http://bit.ly/ShortStoryZ See the magic of recurring revenue exposed and understand the 6 fundamental reasons subscription companies are at the top.You will learn the business value of strong customer relationships. How top performing companies are leveraging revenue to win. How to keep your solution from becoming “shelfware”

1. The 6 Reasons
Subscription
Companies are
Taking Over the
World Why Zuora
Zuora Provides a BluePrint to Succeed in the Subscription
Economy!
B y Tr a v i s H u c h Z U O R A
Slide 1 − Zuora Confidential, not for distribution beyond
intended recipient

2. Let’s Make this Interactive
Poll: Who owns pricing of your
products/services? (Group or Role)
Q&A
@zuora
@travishuch
Slide 2 − Zuora Confidential, not for distribution beyond
intended recipient

3. The Market Momentum
of SaaS is Undeniable
Slide 3 − Zuora Confidential, not for distribution beyond
intended recipient

4. You can have
Subscription without SaaS,
But you can’t have
SaaS without Subscription
Slide 4 − Zuora Confidential, not for distribution beyond
intended recipient
4

5. A Look at Price to Sales Ratios
Stock
Market Cap
Workday
17.26B
Price to Sales
TTM
42.94
Netsuite
8.68B
20.25
Salesforce.com
38.39B
10.25
FireEye
11.11B
Marketo
1.58B
62.59
Infinite
Adobe
33.77B
Informatica
4.49B
4.67
Oracle
172B
4.57
Slide 5 − Zuora Confidential, not for distribution beyond
intended recipient
16.52
pricing options
8.42

6. What about the Private Companies?
Stock
Est. Valuation
DropBox
10B
Box
2B
Docusign
1.65B
SurveyMonkey
1.3B
Zendesk
1B+
Zuora
N/A
Okta
N/A
Slide 6 − Zuora Confidential, not for distribution beyond
intended recipient
Infinite
pricing options

7. But These Are Trailing Indicators
Slide 7 − Zuora Confidential, not for distribution beyond
intended recipient

8. Why is The Subscription Model Better?
Slide 8 − Zuora Confidential, not for distribution beyond
intended recipient

9. 1
Recurring Model Drives
a Real Relationship
Vendors can now understand
whether customer is getting value
Sometimes relationship is inherent,
other times it’s built
Slide 9 − Zuora Confidential, not for distribution beyond
intended recipient
Infinite
pricing options

10. 2
1
Recurring revenue is
predicable
Infinite
pricing options
CRM
Slide 10 − Zuora Confidential, not for distribution beyond
intended recipient
NUAN

11. 3
1
Customers are selecting
subscriptions
EIU data here
Infinite
pricing options
Slide 11 − Zuora Confidential, not for distribution beyond
intended recipient

12. 4
1
Subscriptions are better
aligned with value
•
•
•
Easier to start
Can grow as usage grows
Consumption-based
Slide 12 − Zuora Confidential, not for distribution beyond
intended recipient

13. 5
1
Recurring revenue
minimizes risk
• No more big bang multi-year projects
• 80% failure rate on big B2B
enterprise software projects
• A one year subscription for most
applications is less than an
enterprise POC
Slide 13 − Zuora Confidential, not for distribution beyond
intended recipient

14. 6
1
Subscription drives
continuous innovation
• Ongoing enhancements
• Shared infrastructure
• Ability to collaboratively build solutions
• Consumers expect vendor to continually
earn the business
Infinite
pricing options
• The onus is on the vendor to provide
continuous value throughout my lifetime
as a customer
Slide 14 − Zuora Confidential, not for distribution beyond
intended recipient

15. What Are the Downsides?
1. Cash flow
2. Customers can move away quickly
3. The sales cycle never ends
4. If you can’t control churn the formula doesn’t work
Infinite
pricing options
Slide 15 − Zuora Confidential, not for distribution beyond
intended recipient

16. You Need To Touch
Your Customer
Slide 16 − Zuora Confidential, not for distribution beyond
intended recipient

17. How Does
This Work
in Real
Life?
Slide 17 − Zuora Confidential, not for distribution beyond
intended recipient
17

18. Several Integration Touchpoints in B2A
CRM
Provisioning
Entitlement
Website
Subscription Commerce
Product Catalog
Usage
Subscription Mgmt Billing Operations
Quotes & Orders Payment Operations
Renewals
Payment
Gateway
GL
Usage
A subscription business requires efficient process flows
Slide 18 − Zuora Confidential, not for distribution beyond
intended recipient

19. Case Study
KNOW
Docusign now has
complete visibility to
renewals across its
20 million users.
We now have all our metrics in one place from churn to
monthly account balances to growth.
Mike Dinsdale, Chief Financial Officer
Slide 19 − Zuora Confidential, not for distribution beyond
intended recipient

20. Z-Business is used by 500+
Subscription Economy customers
across multiple industries
High Tech
Devices
SaaS
Telecom
Slide 20 − Zuora Confidential, not for distribution beyond
intended recipient
Cloud
Infrastructure
Media
Education
Healthcare
20

21. Key Takeaways
1. Drives relationships
2. Makes your revenue more predictable
3. Customers like it better
4. Better alignment to valueInfinite
pricing options
5. Reduces risk for the customer
6. Drives innovation
Slide 21 − Zuora Confidential, not for distribution beyond
intended recipient

22. travis@zuora.com
@travishuch
Slide 22 − Zuora Confidential, not for distribution beyond
intended recipient
22

23. Slide 23 − Zuora Confidential, not for distribution beyond
intended recipient
23

24. Credits
•
•
•
•
What’s the Future of Business? - Brian Solis
PWC Global 100 Software Leaders - May 2013
Yahoo Finance
Pando Daily
http://pando.com/2013/05/21/memo-to-this-years-ycInfinite
class-its-damn-hard-to-build-an-enterprise-company/
pricing options
Slide 24 − Zuora Confidential, not for distribution beyond
intended recipient