NETSUITE GLOBAL LEADER IN CLOUD ERP NYSE: N April 28, 2016
1
© Copyright 2016
SAFE HARBOR STATEMENT 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 ondemand 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, 2015 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
2
© Copyright 2016
© NetSuite Inc. 2015
INVESTMENT HIGHLIGHTS • The World’s Leading Pure-play Software-as-a-Service (SaaS) Provider of ERP Software Suites − 10,000+ companies running 30,000+ subsidiaries and entities across 100+ countries
• Large and Expanding Addressable Market − ERP has largest TAM of any business app category − Suite approach expands TAM to multiple categories
• Decade of Sustained Revenue Growth − 14+ year head-start, not even a close #2 − Powerful SaaS financial model; high visibility; strong renewals
• Winning Growth Strategy − − − −
3
Verticalization of the suite Moving up market and going global with OneWorld Platform Expanded to OmniChannel with SuiteCommerce Large and growing partner ecosystem
© Copyright 2016
NETSUITE: WORLD’S #1 CLOUD ERP BACKGROUND
PERFORMANCE
• Founded 1998; IPO in 2007
• World’s most deployed cloud ERP
• Publicly traded on NYSE: “N”
• Used by 10,000+ companies, running 30,000+ subsidiaries and entities
• 4,600+ employees • Offices in 12 countries • $741.1M revenue in FY15
• Fastest growing top 10 Financial Management Software Worldwide • Used across 100+ countries #1 Cloud ERP Suite
4
© Copyright 2016
NETSUITE: FASTEST GROWING TOP 10 FINANCIAL MANAGEMENT SYSTEM VENDOR WORLDWIDE 50.0%
Top 10 WW FMS Vendors: 2015 YoY Market Share Growth Rate %
45.0%
40.0%
30.0%
20.0%
• NetSuite is the only pure Cloud vendor in Top 10
14.1% 10.6% 10.0%
8.3% 4.2%
• NetSuite is #6 (up from #8 in 2014) overall by Market Share in 2015
2.9%
1.0%
-0.6%
-9.1%
-12.4%
Sage
Visma Software
Unit4
SAP
0.0%
NetSuite
Deltek Microsoft Oracle
Infor
Yonyou
-10.0%
-20.0% Source: Gartner, Market Share: All Software Markets, Worldwide, 2015. Published March 31, 2016. Chart created by NetSuite based on calculations of Gartner market share data.
5
© Copyright 2016
NETSUITE NAMED ON FORBES’ 2015 LIST OF WORLD’S MOST INNOVATIVE GROWTH COMPANIES Rank
NetSuite Receives 90% Innovation Premium on the 2015 List of Most Innovative Growth Companies — Forbes, May 2015
Company
5-year Avg Sales Growth (%)
Enterprise Value ($billion)
Innovation Premium (%)
Industry
1
Xero
112.2
2.0
90.1
IT SW & SVCS
2
NetSuite
27.8
7.4
90.0
IT SW & SVCS
3
DexCom
52.1
5.2
84.3
Health Care Equip & Svcs
4
ASOS
34.3
4.8
84.3
Retailing
5
athenahealth
32.3
4.8
80.0
Health Care Equip & Svcs
6
M3
34.6
6.4
77.6
Health Care Equip & Svcs
7
Ultimate Software Group
21.1
4.8
76.6
IT SW & SVCS
8
Kakaku.com
25.6
3.6
75.2
IT SW & SVCS
9
Start Today
13.9
2.8
74.6
Retailing
10
Qlik Technologies
28.2
3.2
74.2
IT SW & SVCS
Source, Forbes, May 2015 List of World’s Most Innovative Growth Company less than $10B market capitalization
6
© Copyright 2016
CLOUD OPPORTUNITY: THE BIG LAND GRAB Massive Market Opportunity In Billions
$40
Cloud is the Future
ERP
4x
$20 $27
$29
$31
$33
$35
$27
2014
2015
2016
2017
2018
2019
70% Faster growth than worldwide IT market
Chart created by NetSuite based on Gartner research. Source: Gartner, Forecast: Enterprise Software Markets, Worldwide 2012-2019, 3Q15 Update, 18 September 2015
Rapid SaaS Growth Forecast vs. On-Premise (Enterprise Resource Management (ERM)
17% 5%
10%
15%
20%
Source: IDC, Worldwide SaaS Enterprise Applications 2014-2018 Forecast and 2013 Vendor Shares, Dec 2014 ERM includes Financial applications, Procurement, Order management, Human Capital Management, Payroll, Enterprise asset management, Project management and Financial performance and Strategy management
7
7
© Copyright 2016
© NetSuite Inc. 2015
Sources: IDC CIO Agenda Webinar, 2015 IDC WW and Regional Public IT Cloud Service Forecast 2011-15
Fortune 5 Million: US Enterprise & Mid-Market SMBs Enterprise >1,000 employees ~9,000 firms
2%
SaaS Growth (2013-18)
0%
Technology affecting IT
70% of CIOs embrace a cloud-first strategy in 2016
$0
On-Premise Growth % (2013-18)
#1
Mid-Market 100 - 1,000 employees ~116,000 firms Small