Salesforce.com 2005 Annual Report Download - page 4

Table of Contents
FORWARD-LOOKING INFORMATION
This Annual Report, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" ("MD&A")
contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements consist of, among other things, trend analyses, statements regarding future events, future financial performance, our business
strategy and our plan to build our business, the future expenses associated with expanding our data center capacity and upgrading our new development and
test data center, our anticipated growth, trends in our business, our future strategy of acquiring or making investments in complementary companies, services
and technologies, the effect of foreign currency exchange rate and interest rate fluctuations on our financial results, the potential impact of current or any
future litigation, the potential availability of additional tax assets in the future and related matters, the impact of the new accounting pronouncement to
expense stock options and the sufficiency of our capital resources, all of which are based on current expectations, estimates, and forecasts, and the beliefs and
assumptions of our management. Words such as "expects," "anticipates," "projects," "intends," "plans," "believes," "estimates," 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 Which May Impact Future Operating Results" 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 were incorporated in Delaware in February 1999 and we introduced our service offering in February 2000. Our principal executive offices are
located in San Francisco, California and our website address is www.salesforce.com. Our office address is The Landmark @ One Market, Suite 300, San
Francisco, California 94105.
We are the leading provider, based on market share, of application services that allow organizations to easily share customer information on demand,
according to an August 2005 report by International Data Corporation, or IDC. We provide a comprehensive customer relationship management, or CRM,
service to businesses of all sizes and industries worldwide.
We designed and developed our hosted service to be a low-cost, easy-to-use application that is easy and quick to deploy, customizable and can be
integrated with other software applications. We deliver our service through a standard Web browser. Customers who use our on-demand CRM service are
able to avoid many of the expenses and complexities of traditional enterprise software implementations. As a result, our customers incur less risk and lower
upfront costs. Our service helps customers more effectively manage and share their sales, support, marketing and partner information on-demand. We market
our service to businesses on a subscription basis, primarily through our direct sales efforts and also indirectly through partners. As of January 31, 2006, our
customer base had grown to approximately 20,500 worldwide, and we had approximately 399,000 paying subscriptions. We define paying subscriptions as
unique user accounts, purchased by customers for use by their employees and other customer-authorized users, that have not been suspended for non-payment
and for which we are recognizing subscription revenue.
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