CRM

[BigSully1]

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
-----------------------------------------------------------------------------------------------------

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)
  
  

[BigSully1]

Made a breakout attempt today.

[BigSully1]

Up another 9% today.

[BigSully1]

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. 


·  Click Here to Download Image


       
 
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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