http://stockcharts.com/h-sc/ui?s=CRM&p=D&b=5&g=0&id=p59191861522
Salesforce.com
The Landmark One Market
Suite 300
San Francisco, CA 94105
United States - Map
Phone: 415-901-7000
Web Site: http://www.salesforce.com
DETAILS
Index Membership: N/A
Sector: Technology
Industry: Internet Software & Services
Full Time Employees: 2,070
BUSINESS SUMMARY
salesforce.com, inc. provides on-demand customer relationship management (CRM) services to businesses and industries worldwide. Its Apex platform allows customers and partners to customize and integrate Salesforce CRM applications or build new applications. The company also offers AppExchange, an online marketplace for on-demand applications. It provides an array of CRM and business application services, which enable customers and subscribers to systematically record, store, and act upon business data; and to help businesses manage customer accounts, track sales leads, evaluate marketing campaigns, and provide postsales services. The company's CRM services primarily focus on sales force automation, partner relationship management, marketing automation, and customer service and support automation. Its sales force automation service helps companies to establish a system and process for recording, tracking, and sharing information about sales opportunities, sales leads, sales forecasts, the sales process, and closed business, as well as managing sales territories. The company's partner relationship management service provides channel managers with visibility into their company's entire sales pipeline for direct and indirect channels. Its marketing automation service enables companies to manage marketing campaigns. The company's customer service and support automation service allows companies to interact with their existing customers for various service and support needs, such as requests for repairs, advice about products and services, complaints about faulty goods, and the need for additional goods and services. In addition, it offers consulting and implementation, and training services. As of January 31, 2007, the company served approximately 29,800 customers and had 646,000 paying subscriptions. It has an alliance with Datasul S/A to launch a software for fleet management services. The company was founded in 1999 and is headquartered in San Francisco, California
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Salesforce.com Announces Record Fiscal Third Quarter 2008 Results
Thursday November 15, 4:05 pm ET
Record Revenue and Operating Cash; Company Raises Outlook
- Record Revenue of $193M, up 48% Year-Over-Year
- Record Operating Cash Flow of $52M, up 70% Year-Over-Year
- Cash & Marketable Securities Reach $571M, up $200M Year-Over-Year
- GAAP Net Income Rises to $6.5M, up 74% Sequentially
- GAAP EPS of $0.05 Exceeds Company Guidance
- Net Paying New Customers Rise 2,800 to 38,100
- Raising Full Year FY08 Revenue and EPS Outlook
SAN FRANCISCO, Nov. 15 /PRNewswire-FirstCall/ -- Salesforce.com (NYSE: CRM - News), the market and technology leader in on-demand business services, today announced results for its third fiscal quarter ended October 31, 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050216/SFW105LOGO)
"Revenue for our third fiscal quarter grew an amazing 48% from the year ago quarter to roughly $193 million. That's more revenue in 9-months this fiscal year, than we achieved all of last year," said Marc Benioff, CEO and Chairman. "At this rate, we expect to push well past the $800 million revenue run rate in Q4, and we are now on track to become the first ever on-demand company to exceed $1 billion in annual revenue in our fiscal '09. Our on-demand industry leadership has never been more clear."
Salesforce.com delivered the following results for the third fiscal quarter 2008:
Revenue: Total Q3 revenue was $192.8 million, an increase of 48% on a
year-over-year basis and an increase of 9% on a quarter-over-quarter
basis. Subscription and support revenues were $176.4 million, an
increase of 49% on a year-over-year basis and an increase of 10% on a
quarter-over-quarter basis. Professional services and other revenues
were $16.4 million, an increase of 41% on a year-over-year basis and a
decrease of 1% on a quarter-over-quarter basis.
Earnings per Share: Q3 diluted GAAP earnings per share were $0.05.
The Q3 GAAP EPS result was benefited by a gain of approximately $0.01
per share associated with the sale of a minority investment. Third
quarter results also include approximately $14.2 million in stock based
compensation and approximately $1.4 million in amortization of
purchased intangibles related to previously announced acquisitions, as
well as a 46% tax rate. Q3 diluted GAAP EPS calculations are based on
an average of 122 million diluted shares outstanding during the
quarter.
Customers: The company added approximately 2,800 net paying customers
during the 3rd quarter. These additions pushed total net paying
customers in the third quarter to 38,100, an increase of approximately
11,000 or 41% from Q3 of the prior year, and an increase of
approximately 8% from the prior quarter.
Cash: Cash from operations for the fiscal third quarter was the most
in the company's history at approximately $52 million, an increase of
approximately 70% year-over-year. Total cash, cash equivalents and
marketable securities finished the quarter at approximately $571
million, an increase of approximately 54% or $200 million
year-over-year.
Deferred Revenue: Deferred revenue on the balance sheet as of the end
of the fiscal third quarter was roughly $341 million, an increase of
55% on a year-over-year basis and 6% on a quarter-over-quarter basis.
Based on information as of November 15, 2007, salesforce.com is initiating guidance for its fourth quarter and raising guidance for its full fiscal year 2008 ending January 31, 2008. Salesforce.com is also initiating full year fiscal 2009 guidance.
Q4 FY08: Revenue for the company's fourth fiscal quarter is projected to
be in the range of approximately $206 million to $208 million. GAAP
diluted EPS is expected to be in the range of approximately $0.03 to
$0.04. GAAP EPS estimates include the effects of stock based compensation
and the amortization of purchased intangibles. For the fourth fiscal
quarter FY08, stock based compensation expense is expected to be
approximately $16 million to $18 million, and the expense associated with
the amortization of purchased intangibles is now expected to be
approximately $1.5 million. For the purposes of Q4 GAAP EPS calculation,
the company is expecting an average diluted shares count of 125 million
shares, and a GAAP tax rate of 46%.
Full Year FY08: The company is raising its full fiscal year 2008 revenue
and EPS outlook. Revenue is now expected to be approximately $737 million
to approximately $739 million. The company now expects GAAP diluted EPS
to be in the range of approximately $0.12 to $0.13. This GAAP EPS
estimate includes the effects of stock based compensation, amortization of
purchased intangibles, and the third quarter gain on the sale of a
minority investment. For the full fiscal year 2008, stock based
compensation expense is expected to be approximately $56 million to $58
million, and the expense associated with the amortization of purchased
intangibles is currently expected to be approximately $5.5 million. For
the purposes of the full fiscal year 2008 GAAP EPS calculation, the
company is expecting an average diluted shares count of 123 million
shares, and a GAAP tax rate of 50%.
Full Year FY09: The company today is initiating revenue guidance for its
fiscal year 2009, and now expects full year revenue of approximately $1.0
billion to approximately $1.02 billion. The company plans to provide its
expectations for FY09 GAAP EPS at the time it announces its fourth quarter
FY08 results planned for February, 2008.
Quarterly Conference Call
Salesforce.com will host a conference call to discuss its third quarter fiscal 2008 results at 2:00 p.m. (PST) today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations Web site at http://www.salesforce.com/investor. In addition, an archive of the webcast can be accessed through the same link. Participants who choose to call into the conference call can do so by dialing domestically 866-901-SFDC or 866-901-7332 and internationally 706-902-1764. A replay will be available at (800) 642-1687 or (706) 645-9291, passcode 22940333, until midnight (EST) November 23, 2007.
About salesforce.com
Salesforce.com is the market and technology leader in on-demand business services. The company's Salesforce suite of on-demand CRM applications allows customers to manage and share all of their sales, support, marketing and partner information on-demand. Force.com, the world's first on-demand platform, enables customers, developers and partners to build powerful new on-demand applications that extend beyond CRM to deliver the benefits of multi-tenancy and The Business Web across the enterprise. Force.com allows applications to be easily shared, exchanged and installed with a few simple clicks via salesforce.com's AppExchange marketplace, available at http://www.salesforce.com/appexchange. Customers can also take advantage of Successforce, salesforce.com's world-class training, support, consulting and best practices offerings.
As of October 31, 2007, salesforce.com manages customer information for approximately 38,100 customers including ABN AMRO, Dow Jones Newswires, Japan Post, Kaiser Permanente, KONE, Sprint Nextel, and SunTrust Banks. Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase salesforce.com applications should make their purchase decisions based upon features that are currently available. Salesforce.com has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the ticker symbol "CRM". For more information please visit http://www.salesforce.com, or call 1-800-NO-SOFTWARE.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements including but not limited to statements regarding our expected future revenue, GAAP diluted earnings per share, expected tax rate, anticipated shares outstanding, future growth and margin expectations, further adoption of our on-demand business services by enterprises, and the potential market for our existing service offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
The risks and uncertainties referred to above include -- but are not limited to -- risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates.
Further information on these and other factors that could affect our financial results is contained in our SEC filings, including our most recent reports on Form 10-K and 10-Q, particularly under the heading "Risk Factors." These documents are available in the SEC Filings portion of the Investor Information section of our website at www.salesforce.com/investor.
Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Copyright (c) 2007 salesforce.com, inc. All rights reserved. Salesforce.com, AppExchange, Successforce, The Business Web and the "no software" logo are registered trademarks of salesforce.com, inc., and salesforce.com owns other registered and unregistered trademarks. Other names used herein may be trademarks of their respective owners.
salesforce.com, inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
October 31, October 31,
2007 2006 2007 2006
Revenues:
Subscription and support $176,376 $118,433 $484,064 $319,589
Professional services and other 16,427 11,620 47,730 33,287
Total revenues 192,803 130,053 531,794 352,876
Cost of revenues (1):
Subscription and support 23,887 16,628 66,446 45,178
Professional services and other 20,394 14,732 58,414 39,873
Total cost of revenues 44,281 31,360 124,860 85,051
Gross profit 148,522 98,693 406,934 267,825
Operating expenses (1):
Research and development 16,892 11,450 46,109 31,283
Marketing and sales 96,216 66,526 270,357 178,353
General and administrative 29,296 20,840 80,889 59,711
Total operating expenses 142,404 98,816 397,355 269,347
Income (loss) from operations 6,118 (123) 9,579 (1,522)
Interest, net 6,556 4,132 17,178 10,281
Gain on sale of investment 1,272 0 1,272 0
Other income (expense) 285 309 734 (153)
Income before provision for income
taxes and minority interest 14,231 4,318 28,763 8,606
Provision for income taxes (6,594) (3,418) (15,089) (7,136)
Income before minority interest 7,637 900 13,674 1,470
Minority interest in consolidated
joint venture (1,125) (561) (2,697) (1,505)
Net income (loss) $6,512 $339 $10,977 ($35)
Basic net income (loss) per share $0.06 $0.00 $0.09 $0.00
Diluted net income (loss) per
share $0.05 $0.00 $0.09 $0.00
Shares used in computing basic net
income (loss) per share 117,361 112,885 116,208 111,889
Shares used in computing diluted
net income (loss) per share 122,169 120,279 121,429 111,889
(1) Amounts include stock-based
expenses, as follows:
Cost of revenues $2,014 $1,304 $5,753 $3,900
Research and development 1,685 1,195 4,472 3,201
Marketing and sales 6,313 4,826 18,197 13,026
General and administrative 4,166 2,915 11,199 7,912
Total stock-based
expenses $14,178 $10,240 $39,621 $28,039
salesforce.com, inc.
Condensed Consolidated Statements of Operations
As a percentage of total revenues:
(Unaudited)
Three Months Ended Nine Months Ended
October 31, October 31,
2007 2006 2007 2006
Revenues:
Subscription and support 91% 91% 91% 91%
Professional services and other 9 9 9 9
Total revenues 100 100 100 100
Cost of revenues:
Subscription and support 12 13 12 13
Professional services and other 11 11 11 11
Total cost of revenues 23 24 23 24
Gross profit 77 76 77 76
Operating expenses:
Research and development 9 9 9 9
Marketing and sales 50 51 51 51
General and administrative 15 16 15 16
Total operating expenses 74 76 75 76
Income (loss) from operations 3 0 2 0
Interest, net 3 3 3 3
Gain on sale of investment 1 0 0 0
Other income (expense) 0 0 0 0
Income before provision for income
taxes and minority interest 7 3 5 3
Provision for income taxes (3) (3) (3) (3)
Income before minority interest 4 0 2 0
Minority interest in consolidated
joint venture (1) 0 0 0
Net income (loss) 3% 0% 2% 0%
Stock-based expenses as a percentage
of total revenues, as follows:
Cost of revenues 1% 1% 1% 1%
Research and development 1 1 1 1
Marketing and sales 3 4 3 4
General and administrative 2 2 2 2
Total stock-based
expenses 7% 8% 7% 8%
salesforce.com, inc.
Condensed Consolidated Balance Sheets
(in thousands)
October 31, January 31,
2007 2007
(unaudited)
Assets
Current assets:
Cash and cash equivalents $160,761 $86,608
Short-term marketable securities 213,307 165,816
Accounts receivable, net 121,961 128,693
Deferred commissions 26,023 22,072
Deferred income taxes 7,020 228
Prepaid expenses and other
current assets 25,878 15,679
Total current assets 554,950 419,096
Marketable securities, noncurrent 196,935 160,088
Fixed assets, net 38,913 30,155
Deferred commissions, noncurrent 8,864 9,478
Deferred income taxes, noncurrent 22,272 20,625
Capitalized software 23,790 10,983
Goodwill 8,556 6,705
Other assets 10,829 7,702
Total assets $865,109 $664,832
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $12,618 $8,870
Accrued expenses and other
current liabilities 93,373 77,327
Income taxes payable 3,142 6,739
Deferred revenue 340,808 284,063
Total current liabilities 449,941 376,999
Income taxes payable, noncurrent 5,285 0
Long-term lease abandonment
liability and other 1,420 1,408
Minority interest 7,168 4,634
Total liabilities 463,814 383,041
Stockholders' equity:
Common stock 118 115
Additional paid-in capital 429,235 319,496
Accumulated other comprehensive
loss (3,093) (2,187)
Accumulated deficit (24,965) (35,633)
Total stockholders' equity 401,295 281,791
Total liabilities and stockholders'
equity $865,109 $664,832
salesforce.com, inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
October 31, October 31,
2007 2006 2007 2006
Operating activities:
Net income (loss) $6,512 $339 $10,977 ($35)
Adjustments to reconcile net
income (loss) to net
cash provided by operating
activities:
Gain on sale of investment (1,272) 0 (1,272) 0
Minority interest 1,125 561 2,697 1,505
Depreciation and amortization 6,758 3,339 17,651 8,767
Amortization of deferred
commissions 11,044 5,827 29,727 16,605
Expenses related to stock-based
awards 14,178 10,240 39,621 28,039
Excess tax benefits from
employee stock plans (9,298) (4,878) (24,504) (10,806)
Changes in assets and
liabilities 22,951 15,199 48,585 28,990
Net cash provided by
operating activities 51,998 30,627 123,482 73,065
Investing activities:
Business combination 0 0 0 (15,502)
Changes in marketable securities (35,140) (116,209) (83,087) (103,152)
Capital expenditures (9,122) (9,085) (35,183) (14,498)
Proceeds from the sale of
investment 1,659 0 1,659 0
Net cash used in investing
activities (42,603) (125,294) (116,611) (133,152)
Financing activities:
Proceeds from the exercise of
stock options and warrants 20,586 10,149 44,290 21,040
Excess tax benefits from employee
stock plans 9,298 4,878 24,504 10,806
Principal payments on capital
lease obligations (6) (155) (169) (459)
Repurchase of unvested shares 0 0 0 (10)
Net cash provided by
financing activities 29,878 14,872 68,625 31,377
Effect of exchange rate changes (1,461) 127 (1,343) (808)
Net increase (decrease) in cash
and cash equivalents 37,812 (79,668) 74,153 (29,518)
Cash and cash equivalents,
beginning of period 122,949 149,992 86,608 99,842
Cash and cash equivalents, end of
period $160,761 $70,324 $160,761 $70,324
salesforce.com, inc.
Additional Metrics
(Unaudited)
Oct 31, July 31, April 30, Jan 31, Oct 31, July 31,
2007 2007 2007 2007 2006 2006
Full Time
Equivalent
Headcount 2,461 2,302 2,243 2,070 1,807 1,625
Financial data
(in thousands):
Cash, cash
equivalents
and marketable
securities $571,003 $497,191 $448,071 $412,512 $371,278 $334,107
Deferred
revenue $340,808 $321,852 $295,672 $284,063 $219,431 $202,836
Three Months Ended Nine Months Ended
October 31, October 31,
2007 2006 2007 2006
Revenues by geography
(in thousands):
Americas $141,682 $101,240 $399,477 $276,818
Europe 33,880 19,821 88,614 52,395
Asia Pacific 17,241 8,992 43,703 23,663
$192,803 $130,053 $531,794 $352,876
As a percentage of total
revenues:
Revenues by geography:
Americas 73% 78% 75% 78%
Europe 18 15 17 15
Asia Pacific 9 7 8 7
100% 100% 100% 100
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Salesforce signs Citigroup deal, 'largest ever'
Thu Nov 15, 2007 5:28pm EST Email | Print | Share| Reprints | Single Page | Recommend (-) [-] Text
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Learn to Trade with a FREE Guide.SAN FRANCISCO, Nov 15 (Reuters) - Salesforce.com Inc (CRM.N: Quote, Profile, Research) has signed its largest contract ever to provide its Web-based sales and marketing software for use by 30,000 Citigroup office workers, its top executive said on Thursday.
Chairman and Chief Executive Marc Benioff told investors on a quarterly conference call that the widely anticipated deal represents the fifth customer to buy licences for more than 25,000 users.
In addition to Citigroup Inc (C.N: Quote, Profile, Research), other top customers include Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research), Japan Post, Dell Inc (DELL.O: Quote, Profile, Research) and Cisco Systems Inc (CSCO.O: Quote, Profile, Research). Japan Post already counts 60,000 users, he noted.
"We believe this is the largest and most important CRM agreement of 2007, and our largest deal ever," he said of the Citigroup deal. CRM is the ticker symbol of Salesforce and the acronym for its class of customer relationship management software. (Reporting by Eric Auchard in San Francisco; Editing by Jeffrey Benkoe)
salesforce.com, inc.
Salesforce.com Announces Record Fiscal Fourth Quarter Results
Wednesday February 27, 4:05 pm ET
First Ever On-Demand Software Company to Exceed $850 Million Annual Revenue Run Rate
- Record Revenue of $217 Million, up 50% Year-Over-Year
- Record Operating Cash Flow of $81 Million, up 112% Year-Over-Year
- GAAP EPS of 6 cents, up from Breakeven Year-Over-Year
- Net Customers Increase 11,200 Year-Over-Year to 41,000
- Net Paying Subscribers Increase to Nearly 1.1 Million
- Total Cash and Marketable Securities Increase to $670 Million, up $257 Million Year-Over-Year
- Company Raises FY09 Revenue Guidance to $1.030 - $1.035 Billion
SAN FRANCISCO, Feb. 27 /PRNewswire-FirstCall/ -- Salesforce.com (NYSE: CRM - News), the market and technology leader in Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS), today announced results for its fiscal fourth quarter and full fiscal year ended January 31, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050216/SFW105LOGO)
"Our fourth quarter and full-year results show that businesses are selecting the Force.com Platform-as-a-Service and cloud computing over failed client-server alternatives," said Marc Benioff, chairman and CEO, salesforce.com. "There's only one way to describe both the consolidation of the industry and the growing number of companies choosing innovation, not infrastructure: The End of Software."
Salesforce.com delivered the following results for the fourth quarter and full fiscal year 2008:
Revenue: Total Q4 revenue was $216.9 million, an increase of 50% on a
year-over-year basis and an increase of 13% on a quarter-over-quarter
basis. Subscription and support revenues were $196.5 million, an increase
of 49% on a year-over-year basis and an increase of 11% on a
quarter-over-quarter basis. Professional services and other revenues were
$20.4 million, an increase of 68% on a year-over-year basis and an
increase of 24% on a quarter-over-quarter basis.
For the full fiscal year 2008, the company reported revenue of
approximately $748.7 million, an increase of 51% from the prior year.
Subscription and support revenues were $680.6 million for the year, an
increase of 51%, while professional services revenue rose 50% to finish at
$68.1 million.
Earnings per Share: Q4 GAAP diluted earnings per share were approximately
$0.06, including approximately $16 million in stock based compensation and
approximately $1.3 million in amortization of purchased intangibles
related to previously announced acquisitions. For the basis of Q4 GAAP
EPS calculations, there was an average of approximately 124 million
diluted shares outstanding during the quarter.
For the full year, GAAP diluted earnings per share were approximately
$0.15, including approximately $55 million in stock based compensation and
approximately $5.0 million in amortization of purchased intangibles
related to previously announced acquisitions. For the basis of full year
GAAP EPS calculations, there was an average of approximately 122 million
diluted shares outstanding during the year.
Customers and Paying Subscribers: Net paying customers rose approximately
2,900 during the quarter and approximately 11,200 during the year to
finish at approximately 41,000. Net paying subscribers rose to nearly 1.1
million, an increase of more than 450,000 year over year.
Cash: Cash from operations for the fiscal fourth quarter was a record at
approximately $81 million, up 55% sequentially, and up 112%
year-over-year. For the full year, operating cash flow totaled more than
$204 million, an increase of 84% from the prior year. Total cash, cash
equivalents and marketable securities finished the year at approximately
$670 million, an increase of approximately $99 million from Q3 and up
approximately $257 million from the year prior.
Deferred Revenue: Deferred revenue on the balance sheet as of January 31,
2008 was $481 million at year end, an increase of 69% on a year-over-year
basis and 41% on a quarter-over-quarter basis.
As of February 27, 2008, salesforce.com is initiating guidance for its first quarter, fiscal year 2009. For its full fiscal year 2009, the company is raising its prior revenue guidance and initiating EPS guidance.
Q1 FY09: Revenue for the company's first fiscal quarter is projected to
be in the range of approximately $233 million to approximately $235
million. GAAP diluted EPS is expected to be in the range of approximately
$0.06 to $0.07. This estimate includes the effects of stock based
compensation and the amortization of purchased intangibles. For the first
fiscal quarter FY09, stock based compensation expense is expected to be
approximately $17 million, and the expense associated with the
amortization of purchased intangibles is now expected to be approximately
$1.3 million. For purposes of the Q1 GAAP EPS calculation, the company is
expecting an average diluted shares count of 124 million shares, and a
GAAP tax rate of 48%.
Full Year FY09: The company today is raising the full year revenue
guidance it provided on November 15, 2007, with revenue now expected to be
approximately $1.030 billion to approximately $1.035 billion. The company
is also initiating its earnings outlook for the full year, expecting GAAP
diluted EPS to be in the range of approximately $0.32 to $0.33. GAAP EPS
estimates include the effects of stock based compensation and the
amortization of purchased intangibles. For the full fiscal year '09,
stock based compensation expense is expected to be approximately $82
million, and the expense associated with the amortization of purchased
intangibles is currently expected to be approximately $5.3 million. For
purposes of the full fiscal year 2009 GAAP EPS calculation, the company is
expecting an average diluted shares count of 125 million shares, and a
GAAP tax rate of 48%.
Quarterly Conference Call
Salesforce.com will host a conference call to discuss its fourth quarter fiscal 2008 results at 2:00 p.m. Pacific Standard Time today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations Web site at http://www.salesforce.com/investor. In addition, an archive of the webcast can be accessed through the same link. Participants who choose to call in to the conference call can do so by dialing domestically 866-901-SFDC or 866-901-7332 and internationally 706-902-1764. A replay will be available at (800) 642-1687 or (706) 645-9291, passcode 34062469, until midnight (EST) March 7, 2008.
About salesforce.com
Salesforce.com is the market and technology leader in Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS). The company's portfolio of SaaS applications, including its award-winning CRM application, available at http://www.salesforce.com/products/, has revolutionized the ways that customers manage and share business information over the Internet. The company's Force.com PaaS enables customers, developers and partners to build powerful on-demand applications that deliver the benefits of multi-tenancy across the enterprise. Applications built on the Force.com platform, available at http://www.force.com, can be easily shared, exchanged and installed with a few simple clicks via salesforce.com's AppExchange marketplace available at http://www.salesforce.com/appexchange.
Source: salesforce.com, inc.
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As of January 31, 2008, salesforce.com manages customer information for approximately 41,000 customers including ABN AMRO, Dow Jones Newswires, Japan Post, Kaiser Permanente, KONE, Sprint Nextel, and SunTrust Banks. Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase salesforce.com applications should make their purchase decisions based upon features that are currently available. Salesforce.com has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the ticker symbol "CRM". For more information please visit http://www.salesforce.com, or call 1-800-NO-SOFTWARE.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about expected revenue and GAAP earnings per share for the first fiscal quarter of 2009 and the full fiscal year 2009, and our expected tax rate, stock based compensation expense, amortization rate, and shares outstanding, the achievement of which involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
The risks and uncertainties referred to above include -- but are not limited to -- risks associated with possible fluctuations in our financial and operating results, rate of growth and anticipated revenue run rate; errors, interruptions or delays in our service or our Web hosting; breaches of our security measures; the nature of our business model; our ability to continue to release and gain customer acceptance of new and improved versions of our service; successful customer deployment and utilization of our existing and future services; competition; various financial aspects of our subscription model; the emerging market in which we operate; our ability to hire, retain and motivate our employees and manage our growth; changes in our customer base; technological developments; unanticipated changes in our effective tax rate; and fluctuations in the number of shares we have outstanding, the price of such shares, foreign currency exchange rates and interest rates.
Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including Form 10-Q for the quarter ended October 31, 2007 and our Form 10-K for the fiscal year ended January 31, 2007. These documents are available on the SEC Filings section of the Investor Information section of our website at http://www.salesforce.com/investor.
Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Copyright (c) 2008 salesforce.com, inc. All rights reserved. Salesforce and the "no software" logo are registered trademarks of salesforce.com, inc., and salesforce.com owns other registered and unregistered trademarks. Other names used herein may be trademarks of their respective owners.
salesforce.com, inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
January 31, January 31,
2008 2007 2008 2007
Revenues:
Subscription and support $196,517 $132,071 $680,581 $451,660
Professional services and other 20,389 12,151 68,119 45,438
Total revenues 216,906 144,222 748,700 497,098
Cost of revenues (1):
Subscription and support 24,822 16,279 91,268 61,457
Professional services and other 21,909 17,560 80,323 57,433
Total cost of revenues 46,731 33,839 171,591 118,890
Gross profit 170,175 110,383 577,109 378,208
Operating expenses (1):
Research and development 17,703 13,331 63,812 44,614
Marketing and sales 106,123 74,582 376,480 252,935
General and administrative 35,619 24,546 116,508 84,257
Total operating expenses 159,445 112,459 556,800 381,806
Income (loss) from operations 10,730 (2,076) 20,309 (3,598)
Interest, net 7,315 4,503 24,493 14,784
Gain on sale of investment 0 0 1,272 0
Other income (expense) (595) 1,463 139 1,310
Income before provision for income
taxes and minority interest 17,450 3,890 46,213 12,496
Provision for income taxes (8,296) (2,659) (23,385) (9,795)
Income before minority interest 9,154 1,231 22,828 2,701
Minority interest in consolidated
joint venture (1,775) (715) (4,472) (2,220)
Net income $7,379 $516 $18,356 $481
Basic net income per share $0.06 $0.00 $0.16 $0.00
Diluted net income per share $0.06 $0.00 $0.15 $0.00
Shares used in computing basic net
income per share 118,757 113,905 116,840 112,386
Shares used in computing diluted
net income per share 123,680 121,259 122,422 120,154
(1) Amounts include stock-based
expenses, as follows:
Cost of revenues $2,173 $1,622 $7,926 $5,522
Research and development 1,864 1,322 6,336 4,523
Marketing and sales 7,226 5,366 25,423 18,392
General and administrative 4,323 2,856 15,522 10,768
Total stock-based
expenses $15,586 $11,166 $55,207 $39,205
salesforce.com, inc.
Condensed Consolidated Statements of Operations
As a percentage of total revenues:
(Unaudited)
Three Months Ended Year Ended
January 31, January 31,
2008 2007 2008 2007
Revenues:
Subscription and support 91% 92% 91% 91%
Professional services and other 9 8 9 9
Total revenues 100 100 100 100
Cost of revenues:
Subscription and support 11 11 12 12
Professional services and other 11 12 11 12
Total cost of revenues 22 23 23 24
Gross profit 78 77 77 76
Operating expenses:
Research and development 8 9 8 9
Marketing and sales 49 52 50 51
General and administrative 16 17 16 17
Total operating expenses 73 78 74 77
Income (loss) from operations 5 (1) 3 (1)
Interest, net 3 3 3 4
Gain on sale of investment 0 0 0 0
Other income (expense) 0 1 0 0
Income before provision for income
taxes and minority interest 8 3 6 3
Provision for income taxes (4) (2) (3) (2)
Income before minority interest 4 1 3 1
Minority interest in consolidated
joint venture (1) (1) (1) (1)
Net income 3% 0% 2% 0%
Stock-based expenses as a percentage
of total revenues, as follows:
Cost of revenues 1% 1% 1% 1%
Research and development 1 1 1 1
Marketing and sales 3 4 3 4
General and administrative 2 2 2 2
Total stock-based
expenses 7% 8% 7% 8%
salesforce.com, inc.
Condensed Consolidated Balance Sheets
(in thousands)
January 31, January 31,
2008 2007
(unaudited)
Assets
Current assets:
Cash and cash equivalents $279,095 $86,608
Short-term marketable securities 171,748 165,816
Accounts receivable, net 220,061 128,693
Deferred commissions 35,679 22,072
Deferred income taxes 7,173 228
Prepaid expenses and other
current assets 27,055 15,679
Total current assets 740,811 419,096
Marketable securities, noncurrent 218,957 160,088
Fixed assets, net 41,380 30,155
Deferred commissions, noncurrent 16,435 9,478
Deferred income taxes, noncurrent 26,512 20,625
Capitalized software, net 23,061 10,983
Goodwill 8,556 6,705
Other assets 13,881 7,702
Total assets $1,089,593 $664,832
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $7,478 $8,870
Accrued expenses and other
current liabilities 125,996 77,327
Income taxes payable 3,622 6,739
Deferred revenue 468,821 280,255
Total current liabilities 605,917 373,191
Income taxes payable, noncurrent 8,465 0
Long-term lease abandonment
liability and other 2,136 1,408
Deferred revenue, noncurrent 12,073 3,808
Minority interest 8,943 4,634
Total liabilities 637,534 383,041
Stockholders' equity:
Common stock 119 115
Additional paid-in capital 471,802 319,496
Accumulated other comprehensive
loss (2,276) (2,187)
Accumulated deficit (17,586) (35,633)
Total stockholders' equity 452,059 281,791
Total liabilities and stockholders'
equity $1,089,593 $664,832
salesforce.com, inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended Year Ended
January 31, January 31,
2008 2007 2008 2007
Operating activities:
Net income $7,379 $516 $18,356 $481
Adjustments to reconcile net
income to net
cash provided by operating
activities:
Gain on sale of investment 0 0 (1,272) 0
Minority interest 1,775 715 4,472 2,220
Depreciation and amortization 6,568 3,737 24,219 12,504
Amortization of deferred
commissions 12,468 6,776 42,195 23,381
Change in the deferred income
tax valuation allowance (970) 0 (970) 0
Expenses related to stock-based
awards 15,586 11,166 55,207 39,205
Excess tax benefits from
employee stock plans (7,474) (5,768) (31,978) (16,574)
Changes in assets and
liabilities 45,461 21,017 94,046 50,007
Net cash provided by
operating activities 80,793 38,159 204,275 111,224
Investing activities:
Business combination 0 0 0 (15,502)
Purchase of subsidiary stock 0 (2,777) 0 (2,777)
Changes in marketable securities 22,271 (25,042) (60,816) (128,194)
Capital expenditures (8,369) (7,625) (43,552) (22,123)
Gain on sale of investment 0 0 1,659 0
Net cash provided by (used
in) investing activities 13,902 (35,444) (102,709) (168,596)
Financing activities:
Proceeds from the exercise of
stock options and warrants 16,620 8,042 60,910 29,082
Excess tax benefits from employee
stock plans 7,474 5,768 31,978 16,574
Principal payments on capital
lease obligations (6) (158) (175) (617)
Repurchase of unvested shares 0 (2) 0 (12)
Net cash provided by
financing activities 24,088 13,650 92,713 45,027
Effect of exchange rate changes (449) (81) (1,792) (889)
Net increase (decrease) in cash
and cash equivalents 118,334 16,284 192,487 (13,234)
Cash and cash equivalents,
beginning of period 160,761 70,324 86,608 99,842
Cash and cash equivalents, end of
period $279,095 $86,608 $279,095 $86,608
salesforce.com, inc.
Additional Metrics
(Unaudited)
Jan 31, Oct 31, Jul 31, Apr 30, Jan 31, Oct 31,
2008 2007 2007 2007 2007 2006
Full Time
Equivalent
Headcount 2,606 2,461 2,302 2,243 2,070 1,807
Financial data
(in thousands):
Cash, cash
equivalents
and marketable
securities $669,800 $571,003 $497,191 $448,071 $412,512 $371,278
Deferred
revenue,
current
and non-
current $480,894 $340,808 $321,852 $295,672 $284,063 $219,431
Three Months Ended January 31, Year Ended January 31,
2008 2007 2008 2007
Revenues by geography
(in thousands):
Americas $158,499 $110,752 $557,976 $387,570
Europe 38,396 22,631 127,010 75,026
Asia Pacific 20,011 10,839 63,714 34,502
$216,906 $144,222 $748,700 $497,098
As a percentage of total
revenues:
Revenues by geography:
Americas 73% 77% 75% 78%
Europe 18 16 17 15
Asia Pacific 9 7 8 7
100% 100% 100% 100%
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