Is the shift to subscriptions wreaking havoc on your RevRec process? Learn how RevRec automation can help support business growth and agility by seamlessly handling complex long-term contracts and frequent contract modifications without breaking your back office.

1. SUBSCRIBED 2018

2. DELIVER GROWTH
WITHOUT BREAKING
YOUR BACK OFFICE

3. DIRECTOR, REVENUE ADVISORY
ZUORA REVPRO
KATHY PEARSON

4. SAFE HARBOR DISCLAIMER
The following presentation is intended for information purposes only. The development, release, and timing of any features or
functionality described for Zuora’s products remains at the sole discretion of Zuora and is subject to change. Any unreleased services
or features referenced in this presentation are not currently available and may not be delivered on time or at all. Customers should
make purchase decisions based upon product features that are currently available.
In addition, statements in this presentation that refer to forecasts, future plans and expectations are forward-looking statements that
involve risks, uncertainties, and assumptions, many of which involve factors or circumstances that are beyond our control. If any such
uncertainties materialize, if any of the assumptions prove incorrect, or if priorities or resourcing changes, actual results could differ
materially from such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking
statements as they reflect Zuora’s expectations as of the date of this presentation. In addition, actual results could differ materially
from those expressed or implied in the forward-looking statements due to a number of factors, including but not limited to, risks
detailed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on April 18, 2019, as well as
other documents that may be filed by us from time to time with the SEC. Copies of Annual Report on Form 10-K and other filings with
the SEC may be obtained by visiting our Investor Relations website at investor.zuora.com or the SEC's website at www.sec.gov. Zuora
assumes no obligation and does not intend to update these forward looking statements after the date of this presentation to conform
these statements to actual results or to changes in our expectations.
We encourage customers requiring specific functionality to file requests on our Zuora Community Ideas Board, even if a feature
potentially addressing their needs has been previously discussed. These cases will be tracked by Zuora product management
and every effort will be made to proactively communicate Zuora’s triage and status of incoming requests.

5. DELIVERING GROWTH

6. Companies are always looking to grow and grow faster.
Companies with Subscription models are growing 5x faster than
their peers.
“By 2023, 75% of organizations selling direct to consumers will offer
subscription services”
Gartner

7. Source : Subscription Economy Index (SEI) – a study of
long-term Zuora customers revenue growth vs S&P500
revenue growth
SEI S&P 500 US Retail
2012 2013 2014 2015 2016 2017
2018
Subscription
companies
have grown
over 300% in
the past 7
years
300
250
200
150
100

8. EXPANSION DRIVES GROWTH

9. IF YOU HAVE 1 CHANGE FOR EVERY 10
SUBSCRIPTIONS
1 in 10
9% 20%
2X 3X
Churn reduced by 14%
Growth doubles

10. IF YOU HAVE 1 CHANGE FOR EVERY 1 SUBSCRIPTION
1 in 11 in 10
Churn reduced by 25%
9% 20% 28%
Growth triples
2X 3X

11. Account for contract mod
Determine re-allocation
Rev rec, convert
currency
Account for contract mod
Determine prospective/
retrospective allocation
New POB rev rec rules
Account for contract mod
Determine prospective/
retrospective allocation
Send recurring
invoices
Identify POBs
Determine rev rec
rules
Prorate recurring
charges
Introduce usage rating
Co-term add-on
service
Add new service
Bill for new service,
convert currency
WITH CHANGE COMES COMPLEXITY
CUSTOMER EVENTS
BILLING
REQUIREMENTS
REVENUE
REQUIREMENTS
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Prorate charges
Issue credit
Jan 1
New subscription
March 30
Add a device
Switch to usage plan
June 15
Add service for
European subsidiary
Sept 15
Reduce users

12. SUBSCRIPTION CHANGE AUTOMATION

13. POB
TEMPLATES
Ensure revenue recognized at
the correct time and method
GROUPING RULES
Automate the linking of
subscription changes into the same
contract
CONTRACT MOD
RULES
Handle each change appropriately;
versions created for each change
REPORTING
Gives full financial visibility
putting accounting disclosure
requirements at finance’s
fingertips
REVPRO SUBSCRIPTION CHANGE AUTOMATION
SSP ALLOCATIONS
Calculate the right amount to
be recognized for each item

14. Customer buys 3 year
subscription billed
annually and gets 2 free
training days
Oct 1, 2018
Feb 20, 2019
Customer
attends
1 training
session
Increase users to 50
with a volume pricing
change
Apr 1, 2019
Jun 4, 2019
Customer adds
complementary
product at 25%
discount
REVPRO SUBSCRIPTION CHANGE AUTOMATION

15. DEMO

16. Customer buys 3 year
subscription billed
annually and gets 2 free
training days
Oct 1, 2018
Feb 20, 2019
Customer
attends
1 training
session
Increase users to 50
with a volume pricing
change
Apr 1, 2019
Jun 4, 2019
Customer adds complementary
product at 25% discount
REVPRO SUBSCRIPTION CHANGE AUTOMATION
• Automatic grouping of
changes together
• Correct adjustments to
revenue recognition based on
rules
• Seamless visibility into the
changes of those contracts
over time

17. USAGE DRIVES GROWTH

18. Companies see an 8% increase in growth for the first year
after usage models introduced
Companies with 1-50% of revenue from usage grew at almos
27% YoY vs those with no usage based models
“To continue subscribing, consumers expect subscriptions to become more tailored over
time”
McKinsey

19. WITH USAGE COMES VARIABILITY
ESTIMATES
- Total Estimated
Usage
- Total Estimate Price
- Changes to Estimates
MULTIPLE PRICING
MODELS
- Recurring & Usage together
- Allocations
ACCOUNTING &
REPORTING
-Tracking changes
- True Ups
- Disclosures

20. AUTOMATION FOR USAGE
Variable Consideration

21. REVPRO VARIABLE CONSIDERATION
AUTOMATION
$5.0014GB used
Variable Sales
Models
Variable Consideration Engine
• Usage, overage, tiered pricing
• Rebates
• Performance bonuses / penalties
Automatically
track all
orders with
VC
Estimate &
record
revenue
True-up
estimates &
report
1 2 3

22. 12 MonthContract
Base Platform Subscription with
Usage component
10K Expected Usage Units
Based on Historical information
0 Free support
Gave customer free Support over
the contract life along with purchase
of Professional Services
12 Monthly Billings
Usage billed monthly in arrears
REVPRO VARIABLE CONSIDERATION
AUTOMATION

23. DEMO

24. EXISTING
CUSTOMER
REVENUE
REVENUE GROWTH
AND CHANGES
PRICING MODELS
KEY FINDINGS ON GROWTH

25. REVENUE GROWTH
AND CHANGES
PRICING MODELS
Existing Customer
Revenue
As subscription companies
mature, more revenue
comes from existing
customers
KEY FINDINGS ON GROWTH

26. PRICING MODELS
Existing Customer
Revenue
As subscription companies
mature, more revenue
comes from existing
customers
Revenue Growth &
Changes
There is a correlation
between growth and the
number of changes to a
subscription
KEY FINDINGS ON GROWTH

27. Existing Customer
Revenue
As subscription companies
mature, more revenue
comes from existing
customers
Revenue Growth &
Changes
There is a correlation
between growth and the
number of changes to a
subscription
Pricing Models
Businesses are most
successful when combining
recurring and usage-based
pricing
KEY FINDINGS ON GROWTH

28. REVPRO REVENUE AUTOMATION
CONTRACT
CHANGES
Seamlessly account for
contract changes
including SSP re-
allocations
VARIABLE
CONSIDERATION
Track variable consideration and
adjust for changes/true-ups
REPORTING
Visibility to financial
operations and GAAP
disclosure requirements

29. BE THE HERO!
NO – WE CAN’T
SELL THAT WAY
YES – LET’S DO IT!

30. THANK YOU!