Slide 1: Q2 F2020 Financial Review
Q2 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” in our press release and any other statements about expec
Slide 3: Non-GAAP Measures and Other Key Metrics
Non-GAAP 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 financial m
Slide 4: Strong growth in billings and revenue
(1) Strong growth in billings and revenue Billings(2) Revenue Enterprise & commercial Web & mobile 47% 41% $252 $236 13% $167 $172 14% 87% 86% Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 (1) For the second quarters ended July 31, 2018 and 2019. $ in millions. (2) Total revenues plus the change in contract liabi
Slide 5: Strong revenue visibility
Strong revenue visibility Revenue contribution(1) Average contract length(2) Subscription Professional services & other ≤12 months >12 months 5% 6% By contracts Dollar weighted 16% 35% 95% 94% 14 19 months months 84% 65% Q2 FY19 Q2 FY20 (1) For the second quarters ended July 31, 2018 and 2019. (2) R
Slide 6: Large and growing customer base
Large and growing customer base Total customers Enterprise & commercial customers(1) 25% 31% 537K 64K 429K 49K Q2 FY19 Q2 FY20 Q2 FY19 Q2 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 $35 $26 3,489 87% 16% 26% 15% R&D 84% 2,579 $120 25% $86 52% 51% S&M 81% 74% 75% $30 75%76% 78% 76% $19 13% 12% G&A Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20
Slide 8: Improving profitability and cash flows
Improving profitability and cash flows (1) Non-GAAP Cash flow (3) operating income (2) OCF FCF $26 $23 $18 11% $12 14% 11% $4 5% 3% -% ($1) Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 (1) For the second quarters ending July 31, 2018 and 2019. $ in millions. % of revenue. (2) Please see Appendix for non-GAAP rec
Slide 9: Q3 FY2020 guidance
Q3 FY2020 guidance Q3 Fiscal 2020 Total Revenue $237M - $241M Billings $260M - $270M 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% Interest and other income $3M - $4M Provision for inco
Slide 10: FY2020 guidance
FY2020 guidance Fiscal 2020 Total Revenue $947M - $951M Billings $1,063M - $1,083M 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 11% - 13% Interest and other income $13M - $16M Provision for inco
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 July 31, 2018 2019 GAAP Gross Profit 130,683 174,436 Add: Stock-based Compensation in Cost of Revenue 4,410 7,936 Add: Amortization of Acquisition-related Intangibles in Cost of Revenue 1,003 1,381 Add: Employer Payroll
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 July 31, 2018 2019 GAAP Operating Loss (37,720) (64,722) Add: Stock-based Compensation in Cost of Revenue 4,410 7,936 Add: Amortization of Intangibles in Cost of Revenue
Slide 14: GAAP to non-GAAP operating expenses reconciliation
GAAP to non-GAAP operating expenses reconciliation Sales & Marketing (in $K) Quarter Ended July 31, 2018 2019 GAAP Sales & Marketing 103,779 150,886 Less: Stock-based Compensation in Sales & Marketing (16,791) (25,942) Less: Amortization of Acquisition-related Intangibles in Sales & Marketing (765)
Slide 15: Computation of billings
Computation of billings Computation of Billings (in $K) Quarter Ended July 31, 2018 2019 Revenue 167,044 235,612 Add: Contract Liabilities and Refund Liability, End of Period 300,426 412,953 Less: Contract Liabilities and Refund Liability, Beginning of Period (293,667) (395,254) Add: Contract Assets