Revenue Recognition Considerations

for SaaS Companies

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www.leeyo.com

© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED

Revenue Recognition Considerations for SaaS CompaniesJagan Reddy – CEO & Founder of Leeyo

© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED

ASC 606 & IFRS 15 – Ready!

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Works Well in Your Financial Systems

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Why RevPro, What we do, Where we fit ?

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Lead / Opportunity Quotes Orders Fulfillment Billing Revenue

RecognitionCash

Collection

Quote to Cash process

• Competitive landscape complicates pricing and product offering• Revenue recognition is not simple anymore• Revenue rules / guidance are changing soon• Billing is not the only source of data for revenue recognition• Why Leeyo is the leader in this space ?

• We solve complex revenue problems• We keep customers in compliance with rules• RevPro is developed by revenue people

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Subscription economy & Revenue complexity

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SaaS Company Pain Points

• Separation of billing and revenue. Rev. Rec. independent of billing• Frequent upgrades / downgrades• Usage based revenue recognition with payments in advance/ overages• Amortization of upfront fees• Multiple element arrangements requiring allocations/services with standalone value• Reporting specific requirements MRR, ARR• New revenue rules adds more complexity to SaaS businesses

© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED

Current Process

E-Commerce Website

Zuora 360 / Z-Quotes

Transactions

Contracts/BillingManual Journal Entry

Simple rev rec + manual revenue entries

© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED

How it Works with RevPro

E-Commerce Website

Zuora 360 / Z-Quotes

Transactions

Contracts/BillingSubscription & Billing Data Events Data

Next-Generation Revenue Management

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RevPro – Comprehensive RevRec Automation

© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED

WHO USES REVPRO

© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED

www.leeyo.com

Contact info: Sales@leeyo.comPhone: 1-408-988-5800www.leeyo.com

Check out Zuora Academy for more great info and actionable advice.

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