Brett Caine Senior Vice President and General Manager, Online Services Division 28% 31% 101%
Web-Based Web-Based Web-Based Remote Support Conferencing Remote Access
App Collaboration m1
Revenue Trends 60
50
40
30
20
10
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2005 2006 2007
GoToMyPC GoToAssist GoToMeeting+Webinar Slide 3 m1 Scott Allen will update for Q4 2007.
Morgan: Scott A. will give you the final Q4 numbers to bring this up to date. Mike Musson, 2/5/2008 $2.9 Billion
15-20% 15-20% 20- 30%
$270 Million $300 Million
Remote Remote Access Support Web Conferencing
Source: Company estimates & report from IDC, March 2007 Worldwide Software on-Demand Revenue, 2006-2011 PowerfulPowerful && simplesimple
NoNo trainingtraining && nono customizationcustomization requiredrequired TechnicalTechnical && businessbusiness platformplatform investmentinvestment
DrivingDriving marketmarket share,share, customercustomer reachreach && globalglobal footprintfootprint Coming Soon! New
WebWeb--basedbased CollaborationCollaboration
BreakthroughBreakthrough innovationinnovation inin voicevoice communicationcommunication –– simple,simple, easyeasy && integratedintegrated New
Coming Soon!
WebWeb--basedbased RemoteRemote SupportSupport ExpandingExpanding RemoteRemote SupportSupport beyondbeyond thethe CallCall CenterCenter Beta:Beta: express.gotoassist.comexpress.gotoassist.com
PLATINUM
GoToAssist Enterprise reach Differentiation
Online Support Citrix Delivery Center & Collaboration Web-based Remote Remote International Enterprise Collaboration Support Access Expansion Customer
New Voice Beyond the Mac OSX Globalize Citrix Capabilities Call Center Support Platform Delivery Center
Rich Media & Multi-platform Support Globalization & Integration
Internet Overlay Network 1. Salesforce.com 2. Cisco (WebEx) 3. Intuit (Digital Insight) 4. Citrix (Online Services Division) 5. Microsoft (Office Live Meeting)
David Henshall, SVP and Chief Financial Officer ExecutionExecution $ Million USD $ Million
Total Revenue Adjusted EPS Building on a Strong Foundation
Revenue Type 2006 2007 Growth • Balanced growth across all revenue segments Product License $488 $577 18%
License Updates $406 $485 19% • Market share gains across
Technical Services $91 $116 27% multiple products
Citrix Online $149 $214 43% • Double digit growth in
Total Revenue $1,134 $1,392 23% every geography Product License ApplicationApplication EnterpriseEnterpriseDeliveryDeliveryApplicationApplication ProductsProducts License Update DeliveryDelivery
Tech Services ApplicationApplication Online Services SMB SMBDeliveryDelivery ServicesServices Product License
23% WhatWhat’’ss23% Changing?Changing? License Update ‘‘0707 RevenueRevenue GrowthGrowth
Tech Services
Online Services 1.1. SimplifyingSimplifying thethe productproduct lineline 2.2. IncreasingIncreasing customercustomer valuevalue 3.3. ExpandingExpanding marketmarket coveragecoverage 4.4. EnhancingEnhancing scalabilityscalability Product Line
Platinum Simplification
Enterprise • Consistent, targeted messaging • Shorter sales cycles Standard
Express Increasing
Platinum Customer Value
Enterprise • Alignment - Focus on the 4 strategic products • Leverage - Channel Standard incentives to drive Platinum Editions Express Increasing Customer Value – XenApp Platinum
• Customers realizing greater value with integrated solutions • ASP of XenApp family (new licenses) increasing YoY • Goal to increase XA-Plat. contribution to 33% for FY’08 XA Family License Revenue XA Family • Less than 5% of installed base on XenApp Platinum • Replicate model across other products Increasing Customer Value – Subscription Adv.
• Subscription Advantage programs in most products R AG C • Allowing existing customers to 0% 3 participate in future technologies • Program renewal rates have been increasing steadily
License Update Revenue ($M)License Update • ~ 50% of installed base under an SA program Ensuring Customer Success
• Focused on knowledge transfer to customers and partners GR CA % 26 • Changes in ‘08 education and training programs designed to drive channel vibrancy Technical Services Revenue ($M) Services Revenue Technical OpportunityOpportunity $2$2 BillionBillion
Research,Research, DevelopmentDevelopment && StrategicStrategic AcquisitionsAcquisitions Expertcity Mar ~ 2004 Citrix Online Net6 Citrix Access Gateway NetScaler Citrix NetScaler Teros Citrix Application Firewall Reflectent Citrix EdgeSight Orbital Data Citrix WANScaler Ardence Citrix Provisioning Server XenSource Citrix XenServer * Mid-Point of 2008 Guidance of * Mid-Point
Revenue $M Application Virtualization
1
3
%
C
A
G
R App Virtualization App
App Networking
App Virtualization App Collaboration Server & Desktop Virtualization
R
AG
C
%
3 2
Application Delivery Revenue $M Revenue * Mid-Point of 2008 Guidance Xen App NetScaler Xen Server Xen Desktop
Delivery Services
R
AG
C
%
3 2
Application Delivery Revenue $M Revenue * Mid-Point of 2008 Guidance
20082008 PrioritiesPriorities • Capture the opportunity of XenServer • Establish the XenDesktop market • Scale App Networking go-to-market • Global account expectations – being a "strategic vendor" $ Million USD $ Million
Total Revenue Adjusted EPS 2008 First Call Estimate Scalability of Citrix 1,000+1,000+
TotalTotal NumberNumber ofof RequiredRequired ‘‘0808 HiresHires (before attrition) IT & • Infrastructure Supply • ProductionITIT Operations && (New) BusinessFacilities EnterpriseEnterprise • Service Delivery • Infrastructure Chain FacilitiesFacilities• Facilities • ProductionProcess Operations (New) ArchitectureArchitecture • Service Delivery • Facilities Management
Finance & Products Legal Sales SFDC & Vantive Microsoft Siebel SAP Hyperion & Web Inventory
Supply Chain Build, IT Management Vendors Architect & Integration Fulfill
RMAs Launches Program & Project Mgt Partners and Technical Customers Support Annual100+ Capital New $60 Projects - $80 Million Marketing Avaya IT Business Review Report
Developing MDM & Data Governance Strategy
July Report Siebel SAP MDM / CDI
http://fedex.co
SFDC D&B Hyperion Scalability of SaaS Platform
• SaaS model provides predictable revenue stream • Low marginal cost of adding new services • Divisional contribution margin % accretive to Citrix Online Services ($M) Online Services • Infrastructure investments in ‘08 to drive scalability and globalization of the platform BalanceBalance Sheet,Sheet, CashCash FlowFlow && UsesUses ofof CashCash • Cash & Investments $860 million • Deferred Revenue $443 million • Cash Flow from Ops $424 million Cash Flow from Operations
* Non-GAAP Measure Primary Uses of Cash
2007 Initiative Amount
XenSource Acquisition $92 million
Other Acquisitions & Licenses $69 million
Capital / Facilities Expenditures $80 million Stock Repurchase (5.4M @ $39.5) $210 million
TOTAL = $ 451mIllion Share Buyback – Program to Date*
(in thousands) Shares Stock plan issuances 51,659 Acquisition & other 19.457 Total 71,116
Repurchase activity (64,841) Net share reduction 6,275
Shares repurchased at ~10% discount to average price during period
Program initiated FY2000 BusinessBusiness ModelModel Adjusted Gross Margin
• Revenue mix is primary driver of gross margin • Adjusted Gross margin – Non-GAAP gross margin forecasted to be between 91%–92% during 2008 • Adjusted Gross Margin by Revenue Type: – App / Server Virtualization Products: High 90%’s – Application Networking Products: 70%–75% – Online Services: 85%–90% – Technical Services: 65%–70% Adjusted Operating Expenses
• XenSource investments front end loaded in 2008 – 60% Sales & Marketing – 30% Research & Development – 10% G&A - Operations • Trough for operating margin in Q1’08 • Expect Sales & Marketing to account for between 41%–43% of revenue • Research & Development to account for between 13%–14% of revenue • General, Administrative & Operations to account for between 12%– 13% of revenue Financial & Operational Summary • Revenue and market share momentum • Significant expansion of available market opportunity • Consistent execution • Scalability of infrastructure Wrap-up
Office My Appliance Notebook Office My PC Desktop
My Office SmartPhone Laptop Office My Appliance Notebook Office My PC Desktop
My Office SmartPhone Laptop DemoDemo
CitrixCitrix DeliveryDelivery CenterCenter