Salesforce.com 2006 Annual Report Download - page 37

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Table of Contents
ITEM 6. SELECTED FINANCIAL DATA
The following selected consolidated financial data should be read in conjunction with our audited consolidated financial statements and related notes
thereto and with Management's Discussion and Analysis of Financial Condition and Results of Operations, which are included elsewhere in this Form 10-K.
The consolidated statement of operations data for the years ended January 31, 2007, 2006 and 2005, and the selected consolidated balance sheet data as of
January 31, 2007 and 2006 are derived from, and are qualified by reference to, the audited consolidated financial statements and are included in this Form 10-
K. The consolidated statement of operations data for the years ended January 31, 2004 and 2003 and the consolidated balance sheet data as of January 31,
2005, 2004 and 2003 are derived from audited consolidated financial statements which are not included in this Form 10-K.
The customer and subscriber data are unaudited.
Fiscal Year Ended January 31,
(in thousands, except per share and customer and subscriber data) 2007 2006 2005 2004 2003
Consolidated Statement of Operations:
Revenues:
Subscription and support $ 451,660 $ 280,639 $ 157,977 $ 85,796 $ 47,656
Professional services and other 45,438 29,218 18,398 10,227 3,335
Total revenues 497,098 309,857 176,375 96,023 50,991
Cost of revenues (1):
Subscription and support 61,457 34,457 12,727 7,782 7,199
Professional services and other 57,433 34,669 20,727 9,491 3,164
Total cost of revenues 118,890 69,126 33,454 17,273 10,363
Gross profit 378,208 240,731 142,921 78,750 40,628
Operating expenses (1):
Research and development 44,614 23,330 9,822 6,962 4,648
Marketing and sales 252,935 149,598 96,311 54,600 33,522
General and administrative 84,257 47,986 30,268 16,915 12,958
Lease recovery — (285) — (3,445) —
Total operating expenses 381,806 220,629 136,401 75,032 51,128
Income (loss) from operations (3,598) 20,102 6,520 3,718 (10,500)
Interest income 14,977 7,726 2,658 379 471
Interest expense (193) (69) (37) (22) (77)
Other income 1,310 439 12 164 98
Income (loss) before (provision) benefit for income taxes and minority interest 12,496 28,198 9,153 4,239 (10,008)
(Provision) Benefit for income taxes (9,795) 1,310 (1,217) (541) —
Income (loss) before minority interest 2,701 29,508 7,936 3,698 (10,008)
Minority interest in consolidated joint venture (2,220) (1,034) (590) (184) 292
Net income (loss) (2) $ 481 $ 28,474 $ 7,346 $ 3,514 $ (9,716)
Net income (loss) per share:
Basic $ 0.00 $ 0.27 $ 0.10 $ 0.12 $ (0.37)
Diluted 0.00 0.24 0.07 0.04 (0.37)
Weighted-average shares used in computing per share amounts:
Basic (3) 112,386 107,274 75,503 29,605 26,375
Diluted (3) 120,154 118,737 110,874 95,409 26,375
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