Summary
Salesforce.com, Inc.'s 2008 10-K filing reveals a company experiencing significant growth and solidifying its position as a leader in the software-as-a-service (SaaS) CRM market. The company reported substantial revenue growth of 51% year-over-year, reaching $748.7 million, driven by an increase in paying subscriptions to approximately 1.1 million. This growth underscores the market's increasing adoption of the on-demand model, which Salesforce pioneered. Despite significant investments in sales, marketing, and infrastructure to support this expansion, Salesforce demonstrated improved profitability, shifting from an operating loss in the prior year to an operating income of $20.3 million. The company's strategic focus on expanding its platform capabilities with Force.com and its AppExchange ecosystem appears to be paying off, enhancing the value proposition for customers and fostering a developer community. Salesforce's robust cash flow from operations and strong cash position provide a solid foundation for continued investment and growth.
Financial Highlights
31 data points| Revenue | $748.70M |
| Cost of Revenue | $171.59M |
| Gross Profit | $577.11M |
| R&D Expenses | $63.81M |
| Operating Expenses | $556.80M |
| Operating Income | $20.31M |
| Interest Expense | $46K |
| Net Income | $18.36M |
| EPS (Basic) | $0.04 |
| EPS (Diluted) | $0.04 |
| Shares Outstanding (Basic) | 467.36M |
| Shares Outstanding (Diluted) | 489.69M |
Key Highlights
- 1Revenue increased by 51% to $748.7 million for the fiscal year ended January 31, 2008, up from $497.1 million in the prior year.
- 2The number of paying subscriptions grew significantly to approximately 1.1 million as of January 31, 2008, from approximately 646,000 as of January 31, 2007.
- 3The company achieved operating income of $20.3 million in fiscal 2008, a substantial improvement from an operating loss of $3.6 million in fiscal 2007.
- 4Cash flow from operating activities increased significantly to $204.3 million in fiscal 2008, up from $111.2 million in fiscal 2007.
- 5Salesforce is actively expanding its global presence, with international revenues (Europe and Asia Pacific) growing by 74% and now representing 25% of total revenues.
- 6The Force.com platform and AppExchange continue to be key strategic initiatives, enabling third-party development and expanding the ecosystem around Salesforce's CRM offerings.
- 7Stock-based expenses, following the adoption of SFAS 123R, remain a significant expense, totaling $55.2 million in fiscal 2008.