Workday, Inc. · NASDAQ:WDAY
Workday — Investor Day (October 2018)
110 slides from Workday's investor day presentation, Oct 2, 2018
Slide 1: Financial Analyst Day
Financial Analyst Day October 2, 2018
Slide 2: Workday Financial Analyst Day Agenda
Workday Financial Analyst Day Agenda Welcome Michael Magaro, VP Investor Relations Opening Remarks Robynne Sisco, Co-President and CFO Adaptive Insights Technology Tom Bogan, CEO, Adaptive Insights, a Workday Company Workday Technology Journey Petros Dermetzis, Chief Product Officer Break (15 mins)
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements that involve risks, uncertainties, and assumptions. If any of these risks or uncertainties materialize or if any of these assumptions prove incorrect, the results of Workday could differ materially from the results expressed
Slide 4: Opening Remarks
Opening Remarks Robynne Sisco, Co-President and CFO
Slide 5: Highlights from Keynote
Highlights from Keynote § Plan, Execute and Analyze in One System § Data is its Most Powerful with Workday § Machine Learning Will Make Workday Predictive § Culture and Customer Success Remain Core Workday Differentiators Workday Confidential
Slide 6: Adaptive Insights Technology
Adaptive Insights Technology Tom Bogan, CEO, Adaptive Insights, a Workday Company
Slide 7: Market Leadership
Market Leadership 4,000+ Modern Cloud Architecture Customers Multi-tenant In-memory in 50+ countries $4B+ +36% TTM Gartner Leader Forrester Leader Subscription Revenue Deloitte Fast 500 TAM Forbes Cloud 100 Growth Workday Confidential
Slide 8: Large, Growing & Passionate Customer Base
Large, Growing & Passionate Customer Base 4,000+ 1,100+ Customers Net New Customers Added in Last Two Years 23% Enterprise 43% Mid-Market 34% SMB Workday Confidential
Slide 9: Chaos Limits Business Agility
Chaos Limits Business Agility Static Planning: siloed, inaccurate, episodic, reactive, and lacks insight Legacy System Legacy System Finance Legacy System Legacy System XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS
Slide 10: Business Planning Cloud Platform
Business Planning Cloud Platform Powered by Elastic Hypercube Technology Adaptive Insights for Finance Workforce Sales Operational Planning Planning and Analysis, Consolidation Headcount, Skills, Scenarios Quota and Capacity, Territory Project, Capacity, Operations User Interaction: Sheets, Dashboar
Slide 11: Elastic Hypercube Technology
Elastic Hypercube Technology Patent Pending Intelligent Knows what it needs to calculate and only calculates that Robust Modeling Engine Scalable Adds memory and computing power when you need it 1018 22 200+ Million member Cells– dimensions Scenarios – no set limit typical– no set limit sheets no se
Slide 12: Power of One
Power of One One Community One Source for Data - One Logical Data Access Layer One Experience - Consistent Modern UX Collaborative, Conversational One Security Model - People System of Record Governed by One Security Model Workday Confidential
Slide 13: Adaptive Insights Roadmap to Power of One
Adaptive Insights Roadmap to Power of One Native integration Plan to execute Drill through Prism data exchange Budgetary controls Single sign-on Unified security model Adaptive worklet Unified look and feel Tasks via Workday Inbox Workday 32 Workday 33 Workday Confidential
Slide 14: Accelerating Go-to-Market Momentum
Accelerating Go-to-Market Momentum Adaptive Insights Through Workday Adaptive Insights Standalone • As planning solution in Workday • Midmarket and SMB traditional suite markets • As ‘tip of the spear’ into finance and • Accelerate in enterprises with other functions Workday strength Workday Confide
Slide 15: The Workday Technology Journey
The Workday Technology Journey Petros Dermetzis, Chief Product Officer
Slide 16: You Might Think of Workday As…
You Might Think of Workday As… Workday Confidential
Slide 17: The Workday Technology Journey
The Workday Technology Journey … Predictive Technologies Cloud (Relational?) (Object Oriented?) Client Server (Relational) Mainframes (Flat File)
Slide 18: Transactions
Transactions Execute Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 19: Analysis
Analysis Execute Analyze Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 20: Planning
Planning Execute Analyze Plan Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 21: Unification
Unification Financial Management Planning Human Capital Management Analytics and Benchmarking Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 22: Built for the Future
Built for the Future Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 23: The Brain
The Brain Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 24: Power of One
Power of One One Community One Source for Data One Experience One Security Model Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 25: The Connective Tissue
The Connective Tissue Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 26: Plan, Execute, Analyze, Extend
Plan, Execute, Analyze, Extend Financial Management Planning Human Capital Management Analytics and Benchmarking Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 27: Data + Engagement Layer
Data + Engagement Layer Financial Management Planning Human Capital Management Analytics and Benchmarking Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 28: Work Today
Work Today XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS Sales Marketing CEO/Board Operations HR XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS X
Slide 29: Keep Work Where the Data Is
Keep Work Where the Data Is Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 30: Keep Work Where the Data Is
Keep Work Where the Data Is Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 31: The Emergence of New Technology
The Emergence of New Technology Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 32: The Object Graph
The Object Graph Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 33: Machine Learning
Machine Learning Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 34: Cross Tenant
Cross Tenant Across Tenant Single Tenant Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 35: The Workday Technology Journey
The Workday Technology Journey … Predictive Technologies Cloud (Relational?) (Object Oriented?) Client Server (Relational) Mainframes (Flat File) Plan, Execute, Analyze Unification Only Workday Platform Vision Work Data Vision Final Thoughts
Slide 36: Customer Panel
Customer Panel Emily McEvilly, SVP Services
Slide 37: Customer Panel Speakers: Unum and Aon
Chanda Pepping Christa Davies VP, Finance Technology EVP and CFO, Aon Workday Board Member Unum Aon plc Workday Confidential
Slide 38: About Aon plc
About Aon plc 50,000+ London, $10B Employees In revenue England Headquarters Professional AON Services 120 NYSE Industry Countries operating in 1982 Founded Workday at Aon plc Financial Human Capital Professional Payroll Expenses Learning Management Management Services
Slide 39: About Unum
About Unum 10,000+ Chattanooga, $11B Employees In revenue Tennessee Headquarters Insurance #267 Industry Fortune 500 US, UK, Ireland Operations in UNM NYSE 1848 Founded Workday at Unum Financial Human Capital Payroll Recruiting Procurement Expenses Prism Cloud Learning Management Management Analytic
Slide 40: Customer Experience
Customer Experience Jim Bozzini, COO
Slide 41: Key Objectives: Services Revenue Trend
Key Objectives Services Revenue Trend (FY) $440 $420 $400 $380 $360 $340 Millions $320 $300 Customer Satisfaction Goal $280 $260 $240 $220 $200 2017 2018 2019E Workday Confidential
Slide 42: Key Objectives: Services Revenue Trend
Key Objectives Services Revenue Trend (FY) $440 $420 $400 $380 $360 $340 Millions $320 $300 $280 Customer Satisfaction $260 Rating $240 $220 $200 2017 2018 2019E Workday Confidential
Slide 43: Differentiated Customer Experience
Differentiated Customer Experience Proven Deployments Customer Satisfaction Accountability to Customer Results Workday Confidential
Slide 44: Differentiated Customer Experience
Differentiated Customer Experience Proven Deployments Customer Satisfaction Accountability to Customer Results Workday Confidential
Slide 45: Key Components of Workday Deployments
Key Components of Workday Deployments Selected Certification Partners +70% Delivery Live Methods Assurance and Tools Workday Confidential
Slide 46: Deployment Tooling
Deployment Tooling Reduce Hours Increase Predictability Improve Quality Streamlined Deployments Workday Confidential
Slide 47: Significant Momentum in Medium Enterprise
Significant Momentum in Medium Enterprise Pre-Configured Packaged Scope 30%+ Fixed Fee Reduction in Workday Launch Hours to Deliver Proven best-practice deployment package Workday Confidential
Slide 48: Ecosystem Growth
Ecosystem Growth 12,000 Certified Resources Current 10,000 8,000 6,000 Partner Ecosystem 4,000 2,000 0 FY16 FY17 FY18 FY19 Projected Workday Confidential
Slide 49: Differentiated Customer Experience
Differentiated Customer Experience Proven Deployments Customer Satisfaction Accountability to Customer Results Workday Confidential
Slide 50: Connected Throughout the Lifecycle
Connected Throughout the Lifecycle Scorecards Scheduled Surveys Reviews
Slide 51: Feature Adoption
Feature Adoption Workday Confidential
Slide 52: Customer-Centric Culture
Customer-Centric Culture Customer Satisfaction Goal Workday Confidential
Slide 53: Go-to-Market Growth Levers
Go-to-Market Growth Levers Chano Fernandez, Co-President
Slide 54: Primary Growth Levers in Go-to-Market Strategy
Primary Growth Levers in Go-to-Market Strategy Acquire Upsell Workday Confidential
Slide 55: Primary Growth Levers in Go-to-Market Strategy
Primary Growth Levers in Go-to-Market Strategy Acquire Upsell Workday Confidential
Slide 56: We Are Just Beginning Our Long-term Journey
We Are Just Beginning Our Long-term Journey Total Addressable Customer Segment 33,000 2,300+ Current Customers Whitespace Opportunity Workday Confidential
Slide 57: New Customers Fuel Growth
New Customers Fuel Growth 2,300+ 500+ Q2 14 Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Workday Confidential
Slide 58: New Customers Continue to Drive Net New ACV
New Customers Continue to Drive Net New ACV Workday Confidential % of ACV driven by net new customers in FY2018
Slide 59: Broader Product Portfolio Fuels Growth
Broader Product Portfolio Fuels Growth Average # of Products Sold to New Customers 3 4 6 FY2012 FY2015 FY2018 Workday Confidential
Slide 60: Accelerating Platform Sales
Accelerating Platform Sales 30% Human Capital Management Financial Management NA only, Net new customers 14% FY14 1H FY19 Workday Confidential
Slide 61: Strong Adoption of Workday Financial Management
Strong Adoption of Workday Financial Management Number of Core Drivers for Growth Workday Financial Management Customers 530+ • Consistent customer adoption in the medium enterprise 400 • Focus on customer success and 300 referenceability as we go up-market 200 • 9 F500 Financial 100 Management Cust
Slide 62: HCM Customer Growth Curve
HCM Customer Growth Curve Customers 100-500 Days to Close from Cust #100 0 100 200 300 400 500 600 HCM Workday Confidential
Slide 63: Financial Adoption Following Similar HCM Curve
Financial Adoption Following Similar HCM Curve Customers 100-500 Days to Close from Cust #100 0 100 200 300 400 500 600 HCM FINS Workday Confidential
Slide 64: International Growth Remains Strong
International Growth Remains Strong Mature SaaS Adoption Emerging SaaS Adoption Increasing Investments • United Kingdom • Germany 20+ Sales Offices • Nordics • Austria • Benelux • Switzerland 48% Q2 19 Revenue Growth • Australia • ASEAN • New Zealand • Hong Kong 23% Of Revenue • Japan • Italy 30% Ne
Slide 65: Primary Growth Levers in Go-to-Market Strategy
Primary Growth Levers in Go-to-Market Strategy Acquire Upsell Workday Confidential
Slide 66: Primary Growth Levers in Go-to-Market Strategy
Primary Growth Levers in Go-to-Market Strategy Acquire Upsell Workday Confidential
Slide 67: Customer Base is an Important Growth Driver
Customer Base is an Important Growth Driver New Customer Base Customer Team Segmentation Workday Confidential
Slide 68: Product-Attach Opportunity Driver of Growth
Product-Attach Opportunity Driver of Growth Q2 17 100% 90% 80% 70% 60% 50% 55% 56% 40% 51% 30% 20% 27% 10% 18% 1% 4% 0% 0% Recruiting Time Tracking Payroll Expenses Learning Procurement Planning Prism Workday Confidential
Slide 69: Product-Attach Opportunity Driver of Growth
Product-Attach Opportunity Driver of Growth Q2 19 100% 90% 80% 70% 65% 61% 59% 60% 50% 55% 56% 51% 40% 29% 30% 23% 27% 19% 20% 15% 18% 10% 4% 2% 1% 0% 0% Recruiting Time Tracking Payroll Expenses Learning Procurement Planning Prism Workday Confidential
Slide 70: Significant Upsell Opportunity
Significant Upsell Opportunity >5x Payroll Time Tracking Benefits Recruiting Represents Learning subset of all Planning available add-ons Expenses Procurement Projects Inventory 2x Prism Core FIN Core FIN 1x Core HCM Core HCM Core HCM Core HCM Workday Confidential (1) Represented on a per product ba
Slide 71: Land and Expand Case Study
Land and Expand Case Study Technology Company "HR has consolidated the time card and time off tracking solutions into Workday and now uses Workday for employee onboarding in the United States. The total savings for talent and performance, time off/time card management, and onboarding is nearly a mil
Slide 72: Driving Enduring Growth
Driving Enduring Growth Robynne Sisco, Co-President and CFO
Slide 73: Driving Enduring Growth
Driving Enduring Growth Market Opportunity Growth Compelling, Long-term Business Model Workday Confidential
Slide 74: Driving Enduring Growth
Driving Enduring Growth Market Opportunity Growth Compelling, Long-term Business Model Workday Confidential
Slide 75: Market Opportunity Continuing to Expand
Market Opportunity Continuing to Expand In Billions $ $115 CA GR $81 9.1% $6 $40 $4 $25 $32 $26 $13 $10 $16 $24 2018 2022 2018 2022 (1) (2) (3) (4) (5) HCM Payroll & Projects Financials Analytics Planning Workday Confidential (1) Human Capital Management Applications from IDC WW & US HCM & Payroll A
Slide 76: With HCM Just 20% of Long-term TAM Story
With HCM Just 20% of Long-term TAM Story In Billions $ $115 $81 $24 $16 ~20% 2018 2022 2018 2022 (1) (2) (3) (4) (5) HCM Payroll & Projects Financials Analytics Planning Workday Confidential (1) Human Capital Management Applications from IDC WW & US HCM & Payroll Applications Forecast, 2018-2022 (Ju
Slide 77: Cloud Adoption Still Early Days But Growing Rapidly
Cloud Adoption Still Early Days But Growing Rapidly Low Cloud Penetration SaaS On-Premise 19% 53% 78% 77% 78% 85% 86% 94% 92% 81% 47% 22% 23% 22% 15% 14% 6% 8% CRM ERP BI / Analytics SCM HCM ECM Collaboration DCC Others Workday Confidential Source: Market Sizes: Gartner Forecast: Public Cloud Servic
Slide 78: Driving Enduring Growth
Driving Enduring Growth Market Opportunity Growth Compelling, Long-term Business Model Workday Confidential
Slide 79: Customer Satisfaction Drives Industry Leading Retention
Customer Satisfaction Drives Industry Leading Retention 95%+ 100%+ Gross Retention Rate (1) Net Retention Rate (2) (1) Dollar-Based Gross Retention Rate – (Amount of Annual Recurring Revenues renewed in a given period not including upsell)/(Amount of total Annual Recurring Revenues that was up for W
Slide 80: Extending our Leadership Position in HCM
Extending our Leadership Position in HCM 13% 2.5x Human Capital Management Market Growth Rate Workday Human Capital Management Revenue Growth Source: Workday Confidential IDC WW Human Capital Management and Payroll Accounting Applications Software Market Shares, 2017: Growth Continues (June 2018) #U
Slide 81: ...While Taking Share in Financial Management
...While Taking Share in Financial Management 7% 7.5x Financial Management Market Growth Rate Workday Financial Management Revenue Growth Workday Confidential Source: IDC WW Human Capital Management and Payroll Accounting Applications Software Market Shares, 2017: Growth Continues (June 2018) #US438
Slide 82: Fueled by Strong Growth in Large Relationships
Fueled by Strong Growth in Large Relationships Customers over $3M in ACV 127 +34% Y/Y 25 Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Workday Confidential Source: Company internal data. Represents number of customers with subscription contracts over annual dollar threshold
Slide 83: Delivering Growth at Scale
Delivering Growth at Scale Quarterly Revenue Full Year Revenue 2,772 (1) $2.77B $672M 2,143 $619M R $555M $583M C AG % 43 1,574 $525M $480M 1,157 788 $469M Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19E Workday Confidential (1) Reflects guidance provided on Q2 19 earnings c
Slide 84: Subscription Revenue Backlog Supports Enduring Growth
Subscription Revenue Backlog Supports Enduring Growth In Billions $ 26% Y/Y Growth $5.5 $5.2 $5.2 $4.5 $4.4 $4.0 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Workday Confidential
Slide 85: 0-24 Month View of Subscription Revenue Backlog
0-24 Month View of Subscription Revenue Backlog In Billions $ 28% Y/Y Growth $3.73 $3.47 $3.53 $3.07 $2.92 $2.67 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Workday Confidential
Slide 86: Multiple Levers to Drive Enduring Growth
Multiple Levers to Drive Enduring Growth • Human Capital Management • Financial Management • Growth Outside the U.S. Revenue • Analytics • Planning • Data-as-a-Service • Cloud Platform • Future Products Time Workday Confidential
Slide 87: Driving Enduring Growth
Driving Enduring Growth Market Opportunity Growth Compelling, Long-term Business Model Workday Confidential
Slide 88: Long-term Growth Opportunity Warrants Investment
Long-term Growth Opportunity Warrants Investment Percentage of R&D Spend 32% 31% 31% 31% 31% 20% 18% 17% 17% 17% 16% 16% 15% 15% 15% 15% 16% 14% 14% 15% 13% 12% 12% 12% 12% 2014 2015 2016 2017 1H18 2014 2015 2016 2017 1H18 2014 2015 2016 2017 1H18 2014 2015 2016 2017 1H18 2014 2015 2016 2017 1H18 (2
Slide 89: Another Way to Look at Investment Strategy
Another Way to Look at Investment Strategy Prism Adaptive Analytics Insights/ Planning $$ $ $ $$ Financial Future Management Products $ $$ $$ $ Human Capital Management $$$ $$$ $$$ Workday Confidential Workday Cloud Platform, Machine Learning, Blockchain, Analytics
Slide 90: Product Development Investment Fueling Future Growth
Product Development Investment Fueling Future Growth Headcount Allocation 20% 35% 45% Human Capital Financial Management Other Investments Management and Planning (Machine Learning, Payroll, Prism Analytics, Cloud Platform, Student, Blockchain, etc.) Workday Confidential
Slide 91: Driven by Continued Mix Shift Toward Subscription Revenue
Driven by Continued Mix Shift Toward Subscription Revenue Non-GAAP Gross Margin Subscription Revenue as % of Total Revenue 84% 74% 76% 66% 74% Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Workday Confidential Source: Company internal data - non-gaap gross margin calculated on a TTM ba
Slide 92: While Maintaining Best in Class CAC Ratio
While Maintaining Best in Class CAC Ratio Non-GAAP Sales & Marketing As a % of Revenue CAC Ratio 38% 26% 2.0x 74% 1.6x 1.5x 1.5x Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Salesforce ServiceNow Ultimate Workday Workday Confidential Source: Company internal data - non-gaap sales and marketing percentage of revenu
Slide 93: With Unrivaled G&A Ratios
With Unrivaled G&A Ratios Non-GAAP G&A 8.9% As a % of Revenue 8.6% 8.5% 7.2% 6.2% 74% 6.2% Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Workday Confidential Source: Company internal data - non-gaap G&A percentage of revenue calculated on a TTM basis Source: Company filings
Slide 94: ... Results in Consistent Margin Improvement
... Results in Consistent Margin Improvement Non-GAAP Operating Margins 12% FY15 FY16 FY17 FY18 FY19E Workday Confidential Note: Annual figures prior to FY2016 do not reflect adoption of ASC 606
Slide 95: ... Results in Consistent Margin Improvement
... Results in Consistent Margin Improvement Non-GAAP Operating Margins 300 basis point impact from Adaptive Insights acquisition 9% FY15 FY16 FY17 FY18 FY19E Workday Confidential Note: Annual figures prior to FY2016 do not reflect adoption of ASC 606
Slide 96: ... And Robust Long-term Economic Model
... And Robust Long-term Economic Model Non-GAAP Operating Margins 300 basis point impact from 25%+ Adaptive Insights acquisition Long-term Target 20% 9% Intermediate Term Target FY15 FY16 FY17 FY18 FY19E Workday Confidential Note: Annual figures prior to FY2016 do not reflect adoption of ASC 606
Slide 97: With Strong Operating Cash Flow
With Strong Operating Cash Flow In Millions $ $605 $102 FY 15 FY 16 FY 17 FY 18 FY 19E Workday Confidential Note: Annual figures prior to FY2016 do not reflect adoption of ASC 606
Slide 98: With Strong Operating Cash Flow
With Strong Operating Cash Flow In Millions $ Operating Cash Flow Impacted in FY19 by $55m due to Adaptive Insights Acquisition ~$550 $102 FY 15 FY 16 FY 17 FY 18 FY 19E Workday Confidential Note: Annual figures prior to FY2016 do not reflect adoption of ASC 606
Slide 99: Built for the Future
Built for the Future Accelerate Planning Opportunity Unified Technology Roadmap Workday Confidential
Slide 100: Built for the Future
Built for the Future Highly Differentiated Platform Data Drives New Opportunities Workday Confidential
Slide 101: Built for the Future
Built for the Future Expanding Ecosystem Thriving Customers Workday Confidential
Slide 102: Built for the Future
Built for the Future Multiple Growth Levers Highly Efficient Model Workday Confidential
Slide 103: Built for the Future
Built for the Future Financial Management Planning Human Capital Management Analytics and Benchmarking Workday Confidential
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Slide 105: Appendix
Appendix
Slide 106: Product Development Operating Expense GAAP to Non-GAAP Reconciliation
Product Development Operating Expense GAAP to Non-GAAP Reconciliation (in $ thousands) FY15 FY16 FY17 FY18 H1 FY19 Revenue 787,860 1,156,690 1,574,440 2,143,050 1,290,363 Product Development 316,868 469,944 680,531 910,584 556,424 Expense Expense as % of 40% 41% 43% 42% 43% Revenue Non-GAAP Adjustme
Slide 107: Gross Margin GAAP to Non-GAAP Reconciliation
Gross Margin GAAP to Non-GAAP Reconciliation Q2 FY15 Q2 FY16 Q2 FY17 Q2 FY18 Q2 FY19 (in $ thousands) TTM TTM TTM TTM TTM Revenue 616,255 971,048 1,348,316 1,858,285 2,428,233 Cost of Revenue 222,443 311,737 430,914 551,971 712,709 Gross Margin % (64%) (68%) (68%) (70%) (71%) Non-GAAP Adjustments: S
Slide 108: Sales and Marketing Operating Expense GAAP to Non-GAAP Reconciliation
Sales and Marketing Operating Expense GAAP to Non-GAAP Reconciliation Q2 FY15 Q2 FY16 Q2 FY17 Q2 FY18 Q2 FY19 (in $ thousands) TTM TTM TTM TTM TTM Revenue 616,255 971,048 1,348,316 1,858,285 2,428,233 Sales and Marketing 261,549 365,708 479,490 630,470 750,941 Expense Expense as % of 42% 38% 36% 34%
Slide 109: General and Administrative Operating Expense GAAP to Non-GAAP Reconciliation
General and Administrative Operating Expense GAAP to Non-GAAP Reconciliation Q2 FY15 Q2 FY16 Q2 FY17 Q2 FY18 Q2 FY19 (in $ thousands) TTM TTM TTM TTM TTM Revenue 616,255 971,048 1,348,316 1,858,285 2,428,233 General and Administrative 87,216 126,766 166,767 218,136 236,757 Expense Expense as % of 14
Slide 110: Operating Margin GAAP to Non-GAAP Reconciliation
Operating Margin GAAP to Non-GAAP Reconciliation (in $ thousands) FY15 FY16 FY17 FY18 Revenue 787,860 1,156,690 1,574,440 2,143,050 Operating Loss (215,702) (249,789) (353,086) (303,223) Operating Margin % (27%) (22%) (22%) (14%) Non-GAAP Adjustments: Share-Based (156,048) (249,970) (378,629) (478,4