netsuite corporate overview · netsuite’s future growth and the future growth of the cloud...
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NetSuite and the NetSuite Logo are registered service marks of NetSuite Inc.
(Updated as of October 26, 2012)
NetSuiteCorporate Overview
Cautionary Note – Forward Looking Statements
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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 on‐demand 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, 2011 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.
• Cloud computing: The future of software
• 10+ year head‐start, not even a close #2
• ERP: The “system of record”– ERP has largest TAM* of any business app category– Suite approach expands TAM to multiple categories
• Execution: Next‐phase initiatives succeeding– Verticalization of the suite– Moving up market and going global with OneWorld– NetSuite platform enabling partner ecosystem
Why NetSuite: For Investors
│ 3*Total Addressable Market
Powers Enterprises Powers DisruptiveInnovators
• World’s most deployed cloud ERP• Used by 12,000+ organizations• Fastest growing top 10 Financial Management Solution*
• Used across approx. 100 countries
• Founded 1998• Publicly traded on NYSE: “N”• Offices in 9 countries• 1,600+ employees• 2011 revenue: $236M
NetSuite: Quick TakePerformanceBackground
* For North America Source: Gartner, April 2011
Mission Statement
To provide web‐based integrated business systems with the power of
traditional applications used by the world's largest companies
but at a fraction of the cost and complexity.
NetSuite Fastest Growing FMS Vendor in North America Last 3 Years
6
Market Share: All Software Markets, Worldwide, 2011, Published April 2012Chart created by NetSuite based on Gartner Market Share Note
Source: Gartner
‐5%
SAGE MSFT
11%
SAP
25%
84%
Last 3 Years
ORCL
29%
│
SAP Microsoft Sage Infor Exact
NetSuite Fastest Growing Top 10 Financials Vendor in North America Over Last 3 Years
7Chart created by NetSuite based on Gartner Note:
Market Share: All Software Markets, Worldwide, 2010Published April 2011
‐20.00%
‐10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
NetSuite Lawson Oracle Epicor Deltek
• NetSuite is growing market share the fastest among the top 10
• NetSuite is now the 8th largestFinancial Management Systems vendor by share
• NetSuite is the only pure cloud ERP vendor on this list
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Source: Gartner
3 Year Cha
nge in M
arket S
hare 2008‐20
10
NetSuite Solution
Today’s Businesses Struggle with an Application Hairball
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Warehousing
AccountingSupport
SFA
Web
One System for Running a Business
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CEO CFO
Sales Rep/Manager
Support Manager
ShippingManager
Customers
Vendors Partners
ECOMMERCE
PSA
ERP
CRMSINGLEDATA
SOURCE
EcommerceManager
Solution Overview
• NetSuite: Modular cloud business suite– ERP, CRM, PSA, ECommerce
• For mid‐size companies to large enterprises
• NetSuite OneWorld: Global management
• NetSuite OpenAir: Enterprise PSA
• SuiteCloud platform
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Why Businesses Choose NetSuite:
• Last ever ERP upgrade – No “version‐lock”
• Suite eliminates application hairball
• Deploys in months not years
• Modern, evolving, flexible
• Dramatically lower IT cost
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World’s #1 Global Cloud Suite
ECOMMERCE
PSA
ERP
CRMSINGLE DATASOURCE
SINGLE DATASOURCE
SINGLE DATASOURCE
We chose NetSuite OneWorld for its powerful multi‐entity consolidation functionality combined with the capability to tailor the system to meet unique business process requirements of each individual subsidiary.
Reginald Singh, CFO │ 13
#1 Cloud ERP for the Enterprise
NetSuite is increasingly considered a safe choice for evaluation by many of the world's largest enterprises as they look to consolidate and revise their mid‐tier applications.
Source: Gartner, June 2011│ 14
• Billions of customer requests per month
• Millions ofunique loginsper quarter
• Automated upgrades
• Redundantdatacenters
Infrastructure
Application
Developer Tools
Unlimited CustomizationEnterprise Infrastructure
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Speed, Cost Efficiency and PowerUnprecedented Speed
150%+and 6 monthpayback*
Nucleus Research* Based on Nucleus Customer Case Study
• Deploying in 49 countries in less than a year
• 26 countries in less than 90 days
• $2BN+ global education leader with 40K+ employees
• Saving 35%‐70% versus deploying Oracle Applications
10% Implementation effort vs. typical ERP
50‐65% IT staff efficiency savings
20‐50% Faster financial close time
50%+ Quote to cash acceleration
ROI
Nucleus Research 2008 and 2010
Slashes IT Costs
Proven Results
Best Known Brands Run NetSuiteSelects NetSuite OneWorld for business management in subsidiaries and emerging markets
5 countries in 6 weeks, 26 countries in less than 90 days, 49 countries within a year
RMDM Unit using NetSuite OneWorld Ecommerce across its 13,000+ partners
Selects NetSuite Ecommerce to drive online revenue
Siemens PLM is using NetSuite across 2,700+ users in 15+ countries ‐ and across 3,000+ client projects and 1,500+ products and skills
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Cloud Suite of Choice for Leading BusinessesSoftware /Internet WD Manufacturing Services Etail/Retail Enterprises
The Undisputed Cloud ERP Leader
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NetSuite is the most successful ERP suite SaaSprovider operating in terms of active customers, international presence and functionality offered across the product.
Source:Gartner, June 2011
Market Opportunity
Cloud is a Priority
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Technology affecting IT
#
Of companies plan to increase cloud spend over next 12 months
50+%Faster growth than worldwide IT market
4X
Worldwide and Regional Public IT Cloud Services 2011‐2015 Forecast, IDC, June 2011Reimagining IT: The Gartner 2011 CIO Survey, Gartner, January 2011
The ROI Of Cloud Apps, Forrester, June 2011
$32B Addressable MarketCloud Growth Outstripping On‐Premise
CRM$11BERP
$21B
Forecast: Software as a Service, Worldwide, 2010‐2015, 1H11 UpdateForecast: Enterprise Software Markets, Worldwide, 2008‐2010, 2Q11 Update
Market Share: All Software Markets, Worldwide, 2010
Cloud ERP growth versus market
Total ERP Cloud ERP
16
14
12
10
8
6
4
2
0
7.9%
14.3%
% CAGR Thro
ugh
201
5
Cloud CRM growth versus market
Total CRM Cloud CRM
16
14
12
10
8
6
4
2
0
9.5%
12.5%
% CAGR Thro
ugh
201
5
22│
Source: Gartner
NetSuite Growth vs. Market 2010 vs. 2009Financial Management Systems (FMS)
23Chart created by NetSuite based on Gartner Note: All Software Markets, Worldwide, 2010, Pub. Apr. 2011
Compares NetSuite FMS revenue growth versus overall FMS market revenue growth
WW FMS Growth: 8x
NetSuite Worldwide
50%
40%
30%
20%
10%
0%
N. America FMS Growth: 7x
NetSuite North America
40%
35%
30%
25%
20%
15%
10%
5%
0%
UK FMS Growth
NetSuite UK
50%
40%
30%
20%
10%
0%
‐10%
Australia FMS Growth: 14x
NetSuite Australia
140%
120%
100%
80%
60%
40%
20%
0%
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Source: Gartner
NetSuite Ecommerce Addresses Accelerating Move to Online Retail
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Forecast: US Online Retail Forecast, 2010 To 2015
2009 2010
% change
% of total retail
% of total retail(excluding grocery)
February 2011 “US Online Retail Forecast, 2010 To 2015”
2011 2012 2013 2014 2015
11% 13% 12% 10% 10% 8% 8%
8% 8% 9% 10% 10% 11% 11%
11% 11% 12% 13% 14% 15% 15%
$259
$279
$240$218
$197$176
$157
(in billions)
│
Source: Forrester Research Online Retail Forecast , 2010 To 2015 (US)
Enterprise Opportunity
The Two‐Tier Opportunity:
Source: GartnerJuly 28, 2010 ‐ A Two‐Tier ERP Suite Strategy: Is It Right for You?
The Rise of Two‐Tier
2009 2011
60
50
40
30
20
10
0
enterprises now opting for two‐tier
26
A tiered ERP suite strategy is the use of ERP suites from different vendors in two or more levels of the organization —for example, corporate headquarters and local subsidiary operations.
48%
│
China Vietnam
WorldwideOperations
NetSuite’s Two‐Tier Solution
CORPORATERunning Oracle/SAP
E‐Business Suite Financials
US Operations
NetSuite CloudRunning
NetSuite OneWorldSuiteCloudConnect
NetSuite CloudRunning
NetSuite OneWorld
Two‐Tier: Driving Business Velocity
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Mergers and Acquisitions:Cost effective ERP within subsidiaries
Divestitures:Shed legacy ERP with lean, customizable cloud ERP
Emerging Markets & Products:Rapidly deploy ERP with minimal CapEx and IT
If we used a traditional enterprise ERP platform worldwide, it would require significant capital investment and a lot of resources in each country. NetSuite provides everything we need for our subsidiaries.
— Ysmael Baysa, CFO
$50B+ Revenue Jollibee Leverages NetSuite for Two‐Tier ERP
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Enterprise Partnerships to Drive Success
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Accenture’s unmatched industry expertise and NetSuite’s sophisticated cloud leadership pave the way forward for global enterprises.
Paul DaughertyChief Technology Architect
Financial Highlights
Sustained Revenue Growth
32
$240.0
$220.0
$200.0
$180.0
$160.0
$140.0
$120.0
$100.0
$80.0
$60.0
$40.0
$20.0
$0.0
$ millions
│
2002 2003 2004 2005 2006 2007 2008 2009 2010
$3.1$8.3
$17.7
$36.4
$67.2
$108.5
$152.5
$166.5
$193.1
2011
$236.3
2011 Financial Highlights
• Revenue increases 22% year‐over‐year to $236.3 million
• Operating cash flow up 99% year‐over‐year to $36.3 million
• Non‐GAAP Net Income increases 28% to $10.8 million
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Q3 2012 Financial Highlights
• Revenue increases 31% year‐over‐year to $79.8 million
• Operating cash flow increases 61% year‐over‐year to $15.2 million
• Non‐GAAP Net Income increases 49% year‐over‐year to $5.7 million
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2011 Financial TrendsNon‐GAAP Net Income
($ Thousands)
2007
12,000
10,000
8,000
6,000
4,000
2,000
‐
(2,000)
(4,000)
(6,000)
(8,000)2008 2009 2010 2011
Non‐GAAP Gross Margin
2007
74%
73%
72%
71%
70%
69%
68%
67%2008 2009 2010 2011
Short‐Term Deferred Revenue($ Thousands)
2007
120,000
100,000
80,000
60,000
40,000
20,000
‐2008 2009 2010 2011
Cash Flow from Operations($ Thousands)
2007 2008 2009 2010 2011
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
(5,000)
(10,000)
Recent Press Highlights• Ibex Outdoor Accelerates Sales Across Multiple Customer Touchpoints with
NetSuite SuiteCommerce
• MRM Selects NetSuite Cloud
• Five More Top 100 VARs Join NetSuite Solution Provider Program
• World’s Most Innovative Companies Run on NetSuite
• NetSuite Integrates with WorldPay to Offer Merchants End‐to‐end Commerce
• One Instance of NetSuite OneWorld Runs IEEE's 70 Global Organizational Units
• NetSuite Announces Two‐tier ERP for Oracle
• NetSuite SuiteCommerce Furnishes Coco Republic's Digital Makeover
• Evita Peroni Bands With NetSuite SuiteCommerce to Accelerate International Expansion
• Australian Agribusiness Elders Launched Agsure Using NetSuite SuiteCommerce
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Why NetSuite
• Cloud computing: The future of software
• 10+ year head‐start, not even a close #2
• ERP: The “system of record”– ERP has largest TAM* of any business app category– Suite approach expands TAM to multiple categories
• Execution: Next‐phase initiatives succeeding– Verticalization of the suite– Moving up market and going global with OneWorld– NetSuite platform enabling partner ecosystem
│ 37*Total Addressable Market