Nr fy19 analystday_presentation_web

1. ©2008–18 New Relic, Inc. All rights reserved.
New Relic Analyst
and Investor Day
June 4, 2018

2. ©2008–18 New Relic, Inc. All rights reserved
Welcome
Jon Parker
VP, Strategic Finance & Investor Relations

3. ©2008–18 New Relic, Inc. All rights reserved 3
Safe Harbor
This presentation is provided for informational purposes only and should not be construed as an offer, commitment, promise or obligation to sell securities or
deliver any product, material, code, functionality or other feature.
The information provided hereby also contains forward-looking statements within the meaning of federal securities laws. Any statement that is not a historical fact
or refers to expectations, projections, future plans, objectives, estimates, goals or other characterizations of future events is a forward-looking statement. These
forward-looking statements can often be identified as such because the context of the statement will include words such as “believes,” “anticipates,” “expects” or
words of similar import. Statements included in this presentation that are forward-looking statements include but are not limited to statements regarding our
future financial performance, such as the steps and potential achievement associated with respect to achieving growth to and beyond a hypothetical future one
billion dollar run rate, including cohort growth and customer acquisition, compound annual growth rate (CAGR), revenue, customers, revenue per average paid
business account, revenue mix, gross margin, expenses, operating margin and free cash flow, our outlook on our financial results for fiscal 2019, our expectations
as to non-GAAP operating income, non-GAAP operating cash flow and free cash flow, our expectations as to the relative business mix of enterprise and small and
mid-market customers, financial impacts of our convertible note financing transaction, and any other trends in our financial performance as well as our discussion
of other market trends and opportunity. These forward-looking statements are based on our assumptions, expectations and beliefs as of the date of this
presentation and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause our actual results, performance or
achievements to differ materially from those expressed or implied in any forward-looking statement. We assume no obligation and do not intend to update these
forward-looking statements, except as required by law. New Relic makes no warranties, expressed or implied, in this presentation or otherwise, with respect to the
information provided. Existing and prospective investors, customers and other third parties transacting business with New Relic are cautioned not to place undue
reliance on this forward-looking information. For more information about factors that may cause actual results to differ materially from forward-looking
statements, please refer to our May 8, 2018 press release, as well as the risks described in our most recent Form 10-K filed with the Securities and Exchange
Commission (“SEC”), particularly in the section titled Risk Factors.
This presentation also contains certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are in addition to, and not a
substitute for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these
non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may
use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Please
refer to our May 8, 2018 press release for additional information as to why we believe these non-GAAP financial measures are useful to investors and others in
assessing our operating performance. As required by Regulation G, we have provided a reconciliation of those measures to their most directly comparable GAAP
measures, which is available in the appendix to this presentation. However, we have not reconciled our expectations as to non-GAAP operating income, non-GAAP
operating cash flow and free cash flow in future periods to its most directly comparable GAAP measure because certain items, namely stock-based compensation,
lawsuit litigation expenses and employer payroll taxes on equity incentive plans, are out of our control or cannot be reasonably predicted. Accordingly,
reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to our results computed in
accordance with GAAP.

4. ©2008–18 New Relic, Inc. All rights reserved.
New Relic Vision
Lew Cirne
CEO & Founder

5. ©2008–18 New Relic, Inc. All rights reserved
Product
Innovation
6 Products
1.8B+ Events &
Metrics
Per Minute
Customer
Success
17K+ Paid Accounts
50%+ of Fortune 100
Financial
Growth
FY18 Revenue
$355M+, up 35%
Achieved Positive
Non-GAAP Net
Income in FY18
Employee
Success
1,200+ Relics
11 Global Offices
A decade of innovation and success
5

6. ©2008–18 New Relic, Inc. All rights reserved 6
By 2021, at least 50% of global GDP will be digitized

7. 7
Everybusiness
isbecominga
software
business

8. 8
Everybusiness
isbecominga
software
business

9. ©2008–18 New Relic, Inc. All rights reserved 9
Three Technology Initiatives of Digital
Transformation
Cloud
Adoption
DevOps Digital Customer
Experience

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Managing change introduces
risk and challenges

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Moving fast
with confidence

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New Relic IS the Catalyst

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Powering our customers’ digital transformations
Digital Customer
Experience
200+
Agile dev teams
DevOpsCloud
Accelerated cloud
deployment
50%faster
50% reduction in
performance incidents

14. 14

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Instrument Everything
App InfrastructureEnd-user

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App Infrastructure End-user
Intelligent Cloud
1.8B events & metrics per minute

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Intelligent Cloud
In one modern monitoring platform.
18

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A transformation of your
technology and culture
REQUIRES a transformation of
your monitoring strategy
19

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We’re at an inflection point
20

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Leading Platform for Customer Facing
Technology
Common technology
architecture
21
SaaS-deliveryApp-Centric

22. ©2008–18 New Relic, Inc. All rights reserved
Monitoring is essential to digital success
22
The percentage of application workflows monitored by APM is expected to quadruple by 2021
5%
Source: Gartner, Magic Quadrant for Application Performance Monitoring Suites, March 2018
2017
20%
2021

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$1 Billion
Revenue Run-rate
End of fiscal ‘22

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Fueling Our Next Decade of Growth
Platform Innovation Win the
Cloud
Create Lifelong
Advocates
24

25. ©2008–18 New Relic, Inc. All rights reserved.
Product Strategy
Jim Gochee
Chief Product Officer
June 4, 2018

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Core Product Principles
Simple to Use Ubiquity Fast Time to Value

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2008
2018

28. ©2008–18 New Relic, Inc. All rights reserved
The New Relic Platform
28
1.8B Events & Metrics per Minute
Enterprise Security 7 Programming Languages Cloud & On-Host Integrations
✓ SSAE-16 || New Relic Platform
✓ SSAE-16 || Data Center
✓ SSAE-16 || CSA-STAR
Pending

29. ©2008–18 New Relic, Inc. All rights reserved 29
Strategic platform for managing the success of your
technology initiatives
Cloud
Adoption
DevOps Digital Customer
Experience

30. ©2008–18 New Relic, Inc. All rights reserved 30
Liberty Mutual Aspires to
Be “Software Company
That Sells Insurance”

31. ©2008–18 New Relic, Inc. All rights reserved 31
“An Internet
Company”
Within
McDonald’s

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Then Now
Organization and Culture:
IT + Dev silos, Waterfall Development,
Infrequent Deploys (1x/month)
Tech and Architecture:
On-Prem, Monolithic Software,
Physical Servers & VMs
Business Outcome:
Monitoring is a Luxury Good for
Reducing Costs
Organization and Culture:
DevOps, Agile Development, Frequent
Deploys (many times / day)
Tech and Architecture:
Cloud, Microservices, Containers,
Serverless
Business Outcome:
Observability is an Essential Tool
for Increasing Revenue

33. ©2008–18 New Relic, Inc. All rights reserved 33
Application Is the Center of Gravity in Modern Software
ApplicationCustomer Infrastructure Network

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Why We Win – Our Competitive Advantages
Pure SaaS
Ease of Use
Modern Stack
Real-Time
Analytics
Scale

35. ©2008–18 New Relic, Inc. All rights reserved 35
Recent Product Investment Aligned With Needs of
Modern Enterprises
Support the
Modern Stack
Enhance the
Platform
Expand in the
Enterprise
Cloud Platform
Support
Serverless
Kubernetes
Distributed Tracing
Infrastructure
NR Applied
Intelligence
Radar
Health Maps
End User
Enhancements
EU Region
Enterprise
Management Features

36. ©2008–18 New Relic, Inc. All rights reserved 36
Infrastructure NetworkApplicationCustomer

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Our Product Priorities for FY19
Best for
Cloud
Rethinking the
User Experience
Programmable
Platform
Deep Focus on
the Customer
Drive
Adoption

38. ©2008–18 New Relic, Inc. All rights reserved 38
Our R&D Engine
Agile Dev
at Scale
Development
Velocity
Cloud-Scale
Volume
50+New Relic
Agile Teams
170Customer Facing
Features Last
Quarter
1.8BEvents & Metrics
Collected
per Minute

39. ©2008–18 New Relic, Inc. All rights reserved
We are builders of software…
accelerated by talent and technology-oriented M&A
Ducksboard forms the
core of our Barcelona
R&D office
Excellent employee
engagement and
retention
Opsmatic tech & team
accelerated delivery of
New Relic
Infrastructure product
39

40. ©2008–18 New Relic, Inc. All rights reserved
Key customers visited New Relic
in the past year, including:
Sharing Our
DevOps Culture
40

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Catalyzing the Opportunity
Erica Schultz
Chief Revenue Officer

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Strong
Brand and Culture
True Then, True Now
42
Expanding
Addressable Market
Category Disruption
Opportunity

43. ©2008–18 New Relic, Inc. All rights reserved
Four Year Enterprise Journey
43
2014
Inside Sales Profile
SF Only
Pre-Sales Consultants
Inbound Demand Gen
APM + Mobile only
Customers: Disruptors
Buyers: Development Teams
Little Partner relationships
Today
Field Sales Profile
Many Countries, broad US
presence
Pre and Post-Sales
Technical Services
Outbound / Inbound
Demand Gen
Platform + Services
Customers: All Industries
Buyers: CTOs, CIOs, VPs of
Engineering and Operations
Strategic Alliances + Ecosystem
Maturing
Organization
Developing as a
Market Leader
Customer Profile and
Partner Ecosystem

44. ©2008–18 New Relic, Inc. All rights reserved
Feet on the Street – Start of FY15
44

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Feet on the Street – Today

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47. ©2008–18 New Relic, Inc. All rights reserved
Enterprises Are Comprising Bigger and Bigger Share of $
47
32%
33%
34%
35%
37%
42%
43% 43%
44%
46%
49%
51%
52%
54%
Q315
(IPO)
Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Enterprise ARR
(as Percentage of Total ARR)
See Appendix for definition of Enterprise ARR.

48. ©2008–18 New Relic, Inc. All rights reserved 48
What’s Behind Our Growth?
… and why are we just getting started?

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By 2021, at least 50%
of global GDP will be digitized

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Our customers need us now
more than ever

51. ©2008–18 New Relic, Inc. All rights reserved
Market Trends that Make Us Even More Relevant
51
2008
$18B
Cloud
Services
Market
AWS < 2 years
old, $500M
revenue
Public cloud
only for
disruptors
Monthly or
yearly
deployments
Daily
deployments
>$20B
AWS
revenue
Legacy
industries
in cloud
> $201B Cloud
Services
market
Today
Source: Gartner, Inc. (excludes Cloud Advertising) "Forecast Analysis: Public Cloud Services, Worldwide, 4Q17 Update" and "Forecast: Sizing the Cloud; Understanding the
Opportunities in Cloud Services." Amazon.com, Inc. Company Filings

52. ©2008–18 New Relic, Inc. All rights reserved 52
Critical Technology Initiatives That Drive Transformation
Cloud
Adoption
Digital Customer
Experience
DevOps

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Cloud
Adoption

54. ©2008–18 New Relic, Inc. All rights reserved
CTO +
Above
Director-level IT /
Ops / Dev
VP / GVP / CIO
for IT / Ops / Dev
IT / Ops /
Dev Middle Manager
54
Land And Expand Has Been Key To Our Growth
LAND
EXPAND
Software
apps
EXPAND
Platform
New digital / software initiative
Enterprise spend:
$50–100K+
1. ”Land” application
usage swells
2. Multiple applications
Enterprise spend:
$100–500K+
1. Customer adopt multiple
paid products
2. Deployment across all
cloud applications
3. Replacing point solutions
4. Customer Success Investment
Enterprise spend:
$500K–1M+
1. All new software applications
2. OnPrem displacement
3. 100’s-1000’s of users
4. Exec Dashboards
5. CTO as Advocate
Enterprise spend:
$1M+
54©2008–18 New Relic, Inc. All rights reserved
STANDARDIZE

55. ©2008–18 New Relic, Inc. All rights reserved 55
Our Initial Commitments Continue to Be Larger
$41K
2.0 Products
Average Enterprise Land
FY16
$60K
2.6 Products
Average Enterprise Land
FY18
Note: Includes all new Enterprise deals greater than $10K

56. ©2008–18 New Relic, Inc. All rights reserved 56
Expansion of Existing Accounts Has Fueled Our Growth
CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
X X X X X X X X X X X X X X X X X X X
X X X X X X X X X X X X X X X X X X X X X X X
X X X X X X X X X X X X X X X X X X
X X X X X X X X X X X X X X X X X X X X X X X X X
X X X X X X X X X X X X X X
X X X X X X X X X X X X X X X X X X X X X X X
X X X X X X X X X X X X X X X X X X X X X X X X X
X X X X X X X X X X X X X
X X X X X X X X X X X X X X X X X X X
X X X X X X X X X X X X X X X X X X X
X X X X X X X X X
X X X X X X X X X X X X X X X X X X X X X X X X
X X X X X X X X X X X
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X X X X X X X X X X X X X X X X X X X X X X X X
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X X X X X X X X X X X X X X X X X X
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X X X X X X X X X X X X X X X X X X X X
X X X X X X X X X X X X X X X X
X X X X X X X X X
X X X X X X X X X X X X X X X X X
X X X X X X X X X X X
X X X X X
X X X X X X
X X X X X X X
X X X X
X X X X X X
X X X X
X X X X X
Note: Each highlighted cell represents a quarter in which that customer completed a transaction.

57. ©2008–18 New Relic, Inc. All rights reserved
~20K Employee Technology Company
Eight Years, ~$6M ARR, 42 Deals
First Deal
2 Bronze
Hosts
Month-to-
Month
Commit
Multi
Product
Mobile
Multi
Product
Eval
Full
Platform
+Infrastructure
and other
products
+5 Years to
$1M ARR
0
25
50
$0M
$2M
$4M
$6M
$8M
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
TotalDeals
GrossARR
Adobe Systems
Gross ARR Total Deals

58. ©2008–18 New Relic, Inc. All rights reserved 58
Customer Expansion has been strong, yet we are still in early
days
>40
$1M+ ARR Paid
Business Accounts
17k+
Paid Business
Accounts
703
$100k+ Paid
Business Accounts
Source: Reported figures as of March 31, 2018.

59. ©2008–18 New Relic, Inc. All rights reserved 59
Growth Drivers on the Path to $1B+
Cloud
Adoption
DevOps
Digital Customer
Experience
Expansion
of Strategic Accounts
International
Markets
Strategic
New Lands
Continued
SMB Momentum

60. ©2008–18 New Relic, Inc. All rights reserved
60
Goal with Strategic Accounts:
Instrumentation Everywhere with New Relic
Identify and
consolidate strategic
accounts in focused
"named account"
territories
Targeted account-
based marketing
focused on our 3
primary use cases
Invest in Customer
Success --
Be the Expert and
Teach the How
Align Partner
Ecosystem strategy

61. ©2008–18 New Relic, Inc. All rights reserved
6
1
Identify Strategic Accounts based on specific criteria
Significant existing
spend, internal
adoption; Master
Services agreement in
place
$1M+ new ARR
potential in next 24
months
F500/G2000/Top
Private Company
Adopting Cloud,
DevOps, Modern Tech
Active Product
Engagement
Strategic
Accounts

62. ©2008–18 New Relic, Inc. All rights reserved
6
2
Consolidate Strategic Accounts to Ensure Focused Coverage
Segment Territory Types Objective
Enterprise
Key Standardization in global, complex accounts
Named
Expansion + standardization
Significant lands in new top-tier accounts
Regional
Land + expand in new accounts
Opportunistic expansion
Commercial
Named
Expansion + standardization
Significant lands in new top-tier accounts
Geo
Lands in geo territories
Opportunistic expansion
MM
Lands in geo territories
Opportunistic expansion
Proactive
Investment
& Focus
Proactive
Investment
& Focus

63. ©2008–18 New Relic, Inc. All rights reserved
Tech thought
leadership &
content
Anchor industry
events
Branded field
events
Hands-on skill
building
Targeted
outreach
Exec connection
points
Efficient top-of-funnel Account-based approach
A Modern Marketing Engine:
Focus on Efficiency + Account-Based Everything
Customer Solutions
Global Scale & Efficiency
Foundation for Growth

64. ©2008–18 New Relic, Inc. All rights reserved
Activated Partner Engagement:
Deep Focus on Cloud Partners
Direct Cloud Partners Cloud Integrators

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Growing Investment in Technical Sales to Help Our Customers
15%
17%
19%
21%
23%
25%
27%
29%
31%
FY15 FY16 FY17 FY18
Technical Sales + Services Headcount as %
of Sales & Marketing Headcount
28%
16%

66. ©2008–18 New Relic, Inc. All rights reserved 66
Instrumentation Everywhere

67. ©2008–18 New Relic, Inc. All rights reserved.
Catalyzing Success
Roger Scott
Chief Customer Officer

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We listened to our customers…
I want you to have a
strong point of view.
You should provide a standard
build-and-deploy process, so we
can move faster.
Tell me how we’re doing
compared to your other
customers.CAB
Customer Advisory
Board
Embed someone onsite...
and I will buy more.

69. ©2008–18 New Relic, Inc. All rights reserved
A Delightful Customer Journey
69
Make the
Promise
Deliver the
Promise

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Our Mission
New Relic’s devotion to customer success creates lifelong advocates
Increase
Adoption
Accelerate
Expansion
Minimize
Churn

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Driving Customer Success
A unified &
accountable team
A consistent
method
An updated
services portfolio
A focus on customer value

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Driving Customer Success: The Team
Operations | Growth team | PMO
N R U /
E D U C A T I O N
C U S T O M E R
S U C C E S S
M A N A G E R S
E X P E R T
S E R V I C E S
G L O B A L
T E C H N I C A L
S U P P O R T
R E N E W A L S
Customer Success + Services Team

73. ©2008–18 New Relic, Inc. All rights reserved
Driving Customer Success: Updated Services Portfolio
NEW RELIC
INVESTMENT
CUSTOMER
INVESTMENT
KNOWLEDGE
RESOURCES
GUIDED SUCCESS
RESOURCES
PAID SUPPORT &
SERVICES
73

74. ©2008–18 New Relic, Inc. All rights reserved 74
Driving Customer Success: A Consistent Method
Success
Management
Solution
Architects
Instrumentation
Everywhere
Agent
+ User
Deployment
Education +
Training
Expert
Services
Benchmark
and
Monitor
Health
Technical
Office
Hours
Best
Practices
Success
Plans
Quarterly
Business
Reviews

75. ©2008–18 New Relic, Inc. All rights reserved 75
All activities are aligned with critical customer initiatives
IDENTIFY
NEED
ENGAGE
IN POC
PROPOSAL EXPAND
POSSIBILITIES
MOVE WITH
CONFIDENCE
CUSTOMER
PHASE:
NR ROLE:
RESOURCE:
MAKE PROMISE DELIVER PROMISE
AE AE SC AE SC CSM AE CSM SCXM SA NRU AE SC
Solution
Pitch Deck
Solution Guide Unified Proposal Success Plan Knowledge
Services
Paid Services Solution Pitch Deck

76. ©2008–18 New Relic, Inc. All rights reserved 76
Expansionisakeypathto$1billionandbeyondinrevenue.
Lifelongadvocatesarekeytoacceleratingexpansion.
CUSTOMERS
REALIZE
VALUE
CUSTOMER
ADVOCATES
SPREAD THE
WORD
ACCELERATED
TIME TO
EXPANSION
$1B+ IN
REVENUE

77. ©2008–18 New Relic, Inc. All rights reserved.
Fireside Conversation with
Bill Walker
VP, CIO Chief of Staff

78. ©2008–18 New Relic, Inc. All rights reserved.
Financial Strategy
Mark Sachleben
Chief Financial Officer

79. ©2008–18 New Relic, Inc. All rights reserved 79
Financial Highlights
Strong
Recurring
Revenue
Growth
1
Significant
Installed Base
Opportunity
2
Best-In-Class
Gross Margins
3
Proven Ability
to Drive
Operating
Leverage
4

80. ©2008–18 New Relic, Inc. All rights reserved 80
Strong Continued Top-line Growth
$12
$30
$63
$110
$181
$263
$355
$455
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19E
Historical Revenue Historical Quarterly Revenue
$ Millions $ Millions
$23 $25
$29
$33
$38
$43
$48
$52
$59
$63
$68
$73
$80
$85
$92
$98
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2018
CAGR
68%
2017
Note: Fiscal year ends on March 31. FY19E Revenue based on midpoint of previously provided guidance

81. ©2008–18 New Relic, Inc. All rights reserved
Strong Continued New Customer Growth
81
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Enterprise Paid Business Accounts
2015 2016 20182017
10,000
11,000
12,000
13,000
14,000
15,000
16,000
17,000
18,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Total Paid Business Accounts
2015 2016 20182017
~100% increase
since IPO
~50% increase
since IPO
See Appendix for an explanation of how we define a Paid Business Account and Enterprise Paid Business Account.
Note: Q4’16 and Q1’18 included changes to the categorization of existing paid business accounts to reflect that they had expanded beyond the 1,000 employee threshold.

82. ©2008–18 New Relic, Inc. All rights reserved 82
Growth Fueled by Strong Expansion Activity in Installed Base
90%
110%
130%
150%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Dollar-basedNetExpansionRate
Trailing 12 MonthsCurrent Quarter
FY15 FY16 FY17 FY18
See Appendix for an explanation of how we calculate Dollar-based Net Expansion rate. Note: Trailing twelve month net expansion rate calculated using a simple average of the prior four quarters

83. ©2008–18 New Relic, Inc. All rights reserved
Consistently Strong Cohort Growth
($ Millions)
83
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
2018
2017
2016
2015
2014
2013
2012
2011
2010
Chart reflects growth in total ARR over time, net of churn, for the group of paid business accounts that joined New Relic in each of the respective fiscal years. As of March 31, 2018
CAGR:
29%
23%
27%
39%
51%
53%

84. ©2008–18 New Relic, Inc. All rights reserved 84
Customer Spend Continues to Trend Higher in All Areas
$8,000
$9,000
$10,000
$11,000
$12,000
$13,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
SMB ASP
~50%
Growth since
IPO
FY15 FY16 FY17 FY18
Note: ASP measured as annualized revenue per average paid business account
Note: Q4’16 and Q1’18 included changes to the categorization of existing paid business accounts to reflect that they had expanded beyond the 1,000 employee threshold, which impacted ASPs
$30,000
$45,000
$60,000
$75,000
$90,000
$105,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Enterprise ASPs
~190%
Growth since
IPO
FY15 FY16 FY17 FY18

85. ©2008–18 New Relic, Inc. All rights reserved 85
More Strategic, Trusted Relationships
0
200
400
600
800
Mar
2014
Mar
2015
Mar
2016
Mar
2017
Mar
2018
Paid Business Accounts >$100K
in Annualized Revenue
Paid Business Accounts >$1M
in Annualized Revenue
by Fiscal Quarter by Fiscal Quarter
0
10
20
30
40
50
Mar
2014
Mar
2015
Mar
2016
Mar
2017
Mar
2018
Annualized 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

86. ©2008–18 New Relic, Inc. All rights reserved 86
Drivers of Growth
Broader Platform
Usage
“Instrument
Everywhere”
Add New
Customers
Continued Leadership
in Product Innovation

87. ©2008–18 New Relic, Inc. All rights reserved 87
Still in the Early Days of Our Enterprise Opportunity
See Appendix for an explanation of how we define an Enterprise Paid Business Account. Global enterprise opportunity based on internal company estimates as of March 31, 2018
~30,000 Global
Enterprises
Today:
>2,100
Enterprise
Paid
Business
Accounts

88. ©2008–18 New Relic, Inc. All rights reserved
“Instrument Everything”
88
The percentage of application workflows monitored by APM is expected to quadruple by 2021
5%
20%
Source: Gartner, Magic Quadrant for Application Performance Monitoring Suites, March 2018
2017
2021

89. ©2008–18 New Relic, Inc. All rights reserved 89
Solid Progress Growing and Expanding Platform Adoption
within Enterprises
IPO (December 2014) March 2018
1 Product
92% (~1,000 Enterprise
Paid Business Accounts)
50% (~1,100 Enterprise
Paid Business Accounts)
2 Products 7% (~75) 19% (~400)
3 Products 1% (~15) 12% (~250)
4 Products NM 10% (~250)
5+ Products NM 10% (~200)
See Appendix for an explanation of how we define an Enterprise Paid Business Account

90. ©2008–18 New Relic, Inc. All rights reserved 90
Best-in-Class Gross Margin Provides Numerous
Degrees of Freedom for Investment
40%
50%
60%
70%
80%
90%
GAAP Gross Margin vs. SaaS Peers
Peer Average = 68%
Source: Company earnings releases filed with the SEC covering the most recent quarter reported as of May 3, 2018. Peers identified based on Wall Street Research comparable SaaS company groupings.

91. ©2008–18 New Relic, Inc. All rights reserved 91
Strong Operating Leverage Driving Free Cash Flow Growth
($41)
$4
($14)
($25)
$19
($7)
($1)
$36
$9
$18
$75
$35
FY16
Operating Cash Flow Free Cash Flow
FY17 FY18 FY19E FY16 FY17 FY18 FY19EFY16 FY17 FY18 FY19E
Operating Income (Loss)
Note: FY19E metrics based on midpoint of previously provided guidance.
*Presented on a non-GAAP adjusted basis reflecting the adoption of ASC 606 beginning in FY19. See appendix for reconciliations and how we define free cash flow.
($ in millions, Non-GAAP)

92. ©2008–18 New Relic, Inc. All rights reserved 92
Looking Forward

93. ©2008–18 New Relic, Inc. All rights reserved
$0
$500
$1,000
FY15 FY16 FY17 FY18 FY22e
Revenue from FY18 and Prior Installed Base
Potential Revenue from FY19 and Forward New Cohorts
93
Path to and Beyond $1B Revenue Run-Rate
Cohort growth defined as annualized ARR growth for all customers initially signed in a fiscal period, inclusive of churn. The future financial results presented are
hypothetical amounts for achievement of certain scenarios and are not projections, guidance or an outlook for the company'sfuture financial results.
Assuming 20%
Cohort Growth
80%
20%
30%+
Historical Cohort Growth
($ in millions)

94. ©2008–18 New Relic, Inc. All rights reserved 94
Key Drivers to $1B
Q1F15 Today Q4F22
Required
Growth /
CAGR
Enterprise
% of Revenue ~33% ~54% 65-75%
Customers >900 >2,100 3,000–3,500 ~10%
ASP >$30K >$100K $200–250K ~20%
SMB
% of Revenue ~67% ~46% 25–35%
Customers >8,500 ~15,000 18,000–22,000 ~7%
ASP >$7K >$12K $14–18K ~6%
Current data represents the fiscal quarter ending March 31, 2018. The future financial results presented are hypothetical amounts for achievement of certain scenarios and are not
projections, guidance or an outlook for the company's future financial results. ASP defined as annualized revenue per average paid business account.

95. ©2008–18 New Relic, Inc. All rights reserved 95
Key Drivers to $1B
Q1F15 Today Q4F22
APM % of Revenue 97% ~72% 45-55%
Non-APM % of Revenue 3% ~28% 45-55%
U.S. % of Revenue ~69% ~68% 60–70%
International % of Revenue ~31% ~32% 30–40%
Current data represents the fiscal quarter ending March 31, 2018. The future financial results presented are hypothetical amounts for achievement of certain scenarios and are not
projections, guidance or an outlook for the company's future financial results.

96. ©2008–18 New Relic, Inc. All rights reserved 96
Long-term Target Operating Model
(% of Revenue) FY15 FY16 FY17 FY18
Prior
FY22
Target
New
FY22
Target Driver
Prior Long-
Term Target
New Long-
Term Target
Gross Margin 81% 81% 83% 84% 78-82% 80-84%
Continued investments in
delivery, support and services
78–82% 80–84%
Sales & Marketing 76% 66% 59% 53% 40-42% 38-40%
Increased mix of productive reps,
renewals, installed base
35–38% 35–38%
Research &
Development
20% 22% 19% 17% 17-19% 19-21% Maturation of product portfolio 15–18% 15–18%
General &
Administrative
18% 16% 14% 14% 10-12% 10-12% Economies of Scale 7–9% 7–9%
Operating Income
/ (Loss)
(33%) (23%) (10%) (0%) 8-12% 10-14% 20–25% 25%+
Free Cash Flow (32%) (8%) (2%) 3% N/A 15-20% N/A 30%+
Note: Metrics are Non-GAAP, exclude stock-based compensation,amortization of purchased intangibles, litigation and acquisition-related expenses and reflect the adoption of ASC 606 beginning in FY19.
See Appendix for reconciliation and definition of free cash flow. The future financial results presented are hypothetical amounts for achievement of certain scenarios and are not projections, guidance or an
outlook for the company’s future financial results.

97. ©2008–18 New Relic, Inc. All rights reserved 97
Housekeeping

98. ©2008–18 New Relic, Inc. All rights reserved 98
Billing Mix has Continued to Push Towards Annual,
but Slowing
0%
25%
50%
75%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY18FY17FY16FY15
Monthly
Annual
Quarterly
Other

99. ©2008–18 New Relic, Inc. All rights reserved 99
Convertible Note Summary
~$500M non-
call life due
5/1/2023 raised
with 0.5%
coupon
Funding for
capped call
transactions,
working capital
or other general
corporate
purposes
Settlement in
cash and/or
stock
27.5% initial
conversion
premium at
$110.81, capped
call transactions
raises effective
premium to
$173.82
Expect to
ultimately be
able to maintain
positive interest
spread until
usage

100. ©2008–18 New Relic, Inc. All rights reserved 100
In Closing
Consistent track
record of execution
over the past
14 quarters as a
public company
Compelling business
model, with best-in-
class gross margins
Strong operating
discipline, delivering
both growth and
expanding
profitability
Early days of market
opportunity with
<10% Enterprise
penetration
Significant installed
base opportunity
through growing
application coverage
and broad product
portfolio
1 2 3 4 5

101. ©2008–18 New Relic, Inc. All rights reserved
Thank You

102. ©2008–18 New Relic, Inc. All rights reserved 102
Non-GAAP to GAAP Reconciliation

103. ©2008–18 New Relic, Inc. All rights reserved 103
Definitions
Monthly and Annual Recurring Revenue
(MRR and ARR)
Our monthly recurring revenue represents the revenue that we would contractually
expect to receive from those customers over the following month, without any
increase or reduction in any of their subscriptions. Similarly, annual recurring revenue
represents the revenue that New Relic would contractually expect to receive from
those customers over the following 12-month period, without any increase or
reduction in any of their subscriptions.
Enterprise ARR is defined as ARR from paid business accounts
with >1,000 employees.
Number of Paid Business Accounts
We define the number of paid business accounts at the end of any particular period
as the number of accounts at the end of the 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. We define an enterprise
paid business account as a paid business account that we measure to have over
1,000 employees.
>$100K and >$1M / year paid business accounts represents paid business accounts
who have ARR greater than $100,000 or $1,000,000, respectively.
We define our annualized revenue per average paid business account as the
annualized revenue for the current period divided by the average of the number of
paid business accounts at the end of the current period and the end of the prior
period.
Dollar-Based Net Expansion Rate
Our dollar-based net expansion rate compares our recurring subscription revenue
from customers from one period to the next. We measure 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, without 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.
Free Cash Flow
We define free cash flow as cash from operating activities minus purchases of
property and equipment and capitalized software development costs.