Q Corporate Presentation

Transcription

1 Q Corporate Presentation 1 1

2 Safe Harbor Statement Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of These forward looking statements are SuccessFactors current expectations and beliefs. These forward looking statements include statements about anticipated revenue and deferred revenue and expected revenue for the fourth fiscal quarter of 2010 and the full fiscal year Factors that could cause actual results to differ materially with respect to our anticipated results for the fourth quarter include the fact that our fourth quarter financial statement review process is ongoing, and accordingly, actual results are preliminary and are subject to further review as part of our quarterly financial statement review process, and accordingly, we cannot assure you that the final amounts will not change materially as a result of our quarterly review process. Factors that could cause actual results to differ materially from those contemplated by the other forward looking statements include: our ability to continue to experience high customer renewal rates; whether customers renew their agreements for additional modules or users; levels of new customers; pricing pressures; the uncertain impact of the overall global economic slowdown, including on our customers, prospective customers and partners, renewal rates and length of sales cycles; the fact that our market is at an early stage of development, and it may not develop as rapidly as we anticipate; competitive factors; outages or security breaches; our ability to develop, and market acceptance of, new services; our ability to continue to sell our services outside the HR area; our ability to manage our growth; our ability to successfully expand our sales force and its effectiveness; whether our resellers and other partners will be successful in marketing our products; our ability to continue to manage expenses; the impact of unforeseen expenses; and general economic conditions worldwide. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward looking statements we make. Further information on these and other factors that could affect our financial results is included in the section entitled Risk Factors in our Annual Report on Form 10 K for 2008 and in our most recent report on Form 10 Q and in other filings we make with the Securities and Exchange Commission from time to time. These documents are or will be available in the SEC Filings section of the Investor Relations section of our website at SuccessFactors, Inc. assumes no obligation and does not intend to update these forward looking statements, except as required by law. 2

3 Investment Highlights Leader in large ($36 billion), fragmented, under penetrated, fast growing market $45 $40 Strong execution and action oriented culture, posting market leading growth $35 rates and 12 for 12 in public reported $30 quarters Highly profitable, sticky recurring revenue model Business Execution Solutions (BizX) provides unique competitive differentiation including recent analytic and social networking additions Large underpenetrated user base (Over 8 million users and growing) Platform provider to world s largest enterprises (more than a suite) $25 $bn$25 $20 $15 $5 $0 $35.9 $20.0 Business Alignment $10 $15.9 $15.9 People Performance People Performance TAM Only 11% Penetration Business Alignment TAM 3

4 Accelerating Leadership At IPO June 2008 Today Users 20M+ 2.0M+ 37M+ 3.7M+ 8.1M+ Customers 1,400+ 1,950+ 3,100+ Largest Deployment 85K 300K 2M+ Industries Countries Languages

5 Undisputed Leadership The company's outright leadership in terms of number of customers and revenue share, in a market we project will grow 35 percent a year, is notable. Leighanne Levensaler, Bersin & Associates, Oct

6 Undisputed Leadership #1 #1 #1 #1 #1 6

7 Our Mission 7

8 SuccessFactors Solves the Execution Gap Strategy Execution People Performance Business Alignment Results Goals 1.0 Performance Compensation Succession Recruiting Development HR Leaders Goals 2.0 Dashboards Analytics Collaboration Content Business Leaders Consulting Services Expertise 8

9 BizX Impact Across the Board Bridge the gap between Strategy and Execution Execute top and bottom line Faster Communication of Strategy Change Increased Time Spent on Strategic Priorities Increased Project Completion Performance Change AVG 1wk AVG 5.5% AVG 13.8% AVG 2.8% HIGH 8wk HIGH 40% HIGH 67% HIGH 5.4% Source: Independent consultant research findings, June Study sampled 527 customers. 9

10 How BizX Works Strategy Execution People Business Performance Alignment Results Performance Management Compensation Management Goal Management Analytics & Reporting 360 Succession Employee Execution Metrics Reviews Management Central Survey Navigator Recruiting Management Learning & Development Stack Ranker Employee Profile Business Performance Accelerators 10

11 Accelerating BizX Through Innovation Business Execution egy Strat Business Alignment Team Execution People Performance Performance Goals Communication Compensation Dashboards Collaboration Succession Surveys Groups & Projects Recruiting Development Analytics and Planning Employee Central NextGenerationHRIS Results Business SuccessFactors Cloud Technology Platform 11

12 Total Available Market 12

13 Accelerates Adoption within $36B Market Business Impact Business Execution Software Business Analytics HR/Back -Office Systems EPM Workforce Planning # of Users 13

14 BizX Doubles Our TAM Business Alignment $20.0 $45 Billion Market Enterprise $40 130M * $45 = $5.8bn $35.9 (employees) ($/seat/year) $35 $30 SMB 150M * $95 = $14.2bn (employees) ($/seat/year) $25 $20.0 $bn $20 $15 $10 $5 $0 $15.9 $15.9 Only 11% Penetration People Performance $15.9 Billion Market Enterprise 130M * $35 = $4.6bn (employees) ($/seat/year) SMB 150M * $75 = $11.3bn (employees) ($/seat/year) People Performance TAM Business Alignment TAM Note: Potential market size for Business Alignment is based solely on company analyses. Assumes a substantial majority of the currently estimated worldwide work force as users. Assumed price per seat per year is significantly higher than current average per user rates for many customers. 14

15 SuccessCloud

16 Delivering the Next Generation of SaaS Multi TENANT A TENANT B TENANT C Single A B C Inefficient scaling 1,500+ servers 1.5 million users 16

17 Delivering the Next Generation of SaaS Innovative Dynamic Approach Database A Database B Database C CLIENT CLIENT CLIENT A B C CLIENT CLIENT CLIENT A B C CLIENT CLIENT CLIENT A B C Most Scalable Most Secure Most Efficient Multi li 150 servers 8+ million users Best in Class Shared infrastructure Single 17

18 Delivering the Next Generation of SaaS SuccessCloud DataConnect BizAnalytics SuccessFactors Core Apps Multi li AppConnect Single 18

19 Financial Review

20 Q3 Review: Record Quarterly Results 32% billings growth at $65.9 million Record deal sizes but strong at average CFFO at $13.0 million, a 264% improvement year over year Announced acquisition of YouCalc, our Calculator in the Cloud TM BizX dii driving differentiation i i and deeper deals Strong bookings and cash flow momentum into going into Q

21 All Time High in Quarterly Non GAAP Revenue ($MM) 38% y/y Revenue Growth 74% Gross Margin 21

22 Growth and Execution 178% Total Change 21% Incre mental Lift 100% Incremental Lift $25.3M Uplift 22

23 Delivered $66M Q3 10 Billings and 32% Y/Y Billings Growth In US$M 23

24 Cash Profile Cash Flow Cash flow positive first 3 years 100% organic growth >100% renewals Accelerating CF May Q4 08 Q3 09 Actual Goal Investment 24

25 Continued Operating Cash Flow Growth In US$M 25

26 Acceleration Across All Fronts Geographies As a % of New Subscription Bookings EMEA, APAC, LATAM 29% North America 100% 100% North America 71% Mid market 5% Market NA Enterprise 95% SMB, Channels, Intl. 51% NA Enterprise 49% Product Other Modules 7% Performance & Goal Management 93% Other Modules 62% Performance & Goal Management 38% Upsell 9% 45% Upsell New Customers 91% Upsell New Customers 55% 26

27 Multiple Scaling Vectors Achieving Separation Markets Segments Geographies Industry Verticals Products Suite Expansion Initial Attach Rate Frictionless Upsell Dynamics Business Model Deferred Revenue Economics Renewal Economics Upsell Economics 27

28 The Future of Business Software SuccessFactors Is The Future Of Business Software Bob Evans Global CIO: InformationWeek SuccessFactors' annual revenue is only about 1/100th of SAP's, it has only about 700 employees, and it has only one CEO. But SuccessFactors should be SAP's worst nightmare. 28

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