SAN FRANCISCO, Feb. 28, 2018 /PRNewswire/ -- Salesforce
(NYSE: CRM), the global leader in CRM, today announced results for
its fiscal fourth quarter and full fiscal year ended January 31, 2018.
"We had an outstanding quarter of growth that propelled
Salesforce over the $10 billion
revenue milestone for the year," said Marc
Benioff, chairman and CEO, Salesforce. "No other enterprise
software company has achieved this scale faster than Salesforce.
Our relentless focus on customer success continues to strengthen
our position as the global leader in CRM."
Salesforce delivered the following results for its fiscal fourth
quarter and full fiscal year 2018:
Revenue: Total fourth
quarter revenue was $2.85 billion, an
increase of 24% year-over-year, and 21% in constant currency.
Subscription and support revenues were $2.66
billion, an increase of 26% year-over-year. Professional
services and other revenues were $196
million, an increase of 7% year-over-year.
Full fiscal year 2018 revenue was
$10.48 billion, an increase of 25%
year-over-year, and 24% in constant currency. Subscription and
support revenues were $9.71 billion,
an increase of 25% year-over-year. Professional services and other
revenues were $769 million, an
increase of 21% year-over-year.
Earnings per Share: Fourth
quarter GAAP diluted earnings per share was $0.09, and non-GAAP diluted earnings per share
was $0.35. Earnings per share
benefitted by $0.02 related to net
realized gains from strategic investments in the fourth quarter.
For the full fiscal year 2018, GAAP diluted earnings per share was
$0.17, and non-GAAP diluted earnings
per share was $1.35.
Cash: Cash generated from
operations for the fourth quarter was $1.05
billion, an increase of 49% year-over-year. Cash generated
from operations for the full fiscal year 2018 was $2.74 billion, an increase of 27% year-over-year.
Total cash, cash equivalents and marketable securities finished the
fourth quarter at $4.52 billion.
Deferred Revenue: Deferred
revenue on the balance sheet as of January
31, 2018 was $7.09 billion, an
increase of 28% year-over-year, and 25% in constant currency.
Unbilled deferred revenue, representing business that is contracted
but unbilled and off balance sheet, ended the fourth quarter at
approximately $13.3 billion, up 48%
year-over-year.
As of February 28, 2018, the
company is initiating revenue, earnings per share, and deferred
revenue guidance for its first quarter of fiscal year 2019. In
addition, the company is raising its full fiscal year 2019 revenue
guidance previously provided on November 21,
2017. The company is also initiating earnings per share
guidance and operating cash flow guidance for its full fiscal year
2019. The guidance below does not reflect the impact of new
accounting standards ASC 606, ASC 340-40 and ASU 2016-01[1] and is
based on estimated GAAP tax rates that reflect the company's
currently available information, including its anticipated impact
of the new Tax Act and interpretations thereof, as well as other
factors and assumptions.
Q1 FY19 Guidance: Revenue
is projected to be $2.925 billion to
$2.935 billion, an increase of 23%
year-over-year.
GAAP diluted earnings per share is
projected to be $0.09 to $0.10, while non-GAAP diluted earnings per share
is projected to be $0.43 to
$0.44.
On balance sheet deferred revenue
growth is projected to be 23% to 24% year-over-year.
Full Year FY19 Guidance:
Revenue is projected to be $12.6
billion to $12.65 billion, an
increase of 20% to 21% year-over-year.
GAAP diluted earnings per share is
projected to be $0.61 to $0.63, while non-GAAP diluted earnings per share
is projected to be $2.02 to
$2.04.
Operating cash flow growth is
projected to be 20% to 21% year-over-year.
The following is a per share reconciliation of GAAP diluted
earnings per share to non-GAAP diluted earnings per share guidance
for the next quarter and the full year:
|
Fiscal
2019
|
|
|
Q1
|
FY2019
|
|
|
|
|
|
GAAP diluted EPS
range*
|
$0.09 -
$0.10
|
$0.61 -
$0.63
|
|
Plus
|
|
|
|
Amortization of
purchased intangibles
|
$
0.09
|
$
0.35
|
|
Stock-based
expense
|
$
0.34
|
$
1.47
|
|
Amortization of debt
discount, net
|
$
0.01
|
$
0.01
|
|
Less
|
|
|
|
Income
tax effects and adjustments**
|
$
(0.10)
|
$
(0.42)
|
|
Non-GAAP diluted
EPS***
|
$0.43 -
$0.44
|
$2.02 -
$2.04
|
|
|
|
|
|
Shares used in
computing basic net income per share (millions)
|
730
|
742
|
|
Shares used in
computing diluted net income per share (millions)
|
757
|
763
|
|
|
|
|
|
* The Company's GAAP
tax provision is expected to be 20.0% for the three months ended
April 30th, 2018 and 18.5% for the twelve months ended January
31st, 2019. The Company's GAAP diluted EPS excludes the effect of
ASU 2016-01.
|
|
|
|
** The Company's
Non-GAAP tax provision uses a long-term projected tax rate of
21.5%, which reflects currently available information and could be
subject to change.
|
|
|
|
*** The Company's
Non-GAAP diluted EPS excludes the effect of ASU 2016-01.
|
|
|
|
For additional information regarding non-GAAP financial measures
see the reconciliation of results and related explanations
below.
Quarterly Conference Call
Salesforce will host a
conference call at 2:00 p.m. (PT) /
5:00 p.m. (ET) today to discuss its
financial results with the investment community. A live web
broadcast of the event will be available on the Salesforce Investor
Relations website at www.salesforce.com/investor. A live
dial-in is available domestically at 866-901-SFDC or 866-901-7332
and internationally at 706-902-1764, passcode 9190744. A
replay will be available at (800) 585-8367 or (855) 859-2056 until
midnight (ET) Mar. 30, 2018.
About Salesforce
Salesforce, the global leader in CRM,
empowers companies to connect with their customers in a whole new
way. Salesforce 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 about Salesforce,
visit: www.salesforce.com.
"Safe harbor" statement under the Private Securities
Litigation Reform Act of 1995: This press release
contains forward-looking statements about our financial results,
which may include expected GAAP and non-GAAP financial and other
operating and non-operating results, including revenue, net income,
diluted earnings per share, operating cash flow growth, operating
margin improvement, deferred revenue growth, expected revenue
growth, expected tax rates, stock-based compensation expenses,
amortization of purchased intangibles, amortization of debt
discount and shares outstanding. The achievement or success
of the matters covered by such forward-looking statements involves
risks, uncertainties and assumptions. If any such risks or
uncertainties materialize or if any of the assumptions prove
incorrect, the company's 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 the effect of general
economic and market conditions; the impact of foreign currency
exchange rate and interest rate fluctuations on our results; our
business strategy and our plan to build our business, including our
strategy to be the leading provider of enterprise cloud computing
applications and platforms; the pace of change and innovation in
enterprise cloud computing services; the competitive nature of the
market in which we participate; our international expansion
strategy; our service performance and security, including the
resources and costs required to prevent, detect and remediate
potential security breaches; the expenses associated with new data
centers and third-party infrastructure providers; additional data
center capacity; real estate and office facilities space; our
operating results and cash flows; new services and product
features; our strategy of acquiring or making investments in
complementary businesses, joint ventures, services, technologies
and intellectual property rights; the performance and fair value of
our investments in complementary businesses through our strategic
investment portfolio; our ability to realize the benefits from
strategic partnerships and investments; our ability to successfully
integrate acquired businesses and technologies; our ability to
continue to grow and maintain deferred revenue and unbilled
deferred revenue; our ability to protect our intellectual property
rights; our ability to develop our brands; our reliance on
third-party hardware, software and platform providers; our
dependency on the development and maintenance of the infrastructure
of the Internet; the effect of evolving domestic and foreign
government regulations, including those related to the provision of
services on the Internet, those related to accessing the Internet,
and those addressing data privacy and import and export controls;
the valuation of our deferred tax assets; the potential
availability of additional tax assets in the future; the impact of
new accounting pronouncements and tax laws, including the U.S. Tax
Cuts and Jobs Act, and interpretations thereof; uncertainties
affecting our ability to estimate our non-GAAP tax rate; the impact
of expensing stock options and other equity awards; the sufficiency
of our capital resources; factors related to our outstanding
convertible notes, revolving credit facility, term loan and loan
associated with 50 Fremont; compliance with our debt covenants and
capital lease obligations; current and potential litigation
involving us; and the impact of climate change.
Further information on these and other factors that could affect
the company's 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. These documents
are available on the SEC Filings section of the Investor
Information section of the company's 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.
© 2018 salesforce.com, inc. All rights
reserved. Salesforce and other marks are trademarks
of salesforce.com, inc. Other brands featured herein may
be trademarks of their respective owners.
Non-GAAP Financial Measures: This press release
includes information about non-GAAP diluted earnings per share,
non-GAAP tax rates, non-GAAP free cash flow, and constant currency
revenue and constant currency deferred revenue growth rates
(collectively the "non-GAAP financial measures"). These non-GAAP
financial measures are measurements of financial performance that
are not prepared in accordance with U.S. generally accepted
accounting principles and computational methods may differ from
those used by other companies. Non-GAAP financial measures are not
meant to be considered in isolation or as a substitute for
comparable GAAP measures and should be read only in conjunction
with the company's consolidated financial statements prepared in
accordance with GAAP. Management uses both GAAP and non-GAAP
measures when planning, monitoring, and evaluating the company's
performance.
The primary purpose of using non-GAAP measures is to provide
supplemental information that may prove useful to investors and to
enable investors to evaluate the company's results in the same way
management does. Management believes that supplementing GAAP
disclosure with non-GAAP disclosure provides investors with a more
complete view of the company's operational performance and allows
for meaningful period-to-period comparisons and analysis of trends
in the company's business. Further, to the extent that other
companies use similar methods in calculating non-GAAP measures, the
provision of supplemental non-GAAP information can allow for a
comparison of the company's relative performance against other
companies that also report non-GAAP operating results.
Non-GAAP diluted earnings per share excludes, to the extent
applicable, the impact of the following items: stock-based
compensation, amortization of acquisition-related intangibles,
amortization of acquired leases, the net amortization of debt
discount on the company's convertible senior notes, gains/losses on
conversions of the company's convertible senior notes, gains/losses
on sales of land and building improvements, gains/losses on
company-initiated acquisitions of entities in which the company
held an equity investment, and termination of office leases, as
well as income tax adjustments. These items are excluded
because the decisions that give rise to them are not made to
increase revenue in a particular period, but instead for the
company's long-term benefit over multiple periods.
Specifically, management is excluding the following items from
its non-GAAP earnings per share, as applicable, for the periods
presented in the Q4 FY18 financial statements and for its non-GAAP
estimates for Q1 and FY19:
- Stock-Based Expenses: The company's compensation strategy
includes the use of stock-based compensation to attract and retain
employees and executives. It is principally aimed at aligning
their interests with those of our stockholders and at long-term
employee retention, rather than to motivate or reward operational
performance for any particular period. Thus, stock-based
compensation expense varies for reasons that are generally
unrelated to operational decisions and performance in any
particular period.
- Amortization of Purchased Intangibles and Acquired
Leases: The company views amortization of acquisition- and
building-related intangible assets, such as the amortization of the
cost associated with an acquired company's research and development
efforts, trade names, customer lists and customer relationships,
and acquired lease intangibles, as items arising from
pre-acquisition activities determined at the time of an
acquisition. While these intangible assets are continually
evaluated for impairment, amortization of the cost of purchased
intangibles is a static expense, one that is not typically affected
by operations during any particular period.
- Amortization of Debt Discount: Under GAAP, certain
convertible debt instruments that may be settled in cash (or other
assets) on conversion are required to be separately accounted for
as liability (debt) and equity (conversion option) components of
the instrument in a manner that reflects the issuer's
non-convertible debt borrowing rate. Accordingly, for GAAP
purposes we are required to recognize imputed interest expense on
the company's $1.15 billion of
convertible senior notes due in April
2018 that were issued in a private placement in March
2013. The imputed interest rate was approximately 2.5% for
the convertible notes due 2018, while the actual coupon interest
rate of the notes is 0.25%. The difference between the
imputed interest expense and the coupon interest expense, net of
the interest amount capitalized, is excluded from management's
assessment of the company's operating performance because
management believes that this non-cash expense is not indicative of
ongoing operating performance.
- Gains on Acquisitions of Strategic Investments: The company
views gains on sales of its strategic investments resulting from
acquisitions initiated by the company in which an equity interest
was previously held as discrete events and not indicative of
operational performance during any particular period.
- Income Tax Effects and Adjustments: The company utilizes a
fixed long-term projected non-GAAP tax rate in order to provide
better consistency across the interim reporting periods by
eliminating the effects of items such as changes in the tax
valuation allowance and tax effects of acquisitions-related costs,
since each of these can vary in size and frequency. When projecting
this long-term rate, the company evaluated a three-year financial
projection that excludes the direct impact of the following
non-cash items: stock-based expenses, amortization of purchased
intangibles and acquired leases, amortization of debt discount, and
gains on acquisitions of strategic investments. The projected rate
also assumes no new acquisitions in the three-year period, and
considers other factors including the company's expected tax
structure, its tax positions in various jurisdictions and key
legislation in major jurisdictions where the company operates. For
fiscal 2018, after evaluating the impact of the 2017 U.S. Tax Cuts
and Jobs Act ("Tax Act") for the period from enactment of the Tax
Act on December 22, 2017 to fiscal
year end, the company concluded that its previously disclosed
non-GAAP tax rate of 34.5 percent remained appropriate. For fiscal
2019, the company has determined that its projected non-GAAP tax
rate will be 21.5 percent, which reflects currently available
information, including the anticipated impact of the Tax Act and
interpretations thereof, as well as other factors and assumptions.
The non-GAAP tax rate could be subject to change for a variety of
reasons, including the company's ongoing analysis of the Tax Act
over the measurement period, the rapidly evolving global tax
environment, significant changes in the company's geographic
earnings mix including due to acquisition activity, or other
changes to the company's strategy or business operations. The
company will re-evaluate its long-term rate as appropriate.
The company defines the non-GAAP measure free cash flow as GAAP
net cash provided by operating activities, less capital
expenditures. For this purpose, capital expenditures does not
include our strategic investments, nor does it include any costs or
activities related to our purchase of 50 Fremont land and building,
and building - leased facilities.
|
|
|
|
|
|
|
|
|
|
|
1
Accounting Standards Codification ("ASC") 606 "Revenue from
Contracts with Customers,"
|
ASC 340-40 "Other
Assets and Deferred Costs – Contracts with Customers" and
Accounting Standards Update 2016-01 "Financial Instruments"
(ASU 2016-01), which will be effective as of the beginning of
Fiscal 2019.
|
salesforce.com,
inc.
Consolidated
Statements of Operations
(in thousands,
except per share data)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
Subscription and
support
|
$
|
2,655,000
|
|
|
$
|
2,110,651
|
|
|
$
|
9,710,538
|
|
|
$
|
7,756,205
|
|
Professional services
and other
|
196,003
|
|
|
183,337
|
|
|
769,474
|
|
|
635,779
|
|
Total
revenues
|
2,851,003
|
|
|
2,293,988
|
|
|
10,480,012
|
|
|
8,391,984
|
|
Cost of revenues
(1)(2):
|
|
|
|
|
|
|
|
Subscription and
support
|
548,475
|
|
|
463,271
|
|
|
2,033,457
|
|
|
1,617,315
|
|
Professional services
and other
|
189,317
|
|
|
162,686
|
|
|
740,065
|
|
|
616,724
|
|
Total cost of
revenues
|
737,792
|
|
|
625,957
|
|
|
2,773,522
|
|
|
2,234,039
|
|
Gross
profit
|
2,113,211
|
|
|
1,668,031
|
|
|
7,706,490
|
|
|
6,157,945
|
|
Operating expenses
(1)(2):
|
|
|
|
|
|
|
|
Research and
development
|
396,547
|
|
|
344,192
|
|
|
1,553,073
|
|
|
1,208,127
|
|
Marketing and
sales
|
1,364,305
|
|
|
1,089,243
|
|
|
4,829,291
|
|
|
3,918,027
|
|
General and
administrative
|
274,490
|
|
|
257,941
|
|
|
1,088,358
|
|
|
967,563
|
|
Total operating
expenses
|
2,035,342
|
|
|
1,691,376
|
|
|
7,470,722
|
|
|
6,093,717
|
|
Income (loss) from
operations
|
77,869
|
|
|
(23,345)
|
|
|
235,768
|
|
|
64,228
|
|
Investment
income
|
11,779
|
|
|
3,627
|
|
|
35,848
|
|
|
27,374
|
|
Interest
expense
|
(21,561)
|
|
|
(24,323)
|
|
|
(86,943)
|
|
|
(88,988)
|
|
Other income
(1)
|
20,130
|
|
|
20,572
|
|
|
17,435
|
|
|
9,072
|
|
Gains from
acquisitions of strategic investments
|
0
|
|
|
0
|
|
|
0
|
|
|
13,697
|
|
Income (loss) before
benefit from (provision for) income taxes
|
88,217
|
|
|
(23,469)
|
|
|
202,108
|
|
|
25,383
|
|
Benefit from
(provision for) income taxes
|
(20,662)
|
|
|
(27,971)
|
|
|
(74,630)
|
|
|
154,249
|
|
Net income
(loss)
|
$
|
67,555
|
|
|
$
|
(51,440)
|
|
|
$
|
127,478
|
|
|
$
|
179,632
|
|
Basic net income
(loss) per share
|
$
|
0.09
|
|
|
$
|
(0.07)
|
|
|
$
|
0.18
|
|
|
$
|
0.26
|
|
Diluted net income
(loss) per share
|
$
|
0.09
|
|
|
$
|
(0.07)
|
|
|
$
|
0.17
|
|
|
$
|
0.26
|
|
Shares used in
computing basic net income (loss) per share
|
724,127
|
|
|
700,994
|
|
|
714,919
|
|
|
687,797
|
|
Shares used in
computing diluted net income (loss) per share
|
749,464
|
|
|
700,994
|
|
|
734,598
|
|
|
700,217
|
|
_______________
|
(1)
|
Amounts include
amortization of purchased intangibles from business combinations,
as follows:
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cost of
revenues
|
$
|
38,866
|
|
|
$
|
43,214
|
|
|
$
|
165,545
|
|
|
$
|
127,676
|
|
Marketing and
sales
|
30,066
|
|
|
31,000
|
|
|
121,340
|
|
|
97,601
|
|
Other non-operating
expense
|
315
|
|
|
564
|
|
|
1,433
|
|
|
2,491
|
|
|
|
(2)
|
Amounts include
stock-based expense, as follows:
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cost of
revenues
|
$
|
32,748
|
|
|
$
|
30,545
|
|
|
$
|
129,954
|
|
|
$
|
107,457
|
|
Research and
development
|
62,653
|
|
|
63,323
|
|
|
259,838
|
|
|
187,487
|
|
Marketing and
sales
|
112,015
|
|
|
113,422
|
|
|
468,553
|
|
|
388,937
|
|
General and
administrative
|
30,266
|
|
|
37,097
|
|
|
138,668
|
|
|
136,486
|
|
salesforce.com,
inc.
Consolidated
Statements of Operations
(As a percentage
of total revenues)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
Subscription and
support
|
93
|
%
|
|
92
|
%
|
|
93
|
%
|
|
92
|
%
|
Professional services
and other
|
7
|
|
|
8
|
|
|
7
|
|
|
8
|
|
Total
revenues
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
Cost of revenues
(1)(2):
|
|
|
|
|
|
|
|
Subscription and
support
|
19
|
|
|
20
|
|
|
19
|
|
|
19
|
|
Professional services
and other
|
7
|
|
|
7
|
|
|
7
|
|
|
8
|
|
Total cost of
revenues
|
26
|
|
|
27
|
|
|
26
|
|
|
27
|
|
Gross
profit
|
74
|
|
|
73
|
|
|
74
|
|
|
73
|
|
Operating expenses
(1)(2):
|
|
|
|
|
|
|
|
Research and
development
|
14
|
|
|
15
|
|
|
15
|
|
|
14
|
|
Marketing and
sales
|
48
|
|
|
48
|
|
|
46
|
|
|
47
|
|
General and
administrative
|
9
|
|
|
11
|
|
|
10
|
|
|
11
|
|
Total operating
expenses
|
71
|
|
|
74
|
|
|
71
|
|
|
72
|
|
Income (loss) from
operations
|
3
|
|
|
(1)
|
|
|
3
|
|
|
1
|
|
Investment
income
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
Interest
expense
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
Other income
(1)
|
1
|
|
|
1
|
|
|
0
|
|
|
0
|
|
Gains from
acquisitions of strategic investments
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
Income (loss) before
benefit from (provision for) income taxes
|
3
|
|
|
(1)
|
|
|
2
|
|
|
0
|
|
Benefit from
(provision for) income taxes
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
2
|
|
Net income
(loss)
|
2
|
%
|
|
(2)
|
%
|
|
1
|
%
|
|
2
|
%
|
_______________
|
(1)
|
Amortization of
purchased intangibles from business combinations as a percentage of
total revenues, as follows:
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cost of
revenues
|
1
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
Marketing and
sales
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Other non-operating
expense
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|
(2)
|
Stock-based expense
as a percentage of total revenues, as follows:
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cost of
revenues
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
Research and
development
|
2
|
|
|
3
|
|
|
2
|
|
|
2
|
|
Marketing and
sales
|
4
|
|
|
5
|
|
|
4
|
|
|
5
|
|
General and
administrative
|
1
|
|
|
2
|
|
|
1
|
|
|
2
|
|
salesforce.com,
inc.
Consolidated
Balance Sheets
(in
thousands)
(Unaudited)
|
|
|
January 31,
2018
|
|
January 31,
2017
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
2,543,484
|
|
|
$
|
1,606,549
|
|
Marketable
securities
|
1,978,221
|
|
|
602,338
|
|
Accounts receivable,
net
|
3,917,401
|
|
|
3,196,643
|
|
Deferred
commissions
|
460,887
|
|
|
311,770
|
|
Prepaid expenses and
other current assets
|
390,378
|
|
|
279,527
|
|
Total current
assets
|
9,290,371
|
|
|
5,996,827
|
|
Property and
equipment, net
|
1,946,527
|
|
|
1,787,534
|
|
Deferred commissions,
noncurrent
|
413,375
|
|
|
227,849
|
|
Capitalized software,
net
|
146,065
|
|
|
141,671
|
|
Strategic
investments
|
677,283
|
|
|
566,953
|
|
Goodwill
|
7,314,096
|
|
|
7,263,846
|
|
Intangible assets
acquired through business combinations, net
|
826,445
|
|
|
1,113,374
|
|
Other assets,
net
|
395,640
|
|
|
486,869
|
|
Total
assets
|
$
|
21,009,802
|
|
|
$
|
17,584,923
|
|
Liabilities,
temporary equity and stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
$
|
2,010,096
|
|
|
$
|
1,752,664
|
|
Deferred
revenue
|
7,094,705
|
|
|
5,542,802
|
|
Current portion of
debt
|
1,024,717
|
|
|
0
|
|
Total current
liabilities
|
10,129,518
|
|
|
7,295,466
|
|
Noncurrent
debt
|
694,781
|
|
|
2,008,391
|
|
Other noncurrent
liabilities
|
793,140
|
|
|
780,939
|
|
Total
liabilities
|
11,617,439
|
|
|
10,084,796
|
|
Temporary
equity:
|
|
|
|
Convertible 0.25%
senior notes due April 2018
|
3,867
|
|
|
0
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
730
|
|
|
708
|
|
Additional paid-in
capital
|
9,752,340
|
|
|
8,040,170
|
|
Accumulated other
comprehensive loss
|
(27,142)
|
|
|
(75,841)
|
|
Accumulated
deficit
|
(337,432)
|
|
|
(464,910)
|
|
Total stockholders'
equity
|
9,388,496
|
|
|
7,500,127
|
|
Total liabilities,
temporary equity and stockholders' equity
|
$
|
21,009,802
|
|
|
$
|
17,584,923
|
|
salesforce.com,
inc.
Consolidated
Statements of Cash Flows
(in
thousands)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
67,555
|
|
|
$
|
(51,440)
|
|
|
$
|
127,478
|
|
|
$
|
179,632
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
187,689
|
|
|
180,766
|
|
|
752,600
|
|
|
632,245
|
|
Amortization of debt
discount and issuance costs
|
8,002
|
|
|
9,207
|
|
|
31,267
|
|
|
30,541
|
|
Gains from
acquisitions of strategic investments
|
0
|
|
|
0
|
|
|
0
|
|
|
(13,697)
|
|
Amortization of
deferred commissions
|
132,975
|
|
|
101,014
|
|
|
464,662
|
|
|
371,541
|
|
Expenses related to
employee stock plans
|
237,682
|
|
|
244,387
|
|
|
997,013
|
|
|
820,367
|
|
Changes in assets and
liabilities, net of business combinations:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(2,397,485)
|
|
|
(1,905,275)
|
|
|
(720,019)
|
|
|
(628,477)
|
|
Deferred
commissions
|
(426,591)
|
|
|
(235,065)
|
|
|
(799,305)
|
|
|
(462,030)
|
|
Prepaid expenses and
other current assets and other assets
|
190,924
|
|
|
(3,127)
|
|
|
24,140
|
|
|
(28,850)
|
|
Accounts payable,
accrued expenses and other liabilities
|
347,945
|
|
|
325,011
|
|
|
308,225
|
|
|
49,953
|
|
Deferred
revenue
|
2,702,624
|
|
|
2,040,668
|
|
|
1,551,904
|
|
|
1,210,973
|
|
Net cash provided by
operating activities
|
1,051,320
|
|
|
706,146
|
|
|
2,737,965
|
|
|
2,162,198
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Business
combinations, net of cash acquired
|
(5,610)
|
|
|
(360,629)
|
|
|
(25,391)
|
|
|
(3,192,739)
|
|
Purchases of
strategic investments
|
(103,350)
|
|
|
(44,495)
|
|
|
(216,438)
|
|
|
(110,329)
|
|
Sales of strategic
investments
|
74,834
|
|
|
53,836
|
|
|
130,732
|
|
|
80,342
|
|
Purchases of
marketable securities
|
(569,397)
|
|
|
(83,550)
|
|
|
(2,003,115)
|
|
|
(1,070,412)
|
|
Sales of marketable
securities
|
121,366
|
|
|
78,252
|
|
|
558,614
|
|
|
2,005,301
|
|
Maturities of
marketable securities
|
36,034
|
|
|
2,713
|
|
|
79,123
|
|
|
67,454
|
|
Capital
expenditures
|
(137,759)
|
|
|
(143,974)
|
|
|
(534,027)
|
|
|
(463,958)
|
|
Net cash used in
investing activities
|
(583,882)
|
|
|
(497,847)
|
|
|
(2,010,502)
|
|
|
(2,684,341)
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from term
loan, net
|
0
|
|
|
0
|
|
|
0
|
|
|
495,550
|
|
Proceeds from
employee stock plans
|
165,514
|
|
|
85,616
|
|
|
650,300
|
|
|
401,481
|
|
Principal payments on
capital lease obligations
|
(23,006)
|
|
|
(24,397)
|
|
|
(105,896)
|
|
|
(98,157)
|
|
Proceeds from
revolving credit facility
|
0
|
|
|
748,824
|
|
|
0
|
|
|
748,824
|
|
Payments on revolving
credit facility
|
0
|
|
|
(550,000)
|
|
|
(200,000)
|
|
|
(550,000)
|
|
Payments on
convertible senior notes
|
(123,179)
|
|
|
0
|
|
|
(123,179)
|
|
|
0
|
|
Net cash provided by
financing activities
|
19,329
|
|
|
260,043
|
|
|
221,225
|
|
|
997,698
|
|
Effect of exchange
rate changes
|
(15,120)
|
|
|
(7,529)
|
|
|
(11,753)
|
|
|
(27,369)
|
|
Net increase in
cash and cash equivalents
|
471,647
|
|
|
460,813
|
|
|
936,935
|
|
|
448,186
|
|
Cash and cash
equivalents, beginning of period
|
2,071,837
|
|
|
1,145,736
|
|
|
1,606,549
|
|
|
1,158,363
|
|
Cash and cash
equivalents, end of period
|
$
|
2,543,484
|
|
|
$
|
1,606,549
|
|
|
$
|
2,543,484
|
|
|
$
|
1,606,549
|
|
salesforce.com,
inc.
Additional
Metrics
(Unaudited)
|
|
|
Jan
31,
2018
|
|
Oct 31,
2017
|
|
Jul 31,
2017
|
|
Apr 30,
2017
|
|
Jan 31,
2017
|
|
Oct 31,
2016
|
Full Time
Equivalent Headcount
|
29,401
|
|
|
28,527
|
|
|
27,155
|
|
|
26,213
|
|
|
25,178
|
|
|
23,939
|
|
Financial data (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and marketable securities
|
$
|
4,521,705
|
|
|
$
|
3,628,665
|
|
|
$
|
3,501,245
|
|
|
$
|
3,219,550
|
|
|
$
|
2,208,887
|
|
|
$
|
1,751,130
|
|
Strategic
investments
|
$
|
677,283
|
|
|
$
|
670,406
|
|
|
$
|
657,687
|
|
|
$
|
639,191
|
|
|
$
|
566,953
|
|
|
$
|
555,968
|
|
Deferred
revenue
|
$
|
7,094,705
|
|
|
$
|
4,392,082
|
|
|
$
|
4,818,634
|
|
|
$
|
5,042,652
|
|
|
$
|
5,542,802
|
|
|
$
|
3,495,133
|
|
Unbilled deferred
revenue, a non-GAAP measure (1)
|
$
|
13,300,000
|
|
|
$
|
11,500,000
|
|
|
$
|
10,400,000
|
|
|
$
|
9,600,000
|
|
|
$
|
9,000,000
|
|
|
$
|
8,600,000
|
|
Principal due on our
outstanding debt obligations (2)
|
$
|
1,726,821
|
|
|
$
|
1,850,000
|
|
|
$
|
1,850,000
|
|
|
$
|
1,850,000
|
|
|
$
|
2,050,000
|
|
|
$
|
1,850,000
|
|
|
(1) Unbilled deferred
revenue represents future billings under our non-cancelable
subscription agreements that have not been invoiced and,
accordingly, are not recorded in deferred revenue. The amount of
unbilled deferred revenue may change from quarter to quarter for
several reasons, including the specific timing, duration and size
of customer subscription agreements and the timing of customer
renewals.
|
|
(2) Our outstanding
debt obligations include our 0.25% Convertible Senior Notes, the
loan assumed on 50 Fremont, and the Term Loan. The principal due on
our 0.25% Convertible Senior Notes of approximately $1.0 billion as
of January 31, 2018 is payable in April 2018.
|
Selected Balance
Sheet Accounts (in thousands):
|
|
|
January 31,
2018
|
|
October 31,
2017
|
|
January 31,
2017
|
Prepaid
Expenses and Other Current Assets
|
|
|
|
|
|
Prepaid income
taxes
|
$
|
33,523
|
|
|
$
|
43,301
|
|
|
$
|
26,932
|
|
Other taxes
receivable
|
32,692
|
|
|
33,099
|
|
|
34,177
|
|
Prepaid expenses and
other current assets
|
324,163
|
|
|
393,546
|
|
|
218,418
|
|
|
$
|
390,378
|
|
|
$
|
469,946
|
|
|
$
|
279,527
|
|
Property and
Equipment, net
|
|
|
|
|
|
Land
|
$
|
183,888
|
|
|
$
|
183,888
|
|
|
$
|
183,888
|
|
Buildings and
building improvements
|
626,062
|
|
|
626,168
|
|
|
621,377
|
|
Computers, equipment
and software
|
1,628,827
|
|
|
1,600,783
|
|
|
1,440,986
|
|
Furniture and
fixtures
|
139,299
|
|
|
132,374
|
|
|
112,564
|
|
Leasehold
improvements
|
824,470
|
|
|
776,396
|
|
|
627,069
|
|
|
3,402,546
|
|
|
3,319,609
|
|
|
2,985,884
|
|
Less accumulated
depreciation and amortization
|
(1,456,019)
|
|
|
(1,454,718)
|
|
|
(1,198,350)
|
|
|
$
|
1,946,527
|
|
|
$
|
1,864,891
|
|
|
$
|
1,787,534
|
|
Intangible
Assets Acquired Through Business Combinations,
net
|
|
|
|
|
|
Acquired developed
technology
|
$
|
349,563
|
|
|
$
|
388,346
|
|
|
$
|
514,232
|
|
Customer
relationships
|
471,936
|
|
|
501,500
|
|
|
589,579
|
|
Other
|
4,946
|
|
|
5,922
|
|
|
9,563
|
|
|
$
|
826,445
|
|
|
$
|
895,768
|
|
|
$
|
1,113,374
|
|
Other Assets,
net
|
|
|
|
|
|
Deferred income
taxes, noncurrent, net
|
$
|
36,523
|
|
|
$
|
31,596
|
|
|
$
|
28,939
|
|
Long-term
deposits
|
23,518
|
|
|
23,979
|
|
|
23,597
|
|
Domain names and
patents, net
|
22,779
|
|
|
26,811
|
|
|
39,213
|
|
Customer contract
assets
|
170,921
|
|
|
201,357
|
|
|
281,733
|
|
Other
|
141,899
|
|
|
141,145
|
|
|
113,387
|
|
|
$
|
395,640
|
|
|
$
|
424,888
|
|
|
$
|
486,869
|
|
Accounts
Payable, Accrued Expenses and Other Liabilities
|
|
|
|
|
|
Accounts
payable
|
$
|
76,465
|
|
|
$
|
120,019
|
|
|
$
|
115,257
|
|
Accrued
compensation
|
960,453
|
|
|
622,419
|
|
|
730,390
|
|
Non-cash equity
liability
|
0
|
|
|
49,435
|
|
|
68,355
|
|
Accrued income and
other taxes payable
|
305,861
|
|
|
193,693
|
|
|
239,699
|
|
Capital lease
obligation, current
|
102,539
|
|
|
114,147
|
|
|
102,106
|
|
Other current
liabilities
|
564,778
|
|
|
586,695
|
|
|
496,857
|
|
|
$
|
2,010,096
|
|
|
$
|
1,686,408
|
|
|
$
|
1,752,664
|
|
Other
Noncurrent Liabilities
|
|
|
|
|
|
Deferred income taxes
and income taxes payable
|
$
|
115,717
|
|
|
$
|
117,193
|
|
|
$
|
99,378
|
|
Financing obligation
- leased facility
|
198,226
|
|
|
198,903
|
|
|
200,711
|
|
Long-term lease
liabilities and other
|
479,197
|
|
|
420,774
|
|
|
480,850
|
|
|
$
|
793,140
|
|
|
$
|
736,870
|
|
|
$
|
780,939
|
|
Supplemental
Revenue Analysis
|
|
|
|
Subscription and
support revenue by cloud service offering (in
millions):
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Sales
Cloud
|
$
|
931.8
|
|
|
$
|
804.9
|
|
|
$
|
3,554.3
|
|
|
$
|
3,060.6
|
|
|
Service
Cloud
|
789.3
|
|
|
615.3
|
|
|
2,877.1
|
|
|
2,320.7
|
|
|
Salesforce Platform
and Other
|
536.3
|
|
|
391.7
|
|
|
1,929.2
|
|
|
1,441.6
|
|
|
Marketing and
Commerce Cloud
|
397.6
|
|
|
298.8
|
|
|
1,349.9
|
|
|
933.3
|
|
|
|
$
|
2,655.0
|
|
|
$
|
2,110.7
|
|
|
$
|
9,710.5
|
|
|
$
|
7,756.2
|
|
|
|
|
Total revenues by
geography (in thousands):
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Americas
|
$
|
2,042,184
|
|
|
$
|
1,718,197
|
|
|
$
|
7,579,116
|
|
|
$
|
6,224,971
|
|
|
Europe
|
535,806
|
|
|
360,876
|
|
|
1,903,524
|
|
|
1,373,547
|
|
|
Asia
Pacific
|
273,013
|
|
|
214,915
|
|
|
997,372
|
|
|
793,466
|
|
|
|
$
|
2,851,003
|
|
|
$
|
2,293,988
|
|
|
$
|
10,480,012
|
|
|
$
|
8,391,984
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues by
geography as a percentage of total revenues:
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Americas
|
72
|
%
|
|
75
|
%
|
|
72
|
%
|
|
74
|
%
|
|
Europe
|
19
|
|
|
16
|
|
|
18
|
|
|
16
|
|
|
Asia
Pacific
|
9
|
|
|
9
|
|
|
10
|
|
|
10
|
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Revenue constant
currency growth rates (as compared to the comparable prior
periods)
|
Three Months Ended
January 31, 2018
compared to Three Months
Ended January 31, 2017
|
|
Three Months Ended
October 31, 2017
compared to Three Months
Ended October 31, 2016
|
|
Three Months Ended
January 31, 2017
compared to Three Months
Ended January 31, 2016
|
|
Americas
|
19%
|
|
21%
|
|
29%
|
|
Europe
|
31%
|
|
33%
|
|
26%
|
|
Asia
Pacific
|
26%
|
|
27%
|
|
30%
|
|
Total
growth
|
21%
|
|
23%
|
|
28%
|
|
|
We present constant
currency information to provide a framework for assessing how our
underlying business performed excluding the effect of foreign
currency rate fluctuations. To present this information, current
and comparative prior period results for entities reporting in
currencies other than United States dollars are converted into
United States dollars at the weighted average exchange rate for the
quarter being compared to for growth rate calculations presented,
rather than the actual exchange rates in effect during that
period.
|
|
Deferred revenue
constant currency growth rates (as compared to the comparable prior
periods)
|
January 31,
2018
compared to
January 31, 2017
|
|
October 31,
2017
compared to
October 31, 2016
|
|
January 31,
2017
compared to
January 31, 2016
|
Total
growth
|
25%
|
|
24%
|
|
29%
|
|
We present constant
currency information for deferred revenue to provide a framework
for assessing how our underlying business performed excluding the
effects of foreign currency rate fluctuations. To present the
information above, we convert the deferred revenue balances in
local currencies in previous comparable periods using the United
States dollar currency exchange rate as on the most recent balance
sheet date.
|
Supplemental GAAP
and Non-GAAP Diluted Share Count Information
(share data in
thousands)
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Weighted-average
shares outstanding for basic earnings per share
|
724,127
|
|
|
700,994
|
|
|
714,919
|
|
|
687,797
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
Convertible senior
notes
|
5,798
|
|
|
1,642
|
|
|
4,672
|
|
|
1,906
|
|
Employee stock
awards
|
16,945
|
|
|
8,567
|
|
|
14,163
|
|
|
10,514
|
|
Warrants
|
2,594
|
|
|
0
|
|
|
844
|
|
|
0
|
|
Adjusted
weighted-average shares outstanding and assumed conversions for
GAAP and Non-GAAP diluted earnings per share
|
749,464
|
|
|
711,203
|
|
|
734,598
|
|
|
700,217
|
|
Supplemental Cash
Flow Information
Free cash flow
analysis, a non-GAAP measure
(in
thousands)
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating cash
flow
|
|
|
|
|
|
|
|
GAAP net cash
provided by operating activities
|
$
|
1,051,320
|
|
|
$
|
706,146
|
|
|
$
|
2,737,965
|
|
|
$
|
2,162,198
|
|
Less:
|
|
|
|
|
|
|
|
Capital
expenditures
|
(137,759)
|
|
|
(143,974)
|
|
|
(534,027)
|
|
|
(463,958)
|
|
Free cash
flow
|
$
|
913,561
|
|
|
$
|
562,172
|
|
|
$
|
2,203,938
|
|
|
$
|
1,698,240
|
|
Comprehensive
Income (Loss)
(in
thousands)
(Unaudited)
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income
(loss)
|
$
|
67,555
|
|
|
$
|
(51,440)
|
|
|
$
|
127,478
|
|
|
$
|
179,632
|
|
Other comprehensive
income (loss), before tax and net of reclassification
adjustments:
|
|
|
|
|
|
|
|
Foreign currency
translation and other gains (losses)
|
23,882
|
|
|
(14,547)
|
|
|
52,072
|
|
|
(43,070)
|
|
Unrealized gains
(losses) on marketable securities and strategic
investments
|
(55,702)
|
|
|
(6,461)
|
|
|
(4,497)
|
|
|
14,500
|
|
Other comprehensive
income (loss), before tax
|
(31,820)
|
|
|
(21,008)
|
|
|
47,575
|
|
|
(28,570)
|
|
Tax effect
|
1,124
|
|
|
8,110
|
|
|
1,124
|
|
|
2,646
|
|
Other comprehensive
income (loss), net of tax
|
(30,696)
|
|
|
(12,898)
|
|
|
48,699
|
|
|
(25,924)
|
|
Comprehensive income
(loss)
|
$
|
36,859
|
|
|
$
|
(64,338)
|
|
|
$
|
176,177
|
|
|
$
|
153,708
|
|
salesforce.com,
inc.
GAAP Results
Reconciled to non-GAAP Results
The following table
reflects selected GAAP results reconciled to non-GAAP
results.
(in thousands, except
per share data)
(Unaudited)
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Non-GAAP gross
profit
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
2,113,211
|
|
|
$
|
1,668,031
|
|
|
$
|
7,706,490
|
|
|
$
|
6,157,945
|
|
Plus:
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles (a)
|
38,866
|
|
|
43,214
|
|
|
165,545
|
|
|
127,676
|
|
Stock-based expense
(b)
|
32,748
|
|
|
30,545
|
|
|
129,954
|
|
|
107,457
|
|
Non-GAAP gross
profit
|
$
|
2,184,825
|
|
|
$
|
1,741,790
|
|
|
$
|
8,001,989
|
|
|
$
|
6,393,078
|
|
Non-GAAP operating
expenses
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
2,035,342
|
|
|
$
|
1,691,376
|
|
|
$
|
7,470,722
|
|
|
$
|
6,093,717
|
|
Less:
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles (a)
|
(30,066)
|
|
|
(31,000)
|
|
|
(121,340)
|
|
|
(97,601)
|
|
Stock-based expense
(b)
|
(204,934)
|
|
|
(213,842)
|
|
|
(867,059)
|
|
|
(712,910)
|
|
Non-GAAP operating
expenses
|
$
|
1,800,342
|
|
|
$
|
1,446,534
|
|
|
$
|
6,482,323
|
|
|
$
|
5,283,206
|
|
Non-GAAP income
from operations
|
|
|
|
|
|
|
|
GAAP income (loss)
from operations
|
$
|
77,869
|
|
|
$
|
(23,345)
|
|
|
$
|
235,768
|
|
|
$
|
64,228
|
|
Plus:
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles (a)
|
68,932
|
|
|
74,214
|
|
|
286,885
|
|
|
225,277
|
|
Stock-based expense
(b)
|
237,682
|
|
|
244,387
|
|
|
997,013
|
|
|
820,367
|
|
Non-GAAP income from
operations
|
$
|
384,483
|
|
|
$
|
295,256
|
|
|
$
|
1,519,666
|
|
|
$
|
1,109,872
|
|
Non-GAAP
non-operating income (loss) (c)
|
|
|
|
|
|
|
|
GAAP non-operating
income (loss)
|
$
|
10,348
|
|
|
$
|
(124)
|
|
|
$
|
(33,660)
|
|
|
$
|
(38,845)
|
|
Plus:
|
|
|
|
|
|
|
|
Amortization of debt
discount, net
|
6,674
|
|
|
6,344
|
|
|
25,943
|
|
|
25,137
|
|
Amortization of
acquired lease intangible
|
315
|
|
|
564
|
|
|
1,433
|
|
|
2,491
|
|
Less:
|
|
|
|
|
|
|
|
Gains from
acquisitions of strategic investments
|
0
|
|
|
0
|
|
|
0
|
|
|
(13,697)
|
|
Non-GAAP
non-operating income (loss)
|
$
|
17,337
|
|
|
$
|
6,784
|
|
|
$
|
(6,284)
|
|
|
$
|
(24,914)
|
|
Non-GAAP net
income
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
67,555
|
|
|
$
|
(51,440)
|
|
|
$
|
127,478
|
|
|
$
|
179,632
|
|
Plus:
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles (a)
|
68,932
|
|
|
74,214
|
|
|
286,885
|
|
|
225,277
|
|
Amortization of
acquired lease intangible
|
315
|
|
|
564
|
|
|
1,433
|
|
|
2,491
|
|
Stock-based expense
(b)
|
237,682
|
|
|
244,387
|
|
|
997,013
|
|
|
820,367
|
|
Amortization of debt
discount, net
|
6,674
|
|
|
6,344
|
|
|
25,943
|
|
|
25,137
|
|
Less:
|
|
|
|
|
|
|
|
Gains from
acquisitions of strategic investments
|
0
|
|
|
0
|
|
|
0
|
|
|
(13,697)
|
|
Income tax effects
and adjustments
|
(117,894)
|
|
|
(77,743)
|
|
|
(447,415)
|
|
|
(533,984)
|
|
Non-GAAP net
income
|
$
|
263,264
|
|
|
$
|
196,326
|
|
|
$
|
991,337
|
|
|
$
|
705,223
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Non-GAAP diluted
earnings per share
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
$
|
0.09
|
|
|
$
|
(0.07)
|
|
|
$
|
0.17
|
|
|
$
|
0.26
|
|
Plus:
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles
|
0.09
|
|
|
0.10
|
|
|
0.39
|
|
|
0.32
|
|
Amortization of
acquired lease intangible
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
Stock-based
expense
|
0.32
|
|
|
0.34
|
|
|
1.36
|
|
|
1.17
|
|
Amortization of debt
discount, net
|
0.01
|
|
|
0.01
|
|
|
0.04
|
|
|
0.04
|
|
Less:
|
|
|
|
|
|
|
|
Gains from
acquisitions of strategic investments
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
(0.02)
|
|
Income tax effects
and adjustments
|
(0.16)
|
|
|
(0.10)
|
|
|
(0.61)
|
|
|
(0.76)
|
|
Non-GAAP diluted
earnings per share
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
$
|
1.35
|
|
|
$
|
1.01
|
|
Shares used in
computing Non-GAAP diluted net income per share
|
749,464
|
|
|
711,203
|
|
|
734,598
|
|
|
700,217
|
|
|
|
a)
|
Amortization of
purchased intangibles were as follows:
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cost of
revenues
|
$
|
38,866
|
|
|
$
|
43,214
|
|
|
$
|
165,545
|
|
|
$
|
127,676
|
|
Marketing and
sales
|
30,066
|
|
|
31,000
|
|
|
121,340
|
|
|
97,601
|
|
|
$
|
68,932
|
|
|
$
|
74,214
|
|
|
$
|
286,885
|
|
|
$
|
225,277
|
|
|
|
b)
|
Stock-based expense
was as follows:
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cost of
revenues
|
$
|
32,748
|
|
|
$
|
30,545
|
|
|
$
|
129,954
|
|
|
$
|
107,457
|
|
Research and
development
|
62,653
|
|
|
63,323
|
|
|
259,838
|
|
|
187,487
|
|
Marketing and
sales
|
112,015
|
|
|
113,422
|
|
|
468,553
|
|
|
388,937
|
|
General and
administrative
|
30,266
|
|
|
37,097
|
|
|
138,668
|
|
|
136,486
|
|
|
$
|
237,682
|
|
|
$
|
244,387
|
|
|
$
|
997,013
|
|
|
$
|
820,367
|
|
|
|
c)
|
GAAP non-operating
income (loss) consists of investment income, interest expense,
other income (expense) and gains from acquisitions of strategic
investments.
|
salesforce.com,
inc.
Computation of
Basic and Diluted GAAP and non-GAAP Net Income (Loss) Per
Share
(in thousands, except
per share data)
(Unaudited)
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP Basic Net
Income (Loss) Per Share
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
67,555
|
|
|
$
|
(51,440)
|
|
|
$
|
127,478
|
|
|
$
|
179,632
|
|
Basic net income
(loss) per share
|
$
|
0.09
|
|
|
$
|
(0.07)
|
|
|
$
|
0.18
|
|
|
$
|
0.26
|
|
Shares used in
computing basic net income (loss) per share
|
724,127
|
|
|
700,994
|
|
|
714,919
|
|
|
687,797
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Non-GAAP Basic Net
Income Per Share
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
$
|
263,264
|
|
|
$
|
196,326
|
|
|
$
|
991,337
|
|
|
$
|
705,223
|
|
Basic Non-GAAP net
income per share
|
$
|
0.36
|
|
|
$
|
0.28
|
|
|
$
|
1.39
|
|
|
$
|
1.03
|
|
Shares used in
computing basic Non-GAAP net income per share
|
724,127
|
|
|
700,994
|
|
|
714,919
|
|
|
687,797
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP Diluted Net
Income (Loss) Per Share
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
67,555
|
|
|
$
|
(51,440)
|
|
|
$
|
127,478
|
|
|
$
|
179,632
|
|
Diluted net income
(loss) per share
|
$
|
0.09
|
|
|
$
|
(0.07)
|
|
|
$
|
0.17
|
|
|
$
|
0.26
|
|
Shares used in
computing diluted net income (loss) per share
|
749,464
|
|
|
700,994
|
|
|
734,598
|
|
|
700,217
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Non-GAAP Diluted
Net Income Per Share
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
$
|
263,264
|
|
|
$
|
196,326
|
|
|
$
|
991,337
|
|
|
$
|
705,223
|
|
Diluted Non-GAAP net
income per share
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
$
|
1.35
|
|
|
$
|
1.01
|
|
Shares used in
computing diluted Non-GAAP net income per share
|
749,464
|
|
|
711,203
|
|
|
734,598
|
|
|
700,217
|
|
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SOURCE Salesforce