NetSuiteCorporate Overview(Updated as of May 10, 2013)
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, 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.
Cautionary Note – Forward Looking Statements
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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
© NetSuite Inc. 2013 *Total Addressable Market 3
Powers Enterprises Powers DisruptiveInnovators
World’s most deployed cloud ERPUsed by 16,000+ organizationsFastest growing top 10 Financial Management Solution*Used across approx. 100 countries
Founded 1998Publicly traded on NYSE: “N”Offices in 10 countries1,700+ employees2012 revenue: $308.8M
Background Performance
NetSuite: Quick Take
* For North America Source: Gartner, April 2011
NetSuite Provides CompaniesAround the Globe, Cloud-based,
Unified Systems that DeliverUnprecedented Capabilities to
Drive their Business
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NetSuite Fastest Growing FMS Vendor in North America Last 3 Years
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Market Share: All Software Markets, Worldwide, 2011, Published April 2012Chart created by NetSuite based on Gartner Market Share Note
Source: Gartner
-5%
SAGE MSFT
11%
SAP
25%
84%
ORCL
29%
NetSuite Solution
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
EcommerceManager
ShippingManager
Customers
Vendors Partners
ECOMMERCE
ERP
PSA
CRMSINGLEDATA
SOURCE
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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
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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
Provide Platform for Rapid Innovation to Embrace 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
Global Challenges Even Greater
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Australia
REG
ION
GLO
BA
L
AMERICAS EMEA APAC
Worldwide HQ
Canada USA Brazil France Germany Japan ChinaUK
CO
UN
TRY
Global Challenges Even Greater
CO
UN
TRY
REG
ION
GLO
BA
LMulti-Sub, Multi-National, Multi-Company Management
AMERICAS APACEMEA
Worldwide HQ
AMERICAS APACEMEA
Worldwide HQ
Global Business Management
ECOMMERCE
ERP
PSA
CRM+SINGLEDATA SOURCE
ECOMMERCE
ERP
PSA
CRM+
Currency
Quota
Forecast
Orders
Taxation
Partners
Language
Website
LOCAL
15 Languages, 190 Currencies
Consolidation
Sales
Revenue
Dashboards
CurrencyManagement
Compliance
Control
Many Websites
GLOBAL
SINGLEDATA SOURCE
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
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World’s #1 Global Cloud Suite
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ECOMMERCE
ERP
PSA
CRMSINGLE DATASOURCE
SINGLE DATASOURCE
SINGLE DATASOURCE
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
#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 Enterprise Infrastructure
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Billions of customer requests per month
Millions ofunique loginsper quarter
Automated upgrades
Redundantdatacenters Infrastructure
Application
Developer Tools
Speed, Cost Efficiency and Power
Slashes IT CostsUnprecedented Speed
Proven Results
150%+and 6 month
payback*Nucleus Research* Based on Nucleus Customer Case Study
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
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
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
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Cloud Suite of Choice for Leading Businesses
Software WD Manufacturing Services Etail/Retail Enterprises
The Undisputed Cloud ERP Leader
NetSuite is the most successful ERP suite SaaSprovider operating in terms of active customers, international presence and functionality offered across the product.
Source: Gartner, June 2011
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Market Opportunity
Cloud is a Priority
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Technology affecting IT
#
Of companies plan to increase cloud spend over next 12 months
50+%Faster growth than worldwide IT market
4XWorldwide and Regional Public IT Cloud Services 2011-2015 Forecast, IDC, June 2011
Reimagining IT: The Gartner 2011 CIO Survey, Gartner, January 2011The 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 UpdateForecast: 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$11BERP
$21B
NetSuite Growth vs. Market 2010 vs. 2009Financial Management Systems (FMS)
© NetSuite Inc. 2013 33Chart created by NetSuite based on Gartner Note: All Software Markets, Worldwide, 2010, Pub. Apr. 2011
Compares NetSuite FMS revenue growth versus overall FMS market revenue growth
WW FMS Growth: 8x
NetSuite Worldwide
50
%4
0%
30
%2
0%
10
%0
%
N. America FMS Growth: 7x
NetSuite North America
40%
35%
30%
25%
20%
15%
10%
5%
0%
UK FMS Growth
NetSuite UK
50%
40%
30%
20%
10%
0%
-10%
Australia FMS Growth: 14x
NetSuite Australia
140%
120%
100%
80%
60%
40%
20%
0%
Source: Gartner
NetSuite Ecommerce 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
The Two-Tier Opportunity:
© NetSuite Inc. 2013 36Source: Gartner
July 28, 2010 - A Two-Tier ERP Suite Strategy: Is It Right for You?
The Rise of Two-Tier
2009 2011
60
50
40
30
20
10
0
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.
48%
Source: Gartner, July 2010
NetSuite’s Two-Tier Solution
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China Vietnam
WorldwideOperations
CORPORATERunning Oracle/SAP
E-Business Suite Financials
US Operations
NetSuite CloudRunning
NetSuite OneWorld SuiteCloudConnect
NetSuite CloudRunning
NetSuite OneWorld
Two-Tier: Driving Business Velocity
Mergers and Acquisitions:Cost effective ERP standardization
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 DaughertyChief Technology Architect
Financial Highlights
Sustained Revenue Growth
$ millions$320.0
$300.0
$280.0
$260.0
$240.0
$220.0
$200.0
$180.0
$160.0
$140.0
$120.0
$100.0
$80.0
$60.0
$40.0
$20.0
$0.02002 2003 2004 2005 2006 2007 2008 2009 2010
$3.1 $8.3$17.7
$36.4
$67.2
$108.5
$152.5
$166.5
$193.1
2011
$308.8
$236.3
2012
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
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Q1 2013 Financial Highlights
Revenue increases 32% year-over-year to $91.6 million
Operating cash flow increases 39% year-over-year to $14.7 million
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2012 Financial TrendsNon-GAAP Net Income
($ Thousands)Non-GAAP Gross Margin
74%
73%
72%
71%
70%
69%
68%
67%
Short-Term Deferred Revenue($ Thousands)
Cash Flow from Operations($ Thousands)
20,00018,00016,00014,00012,00010,000
8,0006,0004,0002,000
-(2,000)(4,000)(6,000)(8,000)
2007 2008 2009 2010 20112007 2008 2009 2010 2011 2012 2012
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-2007 2008 2009 2010 2011 2012
55,000 50,000 45,000 40,00035,00030,00025,00020,00015,00010,000
5,0000
(5,000)(10,000)
2007 2008 2009 2010 2011 2012
Q1 2013 and FY 2013 Outlook
© NetSuite Inc. 2013 46
Q2 2013 FY 2013
Revenue $100M to $101M $404M to $408M
Non-GAAP EPS Approx. $0.02 $0.26 to $0.27
Operating Cash Flow $12.0M to $12.5M $55M to $60M
Why NetSuite
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 Moblity Deploys NetSuite OneWorld Services Resource Planning (SRP) Across 15 subsidiaries in 18 Countries
© NetSuite Inc. 2013 47
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
© NetSuite Inc. 2013 48*Total Addressable Market