Salesforce.com 2015 Annual Report Download - page 56

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Research and Development.
Fiscal Year Ended
January 31, Variance
Dollars(in thousands) 2015 2014
Research and development ...................... $792,917 $623,798 $169,119
Percent of total revenues ....................... 15% 15%
Research and development expenses were $792.9 million, or 15 percent of total revenues, for fiscal 2015,
compared to $623.8 million, or 15 percent of total revenues, during the same period a year ago, an increase of
$169.1 million. The increase in absolute dollars was primarily due to an increase of $132.3 million in employee-
related costs, an increase of $13.8 million in stock-based expense, an increase of $14.8 million in development
and test data center expense, and an increase in allocated overhead. We increased our research and development
headcount by 25 percent since January 31, 2014 in order to improve and extend our service offerings and develop
new technologies. We expect that research and development expenses will increase in absolute dollars and may
increase as a percentage of revenues in future periods as we continue to add employees and invest in technology
to support the development of new, and improve existing, technologies and the integration of acquired
technologies.
Marketing and Sales.
Fiscal Year Ended
January 31, Variance
Dollars(in thousands) 2015 2014
Marketing and sales ........................ $2,757,096 $2,168,132 $588,964
Percent of total revenues .................... 51% 53%
Marketing and sales expenses were $2.8 billion, or 51 percent of total revenues, for fiscal 2015, compared to
$2.2 billion, or 53 percent of total revenues, during the same period a year ago, an increase of $589.0 million.
The increase in absolute dollars was primarily due to increases of $439.0 million in employee-related costs,
including amortization of deferred commissions, $56.4 million in advertising expenses and event costs, $27.8
million stock-based expense, $5.2 million in professional and outside services and $28.0 million in allocated
overhead. Our marketing and sales headcount increased by 22 percent since January 31, 2014. The increase in
headcount was primarily attributable to hiring additional sales personnel to focus on adding new customers and
increasing penetration within our existing customer base.
General and Administrative.
Fiscal Year Ended
January 31, Variance
Dollars(in thousands) 2015 2014
General and administrative ...................... $679,936 $596,719 $83,217
Percent of total revenues ........................ 13% 15%
General and administrative expenses were $679.9 million, or 13 percent of total revenues, for fiscal 2015,
compared to $596.7 million, or 15 percent of total revenues, during the same period a year ago, a increase of
$83.2 million. The increase was primarily due to an increase of $53.1 million in employee-related costs, an
increase of $18.9 million in equipment costs and an increase of $11.7 million in stock-based expense, offset by a
decrease of $3.0 million in professional and outside services. Our general and administrative headcount increased
by 9 percent since January 31, 2014 as we added personnel to support our growth.
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