Slide 1: Q3 F2019 Financial Review
Q3 F2019 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 40% $198 37% $178 14% $131 $142 15% 86% 85% Q3F18 Q3F19 Q3F18 Q3F19 (1) For the fiscal third quarters ended October 31, 2017 and 2018. $ 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 6% 5% By contracts Dollar weighted 14% 37% 94% 95% 14 19 months months Q3F18 Q3F19 86% 63% (1) For the fiscal third quarters ended October 31, 2017 and 2018.
Slide 6: Large and growing customer base
Large and growing customer base Total customers Enterprise & commercial customers(1) 28% 454K 404K 37% 53K 354K 39K 354K 315K Q3F18 Q3F19 Q3F18 Q3F19 (1) Comprised of customers who were not acquired through our self-service channel. We define enterprise customers as companies generally included in t
Slide 7: Achieving increased leverage
Achieving increased leverage (1) Non-GAAP gross margin(2) Headcount(3) Non-GAAP Opex(2) Subscription gross margin Total gross margin Domestic International $28 $21 2,900 16% 16% 85% R&D 24% 2,173 $92 23% $67 79% 83% 51% 52% 76% S&M 77% 78% $21 $16 13% 12% G&A Q3F18 Q3F19 Q3F18 Q3F19 Q3F18 Q3F19 (1)
Slide 8: Improving profitability and cash flows
(1) Improving profitability and cash flows Non-GAAP operating margin Cash flow OCF Margin FCF Margin 9% 5% 2% (1%) (2%) (2%) Q3F18 Q3F19 Q3F18 Q3F19 (1) Please see Appendix slides for non-GAAP reconciliation. 8
Slide 9: Q4 F2019 Guidance
Q4 F2019 Guidance(1) Q4 Fiscal 2019 Total Revenue $192M - $194M Billings $245M - $255M Non-GAAP gross margin 78% - 81% Non-GAAP Sales and marketing 50% - 52% Non-GAAP Research and development 16% - 18% Non-GAAP General and administrative 11% - 13% Other income $3M - $4M Provision for income taxes ~$
Slide 10: FY 2019 Guidance
FY 2019 Guidance Fiscal 2019 Total Revenue $693M - $695M Billings $795M - $805M Non-GAAP gross margin 78% - 81% Non-GAAP Sales and marketing 50% - 52% Non-GAAP Research and development 16% - 18% Non-GAAP General and administrative 11% - 13% Provision for income taxes $2M - $4M Non-GAAP diluted weigh
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 October 31, 2017 2018 GAAP Gross Profit 99,373 133,312 Add: Stock-based Compensation in Cost of Revenue 481 5,976 Add: Amortization of Intangibles in Cost of Revenue 1,691 1,632 Add: Acquisition-related expenses - 108 No
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, 2017 2018 GAAP Operating Loss (12,343) (58,417) Add: Stock-based Compensation in Cost of Revenue 481 5,976 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 October 31, 2017 2018 GAAP Sales & Marketing 69,666 117,051 Less: Stock-based Compensation in Sales & Marketing (1,959) (22,338) Less: Amortization of Intangibles in Sales & Marketing (1,015) (2,257) Less: Acq
Slide 15: Computation of Billings
Computation of Billings Computation of Billings (in $K) Three Months Ended October 31, 2017 2018 Revenue 130,589 178,385 Add: Contract Liabilities and Refund Liability, End of Period 226,836 330,060 Less: Contract Liabilities and Refund Liability, Beginning of Period (214,405) (300,426) Add: Contrac