Slide 1: Q1 F2020 Financial Review
Q1 F2020 Financial Review 1
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 about expected financial metrics, such as revenue, billings, non-GAAP gro
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 across the board
Strong growth across the board (1) Billings(2) Revenue Enterprise & commercial Web & mobile 27% 37% $214 $215 13% $156 $169 14% 87% 86% Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 (1) For the first quarters ended April 30, 2018 and 2019. $ in millions. (2) Total revenues plus the change in contract liabilities
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% Q1 FY19 Q1 FY20 (1) For the first quarters ended April 30, 2018 and 2019. (2) R
Slide 6: Large and growing customer base
Large and growing customer base Total customers Enterprise & commercial customers(1) 404K 26% 508K 33% 60K 405K 45K 354K 315K Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 (1) Comprised of customers who were not acquired through our self-service channel. We define enterprise customers as companies generally inclu
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 $29 3,219 $24 25% 15% 86% 86% 13% R&D 2,376 24% $106 $78 51% 50% 50% 80% 75% S&M 79% 75% 75% 76%76% $25 76% $19 12% 11% G&A Q1 FY19 Q1 FY20 Q1 FY19
Slide 8: Improving profitability and cash flows
Improving profitability and cash flows (1) Non-GAAP Cash flow operating income (2) OCF FCF $46 2% $30 21% $15 14% $10 3% $9 $5 10% 5% 6% 3% Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 (1) For the first quarters ending April 30, 2018 and 2019. $ in millions. % of revenue. (2) Please see Appendix for non-GAAP rec
Slide 9: Q2 FY2020 guidance
Q2 FY2020 guidance Q2 Fiscal 2020 Total Revenue $218M - $222M Billings $215M - $225M 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% - 14% Interest and other income $3M - $4M Provision for inco
Slide 10: FY2020 guidance
FY2020 guidance Fiscal 2020 Total Revenue $917M - $922M Billings $1,010M - $1,030M 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% - 13% Interest and other income $12M - $16M Provision for inco
Slide 11: Appendix
Appendix 11
Slide 12: GAAP to non-GAAP gross profit reconciliation
GAAP to non-GAAP gross profit reconciliation Gross Profit (in $K) Quarter Ended April 30, 2018 2019 GAAP Gross Profit 97,514 161,943 Add: Stock-based Compensation in Cost of Revenue 26,000 5,722 Add: Amortization of Acquisition-related Intangibles in Cost of Revenue 1,668 1,627 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 April 30, 2018 2019 GAAP Operating Loss (267,558) (42,437) Add: Stock-based Compensation in Cost of Revenue 26,000 5,722 Add: Amortization of Acquisition-related Intangib
Slide 14: GAAP to non-GAAP operating expenses reconciliation
GAAP to non-GAAP operating expenses reconciliation Sales & Marketing (in $K) Quarter Ended April 30, 2018 2019 GAAP Sales & Marketing 191,085 129,936 Less: Stock-based Compensation in Sales & Marketing (112,481) (18,102) 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 April 30, 2018 2019 Revenue 155,808 213,962 Add: Contract Liabilities and Refund Liability, End of Period 293,667 395,254 Less: Contract Liabilities and Refund Liability, Beginning of Period (282,943) (390,887) Add: Contract Asset