Salesforce.com 2008 Annual Report Download - page 49

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Table of Contents
increase of $3.5 million in stock-based expenses, and an increase in allocated overhead. We increased our research and development headcount by 61 percent
since January 31, 2008 in order to upgrade and extend our service offerings and develop new technologies.
Marketing and Sales.
Fiscal Year Ended January 31, Variance
Dollars
(In thousands) 2009 2008
Marketing and sales $ 534,413 $ 376,480 $ 157,933
Percent of total revenues 50% 50%
Marketing and sales expenses were $534.4 million, or 50 percent of total revenues, during fiscal 2009, compared to $376.5 million, or 50 percent of
total revenues, during the same period a year ago, an increase of $157.9 million. The increase in absolute dollars was primarily due to increases of $94.1
million in employee-related costs, $10.6 million in stock-based expenses, $28.9 million in advertising costs and marketing and event costs, $1.6 million in
partner referral fees, $1.4 million of amortized purchased intangibles and $20.3 million in allocated overhead. Our marketing and sales headcount increased
by 40 percent since January 31, 2008 as we hired additional sales personnel to focus on adding new customers and increasing penetration within our existing
customer base.
General and Administrative.
Fiscal Year Ended January 31, Variance
Dollars
(In thousands) 2009 2008
General and administrative $ 158,613 $ 116,508 $ 42,105
Percent of total revenues 15% 16%
General and administrative expenses were $158.6 million, or 15 percent of total revenues, during fiscal 2009, compared to $116.5 million, or 16 percent
of total revenues, during the same period a year ago, an increase of $42.1 million. The increase was primarily due to increases in employee-related costs,
stock-based expenses, infrastructure-related costs, and professional and outside service costs. Our general and administrative headcount increased by 30
percent since January 31, 2008 as we added personnel to support our growth.
Operating Income.
Fiscal Year Ended January 31, Variance
Dollars
(In thousands) 2009 2008
Operating income $ 63,742 $ 20,309 $ 43,433
Percent of total revenues 6% 3%
Operating income during fiscal 2009 was $63.7 million and included $77.4 million of stock-based expenses related to SFAS 123R. During the same
period a year ago, operating income was $20.3 million and included $55.2 million of stock-based expenses.
Interest, net.
Fiscal Year Ended January 31, Variance
Dollars
(In thousands) 2009 2008
Interest, net $ 22,667 $ 24,493 $ (1,826)
Percent of total revenues 2% 3%
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