Zuora Finance

The Subscription CFO’s best-friend

Lei JinSenior Director, Zuora Product ManagementAngela NgoClient Manager, Zuora Global Services

Zuora Finance

The Subscription CFO’s best-friend

Lei JinSenior Director, Zuora Product ManagementAngela NgoClient Manager, Zuora Global Services

Zuora: A prospect-to-cash solution for relationship-centric enterprises

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Integration. Scalability. Reliability. Security. Compliance. Extensibility. App Marketplace

Pricing & Packagin

gPricing,

Bundling, Entitlements

Billing

Rating, Invoicing,Taxation

Analytics

Sub. Identity,Dashboards,

Report Builder,

Segments, Triggers

Payments

Online payments,

Offline payments,

Credits, Adjustments

Revenue

Revenue Recognition, Accounting

Close, GL Integration

Subscriber

Management

Cross-sells, Upsells,

Renewals, 360 Sync, Self Service

Quoting

Configuration, Guided

Selling, Rules Engine

Platform

Main investment area for CFOs: Close Books Accurately & Quickly

page03

Integration. Scalability. Reliability. Security. Compliance. Extensibility. App Marketplace

Pricing & Packagin

gPricing,

Bundling, Entitlements

Billing

Rating, Invoicing,Taxation

Analytics

Sub. Identity,Dashboards,

Report Builder,

Segments, Triggers

Payments

Online payments,

Offline payments,

Credits, Adjustments

Revenue

Revenue Recognition, Accounting

Close, GL Integration

Subscriber

Management

Cross-sells, Upsells,

Renewals, 360 Sync, Self Service

Quoting

Configuration, Guided

Selling, Rules Engine

Platform

Main investment area for CFOs: Better Reporting & Analytics

page04

Integration. Scalability. Reliability. Security. Compliance. Extensibility. App Marketplace

Pricing & Packagin

gPricing,

Bundling, Entitlements

Billing

Rating, Invoicing,Taxation

Analytics

Sub. Identity,Dashboards,

Report Builder,

Segments, Triggers

Payments

Online payments,

Offline payments,

Credits, Adjustments

Revenue

Revenue Recognition, Accounting

Close, GL Integration

Subscriber

Management

Cross-sells, Upsells,

Renewals, 360 Sync, Self Service

Quoting

Configuration, Guided

Selling, Rules Engine

Platform

Main investment area for CFOs: Scale for Global Enterprises

page05

Integration. Scalability. Reliability. Security. Compliance. Extensibility. App Marketplace

Pricing & Packagin

gPricing,

Bundling, Entitlements

Billing

Rating, Invoicing,Taxation

Analytics

Sub. Identity,Dashboards,

Report Builder,

Segments, Triggers

Payments

Online payments,

Offline payments,

Credits, Adjustments

Revenue

Revenue Recognition, Accounting

Close, GL Integration

Subscriber

Management

Cross-sells, Upsells,

Renewals, 360 Sync, Self Service

Quoting

Configuration, Guided

Selling, Rules Engine

Platform

2016-2017 areas of investmentfor the Finance Team

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Continue to help you close books accurately and quicklyBetter reporting and analytics for your businessEnable you to scale operations for a true Global Enterprise

01Close Books

Accurately & Quickly

what we have today

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Subscription sub-ledger

Alignment with your GL

Revenue Recognition Rules

International currencies

what you have beenasking for

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Automated AR Roll-Forward Capabilities

Extended FX functionality• Realized/unrealized gain & loss calculations• Integrations to various FX rate sources of choiceMore options for GL integration

02Better Reporting

and Analytics

what we have today

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Zuora metrics in SFDC

Insights

Reporting

what you have beenasking for

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Performance metrics by product

Non-GaaP KPI’s• Sales bookings • Renewal forecasts• Downsell metrics• Churn metrics

what’s new this year on the horizon

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• You heard about our new Reporting product that will make presenting these data a lot more pleasant for you• But the underlying secret sauce has always been our purpose built data

model that can track all the key business information • We are continuing to enhance with the following projects:

• Order• Payment Details

Order – what’s there now

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Today, in Zuora, the most central concept is a Subscription. Those represents the products/services that a customer subscribes to• A user can create a subscription in Zuora and can create

various types of amendments to modify the subscription. • There is not an explicit concept of a sales order.• Billing Schedule and Revenue Schedules are created

against the subscription

SubscriptionBilling Schedule

Revenue Schedule

Amendment

Modifies

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Subscription 1

Order

Order Action 1:Renew subscription

Order Action 2:Add 500 seats

Subscription 1 is renewedAt the same time, 500 more seats are added to subscription

Order Action 3:Add new subscription

Subscription 2 New subscription is created

• We are introducing the concept of an Order• A user can now create an Order to both create and modify a subscription• An Order can create/modify multiple subscriptions at once, and across

multiple customer accounts• This makes it easier to report bookings metric (e.g. upsell, churn, renewal

add-on)

Orderconcept

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Subscription

Order 1 (Initial)

Order 2 (Upgrade)

Billing Schedule 1

Revenue Schedule 1

Revenue Schedule 2

Billing Schedule 2

• Billing Schedules and Revenue Schedules can now be created at the Order level and aggregated up to the Subscription level

• Through Zuora for SalesForce integration, we can tie an Order to a Quote and therefore to a sales opportunity.• This enables reporting on billing and revenue by sales opportunity

Orderconcept (cont’d)

Payment Details

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• We are introducing the next level of details for Payment, where you can now, not only apply payment against invoices, but also know which invoice items it applies against• This significantly

enhances your ability to manage and report cash at the product level

Apply payment by invoice line items

03Scale for Global Enterprises

what we have today

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GL Segmentation

Summary Level JE by BU

Summary Level JE by CurrencyInternational currencies

what you have beenasking for

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Close the books by entity/region

Define functional system behavior and admin access by entitySingle view of your business

what’s new this year

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Multi Entity

• Introducing a multi-layer, hierarchical entity structure that models how Global Enterprises organize themselves• Each entity represents a legal entity or business unit that operates independently

and can sell to multiple countries• New entities can be added or deactivated dynamically as company structure

changes

• A user can be given access to one or more entities, with a single login, but potentially different roles/permissions in each entity

• Operationally, each entity is shielded from other entities, with separate• Accounting close process and Home currency• Bill run, Payment run, and Journal run • Configuration settings such as invoice number ranges, time zone, and billing settings• Set of billing accounts and associated AR and revenue transactions• Product catalog

• Zuora Reporting would give the option to do roll-ups where a user from a “parent” entity can access data from “child” entities.

• Currency amounts can be converted into the home currency of the current entity.

• Zuora also offers sharing and central management options to make management across entities easier.

• Product Catalog can be shared, allowing entities to cross sell products from other entities.

• Each entity that owns the product can specify which entities can sell the product and what rate plans are applicable.

Sharing Product Across Entities

• Each receiving entity can then choose to make the product available by “accepting” the product.

• Depending on permissions and roles, new rate plans can be added or existing rate plans and product information can be edited

Creating a Product shared from another Entity

Summary

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Better Reporting and

Analytics

Close BooksAccurately &

Quickly

Scale for Global Enterprises

Check out Zuora Academy for more great info and actionable advice.

All the info you need to build and run an amazing subscription business.

https://www.zuora.com/academy/