Salesforce.com 2005 Annual Report Download - page 42

Table of Contents
Results of Operations
The following tables set forth selected consolidated statements of operations data for each of the periods indicated.
Fiscal Year Ended January 31,
2006
2005 2004
(in thousands except customer and
subscriber data)
Revenues:
Subscription and support $ 280,639 $ 157,977 $ 85,796
Professional services and other 29,218 18,398 10,227
Total revenues 309,857 176,375 96,023
Cost of revenues:
Subscription and support 34,457 12,727 7,782
Professional services and other 34,669 20,727 9,491
Total cost of revenues 69,126 33,454 17,273
Gross profit 240,731 142,921 78,750
Operating expenses:
Research and development 23,330 9,822 6,962
Marketing and sales 149,598 96,311 54,600
General and administrative 47,986 30,268 16,915
Lease recovery (285) — (3,445)
Total operating expenses 220,629 136,401 75,032
Income from operations 20,102 6,520 3,718
Interest income 7,726 2,658 379
Interest expense (69) (37) (22)
Other income 439 12 164
Income before benefit (provision) for income taxes and minority interest 28,198 9,153 4,239
Benefit (provision) for income taxes 1,310 (1,217) (541)
Income before minority interest 29,508 7,936 3,698
Minority interest in consolidated joint venture (1,034) (590) (184)
Net income $ 28,474 $ 7,346 $ 3,514
In addition to the statement of operations data above:
Cash flow provided by operating activities $ 95,893 $ 55,872 $ 21,781
As of January 31,
2006 2005
Balance sheet data:
Cash, cash equivalents and marketable securities (1) $ 296,792 $ 205,938
Deferred revenue 169,175 95,900
Customer and subscriber data (unaudited):
Approximate number of customers 20,500 13,900
Approximate number of paying subscriptions (2) 399,000 227,000
(1) Includes net proceeds of $113.8 million from the sale of common stock during our initial public offering in June 2004.
(2) Paying subscriptions are defined as unique user accounts, purchased by customers for use by their employees and other customer-authorized users that
have not been suspended for non-payment and for which we are recognizing subscription revenue.
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