NetSuite Corporate Overview

Transcription

1 NetSuite Corporate Overview (Updated as of November 6, 2013) NetSuite and the NetSuite Logo are registered service marks of NetSuite Inc.

2 Cautionary Note Forward Looking Statements 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 macroeconomic 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, 2012 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. 2

3 Why NetSuite: For Investors Cloud computing: The future of software 12+ 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 Expand your commerce business to an omnichannel business with NetSuite SuiteCommerce NetSuite platform enabling partner ecosystem *Total Addressable Market 3

4 NetSuite: Quick Take Background Founded in 1998 Publicly traded on NYSE: N Offices in 11 countries 2,200+ employees 2012 revenue: $308.8M Performance World s most deployed cloud ERP Used by 16,000+ organizations Fastest growing Financial Management Software globally* Used across 110+ countries Powers Enterprises Powers Disruptive Innovators *Source: Gartner, March 2013

5 Mission Statement NetSuite Provides Companies Around the Globe, Cloud-based, Unified Systems that Deliver Unprecedented Capabilities to Drive their Business

6 NetSuite Solution

7 Today s Businesses Struggle with an Application Hairball Warehousing Web SFA Accounting Support 7

8 One System for Running a Business Customers CEO CFO ERP Shipping Manager ECOMMERCE SINGLE DATA SOURCE PSA CRM Sales Rep/ Manager Ecommerce Manager Support Manager Vendors Partners 8

9 Solution Overview NetSuite: Modular cloud business suite ERP, CRM, PSA, Ecommerce For mid-sized companies to large enterprises NetSuite OneWorld: Global management NetSuite SuiteCommerce NetSuite OpenAir: Enterprise PSA SuiteCloud Platform 9

10 10

11 Today s Multi-Touchpoint World Phone Computer Facebook/Social POS Tablet 11

12 Centralization is Required to Meet Customer/Business Needs 12

13 Transforms NetSuite Operational System Into a Commerce Platform That Provides Complete Flexibility to: Support Any Touchpoint Support Any Business Model Integrate the Back-office Commerce Operation Innovate Rapidly to Embrace an Ever-changing Landscape 13

14 SuiteCommerce Powers The Global Expansion of Omnichannel Commerce 14

15 Global Business Management

16 Global Challenges Even Greater Warehousing Web SFA Accounting Support 16

17 Global Challenges Even Greater Worldwide HQ REGION GLOBAL AMERICAS EMEA APAC COUNTRY Canada USA Brazil France UK Germany Japan Australia China

18 Multi-Sub, Multi-National, Multi-Company Management COUNTRY REGION GLOBAL AMERICAS Worldwide HQ EMEA APAC

19 Global Business Management ERP ECOMMERCE SINGLE DATA SOURCE CRM+ PSA 19

20 LOCAL Currency Quota Forecast Orders Taxation Partners Language Website GLOBAL Consolidation Sales Revenue Dashboards Currency Management Compliance Control Multiple Websites 19+ Languages, 190+ Currencies 20

21 Why Businesses Choose NetSuite: Last ever ERP upgrade No version-lock Eliminates application hairball Deploys in months, not years Modern, flexible and evolving Dramatically lowers IT cost 21

22 World s #1 Global Cloud Suite ERP ECOMMERCE SINGLE DATA SOURCE CRM PSA Qualcomm's operations span about 140 locations worldwide with various local software systems. NetSuite OneWorld presents us with an opportunity to begin centralizing some parts of our Ecommerce systems and further streamlining the management process. 22

23 #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

24 Unlimited Customization of Enterprise Infrastructure Billions of customer requests per month Millions of unique logins per quarter Automated upgrades Redundant datacenters Developer Tools Application Infrastructure 24

25 Speed, Cost Efficiency and Power Global Reach Slashes IT Costs NetSuite for ERP, CRM & Ecommerce 100 subs in 135 locations including USA, Mexico, Brazil, Canada and Australia Supports M&A strategy across 140 counties Replaced 14 disparate business applications 10% Implementation effort vs. typical ERP 50-65% IT staff efficiency savings 20-50% Faster financial close time 50%+ Quote-to-cash acceleration Nucleus Research 2008 and 2010 Proven Results 150%+ ROI and 6 month payback* Nucleus Research * Based on Nucleus Customer Case Study

26 Best Known Brands Run NetSuite Selects NetSuite OneWorld for business management in subsidiaries and emerging markets Expanded to international markets with NetSuite OneWorld in under four months RMDM unit using NetSuite OneWorld and SuiteCommerce across its 13,000+ partners Selects NetSuite SuiteCommerce to drive online revenue Using NetSuite across 2,700+ users in 15+ countries - and across 3,000+ client projects and 1,500+ products and skills 26

27 Cloud Suite of Choice for Leading Businesses Software/ Internet WD Manufacturing Services Etail/Retail Nonprofit Enterprises

28 The Undisputed Cloud ERP Leader 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, June

29 Market Opportunity

30 Cloud is a Priority # Technology affecting IT 4X Faster growth than worldwide IT market 50+ % Of companies plan to increase cloud spend over next 12 months Worldwide and Regional Public IT Cloud Services Forecast, IDC, June 2011 Reimagining IT: The Gartner 2011 CIO Survey, Gartner, January 2011 The ROI Of Cloud Apps, Forrester, June

31 $32B Addressable Market Cloud Growth Outstripping On-premise Cloud ERP growth versus market Cloud CRM growth versus market % 16 % CAGR Through % ERP $21B CRM $11B % CAGR Through % 12.5% Total ERP Cloud ERP 0 Total CRM Cloud CRM Source: Gartner Forecast: Software as a Service, Worldwide, , 1H11 Update Forecast: Enterprise Software Markets, Worldwide, , 2Q11 Update Market Share: All Software Markets, Worldwide,

32 NetSuite 2012 s Fastest Growing Worldwide Financial Management System Vendor 49% Top 15 WW FMS Vendors: 2012 Revenue Growth % NetSuite is the only pure cloud vendor in Top 15 NetSuite is #12 overall by market share All NetSuite growth is organic 9% 4% 4% -1% -2% -3% NetSuite Sage Microsoft Epicor Oracle Totvs SAP Market Share: All Software Markets, Worldwide, 2012, Published March 2013 Chart created by NetSuite based on Gartner Market Share Note 32

33 NetSuite SuiteCommerce Addresses Accelerating Move to Online Retail Forecast: US Online Retail Forecast, 2010 To 2015 $279 $157 $176 $197 $218 $240 $259 (in billions) % change % of total retail % of total retail (excluding grocery) 11% 13% 12% 10% 10% 8% 8% 8% 8% 9% 10% 10% 11% 11% 11% 11% 12% 13% 14% 15% 15% Source: Forrester Research Online Retail Forecast, 2010 To 2015 (US) February 2011 US Online Retail Forecast, 2010 To

34 Enterprise Opportunity

35 The Two-Tier Opportunity: The Rise of Two-Tier % enterprises now opting for two-tier

36 What is two-tier ERP? The 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. 1 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. 2 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 1: Source: How to Evaluate a Vendor's Commitment to the Cloud and SaaS 2: Source: Develop a Strategic Road Map for Postmodern ERP in 2013 and Beyond 3: Source: Understand the Deployment Options for a TwoTier ERP Suite Strategy, May

37 NetSuite s Two-Tier Solution CORPORATE Running Oracle/SAP E-Business Suite Financials NetSuite Cloud Running NetSuite OneWorld SuiteCloud Connect NetSuite Cloud Running NetSuite OneWorld US Operations China Worldwide Operations Vietnam

38 Two-Tier: Driving Business Velocity 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 38

39 $50b+ Revenue Jollibee Leverages NetSuite for Two-Tier ERP 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 39

40 Enterprise Partnerships to Drive Success Accenture s unmatched industry expertise and NetSuite s sophisticated cloud leadership pave the way forward for global enterprises. Paul Daugherty Chief Technology Architect 40

41 Financial Highlights

42 $ millions $320.0 $300.0 $280.0 $260.0 $240.0 $220.0 $200.0 Sustained Revenue Growth $193.1 $236.3 $308.8 $180.0 $160.0 $140.0 $152.5 $166.5 $120.0 $108.5 $100.0 $80.0 $67.2 $60.0 $40.0 $36.4 $20.0 $0.0 $17.7 $8.3 $

43 2012 Financial Highlights Revenue increased 31% year-over-year to $308.8 million Operating cash flow up 50% year-over-year to $54.3 million Non-GAAP Net Income increased 77% to $19.1 million 43

44 Q Financial Highlights Revenue of $106.9 million, a 34% year-over-year increase Operating cash flow of $14.6M 44

45 2012 Financial Trends 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - (2,000) (4,000) (6,000) (8,000) Non GAAP Net Income ($ Thousands) 74% 73% 72% 71% 70% 69% 68% Non GAAP Gross Margin 67% , , , ,000 80,000 60,000 40,000 20,000 - Short Term Deferred Revenue ($ Thousands) ,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 (5,000) (10,000) Cash Flow from Operations ($ Thousands)

46 Q and FY 2013 Outlook Q FY 2013 Revenue $110.5M to $111.5M $410M to $411M Non-GAAP EPS $0.07 $0.25 Operating Cash Flow $13M to $14M $57M to $58M 46

47 Recent Press Highlights Australian Retailers and Distributors Fuel Business Growth with NetSuite Cloud NetSuite SuiteCommerce Recognized as a Strong Performer in B2B Commerce Suites Report by Leading Analyst Firm SOI Group Plots New Course for Business with NetSuite Cloud NetSuite Guides Lonely Planet to the Cloud NetSuite Transports Toll's Asian Operations to the Cloud Microsoft, SAP, Sage Partners Join NetSuite Solution Provider Program as Demand for Cloud Solutions Continues to Grow NetSuite Announces SAP Business ByDesign Sunset Migration Program NetSuite to Acquire TribeHR, Creating The First Integrated Cloud ERP and HCMSuite for Small And Mid-Sized Businesses Children's Product Industry Grows Up on NetSuite Cloud World's Largest Carpet Manufacturer Rolls Out NetSuite OneWorld to Power Global Growth in a Two-Tier ERP Model The Philippines' Largest Sugar Producer Drives Efficiency, Sweetens Bottom Line with NetSuite OneWorld 47

48 Why NetSuite Cloud computing: The future of software 12+ 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 Expand your commerce business to an omnichannel business with NetSuite SuiteCommerce NetSuite platform enabling partner ecosystem *Total Addressable Market 48