1. Assumptions ($ in Millions)
PSO as % of License Boookings 60%
PSO Conversion 75%
License Bookings Growth 40%
Prepaid Maintenance Attach Rate 25%
Maintenance Renewal Rate 90%
Subscription as % of License 40%
Subscription Renewal Rate 95%
PSO as % of Subscription 65%
PSO Conversion 80%
For simplicity, all bookings assumed to take place in last day of quarter
PSO revenue is delayed by one quarter from time of bookings
YR 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Perpetual Business Model
Bookings
License Bookings 25.0 35.0 45.0 60.0 35.0 49.0 63.0 84.0 49.0 68.6 88.2 117.6 68.6 96.0 123.5 164.6 165.0 54% 231.0 50% 323.4 47% 452.8 46%
Prepaid Maintainance Bookings 6.3 8.8 11.3 15.0 8.8 12.3 15.8 21.0 12.3 17.2 22.1 29.4 17.2 24.0 30.9 41.2 41.3 14% 57.8 12% 80.9 12% 113.2 11%
Y1 Renewal Maintainance Bookings - - - - 5.6 7.9 10.1 13.5 5.1 7.1 9.1 12.2 4.6 6.4 8.2 10.9 - 37.1 33.4 30.1
Y2 Renewal Maintainance Bookings - - - - - - - - 7.9 11.0 14.2 18.9 7.1 9.9 12.8 17.0 - - 52.0 46.8
Y3 Renewal Maintainance Bookings - - - - - - - - - - - - 11.0 15.4 19.8 26.5 - - - 72.8
Total Renewal Maintainance Bookings - - - - 5.6 7.9 10.1 13.5 12.9 18.1 23.3 31.1 22.7 31.7 40.8 54.4 - 0% 37.1 8% 85.4 12% 149.6 15%
Subtotal of Maintenance Bookings 6.3 8.8 11.3 15.0 14.4 20.1 25.9 34.5 25.2 35.3 45.3 60.5 39.8 55.7 71.7 95.6 41.3 94.9 166.2 262.8
PSO 15.0 21.0 27.0 36.0 21.0 29.4 37.8 50.4 29.4 41.2 52.9 70.6 41.2 57.6 74.1 98.8 99.0 32% 138.6 30% 194.0 28% 271.7 28%
Total Monthly Bookings 46.3 64.8 83.3 111.0 70.4 98.5 126.7 168.9 103.6 145.0 186.5 248.6 149.6 209.4 269.2 359.0 305.3 100% 464.5 100% 683.7 100% 987.2 100%
Revenue
License Revenue 25.0 35.0 45.0 60.0 35.0 49.0 63.0 84.0 49.0 68.6 88.2 117.6 68.6 96.0 123.5 164.6 165.0 74% 231.0 61% 323.4 57% 452.8 55%
Maintenance - 1.6 3.8 6.6 10.3 12.3 15.2 18.8 23.7 26.4 30.2 35.1 41.6 45.2 50.3 56.9 11.9 5% 56.7 15% 115.4 20% 194.0 23%
PSO - 11.3 15.8 20.3 27.0 15.8 22.1 28.4 37.8 22.1 30.9 39.7 52.9 30.9 43.2 55.6 47.3 21% 93.2 24% 130.4 23% 182.6 22%
Total Monthly Revenue 25.0 47.8 64.5 86.8 72.3 77.1 100.2 131.2 110.5 117.1 149.3 192.4 163.1 172.1 217.0 277.1 224.1 100% 380.8 100% 569.2 100% 829.4 100%
Growth 189% 61% 55% 51% 53% 52% 49% 47% 48% 47% 45% 44% 70% 49% 46%
SaaS BusinessModel
Bookings
New Monthly Subscriptions 10.0 14.0 18.0 24.0 14.0 19.6 25.2 33.6 19.6 27.4 35.3 47.0 27.4 38.4 49.4 65.9 66.0 61% 92.4 43% 129.4 36% 181.1 32%
Y1 Subscription Renewals - - - - 9.5 13.3 17.1 22.8 9.0 12.6 16.2 21.7 8.6 12.0 15.4 20.6 - 0% 62.7 29% 59.6 17% 56.6 10%
Y2 Subscription Renewals - - - - - - - - 13.3 18.6 23.9 31.9 12.6 17.7 22.7 30.3 - 0% - 0% 87.8 24% 83.4 15%
Y3 Subscription Renewals - - - - - - - - - - - - 18.6 26.1 33.5 44.7 - 0% - 0% - 0% 122.9 22%
Subtotal Renewals - - - - 9.5 13.3 17.1 22.8 22.3 31.3 40.2 53.6 39.8 55.8 71.7 95.6 - 0% 62.7 29% 147.3 41% 262.9 47%
PSO 6.5 9.1 11.7 15.6 9.1 12.7 16.4 21.8 12.7 17.8 22.9 30.6 17.8 25.0 32.1 42.8 42.9 39% 60.1 28% 84.1 23% 117.7 21%
Total Monthly Bookings 16.5 23.1 29.7 39.6 32.6 45.6 58.7 78.2 54.7 76.5 98.4 131.2 85.1 119.1 153.2 204.3 108.9 100% 215.2 100% 360.8 100% 561.7 100%
Revenue
New Monthly Subscriptions - 2.5 6.0 10.5 16.5 17.5 18.9 20.7 23.1 24.5 26.5 29.0 32.3 34.3 37.0 40.6 19.0 47% 73.6 55% 103.0 41% 144.3 35%
Subscription Renewals - - - - - 2.4 5.7 10.0 15.7 18.9 23.4 29.1 36.8 41.2 47.3 55.2 - 0% 18.1 13% 87.1 35% 180.6 44%
PSO - 5.2 7.3 9.4 12.5 7.3 10.2 13.1 17.5 10.2 14.3 18.3 24.5 14.3 20.0 25.7 21.8 53% 43.1 32% 60.3 24% 84.4 21%
Total Monthly Revenue - 7.7 13.3 19.9 29.0 27.2 34.8 43.8 56.2 53.6 64.1 76.5 93.6 89.8 104.4 121.5 40.8 100% 134.7 100% 250.4 100% 409.2 100%
Growth 253% 162% 120% 94% 97% 84% 75% 66% 68% 63% 59% 230% 86% 63%
2011 2012 2013 2014
Perpetual License vs. SaaS Subscription Revenue Models
| Deb Sahoo | MBA, Finance, University of Michigan | MS, EE, University of Southern California | B-Tech, EE, IIT |