The rise of recurring revenue business models are transforming a wide range of industries, and driving the explosive growth of the subscription economy. In the subscription economy, effective FP&A is being redefined. Companies must understand their customers, what they want, when they want it, and why they want it like never before to succeed.

1. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
FP&A that Delivers Value in the
Subscription Economy

2. Learning Objectives
After attending this event you will be able to:
• Benchmark your FP&A practices against those that
define success in a recurring revenue business
environment
• Define the metrics that drive performance at your
company
• Increase the value delivered from the FP&A function at
your company

3. Welcome to Proformative
Proformative is the leading educational resource for corporate finance
professionals.
Announcing the new Proformative Academy:
• On demand video courses taught by peers and SMEs
• Over 125 finance and accounting courses and growing rapidly
• CPE for CPAs, CMAs, CTPs, and CIAs
Check it out at www.ProformativeAcademy.com

4. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
FP&A that Delivers Value in the
Subscription Economy
Eileen Tobias, VP of Financial Planning & Analysis, NetSuite

5. Agenda
• FP&A – Challenges Today
• Planning - Business Strategy and Value Creation
• Planning Cycles
• Designing an Effective Process
• Process Overview
• KPI Framework
• How Cloud Helps
• Key Takeaways

6. NetSuite: World’s #1 Cloud ERP
Background Performance
World’s most deployed cloud ERP
Used by 20,000+ organizations
Fastest growing top 10 ERP
Used across 150+ countries
Top 10 Cloud Companies
to Watch
#1 Cloud ERP Suite Industry Recognition
Fastest Growing
Top 10 FMS Vendor
Best Financial Management 3rd Year Running
Best Cloud Infrastructure
Founded 1998
Publicly traded on NYSE: “N”
Offices in 10 countries
3,000+ employees
$414.5M revenue FY13 (34% Growth)

7. FP&A – Challenges Today*
• Confronting Global Change - not fully equipped to analyze and deal with new business risks
leading to forecasting and transaction processing errors.
• Strategic Initiatives – FP&A is increasingly is tasked with contributing to organizational
strategy, as well as meeting demand for operational insights.
• Getting Insights - data is not translated into information quickly enough to be useful to
business units.
• Single View - information is not sufficiently detailed to be meaningful. A unified view to data and
information is essential to gain visibility to financial and operational performance.
• Closing and Reporting - takes twice as long for an average company vs. a world-class
enterprise.
• Lacks a Standard Discipline - example standard chart of accounts, common processes,
globally mandated standards, common data definitions etc.
• Information Gathering Process necessary to generate timely, relevant insights can be extremely
challenging.
• Inefficient Budgeting & Forecasting - iterative processes that frequently yield inaccurate results.
• Internationalization - diverse business structures, assorted systems and processes
*Rethinking the FP&A Operating Model – FTI Consulting

8. Planning - Business Strategy and Value
Creation*
Basic Practice Progressive Practice Benchmark Practice
Process
Characteristics
• Annual plan with no long-term
forecast
• Strategic initiatives not
quantified
• Strategic planning is
short-term and reactive
to immediate problems
• Annual plan with re-forecast
during year, long-term forecast
independently managed
• Strategic initiatives are
prioritized and approved
annually, but not translated into
targets
• Strategic planning focuses on
improving current operations
• Long-term forecast integrated with annual
plan, budgets, and revised interim
forecasts
• Strategic plan and strategic initiatives are
core inputs into planning process
• Strategic planning focuses on realizing a
3-5 year vision that addresses most
critical market and organizational
challenges
Business
Integration
• Planning is a nuisance:
Business ignores targets,
participation is a
necessary evil to avoid
corporate retribution
• Planning is tolerated: Finance
establishes a plan and everyone
accepts the need to complete an
orderly and accurate process
• Planning is core: Planning process is
critical to governing business decisions,
goal setting, and performance
management
Value Finance
Brings
• Finance acts as the
steward for the process
to assure some minimal
level of accuracy amid
business pushback
• Finance strives to be an efficient
process operator to minimize
pain and assure accuracy
• Finance is a strategic player that uses the
planning process as a catalyst for
achieving performance goals
*Rethinking planning, budgeting and forecasting - A Deloitte perspective

9. Leading Practices in Planning Cycles*
*Rethinking planning, budgeting and forecasting - A Deloitte perspective

10. Planning, Budgeting and Forecasting -
Principles
• Our Philosophy
• Fund top line growth while maintaining profitability and generating cash
• Focused and valued externally on revenue growth
• Forecast used to manage the business
• Robust feedback loop between Finance, Executive team, and
business owners
• Top-down approach
• What do we forecast?
• Revenue, Expenses, Deferred Revenue, Operating Cash Flow
• Rolling eight quarter view updated monthly
• P&L forecasts saved as different versions in Financial Planning module
• Forecasts that are unique to SaaS companies
• Deferred Revenue
• Customer-level revenue forecast by month
• Churn
• Headcount – expense lever

11. Planning & Forecasting – Designing an
Effective Process
Integrated Planning Capabilities
Forecast Inputs and Outputs

12. FP&A that Delivers Value in the Subscription
Economy
Thank you for your interest in this presentation.
View the on-demand webinar or download the full
presentation at:
www.Proformative.com