Odoo

Investor Presentation

Fabien Pinckaers • Founder Q1 2023

Alessandro Mazzocchetti • CFO
Odoo In a Nutshell
A never-ending product-led growth

ARR Development, Jan 2013 - Apr 2023, in m€

2830
Employees
2
Products
55% Avg growth, past 10 years

Community & Enterprise

294M€ 17M€
Billing TTM Free Cash Flow
2022

190M€ 48%
ARR Growth
ARR Q1 2023
 Not just a company
A large ecosystem driven by an Open Source community
# Partners by Country: Mexico: 348, Egypt: 245, Saudi: 240, U.S.: 232,

5,128 175
Countries with
Belgium: 207, Spain: 200, France: 198, India: 155, Indonesia: 144, Germany: 126

Revenues by Country: U.S. (13%), Belgium (12%), France (10%), Saudi (5%),
Partners Germany (5%), Mexico (5%), Switzerland (4%)
partners

100k
FTEs on Odoo
39,700
Community Apps(*)

150k
Databases in
10.8M
Users**
Production*

(*) The largest business apps store in the world; the #2 is salesforce
AppExchange at 4250 apps.
(**) Paying & free, on databases alive since more than 2 months
Our success*?
Value, for the money.

(*) Nobody is even close to what we offer; going Odoo is usually a game changer for our clients.
Value: a truly unique platform
66 official apps (=902 modules) + 39,717 community apps

The only management software

complete enough to run large
corporates (>1000 users) and
simple enough for small
companies: 18.583 databases of
1 user (self-employed people).

What makes the difference between Odoo

and SAP? Our users are happy… often fans.
Money: affordable
An unmatched price, for both subscription & implementation service.
Let’s compare
the pricing.
Odoo is more
than an ERP.
max 10 users
 Odoo is more
than just an ERP
and CRM.
 ERP $ 180 /user
CRM $ 75 /user
Point of Sale $ 119 /user
eCommerce $ 79 + 3%
eSign $ 25 /user
HR $ 6 /employee
+ 18 apps* ?
+ Integrations $

Total (**)
6.9% of Revenues

(*) SMEs use on average 16 SaaS applications (<50 employees), or 24 SaaS applications (50-100 emp).
(**) https://www.bdtask.com/blog/how-much-do-companies-spend-on-software
How did we get there?
Open Source.
Open Source
A winner takes all market
Leading multiple Open Source
segments:
- ERP
- CRM
- HR
- Marketing
- Point of Sale
Wordpress: 63% of CMS - Services
Androïd: 72% of mobile phones - Inventory & MRP
Docker: 80.6% market share - Accounting
MySQL+Pg: 51.4% of databases
Not yet leading:
→ once Open Source gets the masses, - Website Builder
proprietary can not compete - eCommerce
The #1 business apps store in the world
Covering all industries need, in all countries
Our Opportunity
A huge market
With <0.1% of the market → room to grow for years.

Odoo’s business apps store is the largest in the

world(*), allowing to tap a large range of markets:
- From SMEs to Corporate
- All industries: Retail, Manufacturing,
Distribution, NGO, Services, etc.
- All segments: ERP, CRM, Accounting,
websites, POS, eCommerce, HR, etc.
- All Countries

→ A +200b$ addressable market!

(*) Odoo has 39700 Apps. The #2 is Salesforce

AppExchange at 4250 apps.
Key players failed on SMEs
With 0.1% of the market → room to grow for years.

ERP for SMEs: only 33% equipment rate (*)

SAP, Oracle, Microsoft, all tried but failed to address SMEs:
● Too complex
● Too expensive
● Too rigid; don’t cover business needs out-of-the-box
● Not modern enough to compete with single apps software

Cloud ERP failed on Large companies: “At current rates, only 31% of ECC customers will be fully
live on S/4HANA by the end of 2027” (**) → Stick to standard does not work for large companies!

(*) https://ec.europa.eu/eurostat/statistics-explained/index.php?title=E-business_integration
(**) https://www.basistechnologies.com/blog/the-true-state-of-s4hana-in-2023/
Truly Global
5000+ partners in 175 countries

A global impact, locally tailored

- Accounting localisation of 100+ countries
- 68 languages covered (49 excluding dialects)

Untapped opportunities:
- Local software are usually outdated
(e.g. accounting software)
- Global players can’t compete in low-pricing regions

→ Strong growth in Middle-East & Asia

Highly efficient company
We scale fast, while keeping operations efficient

Capital efficient → only 10.4M€ raised!

- 3M€ in 2010
- 7.4M€ in 2015

Ultra efficiency across all operations:

- Company culture,
- Operations,
- Financials: CAC, Cashflow, Gross, etc.

→ Only organic growth: word of mouth of happy customers is viral!

Stunning Product
You have to see it to believe it… (or talk to our users)

Demo
Financial Highlights
Financial 190M€ 294M€
Highlights
ARR Billing TTM

263M€ 82%
Revenues TTM Of Billing is Recurrent

Q1 FY’2023 48% 109%

ARR Growth # Clients Growth

72% 114%(*)
(*) 132% before decrease of MRR due to the Gross Margin Net retention in value
pricing transition
Continuous growth over 15 years
Annual Recurring Revenues in m€, breakdown Saas/On prem/Partner
Growing Customer Base
Number of new paying clients per month

New pricing impacts:

- New customers start small, grow
later (in the old pricing, they had an

Oct 2022: advantage to buy more users upfront)

New Pricing
- One shot Transition loss in Q4 2022:
527k€ MRR = -4.67%
- Low price on Y1, 25% upsell on Y2
- More value (unlimited apps)

→ Growth acceleration on Q4 2023.

Strong Momentum at Scale

5%
:5
Currency-adjusted invoicing per quarter, in million EUR

22
20
4%
:7
21
20
5 5%
2 0:
20
Profit & Loss

FY’2022
Audited, IFRS Adjusted
Balance Sheet

FY’2022
Audited, IFRS Adjusted
Cash Flow

FY’2022
Audited, IFRS Adjusted
Appendix
Definitions
Products:
Odoo Community: the open source version of Odoo, under licence GNU LGPL-v3
Odoo Enterprise: the paying version of Odoo. Technically, it’s a set of extra modules on top of Odoo Community.

Hosting:
Odoo Online: the multi-tenant SaaS platform of Odoo, to host customers using Odoo Enterprise standard.
Odoo.sh: the Odoo PaaS platform develop, test, deploy and run customized versions of Odoo, and/or community
modules. Used to host Odoo Enterprise with extra community modules.
On Premise: when the customer host Odoo Enterprise himself, instead of using Odoo Online or Odoo.sh

Others:
Partner: an implementation service company offering services on Odoo, who subscribed to the partnership agreement
(a yearly contract for a fee that includes discount on subscriptions (10-20%), services, trainings, etc.)
Community Apps: refers to modules published on the Odoo apps store, under https://odoo.com/apps. Those apps
run on both Odoo Community, and Odoo Enterprise. Those apps can be used on Odoo.sh or on premise, but not on
Odoo Online.
Pricing Change
October 2022: -4.67% MRR decrease at transition, then faster acquisition

New clients / months

Oct 2022:
New Pricing
Thank you.