Demandware Digital Commerce 2013

  • 1,579 views
Uploaded on

 

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,579
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
5

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Copyright 2013 Demandware, Inc9 May 2013 1 Copyright 2013 Demandware, Inc. All other rights reserved.9 May 2013 1 Jefferies Conference First-Quarter 2013 Scott Dussault Chief Financial Officer
  • 2. Copyright 2013 Demandware, Inc9 May 2013 2 Forward-Looking Statements This presentation includes forward-looking statements. Demandware, Inc. (“Demandware” or the “Company”) has based these forward-looking statements largely on its current expectations and projections about future events and financial trends affecting its business. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the date of this presentation and management’s good faith belief as of such date with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to: the Company’s ability to attract new clients to enter into subscriptions for its solution; the Company’s ability to service those clients effectively and induce them to renew and upgrade their deployments of the Company’s solution; the Company’s ability to expand its sales organization to address effectively the new industries, geographies and types of organizations the Company intends to target; the Company’s ability to accurately forecast revenue and appropriately plan its expenses; continued acceptance of SaaS as an effective method for delivering software solutions; the Company’s ability to protect and defend its intellectual property; costs associated with defending intellectual property infringement and other claims; events in the markets for the Company’s solution and alternatives to the Company’s solution, as well as in the United States and global markets generally; changes in the competitive environment in the Company’s industry and the markets in which the Company operates; and other factors discussed under “Risk Factors ” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in periodic filings with the Securities and Exchange Commission (the “SEC”). In addition, in this presentation, the words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “predict,” “potential” and similar expressions, as they relate to the Company, business and management, are intended to identify forward-looking statements. In light of these risks and uncertainties, the future events and circumstances discussed in this presentation may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. Forward-looking statements speak only as of the date of this presentation. You should not put undue reliance on any forward-looking statement. The Company assumes no obligation to update any forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting future performance or results, except to the extent required by applicable laws. If the Company updates one or more forward- looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward- looking statements.
  • 3. Copyright 2013 Demandware, Inc9 May 2013 3 Key Investment Highlights Large Addressable Market with Strong Macro Tailwinds Leading On-Demand eCommerce Platform with Large Partner Ecosystem Differentiated, Proprietary SaaS Technology Creates Strong Barriers to Entry Multiple Avenues to Drive Future Growth Powerful SaaS Financial Model Experienced and Deep Management Team
  • 4. Copyright 2013 Demandware, Inc9 May 2013 4 Significant Momentum: On-Demand is In Demand! Mar. 31, 2009 $260K 60 28 $2.5M 50% Mar. 31, 2013 $487K 630 156 $18.9M 66% CAGR 79% 100% SaaS
  • 5. Copyright 2013 Demandware, Inc9 May 2013 5 $327 Billion Global eCommerce Demandware Is at the Confluence of Three Significant Markets Data Reflects 2011 Source: Forrester (US Online Retail) and Euromonitor (Global Retail and Global eCommerce) 10% CAGR (‘11 – ’16) 20% CAGR (‘11 – ’16) $14 Billion Global Saas $12 Trillion Global Retail
  • 6. Copyright 2013 Demandware, Inc9 May 2013 6 Global Retail Market Shifting from Offline to Online Digital TVContent Web Sites Ad Networks NFC Geolocation Services Check Out On Smart Phone mPOSClientelingMobile Endless Aisle Social Media TabletCall CenterQR Enabled Print Ads Laptop / Desktop eCommerce: An Essential Requirement for Retailers / Brands Today 2004 PRESENT FUTURE Buying and Selling Across Multiple Touch PointsConnected, In Control Always On, Always Consuming Consumers Deliver Exceptional Online Experience Retailers / Brands
  • 7. Copyright 2013 Demandware, Inc9 May 2013 7 Traditional eCommerce Solutions Have Been Limited Build and Run InternallyBuild and Run Internally Store Front Portal Shopping Cart Admin Portal User Interface Catalog Management Order Management Promotion & Pricing Business Rules Accounting Content Management Customer Management Scheduling Security eCommerce Infrastructure Warehouse Manageme nt POS Connectors The Pros: Control Customization The Cons: Costly IT-Constrained Performance/Security Responsibility Slow Pace of Innovation ✗✗
  • 8. Copyright 2013 Demandware, Inc9 May 2013 8 Build and Run InternallyBuild and Run Internally Outsource / ASPOutsource / ASP Traditional eCommerce Solutions Have Been Limited The Pros: Less Hassle No Infrastructure The Cons: Inflexible No Merchant Control of Merchandising Limited Customization ✗✗ The Pros: Control Customization The Cons: Costly IT-Constrained Performance/Security Responsibility Slow Pace of Innovation ✗✗
  • 9. Copyright 2013 Demandware, Inc9 May 2013 9 Build and Run InternallyBuild and Run Internally Outsource / ASPOutsource / ASP Demandware Delivers The Best of Both Worlds A Unique and Better Approach to Digital Commerce The Pros: Control Customization The Cons: Costly IT-Constrained Performance/Security Responsibility Slow Pace of Innovation ✗✗ The Pros: Less Hassle No Infrastructure The Cons: Inflexible No Merchant Control of Merchandising Limited Customization ✗✗ The Best of Both Worlds
  • 10. Copyright 2013 Demandware, Inc9 May 2013 10 The Demandware SaaS Model Significant Barriers to Entry Merchant Empowerment Provides Full Control Ease of Development Open Development Environment; Flexible, Extensible Cutting Edge Access to Steady Stream of New, Innovative Functionality as Soon as it Becomes Available Easy Simplifies Complex eCommerce Functionality Fast Time-to-Market Only 6 Months No Infrastructure SaaS Solution Today’s DifferentiatorsToday’s DifferentiatorsInitial “Table Stakes”Initial “Table Stakes” Reliable and Proven 99.98% Platform Availability Fully Customizable ++
  • 11. Copyright 2013 Demandware, Inc9 May 2013 11 Allowing Retailers to Focus on Innovation and Growth Ease of Launching and Managing Multiple eCommerce Sites Speed to Utilize New Technologies/Techniques Enablement of Merchandising Goals The Payoff to Customers Ability to Innovate at the Pace of Consumer Expectations: Enables Seamless Omni- channel Brand Experience for Consumers Globally $ Increased Revenues
  • 12. Copyright 2013 Demandware, Inc9 May 2013 12 Leading Brands Choose Our Model 28 32 38 40 46 53 60 69 75 78 91 101 110 124 137 151 156 60 70 95 104 123 143 175 215 237 253 321 361 402 445 517 579 630 Customers Websites ‘09 ‘10 ‘11 ‘12 ‘13
  • 13. Copyright 2013 Demandware, Inc9 May 2013 13 13Copyright 2012 Demandware, Inc. – CONFIDENTIAL |
  • 14. Copyright 2013 Demandware, Inc9 May 2013 14 Key Financial Highlights Growth Visibility Operating Leverage Growth in Customers and Sites 87% Revenue CAGR (2006-12) Customer Lifetime Value 100% SaaS Model Highly Visible and Predictable High Dollar-Value and Customer Retention Highly Leverageable Margins Capital Efficient Long-Term Scale and Profitability
  • 15. Copyright 2013 Demandware, Inc9 May 2013 15 15Copyright 2012 Demandware, Inc. – CONFIDENTIAL | 2009 2010 2011 2012 3 Month 2012 3 Month 2013 Revenue Growth Momentum 79% 64% Annual Revenue Growth $ in Millions Pro-Forma* Three Month Revenue Growth $ in Millions Services Subscription $16.1 $28.7 $21.4 $36.7 $14.2 $12.2 $18.9 $20.555% $47.2 $56.5 44% $79.5 $67.9 * Pro-forma excludes $1.4 mm from Neckermann GmbH
  • 16. Copyright 2013 Demandware, Inc9 May 2013 16 Significant Growth in Customers and Sites 2008 16 17 19 23 28 32 38 40 46 53 60 69 75 78 91 101 110 124 137 151 156 39 39 43 50 60 70 95 104 123 143 175 215 237 253 321 361 402 445 517 579 630 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Customers Websites 2009 2010 2011 2012 ’13
  • 17. Copyright 2013 Demandware, Inc9 May 2013 17 Driving Significant Revenue Momentum $1.8 $3.7 $4.3 $6.3 $5.5 $6.1 $6.9 $10.2 $9.3 $10.4 $11.2 $16.3 $13.6 $15.2 $16.3 $22.9 $18.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Overage Subscription Revenue * Average for 2009, 2010, 2011 and 2012 Subscription Revenue: Base vs. Overage Average Overage Fees Represent 31%* of Subscription Revenue Average Overage Fees Represent 31%* of Subscription Revenue Base Subscription Revenue 2009 2010 2011 2012 ‘13
  • 18. Copyright 2013 Demandware, Inc9 May 2013 18 Land and Expand Drives Shared Success Model Q1 Q2 Q3 Q4 Year 2 Q1 Q2 Q3 Q4 Year 3 Q1 Q2 Q3 Q4 Year 1 Cohort analysis includes a family of third-party solution partner customers who share a minimum level of subscription revenue and 32 customers all of which have been operating on Demandware’s platform for a minimum of three years as of December 31, 2012. Analysis excludes two customers operating on the platform for three years one invoiced through a third party and Neckermann. QuarterlyRevenue Base Subscription Customer Expansion $0 $40,000 $80,000 $120,000 $160,000 $200,000 Average Subscription Revenue by Quarter (Cohort Analysis)
  • 19. Copyright 2013 Demandware, Inc9 May 2013 19 High Quality Revenue: Diversified, Predictable and Sticky * Subscription Dollar Retention Rate Defined on Page 39 of the S-1. International Scope International 41% U.S. 59% Customers with Sites in 20+ Countries Customer Variety DiversifiedDiversified … and Sticky… and Sticky Typical Contract: 3 Years 2010 2011 2012 100+% 100+% 100+%Subscription Dollar Retention Rate* Other Sporting Goods Home & Garden Health & Beauty General Merchandise Apparel
  • 20. Copyright 2013 Demandware, Inc9 May 2013 20 Operating Margin: Quarterly Path to Profitability and High Operating Leverage $(24.3)M $(9.6)M $2.0M $0.7M $(0.1)M 2008 2009 2010 2011 2012 $0.3 ($0.1) ($0.4) $2.1 ($0.5) ($0.9) ($1.2) $3.4 ($1.5) (2.8) ($1.4) $5.6 ($3.3) Operating Margin: Annual 2010 Non-GAAP Operating Margin* Non-GAAP Operating Margin %* 2011 2012 *Non-GAAP excludes stock-based compensation expense 2013
  • 21. Copyright 2013 Demandware, Inc9 May 2013 21 Key Investment Highlights Large Addressable Market with Strong Macro Tailwinds Leading On-Demand eCommerce Platform with Large Partner Ecosystem Differentiated, Proprietary SaaS Technology Creates Strong Barriers to Entry Multiple Avenues to Drive Future Growth Powerful SaaS Financial Model Experienced and Deep Management Team
  • 22. Copyright 2013 Demandware, Inc9 May 2013 22 Copyright 2013 Demandware, Inc. All other rights reserved.9 May 2013 22 Jefferies Conference First-Quarter 2013 Scott Dussault Chief Financial Officer