Salesforce.com 2010 Annual Report Download - page 50

Table of Contents
Marketing and sales expenses were $605.2 million, or 46 percent of total revenues, during fiscal 2010, compared to $534.4 million, or 50 percent of
total revenues, during fiscal 2009, an increase of $70.8 million. The increase in absolute dollars was primarily due to increases of $42.0 million in employee-
related costs, $3.7 million in stock-based expenses, $17.1 million in advertising costs and marketing and event costs and $6.7 million in allocated overhead.
Our marketing and sales headcount increased by 9 percent between January 31, 2009 and January 31, 2010 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) 2010 2009
General and administrative $ 195,290 $ 158,613 $ 36,677
Percent of total revenues 15% 15%
General and administrative expenses were $195.3 million, or 15 percent of total revenues, during fiscal 2010, compared to $158.6 million, or 15 percent
of total revenues, during fiscal 2009, an increase of $36.7 million. The increase was primarily due to increases of $15.7 million in employee-related costs,
$3.0 million in stock-based expenses, $4.7 million in infrastructure-related costs, and $10.1 million in professional and outside service costs. Our general and
administrative headcount increased by 12 percent between January 31, 2009 and January 31, 2010 as we added personnel to support our growth.
Income from operations.
Fiscal Year Ended January 31, Variance
Dollars
(In thousands) 2010 2009
Income from operations $ 115,272 $ 63,742 $ 51,530
Percent of total revenues 9% 6%
Income from operations during fiscal 2010 was $115.3 million and included $88.9 million of stock-based expenses. During the fiscal 2009, operating
income was $63.7 million and included $77.4 million of stock-based expenses.
Investment income.
Fiscal Year Ended January 31, Variance
Dollars
(In thousands) 2010 2009
Investment income $ 30,408 $ 22,774 $ 7,634
Percent of total revenues 2% 2%
Investment income consists of income on cash and marketable securities balances. Investment income was $30.4 million during fiscal 2010 and was
$22.8 million during fiscal 2009. The increase was primarily due to increased realized gains and the increase in marketable securities balances resulting from
cash generated by operating activities and the proceeds from stock option exercises.
Interest expense.
Fiscal Year Ended January 31, Variance
Dollars
(In thousands) 2010 2009
Interest expense $ (2,000) $ (107) $ (1,893)
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