Talend S A : Investor Day '20 Presentation

Investor Day'20

Damaari Drumright

VP, TREASURY & INVESTOR RELATIONS

Safe Harbor Disclosure and Non-GAAP Financial Measures

This presentation and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward- looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "likely," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or similar terms or expressions or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements include, but are not limited to, our anticipated financial and operating performance, financial targets, business and strategic product initiatives, market trends

and opportunities, growth plans, and prospects. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to inherent risks, uncertainties and changes in circumstance that are difficult or impossible to predict. Consequently, you should not rely on these forward-looking statements. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such uncertainties, risks, and changes in circumstances. Those risks, uncertainties and assumptions include general economic conditions, including the impact of the COVID-19 pandemic on economic activity; the impact of COVID-19 on our business and operations, demand for our products, renewal rates, customers, third-party partners and employees; our ability to continue to deliver and improve our products and successfully develop new products; customer acceptance and purchase of our existing products and new products, including conversion of leads to sales; our ability to successfully transition to the cloud; our ability to successfully manage our leadership transition; our ability to attract, train and retain highly-skilled and qualified employees, including senior-level managers and engineers; the impact of the transition to cloud on our professional services revenue; our ability to retain and increase sales to existing customers and generate new customers; the market for data integration solutions, particularly our cloud-based and big data integration offerings; interruptions or performance problems with our technology or infrastructure; competition from other products and services; the sufficiency of our cash and cash equivalents to meet our cash needs;

the length and predictability of our sales cycle; our ability to deliver high-quality customer support; any security incidents or breaches or perceptions of security incidents or breaches; our ability to expand and train our sales force; the performance of our channel partners; our success in sustaining and expanding our international business; our ability to generate significant volumes of sales leads from digital and virtual marketing efforts; the seasonality of our business; our ability to protect our intellectual property, including trade secrets, patents and copyrights; costs resulting from any claim of infringement or other violations by us of another party's intellectual property rights; our ability to comply with government laws and regulations; natural and man- made disasters, including pandemics; and exposure to political, economic and social events in France, the United States, United Kingdom, China and other jurisdictions in which we operate and have customers.

The forward-looking statements contained in this presentation are also subject to other risks and uncertainties, and the foregoing list of factors is not exhaustive. Additional risks and uncertainties that could affect our financial and operating results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" and elsewhere in our most recent filings with the Securities and Exchange Commission ("SEC"), including in our most recent annual report on Form 10-K filed with the SEC, our quarterly reports on Form 10-Q, and other filings with the SEC, all of which are available on the Investors section of Talend's website at https://investor.talend.com and the SEC's website at www.sec.gov. The forward-looking statements in this presentation are based on information available to us as of the date hereof, and we expressly disclaim any obligation to update any forward-looking statements provided to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law.

This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other industry data. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified the statistical and other industry data generated by independent parties and contained in this presentation and, accordingly, cannot guarantee their accuracy or completeness. In addition, projections, assumptions and estimates of its future performance and the future performance of the industries in which it operates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

In addition to financials presented in accordance with generally accepted accounting principles in the United States ("GAAP"), this presentation includes certain non-GAAP financial measures. The non-GAAP measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for the most directly comparable financial measures 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. Other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance. For example, we define free cash flow as net cash used in operating activities less net cash used in investing activities for purchases of property and equipment and intangible assets. Free cash flow as defined by us may not be comparable to other similar measures used by other companies, which could reduce the usefulness of free cash flow as a comparative measure. We urge you to review the reconciliation of our historical non-GAAP financial measures to the most directly comparable GAAP financial measures set forth in the appendices to the presentation, and not to rely on any single financial measure to evaluate our business. A reconciliation of forward-lookingnon-GAAP financial measures to corresponding GAAP financial measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of the future costs and expenses for which the company adjusts, such as share-based compensation, amortization of acquired intangible assets, and transaction-related expenses, the effect of which may be significant.

Agenda

Market vision	Christal Bemont, CEO
Product strategy	Krishna Tammana, CTO
GTM plans	Ann-Christel Graham, CRO
Customer Success update	Jamie Kiser, COO & CCO
Customer Panel	Lauren Vaccarello, CMO
Financial update	Adam Meister, CFO
Q&A	All presenters

CHRISTAL BEMONT • CEO

Changing the way the world makes decisions

KRISHNA TAMMANA • CTO

Making data useful for all organizations

Opportunity

Liability

Talend Data Fabric delivers trusted data

to everyone across the organization

Data integrity	Application and
and governance	API integration

DATA FABRIC

Data integration

Across any environment

DATA FABRIC

Cloud On-Prem Hybrid

Data Architects/

Engineers

Integration

Specialists

Data Stewards

DATA FABRIC

Data Scientists

Citizen

Integrators

Analysts

Meeting customers anywhere with a

unified approach

CITIZEN	ALL DATA
INTEGRATIONS	WORKERS

Simple Integrations

Complex Transformations

DATA FABRIC

Native Code	Broad Connectivity	Single Unified
Generation	Platform

Ensuring trust at every step

Thorough

Transparent

Timely

Traceable

Tested

Clean &		Readily Available	Rated & Certified
Complete
Accessible &	Evident where it	By Users
	came from and
	Understandable
	how it's been used

The future of Talend

Taking the work out of

working with data

Intelligent, real-time data fabric

SimplifyAutomate

EnableMaximize

Key Takeaways	Our experience, and differentiated platform
enable us to solve complex market challenges
	We serve the widest range of customers and
	the full range of the market
	We are breaking new ground
	We are taking the work out of data so data
	works for everyone

KRISHNA TAMMANA • CTO

ANN-CHRISTEL GRAHAM • CRO

The right moment. The right strategy.

THE RIGHT

Data integrity	Application and
and governance	API integration

DATA FABRIC

Data integration

CLOUD ARR ($M)

19

3 5 8 10

24

54

41

33

88

75

61

Q417

Q118

Q218

Q318

Q418

Q119

Q219

Q319

Q419

Q120

Q220

Q320

1 Cloud ARR defined as the annualized recurring value of all active cloud-based contracts as of the end of a reporting period.

Business Partner

1.2

+19

• 14

81

DAYS

Expanding our total addressable market

Precise Messages and	Creating Customers	Expanding Our
Motions	for Life	Ecosystem

Expanding our total addressable market

Precise Messages and

Motions

Precision of our message and

motion

Designing for Specific

Segments

Addressing New

Personas (Beyond IT)

Data Architects/

Engineers

Integration

Specialists

Data Stewards

DATA FABRIC

Data Scientists

Citizen

Integrators

Analysts

Expanding our total addressable market

Creating Customers for Life

Expanding our total addressable market

Expanding Our

Ecosystem

Building upon our partner strategy

Key Takeaways	We are a strategic partner for our customers

We will continue our cloud growth

We are expanding our ecosystem

We are creating customers for life

ANN-CHRISTEL GRAHAM • CRO

JAMIE KISER • COO, CCO

Creating customers for life

Creating customers for life

I have the

best job.

Building a Foundation for Customers for Life

Value

Guidance

Support

107%

Q3 Dollar-Based Net Expansion Rate

Note:

• Dollar-basednet expansion rate is calculated by dividing recurring customer revenue by base revenue. Base revenue is defined as the subscription revenue recognized from all customers during the four

quarters ended one year prior to the date of measurement. Recurring customer revenue is defined as the subscription revenue recognized during the four quarters ended on the date of measurement from

the same customer base included in the measure of base revenue, including revenue resulting from additional sales to those customers. Dollar-based net expansion rate is presented on a constant currency
basis.	59

• Our dollar-based net expansion rate excludes monthly customers.

Building a Foundation for Customers for Life

Value

Guidance

Support

Building a Foundation for Customers for Life

Value

Guidance

Support

Building a Foundation for Customers for Life

Value

Guidance

Support

200

+45%

Community

Hrs of Programming

Credentials

Paid Subscribers (QoQ)

A C A D E M Y

Certifications

The true

measure of success

Talend" has been an exceptional company to work with. I highly value companies that are focused on helping me solve problems over making sales for themselves.

- CTO, APAC Region

Creating customers for life

Key Takeaways	Customers are woven into every aspect
of working at Talend
	Our ultimate goal is to create customers

for life

To do that, we are providing:

- Long-term value

- Guidance on the cloud

- Expanding ecosystem

JAMIE KISER • COO, CCO

LAUREN VACCARELLO • CMO

Customer Panel

Customer Panel

Unmesh Srivastava

CTO • P3 HEALTH

Ed Rybicki

SVP & CHIEF INFORMATION

OFFICER • VYAIRE

LAUREN VACCARELLO

CMO • TALEND

Sai Jasti

HEAD OF DATA ANALYTICS & AI, GLOBAL VACCINES • GSK

Jean-Michel Kientz

SVP, MARKETING TECH AND DATA & ANALYTICS ESTEE LAUDER

Unmesh Srivastava

CTO • P3 HEALTH

Ed Rybicki

Sai Jasti

HEAD OF DATA ANALYTICS & AI, GLOBAL VACCINES • GSK

Jean-Michel Kientz

SVP & CHIEF INFORMATION		SVP, MARKETING TECH AND
	DATA & ANALYTICS • ESTEE
OFFICER • VYAIRE		LAUDER

ADAM MEISTER • CFO

Delivering on our investments

Cloud Data Integration is Driving Market Growth

Massive Ecosystem	Evolving to Cloud	Powering Growth
		2.8
$19B	$8B Cloud							26%
1.3				of data
			integration
								revenue
	'20-'23 CAGR: 11%							in 2023²
			Q3-19Q4-19
Data Integration and	Data Integration and	Cloud Data Integration
Orchestration in 2020¹	Integrity Market² in 2020			revenue² (in $B)

12019-23" July 2019, and Integration and Orchestration Middleware category (excluding Managed File Transfer) from "Worldwide International Data Corporation: "Worldwide Data Integration and Integrity Software Forecast, 2018 - 23" May 2019; Applied Master Data Management category from "Worldwide Master Data Management Competitive Software Forecast, Semiannual Public Cloud Services Tracker," May '19

2International Data Corporation: "Worldwide Data Integration and Integrity Software Forecast, 2018 - 2023" May 2019

Q3 Highlights

Cloud ARR

Cloud ARR1 ($M)

100

			75	88
	54	61
41
Q3-19	Q4-19	Q1-20	Q2-20	Q3-20	Q4-20E
319%	179%	154%	130%	109%	CC Growth YoY
225	243	246	256	269	Total ARR

1 Cloud ARR is defined as the annualized recurring value of all active cloud-based contracts as of the end of a reporting period.

Q3 Highlights	Revenue ($M)			FY 20E $283M
			Guidance Midpoint	75
			73
	68	68		70
Revenue
		65		66

Q1 - 20	Q2 - 20	Q3 - 20		Q4 - 20E
24%	17%	18%	CC1	Subscription
Revenue Growth YoY

1 CC defined as constant currency

Note: All estimates reflect midpoint of most recent guidance issued during Talend's Q3'20 earnings call

Q3 Highlights	Non-GAAP Operating
	Margin

FY 20E (8%)

Guidance Midpoint

(6%)(6%)

Operating Margin

(10%)(12%)

(12%)

(14%)

(15%)

Q1 - 20

Q2 - 20

Q3 - 20

Q4 - 20E

Note:

• Non-GAAPOperating Margin excludes share-based compensation expense, amortization of acquired intangible assets, and other expenses.
• All estimates reflect midpoint of most recent guidance issued during Talend's Q3'20 earnings call

Financial Priorities

WATCH FOR

Consistent Execution

Cloud ARR trajectory

Financial Priorities

WATCH FOR

Growth Acceleration

Total ARR

acceleration in

H2'21

Financial Priorities

WATCH FOR

Sales Efficiency

CAC inflection in

H2'21

Financial Priorities

WATCH FOR

Reduced FCF burn in 2021

Cash Generation Path

Total ARR Driven by Cloud

	Total ARR ($M)
Cloud ARR1
Other ARR2	269

225	88
41
184	181

	Q3-19	Q3-20
		16%	CC3 Total ARR
			Growth YoY

H2' 2021

Continued Cloud

Momentum Drives ARR

Acceleration

1. Cloud ARR is defined as the annualized recurring value of all active cloud-based contracts as of the end of a reporting period.
2. Other ARR is defined as the annualized recurring value of all active on-premise-based contracts as of the end of a reporting period.
3. CC defined as constant currency

Multiple Vectors Fueling Momentum

Cloud ARR1 Growth ($M)

100M

Stitch

Migration / Cross sell

Expansion

New Logo

19M

2018 Ending ARR

2020E Ending ARR

2021

Win on Expanded Value Proposition

Drive Cloud Expansion

Targeted Cross-sell into Base

Extend Velocity Motion

1 Cloud ARR is defined as the annualized recurring value of all active cloud-based contracts as of the end of a reporting period.

Rapid Customer Growth Validates Early Cloud Bet

Talend Cloud Customer Count Over Time

3,250+

1,250+

Q4-18

Q1-19

Q2-19

Q3-19

Q4-19

Q1-20

Q2-20

Q3-20

Highly Diversified Cloud Base		Talend Cloud Customer Size
		Distribution by Cloud ARR1

28%

20%

23%

17%

13%

$0-50k$50-100k$100-250k$250-500k $500k+

1 Cloud ARR is defined as the annualized recurring value of all active cloud-based contracts as of the end of a reporting period.

Gaining more from our

investments

Customer Acquisition Cost

Non-GAAP sales and	Change in Ending ARR
marketing expense for
period over period
a period

= CAC

CAC Evolution

$3.2

$2.8

2019

LTM Q3'20

2021 Target

Effectiveness

Focused on Customers' Business Outcomes

Precision

Prescriptive Sales Segmentation

Impact

How We Show Up In The Market

Note: CAC is calculated as the sum of non-GAAP sales & marketing expenses during the period divided by the change in ending ARR during the period

Creating a Path to Operating Leverage and FCF

FCF ($M)

0

-5
-10
-15
-20	(17)
-25
-30		(27)
			(34)
	2019	LTM	2020E1	2021E

1 Estimate reflects midpoint of most recent guidance issued during Talend's Q3'20 earnings call

Note: FCF is a Non-GAAP measure

Long-term Target Operating Profile

	2018	2019	2020 YTD
Revenue	$205.8	$247.9	$208.6
Subscription Revenue Growth		23%	19%

Target

15 - 20%

Gross Margin	77%	78%	80%		80 - 82%
Sales and Marketing	52%	52%	52%	32	- 34%
Research and Development	17%	20%	19%		17 - 19%
General and Administrative	16%	14%	16%	9	- 10%
Operating Margin	(7%)	(8%)	(7%)		20 - 22%
FCF Margin (pre-tax)1	(1%)	(7%)	(14%)	20	- 25%

1Shown pre-tax for trend comparison and long-term impact of net operating losses

Note: All financial metrics besides Revenue and Subscription Revenue Growth are Non-GAAP metrics.

Key Takeaways	Continued strong execution and prudent
financial management

Ongoing financial results driven by core

Talend initiatives

Path to cash breakeven with decreasing CAC

ADAM MEISTER • CFO

NEED HEADSHOT

Damaari Drumright

VP, TREASURY & INVESTOR RELATIONS

Christal	Adam	Krishna	Ann-Christel	Jamie	Lauren
Bemont	Meister	Tammana	Graham	Kiser	Vaccarello
CEO	CFO	CTO	CRO	COO & CCO	CMO

Appendix

GAAP to Non-GAAP Reconciliation

($ in thousands)	2018	2019	Q1'20	Q2'20	Q3'20	2020 YTD
Total Revenue	$205,799	$247,861	$68,119	$67,738	$72,702	$208,559

GAAP Gross Profit

GAAP Subscription Gross Profit Share-based Compensation Expense

Non-GAAP Subscription Gross Profit

GAAP Professional Services Gross Profit Share-based Compensation Expense

Non-GAAP Professional Services Gross Profit

Non-GAAP Gross Profit

% Gross Margin

GAAP Sales & Marketing Expense

Share-based Compensation Expense

Other Expenses

Non-GAAP Sales & Marketing Expense

GAAP Research & Development Expense Share-based Compensation Expense Amortization of acquired intangible assets Other expenses

Non-GAAP Research & Development Expense

GAAP General & Administrative Expense Share-based Compensation Expense Amortization of acquired intangible assets Other Expenses

Non-GAAP General & Administrative Expense

GAAP Operating Loss Share-based Compensation Expense Amortization of acquired intangible assets Other Expenses

Non-GAAP Operating Loss

$156,305	$186,980	$53,354	$52,532	$56,084	$161,970
$153,271	$184,791	$52,885	$51,938	$55,432	$160,255
1,431	3,116	248	1,031	1,313	2,592
$154,702	$187,907	$53,133	$52,969	$56,745	$162,847
$3,034	$2,190	$469	$594	$652	$1,715
1,025	2,131	406	409	574	1,389
$4,059	$4,321	$875	$1,003	$1,226	$3,105
$158,762	$192,228	$54,008	$53,972	$57,971	$165,951
77%	78%	79%	80%	80%	80%
$113,794	$138,014	$38,253	$39,531	$40,686	$118,470
7,200	10,227	2,454	3,737	4,046	10,237
0	0	634	82	0	716
$106,594	$127,786	$35,165	$35,712	$36,640	$107,517
$42,359	$63,017	$15,934	$17,639	$16,836	$50,409
5,808	10,353	2,957	2,715	1,413	7,085
1,882	3,644	908	906	927	2,741
0	0	0	0	664	664
$34,669	$49,020	$12,069	$14,018	$13,832	$39,919
$40,357	$44,473	$15,655	$14,997	$16,796	$47,448
5,375	7,965	4,264	3,332	4,688	12,284
636	1650	413	412	412	1236.5
1,464	0	440	0	0	440
$32,882	$34,859	$10,538	$11,253	$11,696	$33,487
($40,207)	($58,525)	($16,488)	($19,635)	($18,234)	($54,357)
20,835	33,792	10,329	11,224	12,034	33,587
2,518	5,295	1,321	1,318	1,339	3,978
1,464	0	1,074	82	664	1,820
($15,389)	($19,437)	($3,764)	($7,011)	($4,197)	($14,972)

% Operating Margin

(7%)

(8%)

(6%)

(10%)

(6%)

(7%)

Free Cash Flow Reconciliation

($ in thousands)

2019	LTM 9/30/20

Net cash from (used in) operating activities	($14,517)	($21,113)
Less: Acquisition of property and equipment	2,191	5,779
Free Cash Flow	($16,708)	($26,892)
Note: Net cash used in investing activities	(2,191)	(5,779)
Note: Net cash from financing activities	157,838	6,370

CAC Reconciliation

($ in thousands)

2019

LTM Q3'20

GAAP Sales & Marketing Expense	$138,014	$154,058
Share-based Compensation Expense	$10,227	$12,802
Other Expenses	0	716
Non-GAAP Sales & Marketing Expense	$127,786	$140,540
Beginning ARR for Period	$198,103	$224,761
Ending ARR for Period	243,137	268,906
Incremental ARR for Period	$45,034	$44,145
CAC	$2.8	$3.2

Note: CAC is calculated as the sum of non-GAAP sales & marketing expenses during the period divided by the change in ending ARR during the period

Subscription Revenue Reconciliation

($ in thousands) Subscription revenue as reported Conversion impact U.S. Dollar/other currencies Subscription revenue on constant currency basis YoY % as reported YoY % on constant currency basis

($ in thousands) Subscription revenue as reported Conversion impact U.S. Dollar/other currencies Subscription revenue on constant currency basis YoY % as reported YoY % on constant currency basis

Q3'19	Q3'20
$54,952	$65,985
	(1,391)
$54,952	$64,594
	20 %
	18 %

Q2'19	Q2'20
$52,615	$60,885
	799
$52,615	$61,684
	16 %
	17 %

($ in thousands)	Q1'19	Q1'20
Subscription revenue as reported	$49,864	$60,909
Conversion impact U.S. Dollar/other currencies		857
Subscription revenue on constant currency basis	$49,864	$61,766
YoY % as reported		22 %

YoY % on constant currency basis	24 %