Slide 1: Q3 F2020 Financial Review
Q3 F2020 Financial Review
Slide 2: Safe Harbor
Safe Harbor This presentation contains "forward-looking" statements that are based on our management's beliefs and assumptions and on information currently available to management. Forward-looking statements include statements under "Outlook" above and any other statements about expected financial m
Slide 3: Non-GAAP Financial Measures and Other Key Metrics
Non-GAAP Financial Measures and Other Key Metrics To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP f
Slide 4: Strong growth in billings and revenue
(1) Strong growth in billings and revenue Billings(2) Revenue Enterprise & commercial Web & mobile 36% 40% $250 $269 13% $198 $178 14% 87% 86% Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 (1) For the third quarters ended October 31, 2018 and 2019. $ in millions. (2) Total revenues plus the change in contract lia
Slide 5: Strong revenue visibility
Strong revenue visibility Revenue contribution(1) Average contract length(2) Subscription Professional services & other ≤12 months >12 months 5% 5% By contracts Dollar weighted 17% 34% 95% 95% 14 18 months months 83% 66% Q3 FY19 Q3 FY20 (1) For the third quarters ended October 31, 2018 and 2019. (2)
Slide 6: Large and growing customer base
Large and growing customer base Total customers Enterprise & commercial customers(1) 24% 562K 30% 69K 454K 53K Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 (1) Comprised of customers who were not acquired through our self-service channel. We define enterprise customers as companies generally included in the Glob
Slide 7: Achieving increased leverage
Achieving increased leverage Non-GAAP gross margin(1) Headcount(2) Non-GAAP opex(1) Subscription gross margin Total gross margin Domestic International $36 3,723 $28 26% 16% 2,900 15% R&D 85% 84% 24% $120 $92 52% 48% 74% S&M 76% 75% 79% 79% 76% 76% $21 $24 9% 12% G&A Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20
Slide 8: Improving profitability and cash flows
Improving profitability and cash flows (1) Non-GAAP Cash flow (3) operating income OCF FCF (loss) (2) $17 7% $4 2% -1% -1% ($1) -2% ($2) ($4) -6% ($14) Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 (1) For the second quarters ending October 31, 2018 and 2019. $ in millions. % of revenue. (2) Please see Appendix f
Slide 9: Q4 FY2020 guidance
Q4 FY2020 guidance Q4 Fiscal 2020 Total Revenue $263M - $267M Billings $346M - $356M Non-GAAP Gross margin 78% - 80% Non-GAAP Sales and marketing 48% - 50% Non-GAAP Research and development 15% - 17% Non-GAAP General and administrative 10% - 12% Non-GAAP Interest and other income $3M - $4M Provision
Slide 10: FY2020 guidance
FY2020 guidance Fiscal 2020 Total Revenue $962M - $966M Billings $1,083M - $1,093M Non-GAAP Gross margin 78% - 80% Non-GAAP Sales and marketing 48% - 50% Non-GAAP Research and development 15% - 17% Non-GAAP General and administrative 10% - 12% Non-GAAP Interest and other income $16M - $17M Provision
Slide 11: Appendix
Appendix
Slide 12: GAAP to non-GAAP gross profit reconciliation
GAAP to non-GAAP gross profit reconciliation Gross Profit (in $K) Quarter Ended October 31, 2018 2019 GAAP Gross Profit 133,312 187,538 Add: Stock-based Compensation in Cost of Revenue 5,976 7,150 Add: Amortization of Acquisition-related Intangibles in Cost of Revenue 1,632 1,348 Add: Acquisition-re
Slide 13: GAAP to non-GAAP operating gain / (loss) and free cash flow reconciliation
GAAP to non-GAAP operating gain / (loss) and free cash flow reconciliation Adjusted Operating Gain / (Loss) (in $K) Quarter Ended October 31, 2018 2019 GAAP Operating Loss (58,417) (43,997) Add: Stock-based Compensation in Cost of Revenue 5,976 7,150 Add: Amortization of Intangibles in Cost of Reven
Slide 14: GAAP to non-GAAP operating expenses reconciliation
GAAP to non-GAAP operating expenses reconciliation Sales & Marketing (in $K) Quarter Ended October 31, 2018 2019 GAAP Sales & Marketing 117,051 149,231 Less: Stock-based Compensation in Sales & Marketing (22,338) (24,649) Less: Amortization of Acquisition-related Intangibles in Sales & Marketing (2,
Slide 15: Computation of billings
Computation of billings Computation of Billings (in $K) Quarter Ended October 31, 2018 2019 Revenue 178,385 249,502 Add: Contract Liabilities and Refund Liability, End of Period 330,060 435,898 Less: Contract Liabilities and Refund Liability, Beginning of Period (300,426) (412,953) Add: Contract Ass