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Our  World  Is  Shi.ing  

The Subscription Economy takes the changes wrought by the SaaS model and applies them to companies in every industry.

We  call  this  the  subscrip7on  Economy  

Mone7ze  Rela7onships  Ship  Products  

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Every  company  will  be  a  Subscrip4on  Economy  Company  

OUR VISION:

“ ”

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JOINS  

The  Subscrip4on  ECONOMY  

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The  Subscrip4on  ECONOMY  

JOINS  

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The  Subscrip4on  ECONOMY  

JOINS  

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JOINS  

The  Subscrip4on  ECONOMY  

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JOINS  

The  Subscrip4on  ECONOMY  

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JOINS  

The  Subscrip4on  ECONOMY  

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500+ Customers

15.5 Billion Contracted  Invoice  Volume  

with �

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8X  increase  in  processed  invoices  in  2  years  

1.8 MILLION

239 K

APR  2011   APR  2013  

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Training  The  Subscrip7on  Economy  

12,000+ Hours

Training  Delivered  

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Every  Quarter  Close  To  50  Go-­‐Lives  

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20X  more  capacity  in  new  datacenter  

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Commitment  To  Rapid  Innova7on  

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220

104

Product    Requests  

Customers  

In  180  Days  

From  

 New  InvoiceItemAdjustment  datasource  Override  accoun7ng  code  on  payment  

More  fields  on  dataSources  Autopay  flag  UK  direct  debit  

Refund  Reason  Codes  BeWer  user  ac7vity  log  

More  invoice  merge  fields  More  quote  merge  fields  

Payment  method  expira7on  Query  usage  by  Invoice  Id  

Sort  by  name  in  PDF  Credit  balance  refund  -­‐  MES  

New  UOM  API  Improved  subscribe()  Improved  amend()  Bill  run  rollbacks  

API  currency  ac7va7on  Refunds  In  SFDC  Payments  in  SFDC  

REST  APIs  

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HP Cloud TripAdvisor Xplornet Hosting.com MyEmma

30%-­‐95%  reduc8on  in  bill  run  7mes  

The latest performance improvements attest to the fact that as our business grows, Zuora continues to scale to accommodate that growth. “ ”

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The  World  Will  Move  to  the  is moving

Subscrip8on  ECONOMY  

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…Moving  into  uncharted  terrain  

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There  are  9  things  that  you  need  to  be  successful  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

80%  

90%  

100%  

1   2   3   4   5   6   7   8   9  

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Roadmap  for  Success  

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But  it  takes  6  months  and  10  engineers    to  implement  a  $0.05  price  change  

PRICING IN PROGRESS

Price  and  package  to  support  your  business  strategy  

1

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Donna  Wells  CEO  

Increased revenue per customer

launched a new pricing model overnight

no engineering work required

1 Mindflash  

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Monetization plans 155

Deployed  by  our  average  customer  

1

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Enable  new  customers  to  subscribe  2

Make  this  preSer  

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Enable  new  customers  to  subscribe  2

Can  we  add  a  Recognize  as  a  

fiVh  branch.    Also  this  is  now  a  

build,  so  you  may  need  to  redo  the  

build  if  you  ungroup  things  

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NCR  Silver  

automated commerce, billing and finance

launched new service

in just 2 months

Bill  Plummer  

2

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This  month’s  fee  +  last  month’s  overage  +  last  month’s  pro-­‐rata  fee  -­‐  account  credit  +  next  month’s  fee  +  sign  up  fee  +  8.7%  tax  

=  $192.48  

Produce  accurate,  easy  to  understand  bills  for  new  and  exis7ng  customers  

Confused  customers  

Weeks  to  generate  bills  

Billing  Errors  

Lost  Revenue  

1  

2  

3  

4  

“But  I  signed  up  for  the  $100/month  plan”  

3

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with complex usage billing models

hands-off invoicing for thousands of clients

in multiple countries

Firehost  Katrena  Drake  

3

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Collect  cash  fast  4

Automate  small  payments  

Automate  big  payments  

Billing  disputes  &  credits  

Late  payments  

Suspension  warnings  

Suspensions  

Credit  card  updaters  

Payment  excep7ons  

But  the  complexity  of  recurring  payments  is  weighing  you  down  

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Xplornet processes hundreds of thousands of payments in

hours

Across multiple payment methods

And manages payment exceptions and retries

automatically

Xplornet  4

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90%  of  transac7ons  are  changes  

We will complete your request to change your subscription

15 business days

Click to continue

Give  your  customers  control  of  their  subscrip7ons  

You  struggle  with  the  ripple  effects  of  these  changes  

Result: Terrible  customer  service  

BUT

5

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Implemented “Holiday Stops”

allowing hundreds of thousands of subscribers

to suspend service

in a matter of weeks

online or via call center

News  Interna7onal  

5

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“We  need  more  7me”  

- Finance Team

But  it  takes  weeks  to  close  the  books  

Close  your  books  faster  while  remaining  compliant  

6

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and 3 days better business operations

Our monthly close is 3 days shorter

I get 3 days better intelligence

every single month

Dyn  Gray  Chynoweth  

6

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But  the  metrics  you  need  to  run  your  business  are  buried  in  spreadsheets  

MRR

ARR

CLTV

CHURN

Gain  visibility  into  key  subscrip7on  metrics  7

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And visibility into future revenues

When the board calls

we‘re able to give them actuals from prior months

SendGrid  Jim  Franklin  

7

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 Changing  pricing  requires  filing  a  ?cket  with  engineering…  

“The  next  available  engineer  will  see  you  in  6  months”  

Roll  out  price  changes  and  experiment  8

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and signed on 200 new customers

We created a new promotion

in just a few minutes

without ever talking to engineering

Timetrade  Mike  Puglia  

8

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Feel  confident  that  your  system  is  enterprise  grade  

9

Peace  Of  Mind    

With…  Scalability   Security  

Compliance  

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1 Price and package to support your business objectives

2 Enable new customers to subscribe

3 Send accurate, easy to understand bills

4 Collect cash fast

5 Give customers control of their subscriptions

Gain visibility into key subscription metrics

7

6 Close books faster while remaining compliant

8 Roll out price changes and experiment 9

Feel confident that your system is enterprise grade

9  “things”  on  your  roadmap  for  success  

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You  gave  these  9  things  equally  high  importance  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

80%  

90%  

100%  

1   2   3   4   5   6   7   8   9  

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And  you  see  an  opportunity  to  improve  your  performance  against  all  9  things  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

80%  

90%  

100%  

1   2   3   4   5   6   7   8   9  

Importance   Current  State  

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1 Price and package to support your business objectives

2 Enable new customers to subscribe

3 Send accurate, easy to understand bills

4 Collect cash fast

5 Give customers control of their subscriptions

Gain visibility into key subscription metrics

7

6 Close books faster while remaining compliant

8 Roll out price changes and experiment 9

Feel confident that your system is enterprise grade

9  “things”  on  your  roadmap  for  success  

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CEO  

CFO  

CIO  

COO  

CMO  

These  9  things  impact  your  en7re  organiza7on  

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CMO

How  do  I  balance  growth  &  revenue?  

How  to  I  think  about  choice  vs.  simplicity?  

Do  I  price  for  new  accounts  or  exis7ng?  

How  do  I  price    vis-­‐à-­‐vis  compe77on?  

How  do  I  improve    TTM  &  opera7onalize?  

It  impacts  marke8ng  

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COO

It  impacts  opera8ons  

How  do  I  drive  efficient  bookings  &  cash  growth  across  the  complete  customer  lifecycle?  

Sales    Opera7ons  

Billing  &  Revenue    Opera7ons  Subscription

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It  impacts  finance  

APR $100 Chum (10) Net ARR 90 COGS (20) G&A (10) R&D (20) Recurring Profit 40 Growth (40) Net New ARR 40 Ending ARR $130

Growth Efficiency Rate

Recurring Profit Margin

Retention Rate

CFO

How  do  I  run  the  business  on  a  model  4ed  to  a  completely  new  set  

of  metrics?  

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It  impacts  technology  

CIO

How  do  we  architect  our  systems  to  interplay  with  commerce,  billing  and  

finance  

Billing  Ra7ng  Pricing  

Revenue  Recogni7on  Accoun7ng  Integra7on  Gateway  Integra7on  

Taxa7on  PCI  compliance  

Build  Service  Provision  Service  

Manage  En7tlements  

I  don’t  want  to  own  

I  own  

?

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It  impacts  the  boardroom  

ARR  Growth   Reten8on  Rates   Unbilled  Deferred  Revenue  

CEO

How  do  I  convey  the  health  of  my  business  to  

the  board  and  Wall  Street?  

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Today:  A  day  focused  on  your  roadmap  for  success  

 Networking  Recep7on    

5:30-­‐7:30  PM      

The  CEO  Perspec7ve  Driving  Growth  in  the  Subscrip7on  Economy  

   

       

 Presenta7on  +  Panel  

 

 Roundtable  

 

 Presenta7on  +  Panel  

 

 Roundtable  

 

 Presenta7on  +  Panel  

 

Roundtable  

Innova7ve  Pricing  &  Packaging  

CMO COO CFO

CEO

Scaling  Sales  &  Billing  

Opera7ons  

Finance  Opera7ng  Plan  For  The  Subscrip7on  

Economy  

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Bay  Area  User  Group  

July  17th  6pm  –  8pm  1051  East  Hillsdale  Blvd  

Foster  City  

#StoS13  

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The  CEO  Perspec8ve  Meet  The  Panelists  

@jimfranklin

SendGrid  Jim  Franklin,  CEO  

RightScale  Michael  Crandell,  CEO  

Mindflash  Donna  Wells,  CEO  

Informa7ca  Cloud  Ron  Papas,  GM  &  SVP  

Zuora  Brian  Bell,  CMO  

@michaelcrandell @ronpapas @donnawells

@brianbell123

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Partner  Showcase  

#StoS13  

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MaU  Shanahan  SVP,  Strategy  

Predic8ve  Analy8cs  For  Maximizing  Customer  Lifecycle  

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Cloud  Profits  Derived  from  Long-­‐Term  Customer  Rela4onships  

TIME  Year  1   Year  2   Year  3  

PROFIT  

acquisition customer retention and growth

Customer  Sign-­‐up  

Customer  Acquisi4on  Cost  

Breakeven  

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What’s  missing?  Predic4ve  Analy4cs  

—  No  Analy4cs  Available  —    

Trials   Adop4on   Renewal   Up  Sell   Cross  Sell  

acquisition customer retention and growth

Customer  Sign-­‐up  

Customer  Acquisi4on  Cost  

Breakeven  

●  Lead  Scoring  ●  Funnel  Tracking  ●  Forecas4ng  ●  Pipeline  Management  ●  Conversion  ●  SEO  Op4miza4on  ●  Keyword  ●  Lead  Nurturing  

Which  are  most  likely  to  convert?  

Did  the  customer  get  good  value  from  the  service?  

Is  user  ac4vity  mee4ng  

expecta4ons?  

Is  the  service  underpriced  compared  to  

usage?  

Which  addi4onal  services  should  be  promoted  to  fans?  

PROFIT  

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Scout  Analy4cs  

Leading  Provider  of  Predic4ve  Analy4cs  to  Maximize  Customer  Life4me  Value    

for  Recurring  Revenue  Businesses  

We  Boost  Total  Revenue  10-­‐15%  by  PuSng    Usage  Data  to  Work  

●  Increase  Renewal  Yields  ●  Minimize  Churn  ●  Maximize  Trial  Conversion  ●  Op4mize  Rate  Plans  

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Scout  Analy4cs  Predic4ve  Analy4cs  Suite  

YIELD    OPTIMIZER  

Renewal  Performance  Management  for  Sales  

and  Marke4ng  

RATE  PLAN  OPTIMIZER  

Pricing  Performance  Management  for  

Product  Management  

CUSTOMER  SUCCESS  OPTIMIZER  

Customer  Lifecycle  Management  for  Service  and  Support  

Scout®  Usage  Data  Hub  

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Scout  Analy4cs  Enhances  Your  Zuora  

•  Predict  Renewal  Prices  Based  on  Revenue  Opportunity  

•  Predict  and  Prevent  Churn  before  Renewal  

•  Predict  Which  Trial  or  Freemium  Customers  Will  Convert  to  Paying  Customers  

•  Match  Rate  Plan  Structure  to  Consump4on  Behavior  

•  Meter  Usage  for  Usage  Charging  

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Free  Trial  Offer  

•  Calculate  the  Revenue  Yield  of  Every  Historical  Renewal  

•  Analyze  Sources  of  Revenue  Growth  and  Churn  

•  Monitor  Renewal  Performance  in  Real-­‐4me  

http://www.scoutanalytics.com/  

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Partner  Showcase  

#StoS13  

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 69

Darlene  Ducharme  Senior  Director,  Partner  Development  

What  can  Litle  &  Co.  do  for  You?  

Copyright © 2013 Litle & Co., A Vantiv Company │ All Rights Reserved

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To  help  you  use  payments  to  drive  business  growth.  MISSION  

Delivering  payments  intelligence  through  value-­‐added  solu?ons  built  on  solid  core  processing,  to  help  you  acquire,  convert,  and  retain  profitable  consumer  rela?onships  in  card-­‐not-­‐present  commerce.  

DIFFERENTIATION  

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ACQUISITION  Iden?fy  high-­‐value  cardholders  &  measure  channel  efficiency.  

CONVERSION  Be  flexible  with  alterna?ve  payments  &  mul?ple  currencies.  

RETENTION  Stay  current  with  automa?c  account  upda?ng  &  authoriza?on  recycling.    

ATTRITION  Manage  the  impact  of  aOri?on  and  prevent  loss  with  chargeback  preven?on  &  representment  strategies.  

With  the  right  processor  you  can    

INCREASE CUSTOMER LIFETIME VALUE

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Highly  scalable  payment  processing  plaRorm  built  specifically  for  card-­‐not-­‐present  commerce.        Robust  core  payments  acceptance  and  processing  solu?on,  with  value-­‐adding  fraud,  security,  and  revenue  solu?ons.        Backed  by  the  best  repor?ng  and  analy?cs  in  the  business  and  award-­‐winning  customer  service  

OUR  SOLUTIONS  

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Darlene  Ducharme  (978)  275-­‐6603  dducharme@litle.com    www.litle.com  

LEARN MORE

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Agenda  The  CEO  Perspec4ve:  

Driving  Growth  in  the  Subscrip7on  Economy  

 Presenta7on  +  Panel  

   

Roundtable    

 Presenta7on  +  Panel  

   

Roundtable    

 Presenta7on  +  Panel  

 

Roundtable  

CMO  Perspec7ve:    Innova7ve    

Pricing  &  Packaging  3:45  –  5:30pm  

CMO

COO  Perspec7ve:    Scaling  Sales    

&  Billing  Opera7ons  3:45  –  5:30pm  

 COO

CFO  Perspec7ve:  The  Three  Metrics  

That  MaWer  3:45  –  5:30pm  

       

CFO

CEO

Floor  1   Mezzanine   Floor  2  

All  Perspec4ves:  Cocktails  &  Apps  

Floor  1  

#StoS13