Salesforce.com 2009 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2009 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 123

  • 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
  • 121
  • 122
  • 123

Table of Contents
Fiscal Year Ended January 31,
2010 2009 2008
Stock-based expenses:
Cost of revenues 1% 1% 1%
Research and development 1 1 1
Marketing and sales 3 3 3
General and administrative 2 2 2
Fiscal Years Ended January 31, 2010 and 2009
Revenues.
Fiscal Year Ended January 31, Variance
(In thousands) 2010 2009 Dollars Percent
Subscription and support $ 1,209,472 $ 984,574 $ 224,898 23%
Professional services and other 96,111 92,195 3,916 4%
Total revenues $ 1,305,583 $ 1,076,769 $ 228,814 21%
Total revenues were $1.3 billion for fiscal 2010, compared to $1.1 billion during the same period a year ago, an increase of $228.8 million, or 21
percent. Subscription and support revenues were $1.2 billion, or 93 percent of total revenues, for fiscal 2010, compared to $1.0 billion, or 91 percent of total
revenues, during the same period a year ago. Professional services and other revenues were $96.1 million, or 7 percent of total revenues, for fiscal 2010,
compared to $92.2 million, or 9 percent of total revenues, for the same period a year ago. The increase in professional services and other revenues was due
primarily to the higher demand for services from an increased number of paying subscribers and customers.
Revenues in Europe and Asia Pacific accounted for $381.8 million, or 29 percent of total revenues, for fiscal 2010, compared to $300.3 million, or 28
percent of total revenues, during the same period a year ago, an increase of $81.5 million, or 27 percent. The increase in revenues outside of the Americas was
the result of our efforts to expand internationally. As part of our overall growth, we expect the percentage of our revenue generated in Europe and Asia Pacific
to continue to increase as a percentage of our total revenues world wide.
Cost of Revenues.
Fiscal Year Ended January 31, Variance
Dollars
(In thousands) 2010 2009
Subscription and support $ 159,172 $ 127,082 $ 32,090
Professional services and other 98,753 93,389 5,364
Total cost of revenues $ 257,925 $ 220,471 $ 37,454
Percent of total revenues 20% 20%
Cost of revenues was $257.9 million, or 20 percent of total revenues, during fiscal 2010, compared to $220.5 million, or 20 percent of total revenues,
during the same period a year ago, an increase of $37.4 million. The increase in absolute dollars was primarily due to an increase of $8.4 million in employee-
related costs, an increase of $1.5 million in stock-based expenses, an increase of $7.2 million in service delivery costs, primarily due to our efforts in
increasing data center capacity, an increase of $9.8 million in depreciation and amortization expenses, an increase of $6.7 million in outside subcontractor and
other service costs and an increase of $1.6
44