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NetSuite and the NetSuite Logo are registered service marks of NetSuite Inc. (Updated as of February 4, 2013) NetSuite Corporate Overview

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Page 1: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

NetSuite and the NetSuite Logo are registered service marks of NetSuite Inc.

(Updated as of February 4, 2013)

NetSuiteCorporate Overview

Page 2: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Cautionary Note – Forward Looking Statements

│ 2

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, 2011 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. 

Page 3: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

• Cloud computing: The future of software• 10+ year head‐start, not even a close #2• ERP: The “system of record”

– ERP has largest TAM* of any business app category– Suite approach expands TAM to multiple categories

• Execution: Next‐phase initiatives succeeding– Verticalization of the suite– Moving up market and going global with OneWorld– Expand your commerce business to omnichannelbusiness with NetSuite SuiteCommerce

– NetSuite platform enabling partner ecosystem

Why NetSuite: For Investors

│ 3*Total Addressable Market

Page 4: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Powers Enterprises Powers DisruptiveInnovators

• World’s most deployed cloud ERP• Used by 16,000+ organizations• Fastest growing top 10 Financial Management Solution*

• Used across approx. 100 countries

• Founded 1998• Publicly traded on NYSE:  “N”• Offices in 10 countries• 1,700+ employees• 2012 revenue: $308.8M 

NetSuite: Quick TakePerformanceBackground

* For North America     Source: Gartner, April 2011

Page 5: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Mission StatementNetSuite Provides Companies

Around the Globe, Cloud‐based,Unified Systems that DeliverUnprecedented Capabilities to

Drive their Business

Page 6: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

NetSuite Fastest Growing FMS Vendor in North America Last 3 Years

6

Market Share: All Software Markets, Worldwide, 2011, Published April 2012Chart created by NetSuite based on Gartner Market Share Note

Source: Gartner

‐5%

SAGE MSFT

11%

SAP

25%

84%

ORCL

29%

Page 7: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

NetSuite Solution

Page 8: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Today’s Businesses Struggle with an Application Hairball

│ 8

Warehousing

AccountingSupport

SFA

Web

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One System for Running a Business

│ 9

CEO CFO

Sales Rep/Manager

Support Manager

ShippingManager

Customers

Vendors Partners

ECOMMERCE

ERP

PSA

CRMSINGLEDATA

SOURCE

EcommerceManager

Page 10: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Solution Overview

│ 10

• NetSuite: Modular cloud business suite– ERP, CRM, PSA, ECommerce

• For mid‐size companies to large enterprises

• NetSuite OneWorld: Global management

• NetSuite SuiteCommerce

• NetSuite OpenAir: Enterprise PSA

• SuiteCloud platform

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│ 11

Page 12: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

│ 12

Computer

POS

Tablet

Facebook/Social

Phone

Today’s Multi‐Touchpoint World

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Centralization is Required to Meet Customer/Business Needs

│ 13

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│ 14

Transform NetSuite Operational System Into a Commerce Platform That Provides Complete Flexibility To:

Support Any Touchpoint

Support Any Business Model

Provide Platform for Rapid Innovation to Embrace Ever‐changing Landscape

Integrate the Back‐office Commerce Operation

Page 15: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

SuiteCommerce Powers Global Expansion of Omnichannel Commerce

│ 15

Page 16: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Global Business Management

Page 17: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Global Challenges Even Greater 

Warehousing

Accounting Support

SFA

Web

17│

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Australia

REGION

GLO

BAL

AMERICAS EMEA APAC

Worldwide HQ

Canada USA Brazil France Germany Japan ChinaUK

COUNTR

YGlobal Challenges Even Greater

Page 19: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

COUNTR

YRE

GION

GLO

BAL

Multi‐Sub, Multi‐National, Multi‐Company Management

AMERICAS APACEMEA

Worldwide HQ

Page 20: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Global Business Management

ECOMMERCE

ERP

PSA

CRM+SINGLEDATA SOURCE

│ 20

Page 21: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

ECOMMERCE

ERP

PSA

CRM+SINGLEDATA SOURCE

│ 21

Currency

Quota

Forecast

Orders

Taxation

Partners

Language

Website

LOCAL

Consolidation

Sales

Revenue

Dashboards

CurrencyManagement

Compliance

Control

Many Websites

GLOBAL

15 Languages, 190 Currencies 

Page 22: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Why Businesses Choose NetSuite:

• Last ever ERP upgrade – No “version‐lock”

• Suite eliminates application hairball

• Deploys in months not years

• Modern, evolving, flexible

• Dramatically lower IT cost

│ 22

Page 23: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

World’s #1 Global Cloud Suite

ECOMMERCE

ERP

PSA

CRMSINGLE DATASOURCE

SINGLE DATASOURCE

SINGLE DATASOURCE

Qualcomm's operations span about 140 locations worldwide with various local software systems. NetSuite OneWorld presents us with an opportunity to begin centralizing some parts of our e‐commerce systems and further streamlining the management process.

Peter Rubenacker , VP of IT│ 23

Page 24: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

#1 Cloud ERP for the Enterprise

NetSuite is increasingly considered a safe choice for evaluation by many of the world's largest enterprises as they look to consolidate and revise their mid‐tier applications.

Source: Gartner, June 2011│ 24

Page 25: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

• Billions of customer requests per month

• Millions ofunique loginsper quarter

• Automated upgrades

• Redundantdatacenters

Infrastructure

Application

Developer Tools

Unlimited CustomizationEnterprise Infrastructure

│ 25

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Speed, Cost Efficiency and PowerUnprecedented Speed

150%+and 6 monthpayback*

Nucleus Research* Based on Nucleus Customer Case Study

• Deployed in 49 countries in less than a year

• 26 countries in less than 90 days

• Support M&A strategy across 140 counties 

• Replaced 14 disparate business applications

10% Implementation effort vs. typical ERP

50‐65% IT staff efficiency savings

20‐50% Faster financial close time

50%+ Quote to cash acceleration

ROI

Nucleus Research 2008 and 2010

Slashes IT Costs

Proven Results

Page 27: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Best Known Brands Run NetSuiteSelects NetSuite OneWorld for business management in subsidiaries and emerging markets

Expanded to international markets with NetSuite OneWorld in under four months 

RMDM unit using  NetSuite OneWorld Ecommerce across its 13,000+ partners 

Selects NetSuite Ecommerce to drive online revenue

Siemens PLM is using NetSuite across 2,700+ users in 15+ countries ‐ and across 3,000+ client projects and 1,500+ products and skills

│ 27

Page 28: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Cloud Suite of Choice for Leading BusinessesSoftware/Internet WD Manufacturing Services Etail/Retail Enterprises

Page 29: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

The Undisputed Cloud ERP Leader

│ 29

NetSuite is the most successful ERP suite SaaSprovider operating in terms of active customers, international presence and functionality offered across the product.

Source: Gartner, June 2011

Page 30: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Market Opportunity

Page 31: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Cloud is a Priority

│ 31

Technology affecting IT

#

Of companies plan to increase cloud spend over next 12 months

50+%Faster growth than worldwide IT market

4X

Worldwide and Regional Public IT Cloud Services 2011‐2015 Forecast, IDC, June 2011Reimagining IT: The Gartner 2011 CIO Survey, Gartner, January 2011

The ROI Of Cloud Apps, Forrester, June  2011

Page 32: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

$32B Addressable MarketCloud Growth Outstripping On‐Premise

CRM$11BERP

$21B

Forecast: Software as a Service, Worldwide, 2010‐2015, 1H11 UpdateForecast: Enterprise Software Markets, Worldwide, 2008‐2010, 2Q11 Update

Market Share: All Software Markets, Worldwide, 2010

Cloud ERP growth versus market

Total ERP Cloud ERP

16

14

12

10

8

6

4

2

0

7.9%

14.3%

% CAGR Thro

ugh

 201

5

Cloud CRM growth versus market

Total CRM Cloud CRM

16

14

12

10

8

6

4

2

0

9.5%

12.5%

% CAGR Thro

ugh

 201

5

32│

Source: Gartner

Page 33: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

NetSuite Growth vs. Market 2010 vs. 2009Financial Management Systems (FMS)

33Chart created by NetSuite based on Gartner Note: All Software Markets, Worldwide, 2010, Pub. Apr. 2011

Compares NetSuite FMS revenue growth versus overall FMS market revenue growth

WW FMS Growth: 8x

NetSuite Worldwide

50%

40%

30%

20%

10%

0%

N. America FMS Growth: 7x

NetSuite North America

40%

35%

30%

25%

20%

15%

10%

5%

0%

UK FMS Growth

NetSuite UK

50%

40%

30%

20%

10%

0%

‐10%

Australia FMS Growth: 14x

NetSuite Australia

140%

120%

100%

80%

60%

40%

20%

0%

Source: Gartner

Page 34: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

NetSuite Ecommerce Addresses Accelerating Move to Online Retail

34

Forecast: US Online Retail Forecast, 2010 To 2015

2009 2010

% change

% of total retail

% of total retail(excluding grocery)

February 2011 “US Online Retail Forecast, 2010 To 2015”

2011 2012 2013 2014 2015

11% 13% 12% 10% 10% 8% 8%

8% 8% 9% 10% 10% 11% 11%

11% 11% 12% 13% 14% 15% 15%

$259

$279

$240$218

$197$176

$157

(in billions)

Source: Forrester  Research Online  Retail Forecast , 2010 To 2015 (US) 

Page 35: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Enterprise Opportunity

Page 36: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

The Two‐Tier Opportunity:

Source: GartnerJuly 28, 2010 ‐ A Two‐Tier ERP Suite Strategy: Is It Right for You? 

The Rise of Two‐Tier

2009 2011

60

50

40

30

20

10

0

enterprises now opting for two‐tier

36

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.

48% 

Source: Gartner, July 2010

Page 37: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

China Vietnam

WorldwideOperations

NetSuite’s Two‐Tier Solution

CORPORATERunning Oracle/SAP

E‐Business Suite Financials

US Operations

NetSuite CloudRunning 

NetSuite OneWorldSuiteCloudConnect

NetSuite CloudRunning 

NetSuite OneWorld

Page 38: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Two‐Tier: Driving Business Velocity

│ 38

Mergers and Acquisitions:Cost effective ERP within subsidiaries

Divestitures:Shed legacy ERP with lean, customizable cloud ERP

Emerging Markets & Products:Rapidly deploy ERP with minimal CapEx and IT

Page 39: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

If we used a traditional enterprise ERP platform worldwide, it would require significant capital investment and a lot of resources in each country. NetSuite provides everything we need for our subsidiaries.

— Ysmael Baysa, CFO

$50B+ Revenue Jollibee Leverages NetSuite for Two‐Tier ERP

39│

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Enterprise Partnerships to Drive Success

│ 40

Accenture’s unmatched industry expertise and NetSuite’s sophisticated cloud leadership pave the way forward for global enterprises.

Paul DaughertyChief Technology Architect

Page 41: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Financial Highlights

Page 42: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Sustained Revenue Growth

42│

$ millions

$320.0

$300.0

$280.0

$260.0

$240.0

$220.0

$200.0

$180.0

$160.0

$140.0

$120.0

$100.0

$80.0

$60.0

$40.0

$20.0

$0.02002 2003 2004 2005 2006 2007 2008 2009 2010

$3.1 $8.3$17.7

$36.4

$67.2

$108.5

$152.5

$166.5

$193.1

2011

$308.8

$236.3

2012

Page 43: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

2012 Financial Highlights

• Revenue increases 31% year‐over‐year to $308.8 million

• Operating cash flow up 50% year‐over‐year to $54.3 million

• Non‐GAAP Net Income increases 77% to $19.1 million

│ 43

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Q4 2012 Financial Highlights

• Revenue increases 33% year‐over‐year to $85.0 million

• Operating cash flow increases 15% year‐over‐year to $13.4 million

• Non‐GAAP Net Income increases 33% year‐over‐year to $4.6 million

│ 44

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2012 Financial TrendsNon‐GAAP Net Income

($ Thousands)Non‐GAAP Gross Margin

74%

73%

72%

71%

70%

69%

68%

67%

Short‐Term Deferred Revenue($ Thousands)

Cash Flow from Operations($ Thousands)

20,00018,00016,00014,00012,00010,0008,0006,0004,0002,000

‐(2,000)(4,000)(6,000)(8,000)

2007 2008 2009 2010 20112007 2008 2009 2010 2011 2012 2012

160,000 

140,000 

120,000

100,000

80,000

60,000

40,000

20,000

‐2007 2008 2009 2010 2011 2012

55,000 50,000 45,000 40,00035,00030,00025,00020,00015,00010,0005,000

0(5,000)(10,000)

2007 2008 2009 2010 2011 2012

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Q1 2013 and FY 2013 Outlook

│ 46

Q1 2013 FY 2013

Revenue $90.5M to $91.0M $397M to $402M

Non‐GAAP EPS $0.02 to $0.03 $0.26 to $0.27

Operating Cash Flow $11.5M to $12.0M $55M to $60M

Page 47: NetSuite Corporate Overvie€¦ · NetSuite Corporate Overview. ... Platform That Provides Complete Flexibility To: ... $50B+ Revenue Jollibee Leverages

Recent Press Highlights• Top VARs Continue to Flock to NetSuite Solution Provider Program

• CallidusCloud Replaces 14 Separate Applications with Move to NetSuite OneWorld

• Zicam Cold Remedy Manufacturer Breathes Easy with NetSuite

• Outdoor Brands Drive Sales and Business Efficiency Through NetSuite

• NetSuite Acquires Retail Anywhere, Adding Key Capabilities to Support Multi‐Channel Retail Success

• Leading Technology Partners Announce Support for NetSuite Retail Anywhere

• Leading Commerce Businesses Build New Year’s Resolutions Around NetSuite SuiteCommerce Solution

• Openwave Mobility Deploys NetSuite OneWorld Services Resource Planning (SRP) Across 15 subsidiaries in 18 Countries

│ 47

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Why NetSuite

• Cloud computing: The future of software• 10+ year head‐start, not even a close #2• ERP: The “system of record”

– ERP has largest TAM* of any business app category– Suite approach expands TAM to multiple categories

• Execution: Next‐phase initiatives succeeding– Verticalization of the suite– Moving up market and going global with OneWorld– Expand your commerce business to omnichannelbusiness with NetSuite SuiteCommerce

– NetSuite platform enabling partner ecosystem

│ 48*Total Addressable Market