Imperva Analyst

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© 2015 Imperva, Inc. All rights reserved.Imperva, the Imperva logo, SecureSphere, Incapsula and Skyfence aretrademarks of Imperva, Inc. and its subsidiaries.

Imperva Financial Analyst DaWelcome!

September 10, 2015




Safe Harbor

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward loabout our market opportunity, our technology, products and investments in products, our growth strategy, our customers, areas and our target long-term model. The matters covered by such forward-looking statements involve risks, uncertaintie

If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results couldfrom the results expressed or implied by the forward-looking statements. The risks and uncertainties referred to above inclimited to, the risk that: demand for our cyber security solutions may not increase and may decrease; we may not timely inproducts or versions of our products and that they may not be accepted by the market; competitors may be perceived by better positioned to help handle cyber security threats and protect their businesses from major risk; our growth may be loanticipated; we may not adequately expand and manage our distribution channels; any failure or perceived failure of our against malicious attacks theft and fraud; litigation and regulatory issues, including any intellectual property challenges; alosses, ability to achieve profitability and fluctuations in our operating results.

Further information on these and other factors that could affect the company’s financial results is included in filings it makSecurities and Exchange Commission from time to time, including the section entitled “Risk Factors” included in the comp

Report on Form 10-Q that was filed on August 7, 2015, which should be read in conjunction with these financial results. T

are available on the SEC Filings section of the Investors page of the company's website at http://www.imperva.com/compExcept as otherwise noted, the information provided in this presentation is as of September 10, 2015, and Imperva underupdate this information, except as required by applicable law.

2 Confidential




Today’s Agenda

• 1:00 Welcome Terry Schmid

• 1:15 The Evolving Threat Landscape Amichai Shulman• 1:45 Imperva Overview Anthony Bettencourt

• 2:00 Fireside Chat: Product Overview Amichai Shulman, Marc Gaffan, M

• 2:45 Customer Presentation: Verisk Ted Cooney

• 3:15 Break

• 3:30 Addressing the Weakest Security Link Amichai Shulman, Morgan Gerha

• 4:00 The Sales and Marketing Engine Mike Mooney, Kim DeCarlis• 4:20 Financial Model Terry Schmid

• 4:45 Q&A Exec Team

• 5:00 Reception

Confidential3



© 2015 Imperva, Inc. All rights reserved.

The Evolving Threat Landsca Amichai Shulman

September 10, 2015



DirectExternal Attacks

Username johnsmith

Password ••••••••••

ApplicationLayer

MobileExposed

Functionality

DirectExternal Attacks



Internal Attacks

Dear Customer,

Please use the form below toconfirm your information.

Click Here for Confirmation Form

Thank you, Your Trusted Vendor

IncreasedInfections

CriminalsInside the

Organization

Internal Attacks



The Internetof Things

A dramatic increasenetworked devices lea

to more opportunities f

ATTACK

The Internetof Things



Big DataBig Data

A breach of catastrophic

magnitude caused by amalicious insider is a clear

DANGER



© 2015 Imperva, Inc. All rights reserved. Confidential10

DirectEXTERNAL

Attacks

PersistentINTERNAL

Attacks

You AREunder attack

You WILL becompromised

They ayour




Protecting What Matters Mos Anthony Bettencourt

September 10, 2015




Video Playing…



Significant

economic




There are two kinds of big companiesin the United States. There are thosewho’ve been hacked… and those who

don’t know they’ve been hacked.

FBI Director, James Comey

October 2014

15



© 2015 Imperva, Inc. All rights reserved.16

PERIM

Traditional

security

isn’t enough



Complicated

by the move

to the Cloud




Protecting

is exactly what Imperva does



Imperva products

Products that cover both Protect and Comply

Partners

User RightsManagement for File

Data Loss

Prevention

SecureSphereFile Firewall

File ActivityMonitor

SecureSphere Database Assessment Server

SecureSphereDatabase Firewall

SecureSpherefor Big Data

SecureSphere Database Activity Monitor

User RightsManagement

Data Masking

Vulnerability

Assessment

IncapsulaBack Door Detection

IncapsulaWebsite Security

SecureSphereWAF ThreatRadar

IncapsulaInfrastructure Protecti

IncapsulaWebsite Protection

IncapsulaName Server Protecti

SecureSphereWAF




Marc Gaffan

VP and GM, Incapsula

Amichai Shulman

Co-founder and CTO

Morgan G

VP, Product

21




Gartner “Magic Quadrant for Web Application Firewalls” by Jeremy D'Hoinne, Adam Hils, Greg Young, Nicole Papadopoulos, 15 June 2015.

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of theenti re document. The Gartner document is available

upon request from Imperva. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not adv ise technology users to select only thosevendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed asstatements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of m erchantability or fitness for a particular purpose.

THE ONLY LEADERTWO CONSECUTIVE

YEARS

Gartner MagicQuadrant for

Web ApplicationFirewalls, 2015

22




Scotts Sports Customer Vide

23




A Leader with HighestRanking in ‘Current

Offering’ Category

Forrester Wave forDDoS Providers,

2015

The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave™ are trademarks of Forrester Research, Inc.The Forrester Wave™ is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed

scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave.Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.24




Extended Stay Customer Vid

25




Big PictureCompetitive

Environment - DCAP

Source: Gartner, Market Guide for Data-Centric Audit and protection, 22 November 2014

Figure 2. Schematic Representation of the DCAP Market Showing How a SaVendors Operates Across Different Data Silos

Detection tools may be applicable across multiple silos through a single manag

console but other functionality is limited




Republic Bank Customer Vid

27



Verisk Analytics, Inc. All rights reserved. Confidential and Proprietary. Do not release publicly or share with third parties without prior approval

Our Perspective

Ted CooneyVerisk




About Verisk

• Our services are Risk Assessment and Decision Analprofessionals in many fields, including:

–property/casualty insurance

– financial services – healthcare – energy – government – human resources

• Global information provider for risk managers in all

• Verisk's mission is to help risk-bearing businesses undand manage their risk




Verisk is Required to Keep Data and App

• Process extreme volumes of data, mostly sensitive in naPHI, NPPI, PCI)

• Subject to global regulation (i.e., HIPAA, SOX, PCI ComData Protection)

• Constantly under regulatory examination, internal/extecustomer/contractual reviews against our control struc

•MUST demonstrate adequate control implementation amaintenance to secure our assets and ensure client daprotected




Why We Selected Imperva• Imperva was identified as a best-in-breed security company

or exceeded our requirements above competitors

• Our requirements included: – Solutions that meet our regulatory & compliance needs – Technical Expertise – Performance – Scalability – Management / Monitoring / Reporting – Intelligence

–Cost

– Ease of Procurement

• Strategic partner – We’re currently using DAM, WAF and SkyFence to protect sensitive in

continue to deploy the tool at all Verisk Family companies – Expanding to Cloud WAF & DAM as well as non-relational database

monitoring




Experience and Observations

• Imperva has become a strategic partner for many – Superior Technical Support and overall Security Acumen a

organization

– Sales process was fluid and clear; Test Case artifacts demthe value almost immediately

– Capability to centrally manage Application and Databasfrom a central console

–Scalability and Performance goals were met

– Design meets SLA requirements without impact to uptimemaintaining maintain the ability to meet reporting require

– Numerous attack and APTs have been thwarted by the Imsolutions




Questions




ITP Amichai Shulman, CTO

Ophir Bleiberg, Sr. Director Emerging Products

Morgan Gerhart, VP Product Marketing



People are theWEAK LINK

Confidential36



MaliciouCarelessCompromised



MaliciouCarelessCompromisedLoss of IP Loss of Customer Data

Regulatory, Compliance and Audit Fails




KEEPINGTHEM OUT

39 Confidential

Existing Solutions Fail

DETIF TH

TOOL

They focus on the



© 2015 Imperva, Inc. All rights reserved.40 Confidential


Totally Backwards!

TA

DEFIN

ATTACK

NOT the

TOOL

They focus on the




Various


Confidential41 Confidential41

Various

Solutions






Various

E-Retail






Various

Broadcasting




How do I r

QUICif no

Exactly

WHOIs accessing my data?

?

Truly Detecting and Containing Breaches Requires Addr

OK?Is the access




BLOCQUARA

BLOCQUARA

Breach Detection Solution

Confidential46

LEARN AND DETECTMONITORMONITOR




Breach Detection Solution

LEARN AND DETECT BLOCQUARA

MONITOR

AnalysisMachine

Learning

Visibility

ContainandInvestigate

Verification Deception




In early accessat several accounts




Compromised

IndicatorDetected

PotentialRisk

Final Assessment

Data: Direct query ofdata historically only

accessed via app

User: Non-technical;does not directlyquery DBMSs

Compromised useraccount

Theft of data

User Quarantined




Careless

IndicatorDetected

PotentialRisk

Final Assessment

Deception: triggeredby unsanctioned

cloud backup

Sensitive data nowoutside IT controls

Controls of targetcloud are unknown

Cloud tools can beco-opted byhackers

Careless action

Cloud backupsoftware removed




Putting It Together



Confidential53 LEARN AND DETECTMONITOR

Slow exfiltrationof large numberof files from a

fileshare



Confidential54 MONITOR LEARN AND DETECT

User is fromFinance

Engineering

files

First-timeaccess by user



Cyber criminals




56

Finding dangeroususer activity requires

data understanding

The biggeuncertaintdata is us

Cyber criminalsare after

enterprise data




Imperva, the Imperva logo, SecureSphere, Incapsula and Skyfence aretrademarks of Imperva, Inc. and its subsidiaries.

The Sales andMarketing EngineMike Mooney, CRO

Kim DeCarlis, CMO

September 10, 2015





TAM Is Large and Growing

Confidential59

0

2

4

6

8

10

2015 2016 2017 2018 2019

Gro

24pe



Confidential60





Sales Coverage Model

Confidential61

Inside Sales Regional SalesManagers

StrategicDire





Leveraging the Channel

Confidential62

Partner



MomExecutionGreat

ProductsMarketingSales




Financial HighlightsTerry Schmid, CFO

September 10, 2015




Financial Highlights

• Strong historical revenue growth

• Diversity across a broad customer base

• Diversified revenue stream from multiple product lines

• Significant recurring revenue

• Accelerating success in large deals

• Business model with potential for significant operating leverage

• Strong balance sheet

70 Confidential




17.732.1

39.3

55.4

78.3

104.2

137.8

164.0

70.0

98.2

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

2007 2008 2009 2010 2011 2012 2013 2014 YTD 2014 YTD 201

Strong Historical Revenue Growth

Confidential71

Revenue ($M) YTD through 6/30/15

Account Growth:




Account Growth:Diversified Revenue Stream

Confidential72

Predictable Recurring Revenue Model

• Perpetual software licensesthrough appliance sales

• Licenses for additionalusers and add-on modules

• Subscription products

YTD 2015

Products andSubscriptions

• Maintenance and support

• Professional services

• Training

YTD 2015As of 6/30/15

Services

Prosubs

6

Maintenance& Support,

31.6%

ProfessionalServices &Training,

7.2%




Account Growth: Recurring Business

Confidential73

Recurring Revenue ($K)As of 6/30/15

Subscription Revenue ($KAs of 6/30/15

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2009 2010 2011 2012 2013 2014 YTD2014

YTD2015

Maintenance & Support Subscriptions

0

5,000

10,000

15,000

20,000

25,000

Subscriptions




Diversity of Customer Base: Geography

Confidential75

Revenue by Region – YTD 2015As of 6/30/15

Revenue Growth by Region –

YTD 2015 vs. 2014

Americas,62.7%

EMEA,24.9%

APAC,12.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Americas EMEA AP



© 2015 Imperva, Inc. All rights reserved. CONFIDENTIAL - Imperva76

Average Product Deal Size

7473

8286

60

96

8889

87

-10

10

30

50

70

90

110

130

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

T h o u s a n d s

Avg. Products Deal Size 4 Qtrs Trailing Avg.




Strong Balance Sheet

Confidential77

As of 6/30/15$ in Millions

Cash, Cash Equivalents and Short-Term Investments $245

Total Assets $350

Deferred Revenue $86

Total Debt $0

Total Liabilities $129




Reiterating Q3 and FY’15 Guidance

• Q3

– Revenue of $55 - $57MM, or 31.5% year-over-year at the midpoint

– Non-GAAP Gross Margin of 80% – Non-GAAP Operating Loss of ($1.5MM) to ($1.0MM)

– Non-GAAP EPS of ($0.06) to ($0.05)

• FY’15

– Revenue of $215 - $217MM, or 31.5% year-over-year at the midpoint

– Non-GAAP Gross Margin of 80%

– Non-GAAP Operating Loss of ($12.0MM) to ($11.0MM)

– Non-GAAP EPS of ($0.46) to ($0.44)

• Note: Non-GAAP excludes stock-based compensation, amortization of purchasedintangibles and acquisition-related expenses

79 Confidential




Marc GaffanVP & GM,Incapsula

Trâm PhiSVP, General

Counsel

Sunil NagdevSVP, WW Services &

Support

Mike MooneyChief Revenue

Officer

Terry SchmidChief Financial

Officer

AnthonyBettencourt

President and CEO

Kim DeCarlisChief Marketing

Officer

Grant McCormickChief Information

Officer

Brett Hooper SVP, People

Executive Q&A

VOphir Bleiberg

Sr. Dir. EmergingProducts

Imperva Analyst

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