investor deck - q2 2015

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Investor PresentationNovember 2015

New Relic Confidential | 2

Safe Harbor

This presentation and the inf ormation contained herein (including any inf ormation that may be incorporated by ref erence) is prov ided f or inf ormational purposes only and should not be construed as an of f er,

commitment, promise or obligation on behalf of New Relic, Inc. (“New Relic”) to sell securities or deliv er any product, mater ial, code, f unctionality or other f eature. Any inf ormation prov ided hereby is proprietary to

New Relic and may not be replicated or disclosed without New Relic’s express written permission.

Such inf ormation may contain f orward-looking statements within the meaning of f ederal securities laws. Any statement that is not a historical f act or ref ers to expectations, projections, f uture plans, objectiv es,

estimates, goals, or other characterizations of f uture ev ents is a f orward-looking statement. These f orward-looking statements can of ten be identif ied as such because the context of the statement will include

words such as “believ es,” “anticipates,” “expects” or words of similar import. Forward-looking statements contained in this presentation include, but are not limited to, statements concerning New Relic's f uture

f inancial perf ormance, growth prospects, ability to attract and retain customers, ability to execute on its product strategy and ability to successf ully expand in its existing markets and into new markets.Actual

results may dif f er materially from those expressed in these f orward-looking statements, which speak only as of the date hereof , and are subject to change at any time without notice. Existing and prospectiv e

inv estors, customers and other third parties transacting business with New Relic are cautioned not to place undue reliance on this f orward-looking inf ormation. The achiev ement or success of the matters cov ered

by such f orward-looking statements are based on New Relic’s current assumptions, expectations and belief s and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that

may cause the actual results, perf ormance or achiev ements to dif f er materially from those expressed or implied in any f orward-looking statement. Further inf ormation on f actors that could af f ect such f orward-

looking statements is included in the f ilings New Relic makes with the SEC f rom time to time. Copies of these documents may be obtained by v isiting New Relic’s Inv estor Relations website

at http://ir.newrelic.com or the SEC’s website at www.sec.gov . New Relic assumes no obligation and does not intend to update these f orward-looking statements, except as required by law. New Relic makes no

warranties, expressed or implied, in this presentation or otherwise, with respect to the inf ormation prov ided.

New Relic's f iscal y ear ends March 31. This presentation includes certain non-GAAP f inancial measures as def ined by the SEC rules. These non-GAAP f inancial measures are in addition to, and not as a

substitute f or or superior to, measures of f inancial perf ormance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP f inancial measures v ersus their

nearest GAAP equiv alents. For example, other companies may calculate non-GAAP f inancial measures dif f erently or may use other measures to ev aluate their perf ormance, all of which could reduce the

usef ulness of New Relic's non-GAAP f inancial measures as tools f or comparison. As required by Regulation G, New Relic has prov ided a reconciliation of those measures to the most directly comparable GAAP

measures, which is av ailable in the appendix.

http://ir.newrelic.com/

http://www.sec.gov/


NEW RELIC HIGHLIGHTS

Intuitive Products Deliver Ease-

of-Use, Strong Results and

High Adoption

Built on 100% SaaS,

Multi-Tenant Cloud Platform with

Enterprise-Grade Security

Integrated Software Analytics

Cloud for Developers,

IT and Business Users


STRONG FINANCIAL PERFORMANCE

• Land and expand model driven by increasing penetration of the enterprise and expanding product portfolio

• Recurring revenue model with industry leading revenue retention metrics

• Growing, multibillion dollar market opportunity

$11.7

$29.7

$63.2

$110.4

$175.0

FY12 FY13 FY14 FY15 FY16E

Note: FY16 Revenue Based on Midpoint of Guidance

Historical Revenue ($MM)Q2’13 Q2’16

$6.6M Revenue $42.9M

3,847 Paid Business Accounts 12,840

~$7,600Revenue per Average

Paid Business Account~$13,600

<25$100K+ Subscription

/Year Customers>250

1 # of Paid Products 5


software

business

Every business

is becoming a



Rules of the Game Have Changed: Modern Software is Different But to support this transformation, IT is under the gun

Yesterday’s Software

Development Team

App

• Back-Office Applications

• Periodic Releases, Static

• On-Premise

Single Code Base

One LanguageOperations Team

Data Deluge

Modern Software

Multiple Components

Multiple, Dispersed Development

Teams • Customer-facing Applications –

higher stakes

• Fast, Iterative Release Cycles

• Modern Stack: Cloud, Mobile

• Real-Time

Multi-language ApplicationsRuby/ Node.js/ Java/ .NET/ PHP/ Python

Private CloudPublic Cloud

Multiple interfaces mobile, tablet, browser

App

Security

Operations Teams

Digital Business Managers


ENTER SOFTWARE ANALYTICS


Software Analytics is the category of analytics

that gathers metrics in real-time from live production

software and transforms them into actionable data

010000100101001001010100101010100101000000001010

0101010110000010101000000010101010111110101010101

0111111010101010000101100100100101010101001010101

00101111101001010100101000001010101011101111111110


Businesses Requires Software Analytics to Answer:

BusinessOutcome

ApplicationPerformance

CustomerExperience

How are customers engaging?

What is the page load time to

initial experience?

Am I open for business?

Is the application working?

How is my business doing?

What changes influence

business success?


Application performance

Customer experience

Business outcome

NRDB


2007 2015

>500,000+ Users

>12,000 Paid Business Accounts

Our History of Innovation and Growth


New Relic’s Integrated Full-Stack Solution

Software Data

Collect

New Relic Cloud

DatabaseStore

Analyze

Servers Mobile Plugins Brow ser Apps


How New Relic Works

We collect 700+ Billion

data points each day

New Relic Agent is

inserted into app code

Transaction events are

collected and sent to New

Relic Data Cloud

Brow ser

Web Server Back-end Server

New Relic

Data Cloud

Mobile


Same Data Many Use Cases

IT operations

Developers

SecurityFinance

Sales

Marketing


Creating a Global Movement - #customerlove



New Economy Disruptors and Enterprises are Solving the Problem

Disruptors Large Global Enterprises


New Relic is All In on SaaS

Isolate IT

complexity

Rapid Deployment:

value in hours

Continuous Release

Cycles

New Relic SaaS Service

and Business Model Is the Foundation

SaaSSpeed to innovation, low TCO, enterprise-grade security


We Take Security Seriously

Service Compliance (Not Just The Data Center)

• TRUSTe, SOC2 Type II, SSA-16, US/UE Safe Harbor

• Regular 3rd party security assessments

Mature Security Program

• Dedicated security team from Amazon, Intuit, Mozilla, PwC

• Go beyond SSA-16: audit our own apps, infrastructure and network

• Published Cloud Security Alliance questionnaire


INVESTING TO CAPITALIZE ON SOFTWARE ANALYTICS OPPORTUNITY

SIGNIFICANT OPERATING LEVERAGE WITH GROWING SCALE

INCREASING ENTERPRISE PENETRATION

LAND AND EXPAND MODEL

GROSS MARGINS OF 80%+

STRONG REVENUE GROWTH

NEW RELIC FINANCIAL HIGHLIGHTS


$12$30

$63

$110

$175


Historical Revenue ($MM) Historical Quarterly Revenue ($MM)

RAPID REVENUE GROWTH

Note: FY16 Revenue Based on Midpoint of Guidance

$12

$14

$17

$20

$23

$25

$29

$33

$38

$43

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16


2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

Paid Business Accounts > $5K in Annual Subscription Revenue

Please refer to Appendix for definition of Paid Business Accounts

Land: Increasing focus on high-value accountsINCREASING FOCUS ON HIGH-VALUE ACCOUNTS


Growing with a customer’s

environment

Expanding across

business units

Expanding product

footprint

EXPANSION VECTORS WITHIN INSTALLED BASE


5/13/2011 9/27/2011 3/5/2012 7/24/2012 5/30/2013 3/31/2015FY12 FY13 FY14

Current Products Evaluating

Number of APM Subscriptions Annual Subscription Value

16xRepeat Purchaser Since Initial Subscription Purchase in 2011

FY12 FY13 FY14FY15 FY15

Internet Company

GROWING WITH A CUSTOMER’S ENVIRONMENT

FY16


Product Usage

December

2013

September

2014

March 2015 September

2015

Annual Subscription Value

September 2014

Added

March 2015

Committed

Increase

Travel Company

EXPANDING PRODUCT FOOTPRINT

December 2013

September 2015

Added


Number of APM Subscriptions

Current Products

Annual Subscription Value

11/21/121/29/143/31/2015

>50x Increase in #

Subscriptions

FY13 FY15FY14

Evaluating

FY13 FY15FY14 FY16 FY16

Media Company

EXPANDING ACROSS BUSINESS UNITS


50%

75%

100%

125%

150%

Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

STRONG EXPANSION RATES

26

100%

Do

lla

r-B

as

ed

Ne

t E

xp

an

sio

n R

ate

s

See Appendix for an explanation of how we calculate Dollar-Based Net Expansion rate


0% 25% 50% 100%75%

% of Ending MRR by segment

% of Total paid business accounts by segment

11%

35%

16%

28%

73%

37%

Enterprise(1000+ employees)

Mid-Market(100-1000 employees)

SMB(0-100 employees)

SUCCESS ACROSS ALL CUSTOMER SEGMENTS

Developer

Data as of September 30, 2015


STEADY GROWTH OF LARGE PAID BUSINESS ACCOUNTS

Note: Annualized subscription revenue calculated as quarterly revenue multiplied by 4 for each quarterly period. See Appendix for an explanation of how we define a Paid Business Account

0

300

Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

Fiscal Quarter

Paid Business Accounts > $100k in Annual Subscription Revenue


Annualized

Su

bscrip

tion R

eve

nu

e / A

ve

rage P

aid

Bu

sin

ess A

cco

un

tP

aid

Busin

ess A

ccounts

ADDING CUSTOMERS AT HIGHER AVERAGE REVENUES

$6,000

$8,000

$10,000

$12,000

$14,000

3,000

5,000

7,000

9,000

11,000

13,000

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

Annualized

Su

bscrip

tion R

eve

nu

e / A

ve

rage P

aid

Bu

sin

ess A

cco

un

tP

aid

Busin

ess A

ccounts

12,840

6,634

$13,585

$7,649


LARGE INTERNATIONAL CUSTOMER FOOTPRINT

50%50%

FY2015 Paid

Business Accounts by Region

66%

34%

FY2015 Revenue

By Region

US

International


INCREASED SCALE DELIVERING OPERATING LEVERAGE

Expenses as a Percentage of Revenue (%)

31

Note: Metrics are Non-GAAP and exclude stock-based compensation, litigation and acquisition-related expenses. See Appendix for reconciliation. FY16 Based on

Midpoint of Guidance.

91% 89% 90%76%

36%23% 24%

20%

16%

17% 14%

18%

16%

16% 17%

19%

159%

146% 144%133%

126%

0%

50%

100%

150%

200%


S&M R&D G&A COGS


(% of Revenue) FY’14 FY’15

Gross Margin 83% 81%

Sales & Marketing 90% 76%

Research &

Development24% 20%

General &

Administrative14% 18%

Operating Margin (44%) (33%)

LT Target *

78% – 82%

35% – 38%

15% – 18%

7% – 9%

20% – 25%

LONG-TERM TARGET OPERATING MODEL

Note: Metrics are Non-GAAP and exclude stock-based compensation, amortization of purchased intangibles, litigation and acquisition-related expenses. See Appendix for reconciliation.


GROWTH STRATEGIES

Deliver great products that delight customers

Increase value for existing customers so they expand

Drive sales growth by building a strong brand

33


Number of Paid Business AccountsWe define the number of paid business accounts at the end of any particular period as the number of accounts at the end of th e period as identified by a

unique account identifier for which we have recognized revenue on the last day of the period indicated.

A single organization or customer may have multiple paid business accounts for separate divisions, segments, or subsidiaries

Dollar-Based Net Expansion RateOur dollar-based net expansion rate compares our recurring subscription revenue from customers from one period to the next. We m easure our dollar-based

net expansion rate on a monthly basis because many of our customers change their subscriptions more frequently than quarterly or annually.

To calculate our annual dollar-based net expansion rate, we first establish the base period monthly recurring revenue from all our customers at the end of a month. This represents the revenue we would contractually expect to receive from those customers over the following month, wi thout any increase or reduction in any of their subscriptions.

We then (i) calculate the actual monthly recurring revenue from those same customers at the end of that following month; then (ii) divide that following month’s

recurring revenue by the base month’s recurring revenue to arrive at our monthly net expansion rate; then (iii) calculate a quarterly net expansion rate by compounding the net expansion rates of the three months in the quarter; and then (iv) calculate our annualized net expansion rate by compounding our quarterly net expansion rate over an annual period

APPENDIX - DEFINITIONS

34

New Relic Confidential | 35The company has not reconciled any of the non-GAAP measures referenced above to the most comparable GAAP measure in its long-term target non-GAAP operating model because

certain items are out of the company's control and/or cannot be reasonably predicted. Accordingly, a reconciliation is not av ailable without unreasonable effort.

NON-GAAP TO GAAP RECONCILIATION

($000s, Except for %) FY12 FY13 FY14 FY15

Gross Profit (GAAP) 9,759 24,586 52,394 88,589

Stock-Based Compensation 11 212 159 591

Amortization of Purchased Intangibles 400

Amortization of Stock-Based Compensation in Software Development 54 179

Gross Profit (Non-GAAP) 9,770 24,798 52,607 89,759

Gross Margin (Non-GAAP) 83.8% 83.6% 83.3% 81.3%

Cost of Goods Sold (GAAP) 1,904 5,078 10,780 21,802

Stock-Based Compensation 11 212 159 591



Cost of Goods Sold (Non-GAAP) 1,893 4,866 10,567 20,631

Sales & Marketing (GAAP) 10,748 28,365 58,156 89,162

Stock-Based Compensation 143 2,060 1,373 5,108


Sales & Marketing (Non-GAAP) 10,605 26,305 56,783 84,029

Research & Development (GAAP) 4,300 8,565 16,496 24,024


Research & Development (Non-GAAP) 4,174 6,945 15,071 21,969

General & Administrative (GAAP) 2,180 10,053 17,178 25,319


Litigation Expenses 0 154 5,135 1,322


Transaction Costs Related to Acquisition 71

General & Administrative (Non-GAAP) 1,857 5,105 8,780 19,939

Operating Loss (GAAP) ($7,469) ($22,397) ($39,436) ($49,916)


Litigation Expenses 0 154 5,135 1,322


Transaction Costs Related to Acquisition 71


Operating Loss (Non-GAAP) (6,866) (13,557) (28,027) (36,178)

Operating Margin (Non-GAAP) (58.9%) (45.7%) (44.4%) (32.8%)

investor deck - q2 2015

Investor Relations