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, 2013 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.
Safe Harbor Statement
© NetSuite Inc. 2014 2
Investment Highlights
The World’s Leading Pure-play Software-as-a-Service (SaaS) Provider of ERP
Software Suites
– >20,000 customer organizations 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
– 12+ year head-start, not even a close #2
– Powerful SaaS financial model; high visibility; strong renewals
Winning Growth Strategy
– Verticalization of the suite
– Moving up market and going global with OneWorld
– Platform Expanded to omnichannel with SuiteCommerce
– Large and growing partner ecosystem
© NetSuite Inc. 2014 3
35% 34%
17% 15%
13% 13% 12%
10% 10% 10% 10%
6% 4% 4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Source: Companies with dark blue bars represent the thirteen largest enterprise software vendors by total annual revenue according to
Gartner March 2014 report; listed in order of respective growth rates
Revenue growth figures have been retrieved from the publicly filed annual reports of the above companies
Consensus estimates have been used for those companies yet to report FY13 results.
Software-As-A-Service (SaaS) Adoption
Disrupting Enterprise Software Landscape
FY 2013 YOY Revenue Growth %
© NetSuite Inc. 2014 4
Background
NetSuite: World’s #1 Cloud ERP
Founded 1998; IPO in 2007
Publicly traded on NYSE: “N”
2500+ employees
Offices in 11 countries
$414M revenue in FY13
World’s most deployed cloud ERP
Used by 20,000+ organizations
Fastest growing top 10 Financial
Management Software Worldwide
Used across 100+ countries
© NetSuite Inc. 2014 5
Performance
#1 Cloud ERP Suite
41.6%
11.5% 7.7%
5.2% 5.3% 0.9% 0.0% 0.0% -1.5% -4.0%
-10%
0%
10%
20%
30%
40%
50%
NetSuite Unit4 VismaSoftware
Microsoft Deltek Sage InforGlobal
Solutions
Yonyou SAP Oracle
Top 10 WW FMS Vendors: 2013 YoY Market Share Growth Rate %
• NetSuite is the only pure Cloud vendor in Top 20
• NetSuite is #10 overall by Market Share
Market Share: All Software Markets, Worldwide, 2013, Published on March 28, 2014
Chart created by NetSuite based on Gartner Market Share Note
NetSuite: Fastest Growing Top 10 Financial
Management System Vendor Worldwide
© NetSuite Inc. 2014 6
Source: Gartner, WW Enterprise Application Market Q4’13
23%
17%
16%
13%
7%
0% 10% 20% 30%
ERP
Cloud Advertising
CRM
Cloud Payments
HR
Cloud is the Future
Source: BofA Report, The Cloud Wars, May 2013
Enterprise
>1,000 employees
Mid-Market
100 - 1,000 employees
Small
<100 employees
~9,000 firms
~116,000 firms
~6,000,000
Fortune 5 Million:
US Enterprise & Mid-Market SMBs
Target
Market
$17 $18 $19 $20 $21 $23
$7 $8 $8 $9 $9 $10 $18 $21 $24
$27 $30
$36
$0
$20
$40
$60
$80
2012 2013 2014 2015 2016 2017
ERP HCM CRM
Massive Market Opportunity
Source: Gartner, Enterprise Application Market, 2013
In B
illi
on
s
Source: Gartner, Feb 2013, Public Cloud Service Subsegment, CAGR% (2011-16)
Cloud Opportunity: The Big Land Grab
Rapid Cloud ERP Growth
© NetSuite Inc. 2014 7
Forecast: US Online Retail Forecast, 2010 To 2015
2009 2010
% change
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%
NetSuite SuiteCommerce:
Addresses Accelerating Move to Online Retail
© NetSuite Inc. 2014 8
% of total retail
% of total retail
(excluding grocery)
$8 $18 $36
$67
$109
$153 $167
$193
$236
$309
$415
$542.5M
$0
$100
$200
$300
$400
$500
$600
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Outlook*
NetSuite IPO
In Millions
NetSuite Annual Revenue (M)
*Midpoint of FY2014 outlook range of $540M - $545M reported on April 28, 2014 NetSuite conference call
Decade of Sustained Revenue Growth
© NetSuite Inc. 2014 9
Accelerating Recurring Revenue
NetSuite Recurring Revenue Growth
© NetSuite Inc. 2014 10
18% YoY
22% YoY
27% YoY
32% YoY
16% YoY
$139.1M
$163.9M
$199.6M
$252.9M
$333.6M
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13
Leading Businesses Choose NetSuite
10,000
12,000
16,000
>20,000
0
5,000
10,000
15,000
20,000
25,000
2010 2011 2012 2013
Source: NetSuite public disclosure of customer count
© NetSuite Inc. 2014 11
Total # of Companies, Subs and Organizations (NetSuite Customers)
Leading Brands Across Industries
Best Known Brands Run NetSuite
Selected NetSuite OneWorld for business management in
subsidiaries and emerging markets.
Expanded to international markets with NetSuite OneWorld
in under four months.
Girl Scouts has made NetSuite SuiteCommerce central to its
strategy to grow its online business while delivering a
cohesive Web experience for all customers.
Saving $360,000 annually on IT costs over on-premise ERP,
and reduced order management response times more than
sixteen-fold.
Using NetSuite across 2,700+ users in 15+ countries – and
across 3,000+ client projects and 1,500+ products and skills.
© NetSuite Inc. 2014 12
Solution Overview
NetSuite: Modular cloud business suite
– ERP, CRM, Ecommerce, PSA
– For midsize companies to large enterprises
NetSuite OneWorld: Global management
NetSuite SuiteCommerce: Ecommerce
NetSuite OpenAir: Enterprise PSA
NetSuite SuiteCloud Platform
© NetSuite Inc. 2014 16
© NetSuite Inc. 2014 17
The Undisputed
Cloud ERP Leader
Source: Gartner
NetSuite is the most
successful ERP suite SaaS
provider operating in terms of
active customers, international
presence and functionality
offered across the product.
Global Business Management
Currency
Quota
Forecast
Orders
Taxation
Partners
Language
Website
LOCAL
Consolidation
Sales
Revenue
Dashboards
Currency
Management
Compliance
Control
Multiple Websites
GLOBAL
19+ Languages, 190+ Currencies
© NetSuite Inc. 2014 18
Why Businesses Choose NetSuite
Last ever ERP upgrade – No “version-lock”
Eliminates application hairball
Deploys in months, not years
Modern, flexible and evolving
Dramatically lowers IT cost
© NetSuite Inc. 2014 19
The Two-Tier Opportunity:
The Rise of Two-Tier
2009 2011
60
50
40
30
20
10
0
enterprises now opting
for two-tier
48%
1: Source: Develop a Strategic Road Map for Postmodern ERP in 2013 and Beyond
2: Source: How to Evaluate a Vendor's Commitment to the Cloud and SaaS
3: Source: Understand the Deployment Options for a TwoTier ERP Suite Strategy, May 2013
The concept of a single ERP suite that meets all of
an enterprise's needs, particularly in large, complex and
diverse organizations, is no longer tenable.2
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.1
Adopting a two-tier ERP strategy can dramatically
reduce regional business unit implementation times,
provide greater agility and improve operational costs.
CIOs understanding its definition, the rationale for
selection and the diverse deployment options is key to
a successful implementation.3
© NetSuite Inc. 2014 21
NetSuite’s Two-Tier Solution
China Vietnam
Worldwide
Operations
CORPORATE Running Oracle/SAP
E-Business Suite Financials
US Operations
NetSuite Cloud Running
NetSuite OneWorld SuiteCloud
Connect
NetSuite Cloud Running
NetSuite OneWorld
© NetSuite Inc. 2014 22
Two-Tier: Driving Business Velocity
© NetSuite Inc. 2014 23
Divestitures:
Shed legacy ERP with lean, customizable cloud ERP
Mergers and Acquisitions:
Cost effective ERP within subsidiaries
Emerging Markets & Products:
Rapidly deploy ERP with minimal CapEx and IT
Enterprise Partnerships to Drive Success
© NetSuite Inc. 2014 24
Accenture’s unmatched industry expertise
and NetSuite’s sophisticated cloud leadership
pave the way forward for global enterprises.
Paul Daugherty
Chief Technology Architect
Retail: Omnichannel as a matter of survival
Manufacturing: Direct access to customers
– Sell B2B, B2C, retail, on marketplaces
Wholesale Distributor: B2B, digital supply chain and B2C
Software: Subscription management, Usage-based billing
Services: Unified billing, Internet and new media
Products are becoming services
Commerce is Changing Every Industry
© NetSuite Inc. 2014 26
Support Multiple Touchpoints
Support Any Business Model
Innovate Rapidly to Embrace an Ever-changing Landscape
Integrate the Back-office Commerce Operation
Transforms the NetSuite Operational System Into a
Commerce Platform That Provides Complete Flexibility to:
© NetSuite Inc. 2014 27
Q1 2014 Financial Highlights
Record Q1 2014 revenue of $123.0 million, a 34% increase Year-
over-Year.
Record Q1 2014 operating cash flow of $19.1 million, a 30%
increase Year-over-Year
Non-GAAP net income for the first quarter of 2014 was $4.4
million, or $0.06 per share, as compared to non-GAAP net income
of $2.8 million, or $0.04 per share, in the first quarter of 2013.
© NetSuite Inc. 2014 30
Note: Reconciliation of Non-GAAP measures to the comparable GAAP measures are available in the
quarterly results press releases which can be found on NetSuite’s website in the investor relations section.
Key Financial Trends
$3.4
$8.5 $10.8
$19.1 $19.9
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2009 2010 2011 2012 2013
Non-GAAP Net Income ($ Thousands)
$4.7
$18.2
$36.3
$54.3
$62.2
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
2009 2010 2011 2012 2013
Cash Flow from Operations ($ Thousands)
$66 $76
$106
$154
$212
$0
$50
$100
$150
$200
$250
2009 2010 2011 2012 2013
Short-Term Deferred Revenue ($ Thousands)
31
84.3% 85.8% 85.2% 85.3% 85.3%
0.0%
50.0%
100.0%
2009 2010 2011 2012 2013
Non-GAAP Recurring Revenue Gross Margin %
Note: Reconciliation of Non-GAAP measures to the comparable GAAP measures are available in the
quarterly results press releases which can be found on NetSuite’s website in the investor relations section.
Q2 2014 And FY 2014 Outlook
Q2 2014 FY 2014
Revenue $130M to $132M $540M to $545M
Non-GAAP EPS $0.02 to $0.03 $0.24 to $0.26
Operating Cash Flow $14M to $15M $65M to $70M
© NetSuite Inc. 2014 32
Note: Reconciliation of Non-GAAP measures to the comparable GAAP measures are available in the
quarterly results press releases which can be found on NetSuite’s website in the investor relations section.
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