subscribed 2016: revenue recognition considerations for saas companies
TRANSCRIPT
![Page 1: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/1.jpg)
Revenue Recognition Considerations
for SaaS Companies
![Page 2: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/2.jpg)
© 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
![Page 3: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/3.jpg)
© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED
ASC 606 & IFRS 15 – Ready!
3
![Page 4: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/4.jpg)
© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED
Works Well in Your Financial Systems
4
![Page 5: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/5.jpg)
© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED
Why RevPro, What we do, Where we fit ?
5
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
![Page 6: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/6.jpg)
© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED
Subscription economy & Revenue complexity
6
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
![Page 7: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/7.jpg)
© 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
![Page 8: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/8.jpg)
© 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
![Page 9: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/9.jpg)
© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED 9
RevPro – Comprehensive RevRec Automation
![Page 10: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/10.jpg)
© 2009-2016 Leeyo Software, Inc. CONFIDENTIAL AND PROPRIETARY - FOR INTERNAL USE ONLY - ALL RIGHTS RESERVED
WHO USES REVPRO
![Page 11: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/11.jpg)
© 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
![Page 12: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/12.jpg)
Check out Zuora Academy for more great info and actionable advice.
All the info you need to build and run an amazing subscription business.
https://www.zuora.com/academy/
![Page 13: Subscribed 2016: Revenue Recognition Considerations for SaaS Companies](https://reader035.vdocument.in/reader035/viewer/2022062823/587a22661a28abbd388b46b5/html5/thumbnails/13.jpg)