NetSuite Corporate Overview

Transcription

1 NetSuite Corporate Overview (Updated as of February 4, 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 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. 2

3 Why NetSuite: For Investors 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 Expand your commerce business to omnichannel business with NetSuite SuiteCommerce NetSuite platform enabling partner ecosystem *Total Addressable Market 3

4 NetSuite: Quick Take Background Founded 1998 Publicly traded on NYSE: N Offices in 10 countries 1,700+ employees 2012 revenue: $308.8M Performance World s most deployed cloud ERP Used by 16,000+ organizations Fastest growing top 10 Financial Management Solution* Used across approx. 100 countries Powers Enterprises Powers Disruptive Innovators * For North America Source: Gartner, April 2011

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

6 NetSuite Fastest Growing FMS Vendor in North America Last 3 Years 84% 25% 29% 11% 5% SAGE MSFT SAP ORCL Market Share: All Software Markets, Worldwide, 2011, Published April 2012 Chart created by NetSuite based on Gartner Market Share Note Source: Gartner 6

7 NetSuite Solution

8 Today s Businesses Struggle with an Application Hairball Warehousing Web SFA Accounting Support 8

9 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 9

10 Solution Overview NetSuite: Modular cloud business suite ERP, CRM, PSA, ECommerce For mid size companies to large enterprises NetSuite OneWorld: Global management NetSuite SuiteCommerce NetSuite OpenAir: Enterprise PSA SuiteCloud platform 10

11 11

12 Today s Multi Touchpoint World Phone Computer Facebook/Social POS Tablet 12

13 Centralization is Required to Meet Customer/Business Needs 13

14 Transform 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 Provide Platform for Rapid Innovation to Embrace Ever changing Landscape 14

15 SuiteCommerce Powers Global Expansion of Omnichannel Commerce 15

16 Global Business Management

17 Global Challenges Even Greater Warehousing Web SFA Accounting Support 17

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

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

20 Global Business Management ERP ECOMMERCE SINGLE DATA SOURCE CRM+ PSA 20

21 LOCAL Currency Quota Forecast Orders ECOMMERCE Taxation Partners Language Website ERP SINGLE DATA SOURCE PSA CRM+ GLOBAL Consolidation Sales Revenue Dashboards Currency Management Compliance Control Many Websites 15 Languages, 190 Currencies 21

22 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 22

23 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 e commerce systems and further streamlining the management process. Peter Rubenacker, VP of IT 23

24 #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

25 Unlimited Customization Enterprise Infrastructure Billions of customer requests per month Millions of unique logins per quarter Automated upgrades Redundant datacenters Developer Tools Application Infrastructure 25

26 Speed, Cost Efficiency and Power Unprecedented Speed Slashes IT Costs Deployed in 49 countries in less than a year 26 countries in less than 90 days Support M&A strategy across 140 counties Replaced 14 disparate business applications Proven Results 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 %+ ROI and 6 month payback* Nucleus Research * Based on Nucleus Customer Case Study

27 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 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 27

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

29 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

30 Market Opportunity

31 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

32 $32B Addressable Market Cloud Growth Outstripping On Premise Cloud ERP growth versus market Cloud CRM growth versus market % % % CAGR Through % ERP $21B CRM $11B % CAGR Through % 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,

33 NetSuite Growth vs. Market 2010 vs Financial Management Systems (FMS) WW FMS Growth: 8x N. America FMS Growth: 7x 50% 40% 40% 35% 30% 30% 25% 20% 20% 15% 10% 10% 5% 0% NetSuite Worldwide 0% NetSuite North America 50% UK FMS Growth 140% Australia FMS Growth: 14x 40% 30% 120% 100% 80% 20% 10% 60% 40% 20% 0% 10% NetSuite UK 0% NetSuite Australia Source: Gartner Chart created by NetSuite based on Gartner Note: All Software Markets, Worldwide, 2010, Pub. Apr Compares NetSuite FMS revenue growth versus overall FMS market revenue growth 33

34 NetSuite Ecommerce 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

35 Enterprise Opportunity

36 The Two Tier Opportunity: The Rise of Two Tier % enterprises now opting for two tier 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. Source: Gartner, July 2010 Source: Gartner July 28, 2010 A Two Tier ERP Suite Strategy: Is It Right for You? 36

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 increases 31% year over year to $308.8 million Operating cash flow up 50% year over year to $54.3 million Non GAAP Net Income increases 77% to $19.1 million 43

44 Q Financial Highlights Revenue increases 33% year over year to $85.0 million Operating cash flow increases 15% year over year to $13.4 million Non GAAP Net Income increases 33% year over year to $4.6 million 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 $90.5M to $91.0M $397M to $402M Non GAAP EPS $0.02 to $0.03 $0.26 to $0.27 Operating Cash Flow $11.5M to $12.0M $55M to $60M 46

47 Recent Press Highlights Top VARs Continue to Flock to NetSuite Solution Provider Program CallidusCloud Replaces 14 Separate Applications with Move to NetSuite OneWorld Zicam Cold Remedy Manufacturer Breathes Easy with NetSuite Outdoor Brands Drive Sales and Business Efficiency Through NetSuite NetSuite Acquires Retail Anywhere, Adding Key Capabilities to Support Multi Channel Retail Success Leading Technology Partners Announce Support for NetSuite Retail Anywhere Leading Commerce Businesses Build New Year s Resolutions Around NetSuite SuiteCommerce Solution Openwave Mobility Deploys NetSuite OneWorld Services Resource Planning (SRP) Across 15 subsidiaries in 18 Countries 47

48 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 Expand your commerce business to omnichannel business with NetSuite SuiteCommerce NetSuite platform enabling partner ecosystem *Total Addressable Market 48