Customer Panel - Zuora · 2019-03-15 · • other approach highlights: • go-live in fy ‘19 (april 2018): officially reporting under asc 606 • systems integration partner engaged

Customer Panel

K e v i n E c k e r t D i r e c t o r R e v e n u e

J a n e t t e F a l l s V P R e v e n u e a n d

O r d e r O p e r a t i o n s

A s h i s h S h a r m a S r P r o g r a m M a n a g e r

Tech Teams Rush to Catch Up

as New Accounting Rule

Looms

IT departments are writing new code, upgrading

their systems and investing in expensive

software

Wall Street Journal

“It starts as an accounting exercise

and ends up as an IT project,”

-- Tony Skiadas

SVP Finance, Controller - Verizon

It impacts every aspect of how you go to

market and run the business, requiring

changes in systems, processes and reporting

both internally and externally to investors

both public and private

— Scott Davidson

CFO, Hortonworks Workday employed a team of five full-

time accountants to review more than

6,000 contracts as it prepared for the new

rule. The biggest surprise was how much

work it was. It’s another big technology

commitment

— Robynne Sisco

CFO, Workday

ASC 606 Data

Recast Strategy

K e v i n E c k e r t - S a l e s f o r c e

Source Data Quality & Augments

System Integrations

Software Customizations

Recast vs. Go-live record processing

606 Recast Challenges

AU 606 Revenue Project

P r e s e n t a t i o n b y

J a n e t t e F a l l s , V P R e v e n u e a n d O r d e r O p e r a t i o n s

Steering Committee Cross functional members including Legal, Tax, Marketing, Investor Relations and Sales

Three Phase Approach and estimated timelines Assessment – 3 months

Design – 3 months

Implementation – 6 months. Includes upgrade to Leeyo software 3.0

Transition methodsWe are evaluating our adoption method and leaning towards using the cumulative catch up approach

and not recast prior year financials.

Financial impact Key areas we are focused on

Commissions

Change from Sell Thru to Sell In

Software accounted for under SOP 97-2

Revenue Project

Disclosures

The SEC is very focused on companies increasing their disclosures

Wall Street is keenly interested in the expected impact to our revenues as well

2018 Disclosures will include further disaggregation of revenue

Areas and Activities

1. Resource Planning

Accounting firms and others are stretched thin

Need to define and secure your resource needs as early as possible

2. System Needs

Requires internal IT support

3. Processes

Reviewing accounting models and design requirements will require a look at current and to be

process changes

Revenue Project

ASC 606A program delivery viewpoint

R e v e n u e R e c o g n i t i o n S u m m i t 2 0 1 7

P R E S E N T A T I O N B Y A S H I S H S H A R M A

OUR IMPLEMENTATION APPROACHTHERE ARE SEVERAL UNKNOWNS

USE EVERY PHASE OF THE PROJECT TO DE-RISK AS MUCH AS POSSIBLE

S TA R T R E Q U I R E M E N T S PA R A L L E L R U ND E S I G N

CONTINUOUS BUSINESS PARTNER ENGAGEMENT

Q4 FY ’16 Q1/Q2 FY ’17 Q2/Q3 FY ’17 Q4 FY ’17/Q1 FY ‘18 Q2 FY ‘18 Q3/Q4 FY ‘18

B U I L D / T E S T U AT

• OTHER APPROACH HIGHLIGHTS:

• GO-LIVE IN FY ‘19 (APRIL 2018): OFFICIALLY REPORTING UNDER ASC 606

• SYSTEMS INTEGRATION PARTNER ENGAGED FOR BOUNDARY SYSTEMS INTEGRATIONS

• LEEYO PROFESSIONAL SERVICES ENGAGED FOR TOOL FUNCTIONALITY, INTEGRATION

SUPPORT

• THREE PARTY DELIVERY TEAM – IT , SI PARTNER, LEEYO

• HYBRID ITERATIVE WATERFALL APPROACH

• OVER COMMUNICATE TO ALL BUSINESS STAKEHOLDERS

FY = Apr 1st – Mar 31st

KEY PROGRAM RISKS

RISK AREA TIMELINE

POLICY GUIDANCE / VALUATION ALLCATION Q4 FY ’16 – Q4 FY ’17

TOOL VENDOR SELECTION Q4 FY ’16

ARCHITECTURE Q3 FY ‘16 – Q1 FY ’18

INTEGRATIONS Q4 FY ‘16 – Q1 FY ’18

MISSED REQUIREMENTS Q2 FY ‘16 – Go Live

BASE PRODUCT UPDATES Q2 FY ‘16 – Go Live

LEEYO PROFESSIONAL SERVICES

ENGAGEMENT

Q2 FY ‘16 – Go Live

PERFORMANCE Q2 FY ’18 – Go Live

LESSONS LEARNED ALONG THE WAY

• Not an I.T. Project ; it is a business transformation program driven by compliance to ASC 606

• What you require, design or deliver has to be directly tied to the program objective – Compliance

• Business partners have day jobs in addition to working on this project. Help them succeed by:

• Over communicating in various forums

• Re-iterating previous decisions, designs, solutions

• Having a strong business sponsor

• Helping them turn current operational solutions into ASC 606 requirements (“I want what I have today”)

• Engage with and manage the relationship with Leeyo and SI partner

• Tool customizations are not your friend

Q & A

Thank YouR e v e n u e R e c o g n i t i o n S u m m i t 2 0 1 7