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
$7.50
$200
$400
$600
$800
$1,000
$1,200
2011 2012 2013 2014 2015 2016
CFO CFO / SHARE
• High level of recurring revenue with strong renewal rates
• Customers driving more strategic engagements
• Increasing leverage in the business model
• Cash Flow / share benefitting from capital structure programs
Cas
h F
low
fro
m O
per
atio
ns
($M
)
Cash
Flow
/Share (1
)
… and increasing Cash Flow from Operations
* Including GoTo business, divested February 2017 (1) CFO divide by diluted WASO
23%
25%
27%
29%
31%
33%
35%
$200
$400
$600
$800
$1,000
$1,200
2011 2012 2013 2014 2015 2016
CFO % of Revenue
Cas
h F
low
fro
m O
per
atio
ns
($M
)
CFFO
as % o
f Reven
ue
… and increasing Cash Flow from Operations
FY’16
CFFO Increased to ~33% of Revenue
* Including GoTo business, divested February 2017
26.9M Shares
$113 Price(1) GoTo
+
@
$3B+ Value to CTXS
Shareholders
(1) Based upon May 19, 2017 LOGM share price
Unlocking value by separating GoTo business
Reverse Morris Trust merger
Expanding Opportunity
$2.7 Billion FY’16 Excluding
GoTo
$9B 2015
Networking
Workspace Services
Content
$20B 2020
* Unaudited
Citrix Leads in all Primary Markets
2015 Forrester Wave TM Server Hosted Desktops (VDI)
2016 Magic Quadrant for Enterprise File Sync & Sharing
Windows
2016 Magic Quadrant for Application Delivery Controllers
Web, SaaS, Cloud
2016 Magic Quadrant for Enterprise Mobility Management
Mobile Content
Source: Gartner report, Magic Quadrant for Enterprise Mobility Management Suites, June 8, 2016, Rob Smith, Bryan Taylor, Chris Silva, Manjunath Bhat, Terrence Cosgrove, John Girard Source: Gartner report, Magic Quadrant for Enterprise File Synchronization and Sharing, 21 July 2016 , Monica Basso, Karen A. Hobert, Jeffrey Mann Source: Gartner report Magic Quadrant for Application Delivery Controllers, Analysts Andrew Lerner, Joe Skorupa, Danilo Ciscato and Published 29 August 2016 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. For more information, e-mail [email protected] or visit gartner.com. Used with permission. The Gartner document is available upon request from Citrix. This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Forrester Wave™: Server-Hosted Desktops (VDI), Q3 2015. The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
Healthcare
Top 10 Healthcare Companies
Top 10 Pharmaceutical Companies
Public Sector
Top 5 Largest US Government Agencies
Top 10 Largest US Cities
Top EMEA Central Government Agencies
Financial Services
Top 10 Largest Banks
Top 10 Investment Companies
Top 10 Property Insurance Companies
Top 10 Life Insurance Companies
Manufacturing
Top 10 Automotive
Top 10 Chemical
Top 10 Computer and Electronics
Top 10 Aerospace and Defense
Education
Top 10 Highest Ranked Universities
All US “Big Ten” Universities
Top 10 Largest US School Districts
The largest companies in the world rely on Citrix solutions …
Business agility
Market expansion & acquisitions New business relationships
Continuity of operations
Customers loyalty
Personalized service Improved satisfaction
Seamless across channel
Employee productivity
Employee engagement High performing virtual teams
Flexible, collaborative spaces
Security & compliance
Simpler security operations Remediation & response Compliance management
Cost & efficiency
Cloud scale and economics
Unified control & management Data center modernization
… because Citrix addresses major business challenges
Users Secure IT
Software-Defined Perimeter
Security & Performance Analytics
Unified Experience
“BYO”
Identity
Single Sign-on
Unified Endpoint Management Contextual
Access
Contextual Performance
Legacy/ Custom
apps
App Ops
Content Control
… by delivering a Secure Digital Workspace
…. both on premises …
Apps & Data
XenDesktop XenMobile ShareFile
NetScaler
Software Defined Networking
XenApp
ADC, SD-WAN, WAF, Gateway
App Virtualization VDI
On-premises Cloud (Public or Private)
Multi-Cloud Management and Services
Mobility Management File Sync & Share
People, Devices & Things
NetScaler
Management and Analytics System
Citrix Workspace Suite Any App, Any Device, Any Network, Any Cloud
• Centrally controlled apps, data, desktops & secure digital workspaces
• Personalized access based on role, location and device choice
• Improved security and risk management
• Intelligent, context-aware experiences through network integration and visibility
• Any infrastructure – network, storage, HCI, hypervisor, cloud
App & Data Operations and
Analytics
Solution Workflows & Service
Administration
Public & Private Infrastructure Management
Unified End User
Experience
Virtual Apps
VDI Desktops
File Sync & Sharing
GW, ADC, SD-WAN, MAS
WAF
XenApp Services
XenDesktop Services
XenMobile Services
ShareFile Services
SDP Services
Mobile Apps & Devices
IoT, AppDNA, more
Experimental Services
Citrix Cloud Services
Digital Workspaces
Workspace Services
Integrated approach for administration, identity, authentication, provisioning, licensing, availability, reporting & more
… and in the Cloud
• Deliver a unified Citrix workspace experience faster, simpler with existing IT staff
• Citrix Cloud services help reduce need for specialized IT skills for VDI, EMM, FSS & more
• Integrated admin control across on-premises and multi-cloud environments
• Use any cloud – Azure, AWS, 3rd party & private – or datacenter
2015
$9B $20B
VCC
EMM
ADC
SD-WAN
BFSS
2020 2015
TAM ($B)
Expanded Opportunity
SDP Security Analytics Classic
$25.5B
Classic Categories
2.2
3
.5
SDP
0.5
2
SECURITY ANALYTICS
2020
9% CAGR
32% CAGR
3.3
4
.6
VCC
1.8
3.2
EMM
1.8
2
.2
ADC
[VA
LUE]
6
SD-WAN
1.6
3.6
BFSS
7% CAGR
12% CAGR
4% CAGR
93% CAGR
18% CAGR
Citrix Market Opportunity
2020
2015
$9B $20B
VCC
EMM
ADC
SD-WAN
BFSS
TAM ($B)
Expanded Opportunity
SDP Security Analytics Classic
$25.5B
Classic Categories
2020 Citrix Market Opportunity
2020
TAM (%) Forecasted % of TAM delivered as SaaS / Cloud Service
19% >50%
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17
Fiscal Year
• Originally engaged with thin client computing to reduce TCO
• Added NetScaler Gateway for secure remote access
• Transformed with VDI and ADC for a integrated workspace solution
• Periodic upgrades due to resources and time
• Q1’17 – initiated multi-year migration to Citrix Cloud
Tactical
Strategic
Remote Access VPN
ADC
Desktop Virt.
Citrix Cloud
Extending the customer value roadmap …
EMEA based BPO
Remote Access VPN
ADC
Desktop Virt.
Citrix Cloud
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17
Fiscal Year
Annual Sales Cumulative Sales
An
nu
al S
ales
($
M)
• Alignment between Citrix Cloud and customer business objectives
• Citrix was the only solution which offered the full set of required features at scale
• Hosting in Azure to manage on-demand capacity and DR
• Deep engagement with Microsoft team to ensure alignment
Extending the customer value roadmap …
Cu
mu
lative Sales ($M
)
EMEA based BPO
Current Business Results
Workspace Services Strategy Innovation extending Citrix leadership in VCC and Mobile
• Fully integrated Workspace Suite – both on-premises and Cloud
• Unified user experience - all apps & devices
• Contextual security and access
• Microsoft solution partnership – Win10, Skype for Business, Azure native services, XenMobile EMS edition for InTune
Cyber Security
Workspace Services - Business Business Profile & Return to Growth
License
$-
$500
$1,000
$1,500
$2,000
FY16 Workspace Services Revenue
License Updates & Maintenance
FY’16 YoY
3%
Cyber Security
Workspace Services - License growth 2017 License Growth Initiatives
License
$-
$500
$1,000
$1,500
$2,000
FY16 Workspace Services Revenue
License Updates & Maintenance
•Units growing faster than revenue due to subscription / ratable mix
•Competitive win rate has increased significantly over past 2 years
•Security, Win10 and Cloud driving new customer demand
•CSP program expanding addressable market
•FY’16 investments in account coverage and segmentation
License
Cyber Security
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY13 FY14 FY15 FY16
Workspace Services – TTL Unit Sales
Perpetual CSP SubscriptionsTerm-based / Hybrid-rights Citrix Cloud SaaS
Use
rs T
ran
sact
ing
(1,0
00
s)
Workspace Services - License growth Increasing mix of ratable licenses expanding base and visibility
•FY’17 license revenue to increase despite changing sales mix
•CSP program (monthly subscriptions) expanding market opportunity
•Citrix Cloud demand in both mid-market and Enterprise
•Term-based transitioning to “hybrid-rights” license
*Excludes version upgrades
Cyber Security
Maintenanc
e
License
$-
$500
$1,000
$1,500
$2,000
FY16 Workspace Services Revenue
Workspace Services - Updates & Maintenance Increasing installed base ARR through Value-Add Services
•Annual subscription contracts
•Strong retention rates in mid/high 80’s
• Industry pacesetter NPS
•Transitioning installed base from License Updates to Customer Success Services program
License Updates & Maintenance
Cyber Security
Select Priority Priority Plus
24-Hour, 365-Day
Award-Winning Support
Personalized and
Proactive
Support to Optimize
Enterprise Solutions
Personalized and
Preventative Support
to Optimize
Mission-Critical
Solutions • 24x7x365 Unlimited Cases • Fastest Response Times In The Industry • Configuration & Installation Support • Live Chat, Acceleration & Automation
Tools, Training, and Other Exclusive Value-added Features
• Assigned Support Team & Success Planning
• Environment & Operational Reviews • Priority Queue • Critical Situation Management • Scheduled Support for Change Events
• Customized Add-On Services • Highest Priority Queue • Remote Monitoring with
Preventative Care • Our Fastest Response Times • Our Most Aggressive Restoration Targets
22%* 28% 28% + $500K/yr
*Pricing ranges from 20-25% program SRP based on product & edition
Introducing Customer Success Services (CSS) Increasing installed base ARR through Value-Add Services
Available H2’17
Introducing Customer Success Services (CSS) Increasing installed base ARR through Value-Add Services
• $200M+ incremental ARR opportunity over 3 years with CSS migration
•Adds significant new value-add for customers
•Attached to all new license sales beginning Q1’17
•Mandatory migration begins in H2’17
•SA licenses that “upgraded” to CSS in Q1’17 delivered 20%+ increase in ASP with no change in renewal rates
$-
$600
$1,200
Annual Recurring Revenue
Customer Success Services
License Updates &
Maintenance
Cyber Security
Networking Strategy Software defined networking solutions provide flexibility and differentiation
•Software based architecture can be delivered through appliance, virtual appliance, containerized or as a cloud service
•NetScaler: ADC, Gateway, SD-WAN and MAS becoming Software Defined Perimeter
•Management and Analytics platform (Citrix Analytics) leverages insights from NetScaler / HDX traffic
•Software Defined Perimeter services will expand TAM -> SSO, CASB, SwG, UEBA and WAF
Cyber Security
Networking - Business Business Profile & Continued Growth
Maintenance
License
$-
$200
$400
$600
$800
FY16 Networking Sales
FY’16 YoY
4%
Cyber Security
Networking - Product 2017 Growth Initiatives
SSP
0%
25%
50%
75%
100%
FY16 Networking Product Sales
Enterprise
•Market opportunity defined by two main segments
•SSP is physical infrastructure for Public Cloud, SaaS and eCommerce
•Enterprise currently includes Workspace solutions, cross-sell and Enterprise ADC
•Software-defined perimeter expands TAM
40%
60%
Cyber Security
SSP
0%
25%
50%
75%
100%
FY16 Networking Product Sales
Networking - Product Growth Initiatives targeted at expansion of customer base
•Continued global public cloud build-out driving opportunity
•Sales capacity investments made in FY’16
• Leadership positions filled in EMEA and APJ
•Expansion program to drive diversification targeting 53 new SSP/e-Com targets in FY’17
Cyber Security
SSP
Enterprise
Enterprise
SSP
0%
25%
50%
75%
100%
FY’16 Networking Product Sales
Networking - Product Growth Initiatives targeted at improved coverage and execution
•Capacity investments in FY’16 - already delivered growth in Q1’17
• Leadership positions filled in EMEA and APJ
•Focus on installed base “attach” for ADC and new cloud services
• Leveraging competitor cycle to create displacement opportunities
•Emerging SD-WAN, WAF, MAS and SWG market opportunities grow TAM
Enterprise
Cyber Security
Enterprise Content Services - Strategy Market evolving from business file sync & sharing to enterprise content services
•Secure content delivery platform with integrated workflow •Focus on Enterprise IT requirements for
security, compliance and mobility •Flexible storage options - on-premises, in the
cloud or other file-sharing services
Cyber Security
Enterprise Content Services - Business Market evolving from business file sync & sharing to enterprise content services
SaaS
$-
$25
$50
$75
$100
$125
FY16 ShareFile Cloud Revenue
FY’16 YoY
29%
Cyber Security
Enterprise Content Services - Focus Expansion into the enterprise as an integrated solution
• Focus on Enterprise expansion; current attach only 8%
• International control plane and specialist investments in FY’16
• Integrated element of Citrix Secure Workspace
• Complete enterprise delivery through Citrix Cloud by YE’17 – control plane & analytics
• FedRAMP certification expected by YE’17
SaaS
$-
$25
$50
$75
$100
$125
FY’16 ShareFile Cloud Revenue
Cyber Security
Cloud Transition
Transition to Citrix Cloud drives value for both customers and investors
Why Transition to Citrix Cloud services?
Customers
• Growing desire to move to hybrid and public clouds
• Simplifies IT infrastructure and reduces TCO
• Increases security and business agility
• Allows customer to focus on core business
• Incremental value derived from analytics platform
Citrix
• Increases customer LTV
• Grow install base ARR
• Closer relationships yield higher renewal rates
• Strong telemetry promotes metric-driven innovation
• Platform simplifies process of new services introduction and TAM expansion
License Updates,
Maintenance & Support
CSP, Term, SaaS
Perpetual VCC & Mobile
Perpetual Networking
$-
$400
$800
$1,200
$1,600
$2,000
Ratable Non-Ratable
2016 Revenue* Current Business Profile
* Excludes GoTo business and Professional Services (unaudited)
Cyber Security
License Updates,
Maintenance & Support
CSP, Term, SaaS
Perpetual VCC & Mobile
Perpetual Networking
$-
$400
$800
$1,200
$1,600
$2,000
Ratable Non-Ratable
2016 Revenue* Current Business Profile
• 2/3rd of total revenue is currently from ratable sources
• Large, loyal installed base of existing customers
• Current Cloud transition is focused on VCC business, limiting financial headwinds •VCC perpetual <15% of TTL revenue
66%
Ratable
* Excludes GoTo business and Professional Services (unaudited)
Installed Base Opportunity Migration of existing VCC customers drives significant increase in ARR
• $500M+ incremental ARR opportunity with CSS migration to Cloud
•Current offers are minimum 30% uplift in subscription over CSS License Updates
& Maintenance
Customer Success Services
Citrix Cloud
$-
$300
$600
$900
$1,200
$1,500
$1,800
$2,100
Annual Recurring Revenue ($M)
FY’16 FY’17-’19 FY’18-’21
New Customer Opportunity Cloud can significantly increase customer lifetime value
•Revenue break-even after ~2.7 years at current ASP
•30% higher cumulative revenue over 5 years
•Platform to deliver additional services
•Closer ongoing customer relationship
$0
$200
$400
$600
YR 0 YR 1 YR 2 YR 3 YR 4 YR 5
Cumulative Revenue Example - $ / per seat
XD-Platinum Desktop Service
New Cloud revenue will accelerate growth of SaaS
Citrix SaaS Revenue
$20
$24
$28
$32
$36
$40
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Rev
enu
e $
M
Content Services (ShareFile) Workspace & Network Services
• New Cloud services now contributing 10% of total SaaS
• Services - multi-tenant and not compute or storage intensive
• Initial adoption of Azure based services has been strong
*Q1’17 ARR = ratable business for the quarter x 4. Ratable items include SaaS, CSP and term-based licenses
New revenue categories will more accurately represent cloud transition
Financial Reporting Changes for FY’18
• Provide more visibility into licensing trends, and simplify the way we discuss each of our different revenue sources
• Group SaaS, Hybrid-rights and Transition licensing together, and report as Citrix Cloud subscription
• Introduce new metrics to provide increased visibility into our cloud business
New revenue categories will more accurately represent cloud transition
Financial Reporting Changes for FY’18
FY’17 Revenue Reporting
Product and License
Software-as-a-Services (SaaS)
License Updates and Maintenance
Professional Services
FY’18 Revenue Reporting
Product and License (minus) CSP & Term Based
Subscriptions Software-as-a-Services (SaaS) (plus) Citrix Cloud “Transition” / Hybrid (plus) CSP & Term-based (Product & LUM)
License Updates and Maintenance (minus) CSP & Term-based (LUM)
Professional Services
FY’18 New Metrics
TTL Billings
TTL Subscription ARR
Operations & Capital
Citrix is committed to driving expansion of leverage over time
Operating Margin (non-GAAP)
20%
22%
24%
26%
28%
30%
32%
34%
2014 2015 2016 2017*
OpMargin (Adj)
*Current FY’17 guidance range
•Up over 800 bps in last 2yr
•Opportunity remaining from restructuring programs
•Front-loaded variable expenses in FY’17
Citrix has consistently returned excess capital to shareholders
Capital Return
• Over 50% of free cash flow (FCF) expected to be used for capital return
• Programmatic share repurchases averaged ~60% of FCF during ‘12-’15
• FY’16 limited due to GoTo separation
• Acquired 7M+ shares in Q1’17
• Over $400M remaining in authorization
0%
50%
100%
150%
200%
250%
300%
$0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
2012 2013 2014 2015 2016 Q1'17
Programmatic Repurchase ASR Program Repurchase / FCF
Share Repurchase
Rep
urc
has
e A
mo
un
t ($
M)
% o
f Free Cash
Flow
… driving down sharecount on a consistent basis
Shares Outstanding
•17% reduction in share count over past 4 years
• LT Target = >50%+ of FCF used for capital return
2012 2013 2014 2015 2016
188M
160M
171M
157M
Fully
Dilu
ted
Sh
ares
Ou
tsta
nd
ing
189M
FY2017 Guidance
Net Revenue
$2.81B - $2.84B
Adjusted EPS
$4.60 - $4.65
Maximizing Long-term Shareholder Value
1 Delivering consistent execution
Leveraging our assets to expand TAM with Citrix Cloud 3
Growing installed base ARR through CSS and Cloud 4
Maintaining predictable return of capital 5
2 Increasing margins while driving growth
Sales & Services Strategy Carlos Sartorius EVP, Sales & Services
• Our renewed focus drove consistent and profitable growth in 2016 and we see cloud as a driver for continued growth in the VCC market
• Leverage our momentum with Suite and increase our lead in the VCC market
• Reinvigorated our Delivery Networking business with dedicated territories to capture whitespace opportunity in target markets
• We win with Microsoft and beat F5 and VMWare with innovation and performance
Executive Summary
• Refocused on our core products with a clear vision & strategy and revitalized
our channel to extend market leadership
• Invested over 35 sales resources in the Enterprise space in the United States, United Kingdom and Germany, and more than 70 new Networking sellers globally
• Scaling our US based successes and learnings to EMEA and APJ by launching SSP accounts with dedicated sales reps
• New Sales leadership for APJ as well as new Networking Sales leadership in both APJ and EMEA
Our foundation for growth
Field Sales Leadership
68 | Confidential
Stanimira Koleva VP, Sales & Services APJ
Carlos Sartorius EVP, WW Sales & Services
Sherif Seddik VP, Sales & Services EMEA
Fernando Campo SVP, Sales & Services Americas
Field Sales Leadership
69 | Confidential
Carlos Sartorius EVP, WW Sales & Services
Craig Stilwell VP, Partner Sales & Services
• Returned Workspace Services license revenue back to growth in FY2016
• Continued momentum into FY2017 with Q1’17 • Annualized Recurring Revenue of greater than $275M; Total CSP revenue growing 36% YoY
• ShareFile revenue growing 22% YoY; NetScaler ADC sales growing in our non-SSP business by 10%
• > 25% of customer base has purchased multiple products
• 4,476 net new customers
• 98% transacted through partners
Key Highlights and Results
Business agility
Market expansion & acquisitions
New business relationships
Continuity of operations
Customers loyalty
Personalized service
Improved satisfaction
Seamless across channel
Employee productivity
Employee engagement High
performing virtual teams
Flexible, collaborative spaces
Security & compliance
Simpler security operations
Remediation & response
Compliance management
Cost & efficiency
Cloud scale and economics
Unified control & management
Data center modernization
Citrix addresses major business challenges
Who is Saab Group Swedish aerospace and defense company that serves the global market with products and solutions ranging from military defense to civil security
Business Challenge Expanding their secure digital workspace to 15,000 global users
Customer Wins Virtual Client Computing
Citrix Workspace Suite 15,000+ users
EMEA
Why Citrix Complete solution adding file share and sync to replace offline folders, and manage central R&D environments for Windows and Linux VDA’s
Results Enabled the execution of global inventory, forecasting, compliance and operations aligned to Saab’s 3 year business strategy
“ • HCN looked to cloud to increase business
agility & flexibility, improve end user performance & expand IT service portfolio
• "Hybrid" nature of Citrix Cloud, enabled HCN to run on-prem and in public cloud environment
• Citrix Cloud Smart Tools component reduced server requirements and long term compute costs
• 9,140 Citrix Cloud users
“ • Welsh government regulations required a
Cloud first strategy • Citrix provided a hybrid cloud approach
that adapts to changes in the business • Flexibility of an annual payment allowed
SWP to reduce large capex outlays and reassign capital budget to strategic business initiatives
• 4,800 Citrix Cloud users
Offering the world’s best integrated technology services for a unified and secure digital workspace
Cyber Security
2017 Sales Priorities
Win with Microsoft
Win with networking
Win with secure workspaces
Sell the Citrix Story
Partners
• Lead with Workspace Suite (CWS) • Secure Workspaces: Apps, Network, Data
• CSP will drive the SMB and lower-end of the MM
• Position the value of Citrix Cloud to new and existing customers
• Compete and win against VMW
2017 Sales Priorities
Win with secure workspaces
• Attach NetScaler to every Workspace Services workload and opportunity
• Scaling our SSP business into EMEA and APJ and investing in new markets
• Compete and win against F5
2017 Sales Priorities
Win with networking
• Align with Microsoft in the field and continue to deliver the compelling joint message
• Focus on key use cases where we win
• Launched XenApp and XenDesktop Essentials on Azure Marketplace
2017 Sales Priorities
Win with Microsoft
Citrix Alignment with Microsoft
Win with Microsoft
• The ‘Better Together’ message is helping us beat competitors in the marketplace
• Azure Marketplace unlocks an additional route to market with lower cost of sale
• Microsoft Sellers are identifying new
customers and new buyers within existing customers
• Continued focus on revenue growth, core products and the investments we have made to scale the business globally
• Organizational changes and sales leadership up leveling have resulted in positive
outcomes and we expect this to continue throughout 2017
• We have products and solutions that solve business problems and believe customer adoption of our Cloud services will increase in 2H 2017
• Our relationship with Microsoft is unique in the industry and provides an opportunity to capture new customers and new markets
Closing Summary
