Slide 1: Q4 and Fiscal Year 2019 Financial Review
Q4 and Fiscal Year 2019 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 31% $262 34% $200 $201 13% $149 14% 87% 86% Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 (1) For the fourth quarters ended January 31, 2018 and 2019. $ in millions. (2) Total revenues plus the change in contract liabiliti
Slide 5: Strong growth across the board
Strong growth across the board (1) Billings(2) Revenue Enterprise & commercial Web & mobile 34% $801 $701 35% 14% $599 $519 14% 86% 86% FY18 FY19 FY18 FY19 (1) For the fiscal years ended January 31, 2018 and 2019. $ in millions. (2) Total revenues plus the change in contract liabilities and refund l
Slide 6: Strong revenue visibility
Strong revenue visibility Revenue contribution(1) Average contract length(2) Subscription Professional services & other ≤12 months >12 months 8% 6% 7% 5% By contracts Dollar weighted 15% 34% 92% 94% 93% 95% 14 18 months months Q4 FY18 Q4 FY19 FY18 FY19 85% 66% (1) For the fourth quarters and fiscal
Slide 7: Large and growing customer base
Large and growing customer base Total customers Enterprise & commercial customers(1) 404K 32% 28% 56K 477K 42K 373K 354K 315K Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 (1) Comprised of customers who were not acquired through our self-service channel. We define enterprise customers as companies generally inclu
Slide 8: Achieving increased leverage
Achieving increased leverage (1) Non-GAAP gross margin(2) Headcount(3) Non-GAAP opex(2) Subscription gross margin Total gross margin $109 Domestic International $88 $31 $22 3,023 15% 16% 16% R&D 17% 25% $352 86% 85% 85% 2,271 $265 84% 24% $96 51% $72 51% 50% S&M 48% 48% 75% $82 80% 80% 79% $68 78% 7
Slide 9: Improving profitability and cash flows
Improving profitability and cash flows (1) Non-GAAP Cash flow (3) Non-GAAP Cash flow (3) operating income (2) OCF FCF operating income (2) OCF FCF $76 $55 2% 2% $46 11% $34 $36 4% $32 4% $29 $23 11% 7% 17% $15 7% 21% $7 19% 11% $2 2% 4% 2% (2%) ($12) Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 FY18 FY19 FY18 FY
Slide 10: Q1 FY2020 Guidance
Q1 FY2020 Guidance Q1 Fiscal 2020 Total Revenue $205M - $210M Billings $210M - $220M 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 11: FY 2020 Guidance
FY 2020 Guidance Fiscal 2020 Total Revenue $910M - $915M 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% - 12% Interest and other income $12M - $16M Provision for inc
Slide 12: Appendix
Appendix 12
Slide 13: GAAP to non-GAAP gross profit reconciliation
GAAP to non-GAAP gross profit reconciliation Gross Profit (in $K) Quarter Ended January 31, Fiscal Year Ended January 31, 2018 2019 2018 2019 GAAP Gross Profit 117,399 147,039 400,231 508,548 Add: Stock-based Compensation in Cost of Revenue 448 5,654 1,887 42,040 Add: Amortization of Intangibles n C
Slide 14: 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 January 31, Fiscal Year Ended January 31, 2018 2019 2018 2019 GAAP Operating Loss (6,265) (62,628) (51,653) (426,323) Add: Stock-based Compensation in Cost of Revenue 448
Slide 15: GAAP to non-GAAP operating expenses reconciliation
GAAP to non-GAAP operating expenses reconciliation Sales & Marketing (in $K) Quarter Ended January 31, Fiscal Year Ended January 31, 2018 2019 2018 2019 GAAP Sales & Marketing 74,630 127,691 277,930 539,606 Less: Stock-based Compensation in Sales & Marketing (1,839) (20,505) (9,386) (172,115) Less:
Slide 16: Computation of Billings
Computation of Billings Computation of Billings (in $K) Quarter Ended January 31, Fiscal Year Ended January 31, 2018 2019 2018 2019 Revenue 148,874 199,732 518,504 700,969 Add: Contract Liabilities and Refund Liability, End of Period 282,943 390,887 282,943 390,887 Less: Contract Liabilities and Ref