Salesforce.com 2016 Annual Report Download - page 63

Fiscal Years Ended January 31, 2015 and 2014
Revenues.
Fiscal Year Ended
January 31, Variance
(in thousands) 2015 2014 Dollars Percent
Subscription and support .................. $5,013,764 $3,824,542 $1,189,222 31%
Professional services and other .............. 359,822 246,461 113,361 46%
Total revenues ........................... $5,373,586 $4,071,003 $1,302,583 32%
Total revenues were $5.4 billion for fiscal 2015, compared to $4.1 billion during fiscal 2014, an increase of
$1.3 billion, or 32 percent. On a constant currency basis, total revenues grew 33 percent. Subscription and support
revenues were $5.0 billion, or 93 percent of total revenues, for fiscal 2015, compared to $3.8 billion, or 94 percent
of total revenues, during fiscal 2014, an increase of $1.2 billion, or 31 percent. The increase in subscription and
support revenues was primarily attributable to the impact of, in fiscal 2015, including ExactTarget revenue for the
full fiscal year, as compared to fiscal 2014, which only included ExactTarget revenue as of its acquisition date in
July 2013. Additionally, volume-driven increases from new business, which includes new customers, upgrades and
additional subscriptions from existing customers contributed to the increase in subscription and support revenues.
Our attrition rate, which was consistent with the prior year, also played a role in the increase in subscription and
support revenues. We invest in a variety of customer programs and initiatives, which, along with increasing
enterprise adoption, have helped maintain our attrition rate. The net price per user per month for our three primary
offerings, Professional Edition, Enterprise Edition and Unlimited Edition, varies from period to period, but has
remained within a consistent range over the past eight quarters. Changes in the net price per user per month has not
been a significant driver of revenue growth for the periods presented. Professional services and other revenues were
$359.8 million, or seven percent of total revenues, for fiscal 2015, compared to $246.5 million, or six percent of
total revenues, for fiscal 2014, an increase of $113.4 million, or 46 percent. The increase in professional services
and other revenues was primarily attributable to the impact of, in fiscal 2015, including ExactTarget revenue for the
full fiscal year, as compared to fiscal 2014, which only included ExactTarget revenue as of its acquisition date in
July 2013.
Revenues in Europe and Asia Pacific accounted for $1.5 billion, or 28 percent of total revenues, for fiscal
2015, compared to $1.2 billion, or 29 percent of total revenues, during fiscal 2014, an increase of $334.1 million,
or 29 percent. The increase in revenues on a total dollar basis outside of the Americas was the result of the
increasing acceptance of our service, our focus on marketing our services internationally, additional resources
and consistent attrition rates as a result of the reasons stated above. Revenues outside of the Americas increased
on a total dollar basis in fiscal 2015 despite an overall strengthening of the U.S. dollar, which reduced aggregate
international revenues by $31.5 million compared to fiscal 2014.
Cost of Revenues.
Fiscal Year Ended
January 31, Variance
Dollars(in thousands) 2015 2014
Subscription and support ...................... $ 924,638 $711,880 $212,758
Professional services and other ................. 364,632 256,548 108,084
Total cost of revenues ........................ $1,289,270 $968,428 $320,842
Percent of total revenues ...................... 24% 24%
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