First Enterprise Cloud Computing Company to Achieve Fiscal Year
Revenue of One Billion Dollars SAN FRANCISCO, Feb. 25
/PRNewswire-FirstCall/ -- Salesforce.com (NYSE: CRM), the
enterprise cloud computing company, today announced results for its
fiscal fourth quarter and full fiscal year ended January 31, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050216/SFW105LOGO)
"Salesforce.com is proud to be the first billion dollar cloud
computing company," said Marc Benioff, chairman and CEO,
salesforce.com. "At a time when capital is precious, big-ticket
software purchases just don't make sense." Salesforce.com delivered
the following results for the fourth quarter and full fiscal year
2009: Revenue: Total Q4 revenue was $289.6 million, an increase of
34% on a year-over-year basis and an increase of 5% on a
quarter-over-quarter basis. Subscription and support revenues were
$266.1 million, an increase of 35% on a year-over-year basis and an
increase of 5% on a quarter-over-quarter basis. Professional
services and other revenues were $23.5 million, an increase of 15%
on a year-over-year basis and an increase of 2% on a
quarter-over-quarter basis. For the full fiscal year 2009, the
company reported revenue of approximately $1.077 billion, an
increase of 44% from the prior year. Subscription and support
revenues were $984.6 million for the year, an increase of 45%,
while professional services revenue rose 35% to $92.2 million.
Earnings per Share: Q4 GAAP diluted earnings per share were
approximately $0.11, including approximately $21.1 million in stock
based compensation expense and approximately $2.9 million in
amortization of purchased intangibles related to previously
announced acquisitions. For purposes of the Q4 GAAP EPS
calculations, there was an average of approximately 125 million
diluted shares outstanding during the quarter. For the full year,
GAAP diluted earnings per share rose approximately 130%
year-over-year to $0.35, including approximately $77.4 million in
stock based compensation and approximately $8.0 million in
amortization of purchased intangibles related to previously
announced acquisitions. For purposes of the GAAP EPS calculations,
there was an average of approximately 125 million diluted shares
outstanding during the year. Customers and Paying Subscribers: Net
paying customers rose approximately 3,600 during the quarter and
approximately 14,400 during the year to finish at approximately
55,400. Net paying subscribers rose to greater than 1.5 million, an
increase of approximately 400,000 from the prior fiscal year end.
Cash: Cash from operations for the fiscal fourth quarter was
approximately $76 million, up from $17 million in the third
quarter, and down 7% year-over-year. For the full year, operating
cash flow totaled $230 million, an increase of 12% from the prior
year. Total cash, cash equivalents and marketable securities
finished the year at approximately $883 million, an increase of
approximately $78 million from Q3 and approximately $213 million
from the prior fiscal year end. Deferred Revenue: Deferred revenue
on the balance sheet as of January 31, 2009 was $594 million, an
increase of 24% on a year-over-year basis and 27% on a
quarter-over-quarter basis. As of February 25, 2009, salesforce.com
is initiating guidance for its first quarter, fiscal year 2010. For
its full fiscal year 2010, the company is updating its prior
revenue guidance and initiating EPS guidance. Q1 FY10: Revenue for
the company's first fiscal quarter is projected to be in the range
of approximately $304 million to approximately $305 million. GAAP
diluted EPS is expected to be in the range of approximately $0.10
to approximately $0.11. Stock based compensation expense is
expected to be approximately $22 million, and amortization of
purchased intangibles is expected to be approximately $2.6 million.
For purposes of the Q1 GAAP EPS calculation, the company is
expecting an average diluted shares count of 126 million shares, a
GAAP tax rate of approximately 43%, and a minority interest expense
of approximately $200,000. Full Year FY10: The company today is
updating the full year revenue guidance it provided on November 20,
2008, with revenue now expected to be approximately $1.30 billion
to approximately $1.33 billion. The company is also initiating its
earnings outlook for the full year, expecting GAAP diluted EPS to
be in the range of approximately $0.54 to approximately $0.55.
Stock based compensation expense is expected to be approximately
$91 million, and amortization of purchased intangibles is currently
expected to be approximately $9.3 million. For purposes of the full
fiscal year 2010 GAAP EPS calculation, the company is expecting an
average diluted shares count of 128 million shares, a GAAP tax rate
of approximately 43%, and a minority interest expense of
approximately $1 million. Quarterly Conference Call Salesforce.com
will host a conference call to discuss its fourth quarter fiscal
2009 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 84582465, until midnight
(EST) March 13, 2009. About salesforce.com Salesforce.com is the
enterprise cloud computing company. The company's portfolio of SaaS
applications, including its award-winning CRM offering, 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 Force.com
AppExchange marketplace available at
http://www.salesforce.com/appexchange/. As of January 31, 2009,
salesforce.com manages customer information for approximately
55,400 customers including Allianz Commercial, Dell, Dow Jones
Newswires, Japan Post, Kaiser Permanente, KONE, 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 2010 and for the full fiscal year 2010, and our
expected tax rate, stock based compensation expense, amortization
rate, reduction in minority interest expense, 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 prove 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 financial impact of the
acquisition of InStranet and any future acquisitions; 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;
regulatory 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, interest
rates, and general developments in the economy, financial markets,
and credit markets. 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, 2008 and our Form 10-K
that will be filed for the fiscal year ended January 31, 2009.
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) 2009
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 Fiscal Year Ended January 31,
January 31, 2009 2008 2009 2008 ---- ---- ---- ---- Revenues:
Subscription and support $266,110 $196,517 $984,574 $680,581
Professional services and other 23,473 20,389 92,195 68,119 ------
------ ------ ------ Total revenues 289,583 216,906 1,076,769
748,700 Cost of revenues (1): Subscription and support 35,280
24,822 127,082 91,268 Professional services and other 23,454 21,909
93,389 80,323 ------ ------ ------ ------ Total cost of revenues
58,734 46,731 220,471 171,591 Gross profit 230,849 170,175 856,298
577,109 Operating expenses (1): Research and development 29,460
17,703 99,530 63,812 Marketing and sales 144,483 106,123 534,413
376,480 General and administrative 40,816 35,619 158,613 116,508
------ ------ ------- ------- Total operating expenses 214,759
159,445 792,556 556,800 Income from operations 16,090 10,730 63,742
20,309 Interest, net 5,397 7,315 22,667 24,493 Gain on sale of
investment - - - 1,272 Other income (expense) 252 (595) (817) 139
--- ---- ---- --- Income before provision for income taxes and
minority interest 21,739 17,450 85,592 46,213 Provision for income
taxes (7,864) (8,296) (37,557) (23,385) ------ ------ -------
------- Income before minority interest 13,875 9,154 48,035 22,828
Minority interest in consolidated joint venture (122) (1,775)
(4,607) (4,472) ---- ------ ------ ------ Net income $13,753 $7,379
$43,428 $18,356 ======= ====== ======= ======= Basic net income per
share $0.11 $0.06 $0.36 $0.16 Diluted net income per share $0.11
$0.06 $0.35 $0.15 Shares used in computing basic net income per
share 122,428 118,757 121,183 116,840 Shares used in computing
diluted net income per share 124,533 123,680 125,228 122,422
----------------------------- (1) Amounts include stock-based
expenses, as follows: Cost of revenues $2,902 $2,173 $11,051 $7,926
Research and development 3,000 1,864 9,852 6,336 Marketing and
sales 9,923 7,226 36,028 25,423 General and administrative 5,316
4,323 20,435 15,522 ----- ----- ------ ------ Total stock-based
expenses $21,141 $15,586 $77,366 $55,207 ======= ======= =======
======= salesforce.com, inc. Condensed Consolidated Statements of
Operations As a percentage of total revenues: (Unaudited) Three
Months Fiscal Year Ended Ended January 31, January 31, 2009 2008
2009 2008 ---- ---- ---- ---- Revenues: Subscription and support
92% 91% 91% 91% Professional services and other 8 9 9 9 --- --- ---
--- Total revenues 100 100 100 100 Cost of revenues: Subscription
and support 12 11 12 12 Professional services and other 8 11 8 11
--- --- --- --- Total cost of revenues 20 22 20 23 Gross profit 80
78 80 77 Operating expenses: Research and development 10 8 9 8
Marketing and sales 50 49 50 50 General and administrative 14 16 15
16 --- --- --- --- Total operating expenses 74 73 74 74 Income from
operations 6 5 6 3 Interest, net 2 3 2 3 Gain on sale of investment
0 0 0 0 Other income (expense) 0 0 0 0 --- --- --- --- Income
before provision for income taxes and minority interest 8 8 8 6
Provision for income taxes (3) (4) (4) (3) --- --- --- --- Income
before minority interest 5 4 4 3 Minority interest in consolidated
joint venture 0 (1) 0 (1) --- --- --- --- Net income 5% 3% 4% 2%
=== === === === ----------------------------- 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 3 3
3 General and administrative 2 2 2 2 --- --- --- --- Total
stock-based expenses 7% 7% 7% 7% === === === === salesforce.com,
inc. Condensed Consolidated Balance Sheets (in thousands) January
31, January 31, 2009 2008 ---- ---- (unaudited) ----------- Assets
Current assets: Cash and cash equivalents $483,834 $279,095
Short-term marketable securities 213,769 171,748 Accounts
receivable, net 266,555 220,061 Deferred commissions 39,384 35,679
Deferred income taxes 31,900 7,173 Prepaid expenses and other
current assets 33,115 27,055 ------ ------ Total current assets
1,068,557 740,811 Marketable securities, noncurrent 184,962 218,957
Fixed assets, net 77,027 41,380 Deferred commissions, noncurrent
17,699 16,435 Deferred income taxes, noncurrent 26,589 26,512
Capitalized software, net 29,989 23,061 Goodwill 44,872 8,556 Other
assets 30,127 13,881 ------ ------ Total assets $1,479,822
$1,089,593 ========== ========== Liabilities and stockholders'
equity Current liabilities: Accounts payable $16,379 $7,478 Accrued
expenses and other current liabilities 163,205 125,996 Income taxes
payable 3,619 3,622 Deferred revenue 583,763 468,821 -------
------- Total current liabilities 766,966 605,917 Income taxes
payable, noncurrent 12,490 8,465 Long-term lease liabilities and
other 7,616 2,136 Deferred revenue, noncurrent 10,263 12,073
Minority interest 10,703 8,943 ------ ----- Total liabilities
808,038 637,534 Stockholders' equity: Common stock 123 119
Additional paid-in capital 648,724 471,802 Accumulated other
comprehensive loss (2,905) (2,276) Retained earnings (deficit)
25,842 (17,586) ------ ------- Total stockholders' equity 671,784
452,059 ------- ------- Total liabilities and stockholders' equity
$1,479,822 $1,089,593 ========== ========== salesforce.com, inc.
Condensed Consolidated Statements of Cash Flows (in thousands)
(Unaudited) Three Months Ended Fiscal Year Ended January 31,
January 31, 2009 2008 2009 2008 ---- ---- ---- ---- Operating
activities: Net income $13,753 $7,379 $43,428 $18,356 Adjustments
to reconcile net income to net cash provided by operating
activities: Gain on sale of investment 0 0 0 (1,272) Loss (gain) on
securities (269) 0 1,783 0 Minority interest 122 1,775 4,607 4,472
Depreciation and amortization 11,033 6,568 35,971 24,219
Amortization of deferred commissions 15,318 12,468 58,732 42,195
Change in deferred income tax valuation allowance 0 (970) 0 (970)
Expenses related to stock-based awards 21,141 15,586 77,366 55,207
Excess tax benefits from employee stock plans (12,350) (7,474)
(54,597) (31,978) Changes in assets and liabilities 26,781 45,461
62,267 94,046 ------ ------ ------ ------ Net cash provided by
operating activities 75,529 80,793 229,557 204,275 ------ ------
------- ------- Investing activities: Business combination, net of
cash acquired (563) 0 (27,907) 0 Purchase of subsidiary stock
(4,929) 0 (21,622) 0 Changes in marketable securities 28,432 22,271
(10,409) (60,816) Capital expenditures (12,232) (8,369) (61,059)
(43,552) Proceeds from sale of investment 0 0 0 1,659 --- --- ---
----- Net cash provided by (used in) investing activities 10,708
13,902 (120,997) (102,709) ------ ------ -------- --------
Financing activities: Proceeds from the exercise of stock options
2,706 16,620 43,311 60,910 Excess tax benefits from employee stock
plans 12,350 7,474 54,597 31,978 Principal payments on capital
lease obligations (706) (6) (997) (175) ---- --- ---- ---- Net cash
provided by financing activities 14,350 24,088 96,911 92,713 ------
------ ------ ------ Effect of exchange rate changes 933 (449)
(732) (1,792) --- ---- ---- ------ Net increase in cash and cash
equivalents 101,520 118,334 204,739 192,487 Cash and cash
equivalents, beginning of period 382,314 160,761 279,095 86,608
------- ------- ------- ------ Cash and cash equivalents, end of
period $483,834 $279,095 $483,834 $279,095 ======== ========
======== ======== salesforce.com, inc. Additional Metrics
(Unaudited) Jan 31, Oct 31, Jul 31, Apr 30, Jan 31, Oct 31, 2009
2008 2008 2008 2008 2007 ---- ---- ---- ---- ---- ---- Full Time
Equivalent Headcount 3,566 3,318 3,046 2,864 2,606 2,461 Financial
data (in thousands): Cash, cash equivalents and marketable
securities $882,565 $804,606 $823,417 $750,633 $669,800 $571,003
Deferred revenue, current and non-current $594,026 $469,534
$479,546 $470,297 $480,894 $340,808 Three Months Ended Fiscal Year
Ended January 31, January 31, 2009 2008 2009 2008 ---- ---- ----
---- Revenues by geography (in thousands): Americas $209,419
$158,499 $776,495 $557,976 Europe 48,088 38,396 190,685 127,010
Asia Pacific 32,076 20,011 109,589 63,714 ------ ------ -------
------ $289,583 $216,906 $1,076,769 $748,700 ======== ========
========== ======== As a percentage of total revenues: Revenues by
geography: Americas 72% 73% 72% 75% Europe 17 18 18 17 Asia Pacific
11 9 10 8 --- --- --- --- 100% 100% 100% 100% === === === ===
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http://photoarchive.ap.org/ DATASOURCE: salesforce.com CONTACT:
David Havlek, Investor Relations, +1-415-536-2171, , or Gordon
Evans, Public Relations, +1-415-536-7608, , both of salesforce.com
Web Site: http://www.salesforce.com/
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