Salesforce.com 2014 Annual Report Download - page 89

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The amounts of revenue and earnings of ExactTarget included in the Company’s consolidated statement of
operations from the acquisition date of July 12, 2013 to the period ending January 31, 2014 are as follows (in
thousands):
Total revenues .................................... $194,008
Loss ............................................ $(152,948)
The following pro forma financial information summarizes the combined results of operations for the
Company and ExactTarget, which was significant for purposes of the unaudited pro forma financial information
disclosure, as though the companies were combined as of the beginning of the Company’s fiscal 2013.
The unaudited pro forma financial information was as follows (in thousands):
Fiscal Year Ended
January 31,
2014 2013
Total revenues ....................... $4,267,166 $3,279,421
Loss ............................... $ (364,659) $ (346,636)
The pro forma financial information for all periods presented has been calculated after adjusting the results
of ExactTarget to reflect the business combination accounting effects resulting from this acquisition including the
amortization expense from acquired intangible assets and the stock-based compensation expense for unvested
stock options and restricted stock awards assumed as though the acquisition occurred as of the beginning of the
Company’s fiscal year 2013. The pro forma financial information is for informational purposes only and is not
indicative of the results of operations that would have been achieved if the acquisition had taken place at the
beginning of the Company’s fiscal 2013.
The pro forma financial information for the year ended January 31, 2013 combines the historical results of
the Company for fiscal 2013 and the historical results of ExactTarget for the year ended December 31, 2012. The
pro forma financial information for the year ended January 31, 2014 combines the historical results of the
Company for fiscal 2014, which include the results of ExactTarget from the date of acquisition, and the historical
results of ExactTarget for the six month period ended June 30, 2013.
EdgeSpring
On June 12, 2013, the Company acquired for cash and the Company’s common stock the outstanding stock
of EdgeSpring, Inc. (“EdgeSpring”), a provider of an end-to-end business intelligence exploration platform used
to build analytic applications. The Company acquired EdgeSpring to, among other things, expand its analytical
capabilities and offerings. The Company has included the financial results of EdgeSpring in the consolidated
financial statements from the date of acquisition, which have not been material to date. The acquisition date fair
value of the consideration transferred for EdgeSpring was approximately $133.7 million, which consisted of the
following (in thousands, except share data):
Fair Value
Cash ............................................ $ 62,580
Common stock (1,850,258 shares) ..................... 69,533
Fair value of stock options and restricted stock awards
assumed ....................................... 1,609
Total ............................................ $133,722
The fair value of the stock options assumed by the Company was determined using the Black-Scholes
option pricing model. The share conversion ratio of 0.17 was applied to convert EdgeSpring’s outstanding equity
awards for EdgeSpring’s common stock into equity awards for shares of the Company’s common stock.
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