Brett Caine Senior Vice President and General Manager, Online Services Division 28% 31% 101%
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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 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 $1,392 23% every geography Product License ApplicationApplication EnterpriseEnterpriseDeliveryDeliveryApplicationApplication ProductsProducts License Update DeliveryDelivery Tech Services ApplicationApplication Online Services SMB SMBDeliveryDelivery ServicesServices Product License 23% WhatWhat’’ss23% Changing?Changing? License Update ‘‘0707 RevenueRevenue GrowthGrowth Tech Services Online Services 1.1. SimplifyingSimplifying thethe productproduct lineline 2.2. IncreasingIncreasing customercustomer valuevalue 3.3. ExpandingExpanding marketmarket coveragecoverage 4.4. EnhancingEnhancing scalabilityscalability Product Line Platinum Simplification Enterprise • Consistent, targeted messaging • Shorter sales cycles Standard Express Increasing Platinum Customer Value Enterprise • Alignment - Focus on the 4 strategic products • Leverage - Channel Standard incentives to drive Platinum Editions Express Increasing Customer Value – XenApp Platinum • Customers realizing greater value with integrated solutions • ASP of XenApp family (new licenses) increasing YoY • Goal to increase XA-Plat. contribution to 33% for FY’08 XA Family License Revenue • Less than 5% of installed base on XenApp Platinum • Replicate model across other products Increasing Customer Value – Subscription Adv. • Subscription Advantage programs in most products R AG C • Allowing existing customers to 0% 3 participate in future technologies • Program renewal rates have been increasing steadily License Update Revenue ($M) • ~ 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) 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 Application Virtualization 13% CAGR Revenue $M App Virtualization * Mid-Point of 2008 Guidance Application Delivery Revenue $M 23% CAGR Server & Desktop Virtualization App Networking App Collaboration * Mid-Point of 2008 Guidance App Virtualization Application Delivery Revenue $M 23% CAGR Xen Desktop Xen Server NetScaler * Mid-Point of 2008 Guidance Xen App Delivery Services 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 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 .