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Leverage Zuora and Salesforce to Launch
            and Grow a Subscription Business




Zuora Confidential – Not for Distribution Beyond Intended Recipient
Thank you for joining today!

                                                                          Agenda
                                                                      What is the Subscription
                                                                      Economy?

                                                                      How do Zuora &
                                                                      Salesforce work together?

                                                                      HomeAway story

                                                                      Q&A

Zuora Confidential – Not for Distribution Beyond Intended Recipient
The Leader in Commerce, Billing and Finance
                                          solutions for the Subscription Economy
           Subscription                                     Subscription                     Subscription
      Commerce                                               Billing                         Finance




         500+ customers                              $82M funding             Enterprise Leadership
                                                     Benchmark Capital     Tien Tzuo, CEO/Founder

                                                     Marc Benioff          Marc Aronson, VP Engineering

                                                     Redpoint Ventures     Cheng Zuo, CTO/Co-Founder

                                                     Index Ventures        Brian Bell, CMO

                                                                           Todd Pearson, SVP Cust. Success   3
Zuora Confidential – Not for Distribution Beyond Intended Recipient
A bit of background…




Zuora Confidential – Not for Distribution Beyond Intended Recipient
What is the
           Subscription Economy?
                               BUY NOW                                SUBSCRIBE



                           1999                                       Today




                                                                                  5
Zuora Confidential – Not for Distribution Beyond Intended Recipient
The Move from Products to Services




                        Technology                   Transportation   Retail     Music




                                                                                  A

                           Video                          Voice?      Legal    Healthcare



             By 2015, 35% of Global 2000 companies will generate revenue
             through subscription-based services and revenue models.


Zuora Confidential – Not for Distribution Beyond Intended Recipient
A Great Model for Customers and Businesses

                           Consumers                                    Businesses




           Access Anywhere, Instant Upgrades                          Ongoing Relationship




    MORE Flexibility MORE Innovation BETTER Customer Service


Zuora Confidential – Not for Distribution Beyond Intended Recipient
Businesses In The Subscription Economy Are
      Focused On Relationships


                               BUY NOW                                 SUBSCRIBE




                          Product                                     Relationships




Zuora Confidential – Not for Distribution Beyond Intended Recipient
The Subscription Economy Requires a Completely
               Different Approach to Building Businesses

       Product Economy                                                      Subscription Economy


                      Sell Units
                                                                 Monetizing Customer Relationships
                                                                 Why? Customer in the middle.

                                                                 Pay-as-you-Go Pricing Plans
                      Price Per Unit
                                                                 Why? Flexibility, Editions, Try before Buy.


                      One-Time Orders                            Multiple Orders Over a Lifetime
                                                                 Why? Add-ons, Upgrades, Renewals.

                      Forced to Pick a                           Sell to Consumers & Businesses
                      Customer Segment
                                                                 Why? Support B2C, B2B and B2Any.

                                                                 Complex, Interrelated Bookings,
                      Simple Financial
                      Metrics                                    Billings, & Revenue
                                                                 Why? All metrics are connected.



Zuora Confidential – Not for Distribution Beyond Intended Recipient
Problem:
                                                      Today’s Systems Don’t Support the
                                                      Subscription Business Model

                                                                        SKU Based Catalog
                                                                      Not built to support subscription
                                                                                  rate plans

                                    Price x Unit                                            Singular Orders
                          No concept for monthly pay-as-                              No concept for add-ons, upgrades,
                                  you-pricing                                                  and renewals,


                               Low Volume                                                  Backwards Looking
                  Not built for B2B & B2C, credit card &                          Looks at revenue for last period, not forward
                            invoice transactions                                              recurring revenues




Zuora Confidential – Not for Distribution Beyond Intended Recipient
How does Zuora help?




Zuora Confidential – Not for Distribution Beyond Intended Recipient
Subscription Management Platform

                    Quotes                                  Commerce                              Billing                             Finance




                 Pricing, Quotes,
                                                         Subscription Orders,           Rating, Invoicing, Advanced         Accounting Close, Audit
               Add-Ons, Renewals
                                                       Amendments, Renewals,           Billing, Payments & Payment         Controls, Summary Journal
                inside Salesforce
                                                       Hosted Commerce Pages                Operations, Taxation           Entries, Deferred Revenue



                                                                                                     Platform
                                                         Account Management            Administration (Users & Roles)        APIs
             AppExchange Certified
              Managed Packaged
                                           360           Subscription Catalog          Customization (Custom Fields)         Notifications & Callouts
                                                         Reporting & Metrics           Multi-Currency & Locale               Data Export & Import
                                                                      PCI Level 1 Compliance                    SAS 70 Type II




                 Ecosystem

                                             CRM Systems                     Payment Gateways                            Accounting/GL


                                     Helping Companies Grow, Flow and Know
Zuora Confidential – Not for Distribution Beyond Intended Recipient
The Complete Picture for Salesforce Customers
                 Customer                             Subscription Commerce,
                                                                                     Accounting
                Management                               Billing, Payments




                                                                                                  CASH
   LEAD




                                                              Pricing & Quoting
                                                           Subscriptions & Orders
          Sales Force Automation                            Add-Ons & Renewals      General Ledger
             Customer Service                                Billing & Payments      Supply Chain
                                                               Usage & Rating
                                                            Reporting & Analytics


Zuora Confidential – Not for Distribution Beyond Intended Recipient
We Make Salesforce Subscription Smart

      … for Sales Reps                                                                … for CSRs &
                                                                                         Finance
          Product Catalog
          Create Quotes                                                                   Answer billing inquires
          Process change orders                                                           Collection
          Process add-ons                                                                 Invoice history & aging
          Process renewals                                                                Process change orders
          Take credit cards orders                                                        Process add-ons
          Usage in Zuora                                                                  Process renewals
          Metrics

         … for Customer &
          Partner Portals

          Self service                                                … everything gets
          View price plans                                            Chatter enabled
          Take orders



Zuora Confidential – Not for Distribution Beyond Intended Recipient
Quotes & Subscription Management in Salesforce




                 Quotes for Initial & Add-on Orders                   Complete Subscription History
                 Sales Reps can sign up initial customers and         Give reps and agents full customer visibility
                 create up-sell and cross-sell orders

                 Quotes for Change Orders                             Customer Value Dashboards
                                                                      Get to the metrics that matter: Monthly Recurring
                 Make subscription updates and upgrades
                                                                      Revenue, Renewal Rate, and Total Contract Value
                 Quotes for Renewal Orders                            Invoice Aging Reports
                 Renew subscriptions
                                                                      See 30-60-90 day invoice stats at a glance
                 Quote Presentation
                 Automatically send quotes to Customers or
                 Z-Billing in the back office

15
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Salesforce’s Flat Product Catalog Cannot Handle
      Subscription Complexities




        Salesforce Quotes uses the “One SKU, One Price” Salesforce
        Product Catalog – which simply doesn’t work for Subscriptions.
Zuora Confidential – Not for Distribution Beyond Intended Recipient
Zuora’s Product Catalog is Designed for Subscription Complexity
     Multi-Layered, Multi-Currency


                                                                                                     Create one-time, recurring, usage
                                                                                                     charges

                                                                                                     Setup different product editions,
                                                                                                     durations, and pricing tiers

                                                                                                     Manage product discounts and
                                                                                                     promotions

                                                                                                     Track usage, overages, and
                                                                                                     included units

                                                                                                     Use Hundreds of Different
                                                                                                     Currencies




                Zuora helps us create and manage any new product
                and pricing model.
                                                                      Perry Tancredi
                                                                      Sr. Director of Product Management

Zuora Confidential – Not for Distribution Beyond Intended Recipient
HomeAway Success Story




Zuora Confidential – Not for Distribution Beyond Intended Recipient
About HomeAway
                                                          Founded in 2005 with six employees  now more than 1,200
                                                          worldwide, with 600 employees in Austin.

                                                          More than 711,000 listings in 171 countries/13 languages.

                                                          20+ worldwide vacation rental sites.

                                                          Dedicated to Trust & Security  authentic traveler reviews,
                                                          HomeAway Carefree Rental Guarantee protects up to
                                                          $10,000 in rental fees


    WHAT WE ARE:                                                      WHAT WE ARE NOT:
    Second homes available for travelers to rent                      Timeshares
    on vacation from a homeowner or property
    manager.                                                          House Swaps

    A Great Value! Rent a whole house for half                        All Luxury Properties
    the cost of a hotel.
                                                                      Primary Residences
    Perfect for family and groups.


Zuora Confidential – Not for Distribution Beyond Intended Recipient
Zuora & Salesforce Partner at HomeAway

                                                                                        The integration between
                                     Background                                    Salesforce and Zuora allowed us
                                                                                       to bring order to a messy
                  Zuora and Salesforce fueled                                      situation and regain control over
              HomeAways aggressive growth by                                           our quote to cash process.
             acquisition by enabling monetization
               of HomeAway’s suite of software                                           Jim Bunch, HomeAway
               providers for property managers.


         Before                                                                 After
                 Acquired 4 software companies, each                              All 4 acquisitions standardized on
                 with a different billing application.                            Salesforce and Zuora!
                 No control over quoting, discounting.                            Control over one standard product catalog
                 No integration to Salesforce.                                    Easy and simple products = happy
                 No 360 view!                                                     customers.
                                                                                  On-premise model sunsetted due to
                                                                                  growth of subscription model
                                                                                  True 360 view


 Slide Confidential – Not for Distribution Beyond Intended Recipient
Zuora 20 − Zuora Confidential, not for distribution beyond intended recipient
Q&A




Zuora Confidential – Not for Distribution Beyond Intended Recipient

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Leverage Zuora and Salesforce to Launch and Grow a Subscription Business

  • 1. Leverage Zuora and Salesforce to Launch and Grow a Subscription Business Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 2. Thank you for joining today! Agenda What is the Subscription Economy? How do Zuora & Salesforce work together? HomeAway story Q&A Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 3. The Leader in Commerce, Billing and Finance solutions for the Subscription Economy Subscription Subscription Subscription Commerce Billing Finance 500+ customers $82M funding Enterprise Leadership Benchmark Capital Tien Tzuo, CEO/Founder Marc Benioff Marc Aronson, VP Engineering Redpoint Ventures Cheng Zuo, CTO/Co-Founder Index Ventures Brian Bell, CMO Todd Pearson, SVP Cust. Success 3 Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 4. A bit of background… Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 5. What is the Subscription Economy? BUY NOW SUBSCRIBE 1999 Today 5 Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 6. The Move from Products to Services Technology Transportation Retail Music A Video Voice? Legal Healthcare By 2015, 35% of Global 2000 companies will generate revenue through subscription-based services and revenue models. Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 7. A Great Model for Customers and Businesses Consumers Businesses Access Anywhere, Instant Upgrades Ongoing Relationship MORE Flexibility MORE Innovation BETTER Customer Service Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 8. Businesses In The Subscription Economy Are Focused On Relationships BUY NOW SUBSCRIBE Product Relationships Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 9. The Subscription Economy Requires a Completely Different Approach to Building Businesses Product Economy Subscription Economy Sell Units Monetizing Customer Relationships Why? Customer in the middle. Pay-as-you-Go Pricing Plans Price Per Unit Why? Flexibility, Editions, Try before Buy. One-Time Orders Multiple Orders Over a Lifetime Why? Add-ons, Upgrades, Renewals. Forced to Pick a Sell to Consumers & Businesses Customer Segment Why? Support B2C, B2B and B2Any. Complex, Interrelated Bookings, Simple Financial Metrics Billings, & Revenue Why? All metrics are connected. Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 10. Problem: Today’s Systems Don’t Support the Subscription Business Model SKU Based Catalog Not built to support subscription rate plans Price x Unit Singular Orders No concept for monthly pay-as- No concept for add-ons, upgrades, you-pricing and renewals, Low Volume Backwards Looking Not built for B2B & B2C, credit card & Looks at revenue for last period, not forward invoice transactions recurring revenues Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 11. How does Zuora help? Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 12. Subscription Management Platform Quotes Commerce Billing Finance Pricing, Quotes, Subscription Orders, Rating, Invoicing, Advanced Accounting Close, Audit Add-Ons, Renewals Amendments, Renewals, Billing, Payments & Payment Controls, Summary Journal inside Salesforce Hosted Commerce Pages Operations, Taxation Entries, Deferred Revenue Platform Account Management Administration (Users & Roles) APIs AppExchange Certified Managed Packaged 360 Subscription Catalog Customization (Custom Fields) Notifications & Callouts Reporting & Metrics Multi-Currency & Locale Data Export & Import PCI Level 1 Compliance SAS 70 Type II Ecosystem CRM Systems Payment Gateways Accounting/GL Helping Companies Grow, Flow and Know Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 13. The Complete Picture for Salesforce Customers Customer Subscription Commerce, Accounting Management Billing, Payments CASH LEAD Pricing & Quoting Subscriptions & Orders Sales Force Automation Add-Ons & Renewals General Ledger Customer Service Billing & Payments Supply Chain Usage & Rating Reporting & Analytics Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 14. We Make Salesforce Subscription Smart … for Sales Reps … for CSRs & Finance Product Catalog Create Quotes Answer billing inquires Process change orders Collection Process add-ons Invoice history & aging Process renewals Process change orders Take credit cards orders Process add-ons Usage in Zuora Process renewals Metrics … for Customer & Partner Portals Self service … everything gets View price plans Chatter enabled Take orders Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 15. Quotes & Subscription Management in Salesforce Quotes for Initial & Add-on Orders Complete Subscription History Sales Reps can sign up initial customers and Give reps and agents full customer visibility create up-sell and cross-sell orders Quotes for Change Orders Customer Value Dashboards Get to the metrics that matter: Monthly Recurring Make subscription updates and upgrades Revenue, Renewal Rate, and Total Contract Value Quotes for Renewal Orders Invoice Aging Reports Renew subscriptions See 30-60-90 day invoice stats at a glance Quote Presentation Automatically send quotes to Customers or Z-Billing in the back office 15 Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 16. Salesforce’s Flat Product Catalog Cannot Handle Subscription Complexities Salesforce Quotes uses the “One SKU, One Price” Salesforce Product Catalog – which simply doesn’t work for Subscriptions. Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 17. Zuora’s Product Catalog is Designed for Subscription Complexity Multi-Layered, Multi-Currency Create one-time, recurring, usage charges Setup different product editions, durations, and pricing tiers Manage product discounts and promotions Track usage, overages, and included units Use Hundreds of Different Currencies Zuora helps us create and manage any new product and pricing model. Perry Tancredi Sr. Director of Product Management Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 18. HomeAway Success Story Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 19. About HomeAway Founded in 2005 with six employees  now more than 1,200 worldwide, with 600 employees in Austin. More than 711,000 listings in 171 countries/13 languages. 20+ worldwide vacation rental sites. Dedicated to Trust & Security  authentic traveler reviews, HomeAway Carefree Rental Guarantee protects up to $10,000 in rental fees WHAT WE ARE: WHAT WE ARE NOT: Second homes available for travelers to rent Timeshares on vacation from a homeowner or property manager. House Swaps A Great Value! Rent a whole house for half All Luxury Properties the cost of a hotel. Primary Residences Perfect for family and groups. Zuora Confidential – Not for Distribution Beyond Intended Recipient
  • 20. Zuora & Salesforce Partner at HomeAway The integration between Background Salesforce and Zuora allowed us to bring order to a messy Zuora and Salesforce fueled situation and regain control over HomeAways aggressive growth by our quote to cash process. acquisition by enabling monetization of HomeAway’s suite of software Jim Bunch, HomeAway providers for property managers. Before After Acquired 4 software companies, each All 4 acquisitions standardized on with a different billing application. Salesforce and Zuora! No control over quoting, discounting. Control over one standard product catalog No integration to Salesforce. Easy and simple products = happy No 360 view! customers. On-premise model sunsetted due to growth of subscription model True 360 view Slide Confidential – Not for Distribution Beyond Intended Recipient Zuora 20 − Zuora Confidential, not for distribution beyond intended recipient
  • 21. Q&A Zuora Confidential – Not for Distribution Beyond Intended Recipient