Salesforce.com 2013 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2013 Salesforce.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

FORWARD-LOOKING INFORMATION
This Annual Report on Form 10-K, including the section titled “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” (“MD&A”) in Item 7, contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking
statements consist of, among other things, trend analyses, statements regarding future events, future financial
performance, our anticipated growth, the effect of general economic and market conditions, our business
strategy and our plan to build our business, including our strategy to be the leading provider of enterprise cloud
computing applications and platforms and to lead the industry shift to the “customer company”, our service
performance and security, the expenses associated with new data centers, additional data center capacity, real
estate and office facilities space, our operating results, new features and services, our strategy of acquiring or
making investments in complementary companies, services and technologies, and intellectual property rights, our
ability to successfully integrate acquired businesses and technologies, and the continued growth and ability to
maintain deferred revenue and unbilled deferred revenue, our ability to protect our intellectual property rights,
our ability to develop our brands, the effect of evolving government regulations, the effect of foreign currency
exchange rate and interest rate fluctuations on our financial results, the potential availability of additional tax
assets in the future and related matters, the impact of expensing stock options, the sufficiency of our capital
resources, and potential litigation involving us, all of which are based on current expectations, estimates, and
forecasts, and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “aims,”
“projects,” “intends,” “plans,” “believes,” “estimates,” “seeks,” variations of such words, and similar
expressions are also intended to identify such forward-looking statements. These forward-looking statements are
subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ
materially and adversely from those expressed in any forward-looking statements. Readers are directed to risks
and uncertainties identified below, under “Risk Factors” and elsewhere in this report, for factors that may cause
actual results to be different than those expressed in these forward-looking statements. Except as required by
law, we undertake no obligation to revise or update publicly any forward-looking statements for any reason.
PART I
ITEM 1. BUSINESS
Overview
We are a provider of enterprise cloud computing solutions. We were founded on the simple concept of
delivering customer relationship management, or CRM, applications via the Internet, or “cloud.” We introduced
our first CRM solution in February 2000 and we have expanded our offerings with new editions, solutions and
enhanced features, through internal development and acquisitions.
Our mission is to help our customers transform themselves into “customer companies” by empowering them
to connect with their own customers, partners, employees and products in entirely new ways. With our four core
services—Sales Cloud, Service Cloud, Marketing Cloud and the Salesforce Platform—customers have the tools
they need to build a next generation social front office with our social and mobile cloud technologies.
Our products are intuitive and easy-to-use, can be deployed rapidly, customized easily and integrated with
other platforms and enterprise applications, or apps. We deliver our solutions as a service via all the major
Internet browsers and on most major mobile device operating systems.
We sell to businesses of all sizes and in almost every industry worldwide on a subscription basis, primarily
through our direct sales efforts and also indirectly through partners. Through our platform and other developer
tools, we also encourage third parties to develop additional functionality and new apps that run on our platform,
which are sold separately from, or in conjunction with, our service.
3