netsuite: global leader in cloud erp...saving $360,000 annually on it costs over on-premise erp, and...

35
As of October 26, 2015 NetSuite: Global Leader in Cloud ERP NYSE : N

Upload: others

Post on 05-Jul-2020

8 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

As of October 26, 2015

NetSuite: Global Leader in Cloud ERPNYSE : N

Page 2: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Safe Harbor StatementThis 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, 2014 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.

© NetSuite Inc. 20152

Page 3: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

• The World’s Leading Pure-play Software-as-a-Service (SaaS) Provider of ERP Software Suites

- 24,000+ customer organizations across 160+ 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- 12+ 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

Investment Highlights

3 © NetSuite Inc. 2015

Page 4: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

The New Economy Runs on NetSuite

HALF A TRILLION*By 2020, the global public cloud industry is

predicted to grow almost 3X in market value to

>$100BILLION

worth ofPublic disrupters

run on NetSuite

NetSuite is one of the most important things that have happened to start-ups in the last 10 years.

–SuiteWorld 2015

UNICORNSValued at

$100 BILLION (private startups)

*Source: 2015 State of the Cloud report by Bessemer Venture Partners; BVP cloud index includes 42 public cloud companies including NetSuite. Majority of companies in the index run on NetSuite. Unicorn = private company valued at $1B or more

© NetSuite Inc. 20154

40

Page 5: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Software-As-A-Service (SaaS) Adoption Disrupting Enterprise Software Landscape

5

34%32%

24%

16% 16%13% 13%

8% 8% 7% 5% 4% 3% 3%

0%

5%

10%

15%

20%

25%

30%

35%

40% Fiscal YOY Revenue Growth %

Source: Companies with dark blue bars represent the thirteen largest enterprise software vendors by total annual revenue according to Gartner March 2014 report; listed in order of respective growth ratesYoY Revenue growth figures are based on Bloomberg data consensus estimates for company’s current year as of January 29, 2015

© NetSuite Inc. 2015

Page 6: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

NetSuite: World’s #1 Cloud ERP

6

Background

• Founded 1998; IPO in 2007

• Publicly traded on NYSE: “N”

• 4,500+ employees

• Offices in 12 countries

• $556.3M revenue in FY14

Performance

• World’s most deployed cloud ERP

• Used by 24,000+ organizations

• Fastest growing top 10 Financial Management

Software Worldwide

• Used across 160+ countries

#1 Cloud ERP Suite

© NetSuite Inc. 2015

Page 7: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

NetSuite: Fastest Growing Top 10 Financial Management System Vendor Worldwide

7

Market Share: All Software Markets, Worldwide, 2014, Published on March 28, 2015Chart created by NetSuite based on Gartner Market Share Note

Top 10 WW FMS Vendors: 2014 YoYMarket Share Growth Rate %

• NetSuite is the only pure Cloud vendor in Top 20

• NetSuite is #8 overall by Market Share

© NetSuite Inc. 2015

46.6%

7.5%4.5%

1.6% -1.3% -1.4% -1.8% -3.0% -6.7% -6.8%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

NetSuite Deltek Unit4 Microsoft Infor Sage SAP Yonyou Oracle VismaSoftware

Page 8: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

NetSuite Named on Forbes’ 2015 List of World’s Most Innovative Growth Companies

© NetSuite Inc. 20158

NetSuite Receives 90% Innovation Premium on the 2015 List of Most Innovative Growth Companies

— Forbes, May 2015

Rank Company5-year

Avg Sales Growth (%)

EnterpriseValue

($billion)

Innovation Premium

(%)Industry

1 Xero 112.2 2.0 90.1 IT SW & SVCS

2 NetSuite 27.8 7.4 90.0 IT SW & SVCS

3 DexCom 52.1 5.2 84.3 Health CareEquip & Svcs

4 ASOS 34.3 4.8 84.3 Retailing

5 athenahealth 32.3 4.8 80.0 Health Care Equip & Svcs

6 M3 34.6 6.4 77.6 Health Care Equip & Svcs

7 Ultimate Software Group 21.1 4.8 76.6 IT SW & SVCS

8 Kakaku.com 25.6 3.6 75.2 IT SW & SVCS

9 Start Today 13.9 2.8 74.6 Retailing

10 Qlik Technologies 28.2 3.2 74.2 IT SW & SVCS

Source, Forbes, May 2015 List of World’s Most Innovative Growth Company less than $10B market capitalization

Page 9: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Cloud Opportunity: The Big Land Grab

9

$27 $27 $29 $31 $33 $35

$0

$20

$40

2014 2015 2016 2017 2018 2019

ERP

In B

illio

ns

Source: Gartner, Total Enterprise Software Markets Worldwide, 2Q15 Update

Massive Market Opportunity

23%

17%

16%

13%

7%

0% 5% 10% 15% 20% 25%

ERP

Cloud Advertising

CRM

Cloud Payments

HR

Rapid Cloud ERP Growth

Source: Gartner, Feb 2013, Public Cloud Service Subsegment, CAGR% (2011-16)

Cloud is the Future

Sources: Gartner 2011 CIO Survey; Forrester The ROI of Cloud Apps, June 2011; IDC WW and Regional Public IT Cloud Service Forecast 2011-15

Source: BofA Report, The Cloud Wars, May 2013

Enterprise>1,000 employees

Mid-Market100 - 1,000 employees

Small<100 employees

~9,000 firms

~116,000 firms

~6,000,000

Target Market

Fortune 5 Million: US Enterprise & Mid-Market SMBs

#1Technology affecting IT50+%

Of companies plan to increasecloud spend over next 12 months

4xFaster growth thanworldwide IT market

© NetSuite Inc. 2015

Page 10: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

NetSuite SuiteCommerce:Addresses Accelerating Global Shift to Ecommerce

10

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2012 2013 2014 2015 2016

US Ecommerce

Europe Ecommerce

China Ecommerce

Latam Ecommerce

ROW Ecommerce

16% 16% 15% 13% 12%US

Europe

China

Latam

ROW

9% 15% 15% 13% 12%

45% 43% 30% 20% 17%

11% 14% 11% 9% 9%

107% 17% 16% 15% 15%

ROW = Australia, Japan, Russia, India and Other ROW

Global Ecommerce Sales Forecast: 2012-2016(in $billions)

Source: BAML Ecommerce /Industry Forecast, Dec 2013

2012 2013 2014 2015 2016

% = Year-over-Year Growth Rate

© NetSuite Inc. 2015

Page 11: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

A Decade in Cloud Leadership

11

$8 $18 $36$67

$109$153 $167

$193$236

$309

$415

$556

$738M

$0

$100

$200

$300

$400

$500

$600

$700

$800

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E

Outlook**

NetSuite IPO

NetSuite Fiscal Year Annual Revenue ($M)

In Millions

**Midpoint of the range of FY2015 outlook of $737 to $740 million provided on NetSuite’s Q3 2015 earnings call as of October 22, 2015

© NetSuite Inc. 2015

Page 12: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

$

$20

$40

$60

$80

$100

$120

$140

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

Accelerating Recurring Revenue

12

NetSuite Annual Recurring Revenue Growth

16% YoY

$139.1M 18% YoY

$163.9M 22% YoY

$199.6M 27% YoY

$252.9M32% YoY

$333.6M

34% YoY

$447.8MIn Millions

© NetSuite Inc. 2015

Page 13: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Leading Businesses Choose NetSuite

13

10,00012,000

16,000

20,000

24,000+

0

5,000

10,000

15,000

20,000

25,000

30,000

2010 2011 2012 2013 2014

Total # of Companies, Subs and Organizations(NetSuite Customers)

Source: NetSuite public disclosure of customer count

Leading Brands Across Industries

© NetSuite Inc. 2015

Page 14: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Best Known Brands Run NetSuite

14

Selected and standardize 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.

Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen-fold.

Using NetSuite across 2,700+ users in 15+ countries – and across 3,000+ client projects and 1,500+ products and skills.

© NetSuite Inc. 2015

Page 15: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

NetSuite Solution

Page 16: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Today’s Businesses Struggle with an Application Hairball

16 © NetSuite Inc. 2015

Page 17: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

17

MANUFACTURING

WAREHOUSE MANAGEMENT

SUPPLYCHAIN

MANAGEMENT

ERP

INVENTORY MANAGEMENT

SRP

TIME &EXPENSE

PROJECTACCOUNTING

PROJECTMANAGEMENT

RESOURCEMANAGEMENT

CORE BUSINESSCUSTOMER MANAGEMENT

ORDER MANAGEMENT

GLOBAL FINANCIAL MANAGEMENT

BILLING MANAGEMENT

REVENUE MANAGEMENT

CFO

Sales Rep/Manager

SupportManager

CEO

EcommerceManager

ShippingManager

Vendors

Customers

Partners

External Systems

NetSuite: One System for Running a Business

© NetSuite Inc. 2015

Page 18: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

• 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

Solution Overview

18 © NetSuite Inc. 2015

Page 19: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Global Business Management

19

NetSuite is the most successful ERP suite SaaS provider operating in terms of active customers, international presence and functionality offered across the product.

Source: Gartner

The Undisputed Cloud ERP Leader

© NetSuite Inc. 2015

Page 20: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

20

Local

Currency

Quota

Forecast

Orders

Taxation

Partners

Language

Website

Global

Consolidation

Sales

Revenue

Dashboards

CurrencyManagement

Compliance

Control

Multiple Websites

19+ Languages, 190+ Currencies

© NetSuite Inc. 2015

Page 21: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

• Last ever ERP upgrade – No “version-lock”

• Eliminates application hairball

• Deploys in months, not years

• Modern, flexible and evolving

• Dramatically lowers IT cost

Why Businesses Choose NetSuite

21 © NetSuite Inc. 2015

Page 22: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Enterprise Opportunity:Two-Tier

Page 23: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

The Two-Tier Opportunity

23

1: Source: Develop a Strategic Road Map for Postmodern ERP in 2013 and Beyond2: Source: How to Evaluate a Vendor's Commitment to the Cloud and SaaS3: Source: Understand the Deployment Options for a TwoTier ERP Suite Strategy, May 2013

24%

48%

2009 2011

Rise of the Two-Tier48% enterprises now

opting for two-tierThe concept of a single ERP suite that meets all of an enterprise's

needs, particularly in large, complex and diverse organizations, is no longer tenable.2

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.1

Adopting a two-tier ERP strategy can dramatically reduce regional business unit implementation times, provide greater agility and improve operational costs. CIOs understanding its definition, the rationale for selection and the diverse deployment options is key to a successful implementation.3

© NetSuite Inc. 2015

Page 24: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

NetSuite’s Two-Tier Solution

24

CORPORATERunning Oracle/SAP

E-Business Suite Financials

US Operations

NetSuite CloudRunning

NetSuite OneWorld

SuiteCloudConnect

NetSuite CloudRunning

NetSuite OneWorld

China

Worldwide Operations

Vietnam

© NetSuite Inc. 2015

Page 25: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Two-Tier: Driving Business Velocity

25

Emerging Markets & Products:Rapidly deploy ERP with minimal CapEx and IT

Mergers and Acquisitions:Cost effective ERP within subsidiaries

Divestitures:Shed legacy ERP with lean, customizable cloud ERP

© NetSuite Inc. 2015

Page 26: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Enterprise Partnerships to Drive Success

26

Accenture’s unmatched industry expertise and NetSuite’s sophisticated cloud leadership pave the way forward forglobal enterprises.

Paul DaughertyChief Technology Architect

© NetSuite Inc. 2015

Page 27: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

SuiteCommerce

Page 28: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

• 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

Commerce is Changing Every Industry

28 © NetSuite Inc. 2015

Page 29: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

29

Support Multiple

Touchpoints

Support Any Business

Model

Innovate Rapidly to Embrace anEver-changing

Landscape

Integrate the Back-office Commerce Operation

Transforms the NetSuite Operational System Into a Commerce Platform That Provides Complete Flexibility to:

© NetSuite Inc. 2015

Page 30: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

SuiteCommerce Powers Global Expansion of Omnichannel

30 © NetSuite Inc. 2015

Page 31: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Financial Highlights

Page 32: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

• Record Q3 2015 revenue of $192.8 Million, a 34% increase Year-over-Year

• Record Q3 2015 recurring revenue of $154.7 Million, a 34% increase Year-over-Year

• Q3’15 Operating Cash Flow of $27.5 Million, a 69% increase Year-over-Year

• Tenth consecutive quarter of more than 30% Year-over-Year recurring revenue growth

Q3 2015 Financial Highlights

32

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.

© NetSuite Inc. 2015

Page 33: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Key Financial Trends

33

Non-GAAP Net Income ($ Millions)

Total Deferred Revenue ($ Millions)

Non-GAAP Recurring Revenue Gross Margin %

Cash Flow from Operations ($ Millions)

$3.4$8.5 $10.8

$19.1 $19.9$25.0

$0.0$5.0

$10.0$15.0$20.0$25.0$30.0

2009 2010 2011 2012 2013 2014

$72.7 $81.1$111.7

$161.4

$224.6

$314.5

$0.0$50.0

$100.0$150.0$200.0$250.0$300.0$350.0

2009 2010 2011 2012 2013 2014

$4.7 $18.2

$36.3

$54.3 $62.2

$74.9

$0.0

$20.0

$40.0

$60.0

$80.0

2009 2010 2011 2012 2013 2014

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.

84.3% 85.8% 85.2% 85.3% 85.3% 85.8%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

2009 2010 2011 2012 2013 2014

© NetSuite Inc. 2015

Page 34: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

Q4’15 and FY2015 Outlook

34

Q4 2015 FY2015

Revenue $202M to $205M $737M to $740M

Non-GAAP EPS $0.04 $0.21

Operating Cash Flow $17M to $19M $96M to $98M

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.

Q4’15 and FY2015 Outlook ranges provided on NetSuite’s Q3’2015 earnings call as of October 22, 2015.

© NetSuite Inc. 2015

Page 35: NetSuite: Global Leader in Cloud ERP...Saving $360,000 annually on IT costs over on-premise ERP, and reduced order management response times more than sixteen- fold. Using NetSuite

NYSE: N