Slide 1 − Zuora Confidential, not for distribution beyond intended recipient

Introducing Zuora The First Subscription Billing & Payment Solution For Cloud Computing

June 2009

Slide 2 − Zuora Confidential, not for distribution beyond intended recipient

One Year Ago: Business Model Disruptors Emerge

Slide 3 − Zuora Confidential, not for distribution beyond intended recipient

Subscription Businesses NeedRobust Pricing & Packaging

Example: Example:

Slide 4 − Zuora Confidential, not for distribution beyond intended recipient

The Order-to-Cash Process for Subscriptions is Complex

Order-to-Cash in a Subscription BusinessOrder-to-Cash in a Subscription Business

Customer

Purchases 100 UsersEnterprise EditionJanuary 15, 2008

Initial Order Change Order #1

Add 25 UsersEnterprise EditionMarch 25, 2008

Change Order #2

Add New ProductStorageMarch 25, 2008

Change Order #3

Add More StorageStorageMay 11, 2008

Slide 5 − Zuora Confidential, not for distribution beyond intended recipient

Complex Pricing & Packaging

Need Click to Subscribe to Collect Cash Faster

Need for Flexible Payment Options

Manual Billing & Invoicing

Managing Multiple Orders & Change Requests

Getting Visibility to Key Metrics

Billing is critical to Subscription Businesses

Slide 6 − Zuora Confidential, not for distribution beyond intended recipient

Disruptors had to build their own billing systems

Slide 7 − Zuora Confidential, not for distribution beyond intended recipient

A Different System is Needed

All Designed for a Manufacturing, Product-Centric World

Slide 8 − Zuora Confidential, not for distribution beyond intended recipient

The World is Moving to

Subscriptions!

The World is Moving to

Subscriptions!

Subscription Businesses Should not have to Build

Their Own Systems!

Subscription Businesses Should not have to Build

Their Own Systems!

Slide 9 − Zuora Confidential, not for distribution beyond intended recipient

Our Vision: Subscriptions Made Easy

WebOrders

Direct Orders

Channel Orders Credit Cards

Invoices

ACHPricing

Packaging

Promotions

Customers Partners Developers

Slide 10 − Zuora Confidential, not for distribution beyond intended recipient

Introducing Zuora: The Leader in Cloud Commerce

Fastest-growing On-Demand Subscription and Billing Payment Service; 100+ customers since May 2008

Led by veteran executives from Salesforce and WebEx and ADP

Funded by Benchmark Capital, Shasta Ventures, Tenaya Capital & Marc Benioff

Board Member Scott Thompson, President of PayPal; Advisors from eBay, Cisco, Accenture

Slide 11 − Zuora Confidential, not for distribution beyond intended recipient

11

Integrated Payment Solution for Subscriptions

Secure Transaction Processing

Integrates to your Bank Account

Supports credit cards, debit cards, ACH, and PayPal

Exceptions, Dunning & Collections

International Payment Methods

On-Demand Billing & Subscription Management

Product Catalog for Pricing and Packaging

Customers, Subscriptions & Amendments

Automated Billing & Invoicing

Reports and Metrics

Sync and Quoting Tools 100%Native force.com

Generate sales quotes and create orders in Z-Billing

Synchronization of invoices, payments, & subscriptions

360 degree visibility to sales reps and customer service

A Complete Suite for the Subscription Economy

Launched with Launched with

Slide 12 − Zuora Confidential, not for distribution beyond intended recipient

One Year Later: A World of Subscription Services

Water-as-a-Service Electric car-as-a-

Service Socks-as-a

service

Google-as-a-Service

Everything-as-service

Vitamins-as-a-Service Textbooks-as-a-Service

Produce-as-a-Service

Luxury bags-as-a-Service

Slide 13 − Zuora Confidential, not for distribution beyond intended recipient

“Starbucks Gold. Customers asked for it, Starbucks delivered.”November 2008

United announces Elite membershipFebruary 2006

GM offers OnStar to other automakers February 2009

One Year Later:Traditional businesses are embracing Subscriptions

Slide 14 − Zuora Confidential, not for distribution beyond intended recipient

One Year Later:Cloud Computing Moving IT industry to Subscriptions

“IBM's Open Cloud Manifesto”

InfoWorld, April 2009

“EMC Unveils Cloud-Computing Division”

The Street, November 2008

Larry Ellison says cloud is a fad…but then announces Cloud Computing Strategy

WSJ, March 2009

“Microsoft Unveils Cloud Strategy Called Azure”

NY Times, October 2008

“Adobe Erects Photoshop on the Cloud”

Websphere Journal, June 2008

“HP's Cloud Assure Looks to Compete Against

Google, Amazon, Sun”eWeek, March 2009

“Symantec Launches Cloud Storage for

Consumers”ComputerWorld, March

2009

“Sun Microsystems turns to Cloud Computing”

Bizjournals.com, March 2009

Slide 15 − Zuora Confidential, not for distribution beyond intended recipient

Our CustomersOur Customers

One Year Later: 100 Customers

Slide 16 − Zuora Confidential, not for distribution beyond intended recipient

Sun’s cloud computing initiative chooses Zuora

Business Challenge

Solution

Sun needed a robust cloud commerce platform to support the launch of their cloud computing initiatives

Chief among Sun’s requirements was speed to market

Solution that enabled usage-based charge models to monetize their cloud offerings

Integration to an international sales tax management solution was imperative

Zuora provided a feature-rich cloud commerce solution to meet their enterprise requirements within an aggressive launch schedule

Thanks to Z-Billing's usage-based billing option, Sun will charge users of their cloud computing service on consumption

Integrating Salesforce CRM to enable sales quoting and is taking advantage of Z-Billing 2.0’s new tax module, integrating with Sabrix for tax management.

Slide 17 − Zuora Confidential, not for distribution beyond intended recipient

What can Zuora Do For You?

“Help you get to the right metrics like MRR, renewals, DSO and churn to make the right business decisions.”

“Help you lower costs, reduce billing errors & manual

processes – without adding headcount.”

Revenue Growth

Operational Efficiency

Metrics

“Help you launch new products and pricing, grow top line revenue

& respond to competition.”

Slide 18 − Zuora Confidential, not for distribution beyond intended recipient

Empower Revenue Growth

Up Sell, Cross Sell and Manage Renewals

Launch Products to Market Faster

Optimize Pricing & Packaging

Automate Direct & Web Orders

Slide 19 − Zuora Confidential, not for distribution beyond intended recipient

Lower Costs and Drive Operational Efficiency

Eliminate Manual Processes

Initiate Web Orders

Automate Invoice & Payment Operations

Grow Your Business Without Adding Incremental Headcount!

ManageSelf Service

Automate Sales Quoting to Create Orders

Slide 20 − Zuora Confidential, not for distribution beyond intended recipient

Key Metrics to Make the Right Business Decisions

• Bookings

• Billings

• Payments

• Revenue

• MRR

• ACV

• TCV

• Seats

• Renewals by $

• Renewals by #

• Churn

Slide 21 − Zuora Confidential, not for distribution beyond intended recipient

A Single Platform for Managing Your Operational Infrastructure

AR

GL

Subscription &Amendments

A/R PostMonthly InvoicesCC Transactions

Payments/Credits

PRODUCT CATALOG

SUBSCRIPTIONS & AMENDMENTS

BILLING & PAYMENT OPERATIONS

OPERATIONAL & FINANCIAL METRICS

Direct Sales Orders

AccountsSubscriptionProductsInvoices/Payments

Metering /Usage Data

Provisioning

Your Service

Charges

Payments

Web Orders

Self Service

Slide 22 − Zuora Confidential, not for distribution beyond intended recipient

Implementation: Configure, Deploy and Run Billing Operations In Weeks

Orders &Subscriptions

Billing & Invoicing

Payments& Credits

No Coding 100% Configuration Implementation in 2 - 4 Weeks

GoLive

ProductCatalog

* Excluding data migration & external integration

Week 1 Week 2 Week 3 Week 4

Slide 23 − Zuora Confidential, not for distribution beyond intended recipient

Immediate ROI Delivered with Z-Billing

ROI

TIME

Value to C

ustomer

8 ROI CONSIDERATIONS

90 Days

Breakeven to Positive ROI within 30-60 days

60 Days

LAUNCH NEW PRODUCT

GAIN MARKET SHARE W/ NEW PRICING

INITIATE WEB ORDERS

IMPROVE CROSS-SELL & UP-SELL

REDUCE CUSTOMER CHURN

ELIMINATE MANUAL PROCESSES

REDUCE BILLING & PAYMENT ERRORS

REDUCE HEADCOUNT

30 Days

Slide 24 − Zuora Confidential, not for distribution beyond intended recipient

Build vs. Buy?

Subscribe = Lower Risk & CostBuild = Over Investment

Slide 25 − Zuora Confidential, not for distribution beyond intended recipient 2525

About TalentSpring

Mike Hayes, VP Sales

• Unique Candidate Sourcing Solution

• Talent Spring is a start-up, utilizing semantic search technology built uniquely for the recruiting industry

• We help all your recruiters become Top Notch Candidate Sourcers

• Use information gleamed from Searching multiple sources

• Per seat license/SaaS solution

Slide 26 − Zuora Confidential, not for distribution beyond intended recipient 2626

Business Challenge

Solution

Result

With limited resources, company wants to focus all efforts on product development around candidate sourcing not company infrastructure

Needed the ability to build all business processes quickly and seamlessly through Salesforce

Needed a product that could provide both offline (first) and then on-line quoting and billing system and that would integrate with Quick books

Z-Billing is used to provide all rate-plans associated with product options

Z-Billing is used to produce all customer quotes, Salesforce is used to manage approvals once a quote is accepted by client

Z-Payment is used to process credit card information / Quickbooks integration assures deals are connected into TalentSpring’s accounting system

TalentSpring has been able to build, test, quote, close, collect cash and invoice through Zoura’s integration with Salesforce.com. First few deals processed in May.

Clients have the opinion that TalentSpring has more substance and capability than a company of our size and resources would imply

No additional resources were required, all implementation and all testing was completed by VP Sales

Zuora minimized resources required to deploy SaaS solution

Slide 27 − Zuora Confidential, not for distribution beyond intended recipient

Thank You!