AppDirect is a company that provides a platform for software vendors to monetize and distribute their cloud services. It enables vendors to utilize various distribution channels from startup to IPO, including self-service billing, sales teams, partner programs, marketplaces, and operating their own marketplace. The AppDirect Monetization Suite is a one-stop platform that powers all aspects of cloud service commerce through features like billing, distribution, and reseller management services. It connects over 1000 software vendors to their network of channel partners.

1. © AppDirect, Inc. Confidential Material 9/16/2015 1AppDirect Overview
AppDirect Monetization Suite Webinar

2. © AppDirect, Inc. Confidential Material 9/16/2015 2AppDirect Overview
AppDirect was founded to help businesses find, buy,
and use cloud applications and services
$135 MILLION IN FUNDING
RECENT SERIES D LED BY PET ER T HIEL’S
M IT HRIL CAPIT AL M AN AG EM E NT
WINNER OF NUMEROUS INDUSTRY
AWARDS AND ACCOLADES
COOL VENDOR
FAST E ST -G RO W I NG
SOFT W AR E COM PAN IE S

3. © AppDirect, Inc. Confidential Material 9/16/2015 3AppDirect Overview
Software distribution in the modern “as-a-service” era has
become a highly complex and fragmented process
BUSINES S CONSUM ER S
DEVELOPE R S

4. © AppDirect, Inc. Confidential Material 9/16/2015 4AppDirect Overview
AppDirect has introduced the world’s first platform designed for
on-demand software distribution
SOFTWARE VENDORS
Build cloud services
CONSUMERS
Consume cloud services
CHANNEL PARTNERS
Sell cloud services
SMB
ENTERPRISE

5. © AppDirect, Inc. Confidential Material 9/16/2015 5AppDirect Overview
Since 2009 we have scaled to connect leading brands to power
the global cloud economy
30M+
BUSINES S ES REAC H E D W ORLDW ID E
1M+
PAY I NG USERS
350+
EM PLOY EES
10
GLOB AL OFFICES
125+
COUNT RIES
500%
Y -O-Y G RO W T H
AP P D I R E C T O F F I C E
M AR K E T P L AC E S
AC T I V E U S E R S

6. © AppDirect, Inc. Confidential Material 9/16/2015 6AppDirect Overview
The “Channel” has come to mean many different things to many
different software vendors
“It’s better to think of distribution as
something essential to the design of
your product. If you’ve invented
something new but you haven’t invented
an effective way to sell it, you have a
bad business—no matter how good the
product.”
Peter Thiel
Zero to One
AppDirect Investor

7. © AppDirect, Inc. Confidential Material 9/16/2015 7AppDirect Overview
So how do you distribute digital software in the on-demand
world?

8. © AppDirect, Inc. Confidential Material 9/16/2015 8AppDirect Overview
Survey: 90% of SaaS vendors offer self-serve commerce or direct sales
1) Direct Sales: Self-Service Commerce and Sales Teams
• Relies solely on word of mouth
and inbound marketing
• Growth from 15,000 active users
to 500,000 users in 12 months
• 135,000 paid accounts
• 60,000 teams using Slack
• 800,000 individual integrations to
3rd party apps
• Revenue derived exclusively
through direct sales and self-
serve commerce
• Grew to 50,000 paying
businesses in 7 years
• 145%, 89%, 76% YoY growth
rates in 2012, 2013, and 2014
Cloud based Communication and Collaboration
Founded February 2014
Private
Cloud based Communication and Collaboration
Founded February 2007
Public: $1.89B Market Cap

9. © AppDirect, Inc. Confidential Material 9/16/2015 9AppDirect Overview
Survey: 56% of SaaS vendors offer a Referral or Affiliate Program
2) Referral and Affiliate Programs
• Encouraged users to invite a
friend in exchange for 500MB
free storage
• Grew from 100,000 registered
users to 4 million in just 15
months
• 1,950% YoY growth during that
period
• Offers program for affiliate
partners to send qualified leads
to Shopify in exchange for a 20%
share in revenue
• Paid out $1.1M and $2.3M in
referral bonuses in 2012 and
2013
• 23% of total revenue generated
from Affiliate Program in those
years
Cloud Storage and Collaboration
Founded 2007
Private
eCommerce and Website Builder
Founded February 2004
Public: $2.02B Market Cap

10. © AppDirect, Inc. Confidential Material 9/16/2015 10AppDirect Overview
Survey: 44% of SaaS vendors operate a Reseller Program
3) Reseller Programs
• Created Reseller Program to grow sales through trusted local experts
• Engaged 2,000 accounting firms in New Zealand through
Telemarketers and trained them to sell Xero subscriptions in exchange
for ~20% of revenue
• In just three years after building the program, Xero grew from 12,000
to 135,000 customers
• 60% of their $127M in revenue derived from resellers
Cloud based Accounting
Founded 2006
Public: $1.90 Market Cap

11. © AppDirect, Inc. Confidential Material 9/16/2015 11AppDirect Overview
Survey: 68% of SaaS vendors distribute through marketplaces
4) Distribution through App Marketplaces
Cloud based document management
Founded 1975
Public: $343B Market Cap
• Top selling application in the AppDirect network
• Heavy investment into Channel Development through CSP Program
• Microsoft certifies all Resellers and Marketplace providers to sell and
support Office 365
• Built an API for reselling Office programmatically, build your own
interface or use their reseller console
• Account Representatives own quota associated with Marketplace
Sales – organization is incentivized to build distribution partnerships
• Sold over 3M seats through marketplace syndication

12. © AppDirect, Inc. Confidential Material 9/16/2015 12AppDirect Overview
Survey: 31% of SaaS vendors operate their own marketplace
5) Operating your own Marketplace
Cloud based project management
Founded 2002
Public: $343B Market Cap
• Built marketplace to offer third-party add-ons to products including
Jira, Hipchat, and Confluence
• Launched Marketplace in 2012, already onboarded over 1700 third
party add-ons and services
• Generated $30M in transaction revenue in 2014 alone
• Retains 25% of all sales through marketplace

13. © AppDirect, Inc. Confidential Material 9/16/2015 13AppDirect Overview
AppDirect enables developers to monetize their cloud service
from startup to IPO and beyond
From global brands to
new startups, AppDirect
enables our partners to
successfully sell software
at any stage.
REVENU E GROW T H ST AGES
Self-Service Billing through
Website

14. © AppDirect, Inc. Confidential Material 9/16/2015 14AppDirect Overview
AppDirect enables developers to monetize their cloud service
from startup to IPO and beyond
From global brands to
new startups, AppDirect
enables our partners to
successfully sell software
at any stage.
REVENU E GROW T H ST AGES
Automated Order Fulfillment
through Sales Team
Self-Service Billing through
Website

15. © AppDirect, Inc. Confidential Material 9/16/2015 15AppDirect Overview
AppDirect enables developers to monetize their cloud service
from startup to IPO and beyond
From global brands to
new startups, AppDirect
enables our partners to
successfully sell software
at any stage.
REVENU E GROW T H ST AGES
Automated Order Fulfillment
through Sales Team
Self-Service Billing through
Website
Partner Programs through
Resellers

16. © AppDirect, Inc. Confidential Material 9/16/2015 16AppDirect Overview
AppDirect enables developers to monetize their cloud service
from startup to IPO and beyond
From global brands to
new startups, AppDirect
enables our partners to
successfully sell software
at any stage.
REVENU E GROW T H ST AGES
Automated Order Fulfillment
through Sales Team
Syndication Exchange
through Marketplaces
Self-Service Billing through
Website
Partner Programs through
Resellers

17. © AppDirect, Inc. Confidential Material 9/16/2015 17AppDirect Overview
AppDirect enables developers to monetize their cloud service
from startup to IPO and beyond
From global brands to
new startups, AppDirect
enables our partners to
successfully sell software
at any stage.
REVENU E GROW T H ST AGES
Automated Order Fulfillment
through Sales Team
Service Delivery Platform
through Your Marketplace
Syndication Exchange
through Marketplaces
Self-Service Billing through
Website
Partner Programs through
Resellers

18. © AppDirect, Inc. Confidential Material 9/16/2015 18AppDirect Overview
Without the right tools and technology, experimentation with
different Sales Channel is very expensive and carries risk
“Most businesses get zero distribution
channels to work: poor sales rather than
bad product is the most common cause
of failure. If you can get just one
distribution channel to work, you have a
great business. If you try for several but
don’t nail one, you’re finished.”
Peter Thiel
Zero to One
AppDirect Investor

19. © AppDirect, Inc. Confidential Material 9/16/2015 19AppDirect Overview
Introducing the AppDirect Monetization Suite: One platform for
all distribution channels
MARKETPLACES
YOUR WEBSITE
RESELLERS
YOUR MARKETPLACE
“SELL TO”
“SELL TO”
“SELL THROUGH”
“SELL THROUGH”
YOUR PRODUCTS
& OTHER LEADING
SAAS PRODUCTS

20. © AppDirect, Inc. Confidential Material 9/16/2015 20AppDirect Overview
The AppDirect Monetization Suite
Subscription Billing-as-a-
Service
• Manage complex subscription based
pricing models and renewal plans
through a billing engine
• Give customers the ability to
purchase via hosted checkout floor
or using AppDirect billing APIs
• Manage advance billing scenarios
with ease including refunds,
renewals, charge-backs, discounts,
etc
Launch a Partner Program for
Resellers
• Enable a Scalable and Efficient
Partner Delivery Platform for 3rd
Parties to Resell your products
• Allow resellers to own full customer
lifecycle or just sell product.
• Maximize reseller footprint by
providing opportunity to sell 3rd party
products stand alone, as add-ons or
bundled as part of a complete
solution.
Launch your own add-on store
• Enable a vibrant ecosystem of 3rd
party products which complement
your existing product portfolio.
• Referral Listing: Product Profiles and
Track Referrals
• Sell add-ons: Utilize SSO and single bill
to give customers great experience and
drive add-on sell through.
Distribution through AppDirect
Network
• Distribute your products and 3rd
party services as both standalone
products or as pre packaged
bundles through the AppDirect
network of distributors
• Reach 30+ million customers
through over 15 different
marketplaces around the globe

21. © AppDirect, Inc. Confidential Material 9/16/2015 21AppDirect Overview
AppDirect powers every aspect of cloud service commerce
MARKETPLACE &
MANAGEMENT SERVICE
Facilitates the monetization of
products through hosted
marketplaces, enabling
companies to sell their own core
offerings or third-party products.
BILLING & DISTRIBUTION
SERVICE
Drives direct sales with self-
service commerce through a
company’s own website, as well
as indirect sales through a
network of marketplaces.
RESELLER MANAGEMENT
SERVICE
Allows companies to oversee
and grow reseller networks with
automated tools needed to
manage the complete customer
lifecycle.

22. © AppDirect, Inc. Confidential Material
Channel Partners
9/16/2015 22AppDirect Overview
Join the world’s largest community of Software Vendors and
Channels Partners
1000+
APP S INT EGR AT E D
AN D AVAI L AB L E
FOR SING LE SIGN-ON
AN D M AN AG EM E NT
100+
NEW IM PORT AB L E
APPS EVERY M ONT H
5-10
NEW DIST RIBUT ION
INT EGR AT I ON S
EVERY M ONT H
270+
APP SY NDIC AT IO N
INT EGR AT I ON S WIT H
FULL CONT R ACT U AL
AGR EEM E NT S
Software Vendors

23. © AppDirect, Inc. Confidential Material 9/16/2015 23AppDirect Overview
Paul Arnautoff
Director of Business Development
paul.arnautoff@appdirect.com
415-602-0439
Thank You!