Products 1970s

Product + Services 1990s

Customer Centric 2000s

Relationship Centric Today

A SHIFT FROM PRODUCTS TO RELATIONSHIPS

PRICING Unit Sales Value pricing

MARKETING Branding Experience

SALES Selling products Selling outcomes

FINANCE Unit margins Customer lifetime value

CULTURE Hit products Deep relationships

THIS CHANGES EVERYTHING

Advent Software Servcorp Ltd ServiceChannel Concur Technologies Q2E Banking Axial Inc.

Technology IBM Intuit Inc. Zendesk Autodesk SendGrid Mulesoft

Okta Docusign Yahoo! Citrix Linkedin TripAdvisor

Box Trulia Zillow Xactly Marketo PTC

Telecom HP Cloud Dell Inc. Informatica CollabNet Symantec SAGE

BlueJeans Qualcomm Rogers Spark NZ Sensis Ooyala

Xplornet Fuzebox Blackberry Motorola Five9 Polycom

Tata Sensis AT&T Eclipse SkyRiver DNS

CUSTOMERS IN EVERY INDUSTRY

Internet of Things B2C Ford Qualcomm Thermo Fischer EDF Vivint, Inc Polycom Schneider Elec.

GM PubNub Neopost SA Google Nest NCR General Electric Lowe’s

American Express AXA Intuit Deloitte Avalara Dorsey Wright Stansberry

Touring Car Schweiz uKnow SnagAJob.com Surf Air News UK Headspace

Local Corp. Memeo Inc. MLS Listings HP MagCloud Kaplan Givezooks!

BetterCloud Box American Express Bandwidth.com Engie (GDF Suez SA) Telstra

Media Education Healthcare Fairfax Media Primedia AllProperty Media Whitepages.com Yellow Media Inc YP.com

Thomas Publishing Time Inc (UK) Ustream The Guardian HBO Nordics AT&T Adworks

Reed Business Info News UK Dow J/News Corp Liberation IPC Media BitGravity

Pearson Sally Ride Science Safari Netchemia Lynda.com Mindflash

Kaplan Learning.com Focus-N-Fly Inc Hobsons Edmentum EMyth

Transparent Healthcare Perfect Patients Voyant Health Sycle LifeTechnologies Availity

Medrio Modernizing Medicine Illumina GoodMouth CareCloud Carena

Financial Services

THE PROBLEM Existing Systems Were Built For Products and One-time Transactions,

Not Subscribers and Long-term Relationships

Multiple Systems | Manual Processes | Rigid Technology | Product-Centric

A Product

? ?

Quoting Fulfillment

Ecommerce

Revenue Recognition

Financials

ERP

SCM

Inventory Product Catalogue

Collections Invoicing

INTRODUCING ZUORA A prospect-to-cash solution for relationship-centric enterprises

SUBSCRIBER MANAGEMENT

Cross-sell, upsell renewals, 360 sync,

self service

PRICING & PACKAGING

Pricing, Bundling, Entitlements

QUOTING

Configuration, Guided-Selling, Rules

Engine

BILLING

Rating, Invoicing,

Taxation

PAYMENTS

Offline & Online

Payments, Credits, Adjustments

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

Platform

REVENUE

Revenue Recognition,

Accounting Close, GL Integration

REPORTING & ANALYTICS

Report builder, Dashboards,

Segmentation, Predictive

SUBSCRIBER IDENTITY

Payment Gateways

Taxation

Mediation

Provisioning

COMMERCE BILLING FINANCE

RELATIONSHIP BUSINESS MANAGEMENT

Z-Business Ecosystem

CRM

Web APIs

Tailor pricing to subscriber segments or individual subscribers

Combine one-time, recurring and usage pricing models

Rapidly create and iterate on price promotions

Easily manage multi-currency pricing

Link pricing and feature entitlements to streamline billing and provisioning

Rapidly launch and test new pricing

1.  A pricing catalog purpose built for choice and rapid iteration

2. Designed for multi-channel subscriber management

Native salesforce.com CPQ application

Guided selling to streamline your assisted sales processes Subscriber self-service account management

Visibility into key subscriber metrics across all channels

Partner price lists and partner sales

Acquire and manage customers on multiple channels

3. Automates recurring billing and collections Automated billing and personalized invoice presentation/delivery

Automated electronic payment processing

Automated tax and currency rounding calculations

Invoice consolidation for hierarchical account relationships

Triggers for automated provisioning and deprovisioning

Ability to trigger billing based on external events

Scale and streamline back office operations

4. Designed to integrated with your finance application Chart of account alignment between Zuora and your financial system

Roll up of financial transactions using multiple segmentation rules Automatic deferred revenue calculations

Trial balance calculations for billings, cash and revenue

Accounting lock-down to maintain auditability and compliance

Scale and streamline back office operations

5. Delivering deep insights into business growth and service usage

Report on billings, bookings, AR and revenue growth

Measure MRR, ARR, ACV and churn across product lines, geos, etc

Easily access trends and patterns of use across your product

An analytics-driven approach to identify cross-sell/upsell candidates for new products

Measure usage

and adoption

Zuora manages the downstream complexity in billing and finance

Order #1

Initial Order

Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice

•  Billing schedules divide orders into basic monthly or annual payments

•  CRM and quoting tools don’t handle all types of quoting events: upsell, downgrade, add-ons, renewals, cancellations

•  Subscription changes complicate system integrations even more

Traditional Systems Handle Basic Invoices…

How Traditional Billing Systems Handle Subscriptions

Order #1

Initial Order

Order #2

Upgrade to “Gold” Plan

Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice

Order #3 Add Another Service

Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice

Mo. 4 Invoice

•  Most billing & ERP system are order-centric model •  No concept of a holistic subscription, only billing schedules •  Subscription events: upsell, downgrade, add-ons, renewals, cancellations

produce many unrelated orders and misaligned invoices •  No visibility into total customer lifecycle over time

Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice

…Zuora simplifies process and customer relationships

•  Single subscription which records all changes (versions) •  Automatic proration, charge alignment and co-terminus for easy

renewals •  Simple invoices for the customer

Subscription

Subscription Mo. 1 Invoice Mo. 2 Invoice Mo. 3 Invoice Mo. 4 Invoice

Add Another Service (v3)

Upgrade to “Gold” Plan (v2)

FINANCE

Manage Recurring Revenue

REVENUE RECOGNITION RULES

AUTOMATIC REVENUE DISTRIBUTION

MANUAL REVENUE DISTRIBUTION

AUTOMATIC ADJUSTMENT REDISTRIBUTION REVENUE WORKBENCH REVENUE REPORTS

Subscription-aware Data Model

Align with Financial Systems ACCOUNTING SYSTEM

INTEGRTION

ACCOUNTING PERIODS CHART OF ACCOUNTS ACCOUNTING CLOSE REPORTS

AR & REVENUE JOURNAL ENTRIES

AUDIT TRAIL & ACCOUNTING LOCKDOWN

Monthly to Quarterly Example

01/01

Sales & Sales Ops

Product Mgmt

Finance

Bill & Pay Operations

New Order on 01/01 12 Month Term ends 12/31

Bronze Monthly Plan: $200/month

Bill: $200

Bill: $200

Bill: $200

Bill: $200

Bill: $200

ER: $200 DR: $0

ER: $400 DR: $0

ER: $600 DR: $0

ER: $800 DR: $0

ER: $1000 DR: $0

Amendment on 06/15 Coterminous ends 12/31

Bronze Quarterly Plan: $300/quarter

Bill: $250 ($300 - $100 Prorated Credit + $50

Prorated Charge)

ER: $1250 DR: $200

ER: $1350 DR: $100

ER: $1450 DR: $0

ER: $1550 DR: $200

ER: $1650 DR: $100

02/01 03/01 04/01 05/01 06/01

06/15

07/01 08/01 09/01 10/01 11/01 12/01

ER: $1750 DR: $0

01/01

Renewal 12 Months

Bronze Quarterly

Plan

Bill: $300

ER: $100 DR: $200

ER: $1150 DR: $0

Bill: $300 Bill: $200

Adding Users Example

01/01

Sales & Sales Ops

Product Mgmt

Finance

Bill & Pay Operations

New Order: 10 Users on 01/01 12 Month Term ends 12/31

Professional Plan: $120/user/year

Bill: $1200

ER: $100 DR: $1100

ER: $200 DR: $1000

ER: $300 DR: $900

ER: $400 DR: $800

ER: $500 DR: $700

Amendment: 20 Users on 06/15 Coterminous ends 12/31

Professional Plan: $/user/year

Bill: $650 ($1300 Prorated Charge - $650 Prorated Credit)

ER: $850 DR: $1000

ER: $1050 DR: $800

ER: $1250 DR: $600

ER: $1450 DR: $400

ER: $1650 DR: $200

02/01 03/01 04/01 05/01 06/01

06/15

07/01 08/01 09/01 10/01 11/01 12/01

ER: $1850 DR: $0

01/01

Renewal 12 Months

Gold Annual

Plan

Bill: $2400

ER: $200 DR: $2200

ER: $650 DR: $1200

Monthly to Annual Example

01/01

Sales & Sales Ops

Product Mgmt

Finance

Bill & Pay Operations

New Order on 01/01 12 Month Term ends 12/31

Bronze Monthly Plan: $200/month

Bill & Collect $200

Bill & Collect $200

Bill & Collect $200

Bill & Collect $200

Bill & Collect $200

ER: $200 DR: $0

ER: $400 DR: $0

ER: $600 DR: $0

ER: $800 DR: $0

ER: $1000 DR: $0

Amendment on 06/15 Coterminous ends 12/31

Bronze Annual Plan: $1200/year

Bill & Collect: $550 ($650 Prorated - $100 Credit)

ER: $1250 DR: $500

ER: $1350 DR: $400

ER: $1450 DR: $300

ER: $1550 DR: $200

ER: $1650 DR: $100

02/01 03/01 04/01 05/01 06/01

06/15

07/01 08/01 09/01 10/01 11/01 12/01

Bill & Collect $200

ER: $1750 DR: $0

01/01

Renewal 12 Months

Bronze Annual

Plan

Bill & Collect: $1200

ER: $100 DR: $1100

ER: $1150 DR: $600