subscribed 2016: revenue recognition considerations for saas companies
TRANSCRIPT
Revenue Recognition Considerations
for SaaS Companies
© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED
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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© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED
Works Well in Your Financial Systems
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© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED
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
© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED
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
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How it Works with RevPro
E-Commerce Website
Zuora 360 / Z-Quotes
Transactions
Contracts/BillingSubscription & Billing Data Events Data
Next-Generation Revenue Management
© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED 9
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: [email protected]: 1-408-988-5800www.leeyo.com
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