Salesforce.com 2014 Annual Report Download - page 16

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could result in a loss of confidence in the security of our service, damage our reputation, negatively impact our
future sales, disrupt our business and lead to legal liability.
As we acquire companies or technologies, we may not realize the expected business benefits, the
acquisitions could prove difficult to integrate, disrupt our business, dilute stockholder value and adversely
affect our operating results and the value of your investment.
As part of our business strategy, we periodically make investments in, or acquisitions of, complementary
businesses, joint ventures, services and technologies and intellectual property rights, and we expect that we will
continue to make such investments and acquisitions in the future. In July 2013, we acquired ExactTarget, our
largest acquisition in the company’s history. Acquisitions and investments involve numerous risks, including:
• the potential failure to achieve the expected benefits of the combination or acquisition;
• difficulties in and the cost of integrating operations, technologies, services and personnel;
• diversion of financial and managerial resources from existing operations;
• risk of entering new markets in which we have little or no experience or where competitors may have
stronger market positions;
• potential write-offs of acquired assets or investments, and potential financial and credit risks associated
with acquired customers;
• potential loss of key employees;
• inability to generate sufficient revenue to offset acquisition or investment costs;
• the inability to maintain relationships with customers and partners of the acquired business;
• the difficulty of transitioning the acquired technology onto our existing platforms and maintaining the
security standards consistent with our other services for such technology;
• potential unknown liabilities associated with the acquired businesses;
• unanticipated expenses related to acquired technology and its integration into existing technology;
• negative impact to our results of operations because of the depreciation and amortization of amounts
related to acquired intangible assets, fixed assets and deferred compensation, and the loss of acquired
deferred revenue and unbilled deferred revenue;
• delays in customer purchases due to uncertainty related to any acquisition;
• the need to implement controls, procedures and policies at the acquired company;
• challenges caused by distance, language and cultural differences;
• in the case of foreign acquisitions, the challenges associated with integrating operations across different
cultures and languages and any currency and regulatory risks associated with specific countries; and
• the tax effects of any such acquisitions.
In addition, if we finance acquisitions by issuing equity or convertible or other debt securities or loans, our
existing stockholders may be diluted, or we could face constraints related to the terms of and repayment
obligation related to the incurrence of indebtedness which could affect the market price of our common stock.
Further, if we fail to properly evaluate and execute acquisitions or investments, our business and prospects may
be seriously harmed and the value of your investment may decline.
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