01—Abstract
Summary
Summary of the 10-K filed March 9, 2009. Cited figures are marked; the original filing is the authoritative source.
Salesforce.com, Inc. (CRM) filed its annual report for the fiscal year ended January 31, 2009, on March 9, 2009.
The company reported total revenues of $1.077 billiona, representing a 44% increase year-over-year, demonstrating strong growth despite challenging economic conditions. Subscription and support revenue, comprising 91% of total revenue, grew significantly due to an expanding customer base and increased subscriptions from existing customers. Despite a 44% increase in revenue, the company's operating income was $63.7 million, reflecting substantial investments in sales and marketing (50% of revenue) and research and development (9% of revenue).
Stock-based compensation was a significant expense, totaling $77.4 millionb. The company maintained a strong balance sheet with $882.6 million in cash, cash equivalents, and marketable securities, and generated $229.6 million in cash from operating activities, highlighting its financial stability.
02—Key points
Key Highlights
- Total revenues reached $1.077 billion, a 44% increase from the previous fiscal year, indicating robust growth.
- Subscription and support revenue constituted 91% of total revenues, demonstrating the core strength of the company's SaaS model.
- The customer base expanded to approximately 55,400 worldwide, a significant increase from 41,000 in the prior year.
- Operating income was $63.7 million, with significant investments made in marketing and sales (50% of revenue) and R&D (9% of revenue) to fuel future growth.
- The company maintained a healthy cash position, with $882.6 million in cash, cash equivalents, and marketable securities.
- Cash flow from operations was strong at $229.6 million, underscoring the company's ability to generate cash from its core business.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Salesforce, Inc. kept $0.04.
- Revenue$1.08B100.0%
- Cost of revenue−$220.5M20.5%
- Gross profit$856.3M79.5%
- Operating costs−$792.6M73.6%
- Operating income$63.7M5.9%
- Interest, other & tax−$20.3M1.9%
- Net income$43.4M4.0%
Where FY2009 revenue went
$1.08B- Other operating costs: $693.0M, 64% of revenue
- Cost of revenue: $220.5M, 20% of revenue
- Net income: $43.4M, 4.0% of revenue
- R&D: $99.5M, 9.2% of revenue
- Interest, other & tax: $20.3M, 1.9% of revenue
Kept 4.0% as net incomeNet income $43.4M · 4.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed March 9, 2009Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $1.08B$748.70M | +43.8% |
| Cost of Revenue | $220.47M$171.59M | +28.5% |
| Gross Profit | $856.30M$577.11M | +48.4% |
| R&D Expenses | $99.53M$63.81M | +56.0% |
| Operating Expenses | $792.56M$556.80M | +42.3% |
| Operating Income | $63.74M$20.31M | +213.9% |
| Interest Expense | $107K$46K | +132.6% |
| Net Income | $43.43M$18.36M | +136.6% |
| EPS (Basic) | $0.09$0.04 | +125.0% |
| EPS (Diluted) | $0.09$0.04 | +133.3% |
| Shares Outstanding (Basic) | 484.73M467.36M | +3.7% |
| Shares Outstanding (Diluted) | 500.91M489.69M | +2.3% |
05—Questions
Frequently Asked Questions
What was Salesforce's revenue growth in fiscal year 2009?
Salesforce reported total revenues of $1.077 billion for the fiscal year ended January 31, 2009, representing a 44% increase compared to the prior fiscal year.
How did the company's customer base grow?
The company's customer base expanded significantly, reaching approximately 55,400 customers worldwide as of January 31, 2009, up from about 41,000 customers in the previous year.
What is the company's financial health and liquidity position?
Salesforce demonstrated strong financial health, ending the fiscal year with $882.6 million in cash, cash equivalents, and marketable securities. Operating activities generated $229.6 million in cash, indicating solid liquidity.
What are the main areas of investment for Salesforce?
The company is heavily investing in marketing and sales, which accounted for 50% of revenue, and research and development, accounting for 9% of revenue. These investments are aimed at expanding its customer base, enhancing its service offerings, and driving future growth.
06—Continue