Salesforce.com 2007 Annual Report Download - page 46

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Table of Contents
Fiscal Year Ended January 31,
2008 2007 2006
Revenues by geography:
Americas 75% 78% 80%
Europe 17 15 14
Asia Pacific 8 7 6
100% 100% 100%
Fiscal Year Ended January 31,
2008 2007 2006
Stock-based expenses:
Cost of revenues 1% 1% — %
Research and development 1 1 —
Marketing and sales 3 4 1
General and administrative 2 2 —
7% 8% 1%
Overview of Fiscal Year Ended January 31, 2008
During fiscal 2008, our net income was $18.4 million, which included $55.2 million of stock-based expenses, or 7 percent of total revenue. Net income
during the same period a year ago was $481,000, which included $39.2 million of stock-based expenses, or 8 percent of total revenue.
Revenues during fiscal 2008 were $748.7 million, an increase of 51 percent over the same period a year ago. The total number of paying subscriptions
increased to approximately 1.1 million as of January 31, 2008 from approximately 646,000 as of January 31, 2007.
Our gross profit during fiscal 2008 was $577.1 million, or 77 percent of revenues, and included stock-based expenses of $7.9 million. Our operating
income was $20.3 million and included stock-based expenses of $55.2 million. During the same period a year ago, we generated a gross profit of $378.2
million, or 76 percent of revenues, and had an operating loss of $3.6 million. The operating loss for fiscal 2007 included $39.2 million of stock-based expense.
During fiscal 2008, we re-invested our revenue growth in an effort to expand our business. Additionally, we added sales personnel to focus on adding
new customers and increasing the sale of subscriptions to existing customers, professional services personnel to support our consulting services, developers to
broaden and enhance our on-demand service and we invested in our infrastructure to meet the demands of an expanding business.
During fiscal 2008, we generated $204.3 million of cash from operating activities, as compared to $111.2 million during the same period a year ago. At
January 31, 2008, we had cash, cash equivalents and marketable securities of $669.8 million, as compared to $412.5 million at January 31, 2007, accounts
receivable of $220.1 million at January 31, 2008, as compared to $128.7 million at January 31, 2007, and deferred revenue, current and noncurrent of $480.9
million at January 31, 2008, as compared to $284.1 million at January 31, 2007.
Fiscal Years Ended January 31, 2008 and 2007
Revenues. Total revenues were $748.7 million for fiscal 2008, compared to $497.1 million during the same period a year ago, an increase of $251.6
million, or 51 percent. Subscription and support revenues were $680.6 million, or 91 percent of total revenues, for fiscal 2008, compared to $451.7 million, or
91 percent of total revenues, during the same period a year ago. The increase in subscription and support revenues was due
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