Rippling Investor Memo: $45M Series A

Rippling took an unusual approach when raising their $45 million Series A led by Kleiner Perkins in 2019: they used "no formal Pitch Deck" as the center of their fundraising materials. In lieu of the traditional pitch deck, Rippling presented an Investor Memo: a simple document which laid out the company’s pitch in prose form.

CONFIDENTIAL RIPPLING METRICS • PLACEHOLDER DATA • PREPARED FOR VC FIRM X

Rippling Investor Memo: $45M Series A - Page 1

KPIs  JAN 1, 2018 - FEB 1, 2019 Total ARR $X Last 4 Months  X% MoM Growth YoY Growth X% Expanding Cohorts X% in Month 12 Average NPS Score X Sales Rep Payback X Months RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 2

BOOKINGS ARR  Our total ARR grew X% between Jan ‘18 and Jan ‘19. RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 3

ARR GROWTH RATES 30% 25% 20% 15% 10% 5% 0% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 MoM Growth in Total Bookings ARR Linear (MoM Growth in Total Bookings ARR) RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 4

COHORT ANALYSIS  Our cohorts show expanding revenue, also known as “net-negative churn.” % of Retained ARR in Lifetime Month Booking   0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Cohort Jun-17 X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% Jul-17 X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% Aug-17 X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% Sep-17 X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% Oct-17 X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% Nov-17 X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% Dec-17 X% X% X% X% X% X% X% X% X% X% X% X% X% X% Jan-18 X% X% X% X% X% X% X% X% X% X% X% X% X% Feb-18 X% X% X% X% X% X% X% X% X% X% X% X% Mar-18 X% X% X% X% X% X% X% X% X% X% X% X% CONFIRM THIS IS THE RIGHT CHART Apr-18 X% X% X% X% X% X% X% X% X% May-18 X% X% X% X% X% X% X% X% X% Jun-18 X% X% X% X% X% X% X% X% Jul-18 X% X% X% X% X% X% X% Aug-18 X% X% X% X% X% X% Sep-18 X% X% X% X% X% Oct-18 X% X% X% X% Nov-18 X% X% X% Dec-18 X% X% Jan-19 X% Weighted Avg X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% X% RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 5

EXPANSION ARR  Expansion ARR exceeds churned and downgraded ARR, due to   very low customer churn and product line expansion. RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 6

QUICK RATIO  High quick ratio is a result of expansion revenue   greatly exceeding contraction revenue. RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 7

2018 MAGIC NUMBER  Magic Number suggests our sales and marketing investments   are prudent, even when all ﬁxed headcount costs are included. Magic Number Guide < 0.5 Not ready to invest in S&M < 0.75 Evaluate > 0.75 Invest in S&M OUR MAGIC NUMBER INCLUDES  All-in Sales & Marketing spend and HC. On average, 15-20% of this goes toward Marketing salaries (CEO, CMO, etc.) and external ﬁrms (PR, design) that do not directly contribute to acquiring revenue. RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 8

NPS SCORE  Our average NPS is 66.   NPS dipped in December on a small sample size. 90 80 70 60 50 40 30 20 10 0 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 9

2018 GROSS MARGINS  Gross Margins are increasing as ﬁxed costs are amortized over more revenue. RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 10

QUOTA ATTAINMENT  Sales team continues to hit or exceed quota. RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 11

AVERAGE DEAL SIZE  Avg. deal size is increasing as features and brand grow. RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 12

CASH ON CASH  Our reps bring in more each month than we pay out in compensation. RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 13

ALL-IN CUSTOMER ACQUISITION COST (CAC)  Large ﬁxed costs are being amortized over larger revenue base. RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 14

CAC PAYBACK PERIOD  Our payback period is X months. RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 15

Methodology & Footnotes  (We only included one footnote slide, as an example)

SLIDES 4 - 8 RIPPLING METRICS - PLACEHOLDER DATA ONLY • SLIDE 17