NetSuite Corporate Overview (Updated as of February 8, 2014)
NetSuite and the NetSuite Logo are registered service marks of NetSuite Inc.
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, 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.
Cautionary Note – Forward Looking Statements
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Why NetSuite: For Investors
Cloud computing: The future of software
15+ 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 NetSuite OneWorld – Expand your commerce business to an omnichannel business
with NetSuite SuiteCommerce – NetSuite platform enabling partner ecosystem
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Powers Enterprises Powers Disruptive Innovators
World’s most deployed cloud ERP Used by 20,000+ organizations Fastest growing Financial Management Software globally* Used across 110+ countries
Founded 1998 Publicly traded on NYSE: “N” Offices in 11 countries 2,500+ employees 2013 revenue: $414.5M
Background Performance
NetSuite: Quick Take
Source: Gartner, March 2013
NetSuite Provides Companies Around the Globe, Cloud-based,
Unified Systems that Deliver Unprecedented Capabilities to
Drive their Business
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NetSuite Solution
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Today’s Businesses Struggle with an Application Hairball
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One System for Running a Business
CEO CFO
Sales Rep/ Manager
Support Manager
Ecommerce Manager
Shipping Manager
Customers
Vendors Partners
ECOMMERCE
ERP
PSA
CRM SINGLE
DATA SOURCE
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Solution Overview
NetSuite: Modular cloud business suite – ERP, CRM, Ecommerce, PSA
For midsize companies to large enterprises
NetSuite OneWorld: Global management
NetSuite SuiteCommerce
NetSuite OpenAir: Enterprise PSA
NetSuite SuiteCloud Platform
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Today’s Multi-Touchpoint World
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Computer
POS
Tablet
Facebook/Social
Phone
Centralization is Required to Meet Customer/Business Needs
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Support Any Touchpoint
Support Any Business Model
Innovate Rapidly to Embrace an Ever-changing Landscape
Integrate the Back-office Commerce Operation
Transforms the NetSuite Operational System Into a Commerce Platform That Provides Complete Flexibility to:
SuiteCommerce Powers Global Expansion of Omnichannel Commerce
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Global Business Management
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Global Challenges Even Greater
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Australia
REG
ION
G
LOB
AL
AMERICAS EMEA APAC
Worldwide HQ
Canada USA Brazil France Germany Japan China UK
CO
UN
TRY
Global Challenges Even Greater
CO
UN
TRY
REG
ION
G
LOB
AL
Multi-Sub, Multi-National, Multi-Company Management
AMERICAS APAC EMEA
Worldwide HQ
Global Business Management
ECOMMERCE
ERP
PSA
CRM+ SINGLE DATA SOURCE
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ECOMMERCE
ERP
PSA
CRM+
Currency
Quota
Forecast
Orders
Taxation
Partners
Language
Website
LOCAL
19+ Languages, 190+ Currencies
Consolidation
Sales
Revenue
Dashboards
Currency Management
Compliance
Control
Multiple Websites
GLOBAL
SINGLE DATA SOURCE
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
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World’s #1 Global Cloud Suite
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ECOMMERCE
ERP
PSA
CRM SINGLE DATA SOURCE
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.
#1 Cloud ERP for the Enterprise
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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 2011
Unlimited Customization of Enterprise Infrastructure
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Billions of customer requests per month
Millions of unique logins per quarter
Automated upgrades
Redundant datacenters Infrastructure
Application
Developer Tools
Speed, Cost Efficiency and Power
Slashes IT Costs Global Reach
Proven Results
150%+ and 6 month payback* Nucleus Research * Based on Nucleus Customer Case Study
NetSuite for ERP, CRM & Ecommerce
100 subs in 135 locations including USA, Mexico, Brazil, Canada and Australia
Support 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
ROI
Nucleus Research 2008 and 2010
Best Known Brands Run NetSuite
Selected 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.
Cloud Suite of Choice for Leading Businesses
Software WD Manufacturing Services Etail/Retail Nonprofit Enterprises
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 2011
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Market Opportunity
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Cloud is a Priority
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1 Technology affecting IT
#
Of companies plan to increase cloud spend over next 12 months
50+ % Faster growth than worldwide IT market
4X Worldwide and Regional Public IT Cloud Services 2011-2015 Forecast, IDC, June 2011
Reimagining IT: The Gartner 2011 CIO Survey, Gartner, January 2011 The ROI Of Cloud Apps, Forrester, June 2011
$32B Addressable Market Cloud Growth Outstripping On-Premise
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Forecast: Software as a Service, Worldwide, 2010-2015, 1H11 Update Forecast: Enterprise Software Markets, Worldwide, 2008-2010, 2Q11 Update
Market Share: All Software Markets, Worldwide, 2010
Cloud ERP growth versus market
Total ERP Cloud ERP
16
14
12
10
8
6
4
2
0
7.9%
14.3%
% C
AG
R T
hro
ug
h 2
015
Cloud CRM growth versus market
Total CRM Cloud CRM
16
14
12
10
8
6
4
2
0
9.5%
12.5%
% C
AG
R T
hro
ug
h 2
015
Source: Gartner
CRM $11B ERP
$21B
NetSuite Fastest Growing Financial Management System Vendor Worldwide for 2012
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SAP Totvs Oracle Epicor Microsoft Sage NetSuite
-3% -2% -1%
4% 4% 9%
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
Market Share: All Software Markets, Worldwide, 2012, Published March 2013 Chart created by NetSuite based on Gartner Market Share Note
NetSuite SuiteCommerce Addresses Accelerating Move to Online Retail
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Forecast: US Online Retail Forecast, 2010 To 2015
2009 2010
% change
% of total retail
% of total retail (excluding grocery)
February 2011 “US Online Retail Forecast, 2010 To 2015”
2011 2012 2013 2014 2015
$259 $279
$240 $218
$197 $176
$157
(in billions)
Source: Forrester Research Online Retail Forecast , 2010 To 2015 (US)
11% 13% 12% 10% 10% 8% 8%
8% 8% 9% 10% 10% 11% 11%
11% 11% 12% 13% 14% 15% 15%
Enterprise Opportunity
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The Two-Tier Opportunity:
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The Rise of Two-Tier
2009 2011
60
50
40
30
20
10
0
enterprises now opting for two-tier
48%
What is two-tier ERP?
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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 2013
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
NetSuite’s Two-Tier Solution
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China Vietnam
Worldwide Operations
CORPORATE Running Oracle/SAP
E-Business Suite Financials
US Operations
NetSuite Cloud Running
NetSuite OneWorld SuiteCloud Connect
NetSuite Cloud Running
NetSuite OneWorld
Two-Tier: Driving Business Velocity
Mergers and Acquisitions: Cost effective ERP within subsidiaries
Divestitures: Shed legacy ERP with lean, customizable cloud ERP
Emerging Markets & Products: Rapidly deploy ERP with minimal CapEx and IT
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$50b+ Revenue Jollibee Leverages NetSuite for Two-Tier ERP
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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
Enterprise Partnerships to Drive Success
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Accenture’s unmatched industry expertise and NetSuite’s sophisticated cloud leadership pave the way forward for global enterprises.
Paul Daugherty Chief Technology Architect
Financial Highlights
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2013 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0
DECADE OF SUSTAINED REVENUE GROWTH
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$8.3 $17.7 $36.4
$67.2
$108.5
$152.5 $166.5
$193.1
$308.8
$236.3
$414.5
Revenue Growth
2013 Financial Highlights
Record revenue of $414.5 million, an increase of 34% year-on-year
Record operating cash flow of $62.2 million, an increase of 15% year-over-year
Non-GAAP net income of $19.9 million, an increase of 4% year-on-year
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Q4 2013 Financial Highlights
Record revenue of $115.0 million, an increase of 35% year-over-year
Record operating cash flow of $17.3 million, an increase of 29% year-on-year
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Key Financial Trends
Short-Term Deferred Revenue ($ Thousands)
220,000
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
- 2009 2010 2011 2012 2013
Cash Flow from Operations ($ Thousands)
65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000
5,000 0
2009 2010 2011 2012 2013
Non-GAAP Gross Margin
2009 2010 2011 2012 2013
74%
73%
72%
71%
70%
69%
68%
67%
Non-GAAP Net Income ($ Thousands)
20,000 18,000 16,000 14,000 12,000 10,000
8,000 6,000 4,000 2,000
- 2009 2010 2011 2012 2013
Q1 2014 and FY 2014 Outlook
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Q1 2014 FY 2014
Revenue $119M to $121M $535M to $540M
Non-GAAP EPS $0.01 to $0.02 $0.24 to $0.26
Operating Cash Flow $14M to $15M $65M to $70M
Recent Press Highlights
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Zendesk Selects NetSuite OneWorld to Help Manage Global Operations
NetSuite OneWorld Brings Agility to Roku, Driving Product Innovation and Business Growth
Nonprofits and Social Enterprises Fuel Their Missions with NetSuite
Leading Retailers Turn to NetSuite Cloud for Seamless Omnichannel Commerce
Design Within Reach Selects NetSuite as Platform to Drive Omnichannel Retail Growth
NetSuite Announces NetSuite for iPhone 2.1, World's First End-to-end ERP iOS 7 Application
NetSuite Partner Relationship Management (PRM) Recognized as a Strong Performer in PRM Platforms Report by Leading Analyst Firm
Islabikes Rides with NetSuite Cloud to Enable Business Growth
NetSuite Named Best Financials and ERP Software by UK Software Users
NetSuite OneWorld Helps to Fuel Tableau Software's Global Growth
NetSuite Announces Industry's First Cloud ERP Consultant Certification Program
Why NetSuite
Cloud computing: The future of software
15+ 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 NetSuite OneWorld – Expand your commerce business to an omnichannel business
with NetSuite SuiteCommerce – NetSuite platform enabling partner ecosystem
© NetSuite Inc. 2014 48 *Total Addressable Market