Salesforce, Inc. · NYSE:CRM
Salesforce — Salesforce.Com — Investor Day (November 2019)
76 slides from Salesforce's investor day presentation, Nov 20, 2019
Slide 1: Welcome to Dreamforce
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Slide 2: Slide 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about the company’s financial and operating results, which may include expected GAAP and non-GAAP financial and other operating and non
Slide 4: Finance Review with Mark Hawkins, President and CFO
Finance Review with Mark Hawkins President and CFO
Slide 5: The Growth Playbook: FY00-FY24
The Growth Playbook: FY00-FY24 Dreamforce 2019 Sustaining Growth at Scale Doubling the company again by FY24
Slide 6: Years of Growth: Table of Contents
20 Years of Growth The Growth Playbook: FY00-FY24 TABLE……………….……………………… OF CONTENTS Revenue Chapter 1 Defining the Cloud Software Market $ FY00 - FY10 11 yrs ….…….……….….……….……….….……….……………….……….……….……..….~ 1B Chapter 2 Accelerating Growth $ FY11 - FY18 8 yrs ..…….……….….……….……….….……….……………….……….……….…
Slide 7: Sustained Growth at Scale: Raising FY20 Guidance
Sustained Growth at Scale Raising FY20 to $16.99 to $17.00 billion1 FY25 FY24 FY23 Updated FY22 $ FY21 17.0B 26% FY20 Guide1 CAGR $13.3B FY19 $10.5B FY18 $8.4B FY17 $6.7B $ FY16 $ 5.4B $ 4.1B FY15 3.1B FY14 $ $2.3B FY13 1.7B FY12 FY11 Yuka Sato Neos Corporation Trailblazer 1FY20: High end of FY20 re
Slide 8: Sustained Growth at Scale: Establishing FY21 Guidance
Sustained Growth at Scale Establishing FY21 guidance of $20.8 to $20.9 billion1 FY25 FY24 NEW FY23 $ FY22 20.9B 26% FY21 Guide1 CAGR $17.0B1 FY20 $13.3B FY19 $10.5B FY18 $8.4B FY17 $6.7B $ FY16 $ 5.4B Cynthia Hill $ 4.1B FY15 3.1B FY14 Trailhead $ $2.3B FY13 for Students 1.7B FY12 FY11 Trailblazer 1
Slide 9: Doubling the Company Again by FY24
Sustained Growth at Scale Doubling the company (again) by FY24 NEW FY25 ~$35B 20% FY24 Target1 CAGR FY23 2X FY22 Revenue Growth $20.9B1 FY21 FY20 - FY24 $17.0B1 FY20 $13.3B FY19 $10.5B FY18 $8.4B FY17 $6.7B $ FY16 $ 5.4B Francisco Rodriguez $3.1B 4.1B FY15 We Are Marketing $ FY14 $ 2.3B FY13 Trailbl
Slide 10: Values Drive Value
Values Drive Value Doing well and doing good “CHANGE“CHANGE THE THE “CHANGE“CHANGE THE THE “CHANGE“CHANGE THE THE LeaderWORLDWORLD” LIST” LISTin WORLDLeaderWORLD” LIST” LIST in LeaderWORLDWORLD” LIST” LIST in Innovation Philanthropy Culture Best Workplaces #1 Company World’s Best for Innovators that
Slide 11: Today's Discussion
Today’s Discussion Innovation Markets Organic and Inorganic Secular Tailwinds Strategies Enterprise, Geos and Industries Drivers Managing Growth Wrap-Up Margins and Cash Tradeoffs of Growth and Margin
Slide 12: Secular Tailwind: Digital Transformation
Secular Tailwind Digital transformation is accelerating and capturing spend Worldwide Nominal GDP Driven by Digitally Worldwide DX Spending vs Other ($B) Transformed vs Other Enterprises ($T) $1,878 ~$52 ~$44 $1,376 ~$24 $998 ~$14 ~$68 $2,696 ~$65 $2,571 $2,337 ~$51 ~$48 2018 2020 2022 2023E 2018 20
Slide 13: History of First Mover Advantage
History of First Mover Advantage Setting the stage for future growth and innovation Integration Tableau Cloud ClickSoftware Salesforce.org MuleSoft Datorama B2B Commerce Commerce Einstein Cloud Quip Salesforce Platform Trailhead & AppExchange Salesforce Analytics IoT Service Cloud Lightning Heroku M
Slide 14: Large and Growing Addressable Markets
Large and Growing Addressable Markets Total Addressable Market growth from CY17-CY23 CY17-CY23 6YR CAGR2 $180B $168B 13% Total Addressable Market1 13% $120B 7% 15% 13% $60B 10% Integration3 12% Commerce Analytics4 CY17 CY18 CY19 CY20 CY21 CY22 CY23 Marketing Service Platform & Other5 Calculations pe
Slide 15: Put Your Customer at the Center of Your Business
Put Your Customer at the Center of Your Business Trusted . Smart . Flexible . Sustainable 25% Sales 26% average increase decrease in in revenue Success Service IT costs Platform 30% Partners Marketing 57% higher customer faster app Mobile Blockchain AI Vision Voice satisfaction development Industrie
Slide 16: The Global Leader in CRM
The Global Leader in CRM Continuing to take share in a growing market 17.3% 5.5% 5.3% 3.5% 3.5% 2014 2015 2016 2017 2018 2019H1 Ranked #1 for CRM Applications based on IDC 2019H1 Revenue Market Share Worldwide. Source: IDC, Worldwide Semiannual Software Tracker, October 2019. CRM market includes the
Slide 17: Multi Cloud Customers Expanding
Multi Cloud Customers Expanding Significant opportunity to expand multi cloud adoption Customers Annualized Revenue Average Spend FY20 40% 93% FY19 >20X multi-cloud FY18 customers vs single cloud in FY20 FY17 FY16 29% 89% Single Cloud Multi-Cloud Note: Data is as of July 31st of the Fiscal Years Note
Slide 18: Opportunity at the Top
Opportunity at the Top Room to expand multi cloud adoption across our largest customers Top 25 Customers by Cloud Potential to expand our largest customers to 3+ Sales Service Platform Marketing Commerce Integration Clouds Adoption 6 Cloud 0 0 0 0 0 0 1 customer within the 5 Clouds 1 1 1 1 0 1 Top 2
Slide 19: Drivers of Growth
Drivers of Growth Innovation Markets Organic and Inorganic Secular Tailwinds Strategies Enterprise, Geos and Industries Drivers Managing Growth Wrap-Up Margins and Cash Tradeoffs of Growth and Margin
Slide 20: Sales Capacity Sustains Growth
Sales Capacity Sustains Growth Capacity triples since FY14 Total 41K $1M 45K Sales Capacity x Productivity = New Business 3 23% Sales headcount2 Headcount six year CAGR FY14-FY201 Total Annual Productivity Annual 13K 20% Other headcount six year CAGR FY14-FY201 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Ann
Slide 21: Customer Focused Coverage Model
Customer Focused Coverage Model Effective sales deployment sustains growth Buyer: CEO Value: Digital Transformation Transformation Product: ELA Buyer: GM Value: Customer Experience Verticals Product: Industry Clouds Buyer: CIO Multiple Clouds Value: Integration Product: Clouds + Customer 360 + Mules
Slide 22: Land and Expand
Land and Expand Proven strategy over 20 years Incremental Annualized Revenue FY18 FY19 FY20 New Logos 26% 26% 26% Installed Base 74% 74% 74% New products into installed base 54% 46% 49% 51% 50% 50% Additional seats, upgrades, and ELAs into installed base Note: Proportions based on sales during the t
Slide 23: Land and Expand: Innovation Drives Incremental Growth
Land and Expand Innovation drives incremental growth Incremental Annualized Revenue FY20 New Logos 26% Installed Base New products into 74% 63% installed base Net new products 50% new to customers products into installed base Note: Proportions based on sales during the trailing twelve months ended J
Slide 24: Business Model Sustains Growth
Business Model Sustains Growth Playbook execution drives RPO $25.7B $24.9B $25.3B $21.0B $21.2B $20.6B $20.4B $13.8B $13.1B $13.2B Q2 FY20 $15.4B $15.8B Y/Y Growth $11.2B $11.0B $10.8B $11.2B $7.7B $7.9B +23% Current RPO (CRPO) $11.9B $11.8B $12.1B $9.6B $9.6B $9.8B $10.0B % $7.7B $7.9B +20 Total RP
Slide 25: Role of Enterprise, Geos and Industries
Role of Enterprise, Geos and Industries Innovation Markets Organic and Inorganic Secular Tailwinds Strategies Enterprise, Geos and Industries Drivers Managing Growth Wrap-Up Margins and Cash Tradeoffs of Growth and Margin
Slide 26: Enterprise Success Sustains Growth
Enterprise Success Sustains Growth Rapidly expanding footprint 2.3x Enterprise Customers FY16-FY20 67% Enterprise 30% Enterprise Annualized Revenue four year CAGR FY16-FY20 58% Enterprise 18% Annualized Revenue in <$250k accounts four year CAGR FY16-FY20 FY16 FY17 FY18 FY19 FY20 Non-Enterprise Annua
Slide 27: Accelerating Growth in Largest Accounts
Accelerating Growth in Largest Accounts 60% of top customers new to Top 10 in FY20 Top 10 FY16 Top 10 FY20 FinServ A $37M B $91M 33% 4 YR CAGR Technology Technology B A 21% 4 YR CAGR FinServ Technology C K Retail Retail D J 62% 4 YR CAGR Telco Technology E L Conglomerate Technology F C 24% 4 YR CAGR
Slide 28: Industries Success Sustains Growth
Industries Success Sustains Growth Early days with lots of room to run 5% Market Share1 9% 10% 11% 15% 13% 6% 11% 4 year CAGR FY24 TAM $38B 11% 10% 4 year CAGR 4 year CAGR 19% 4 year CAGR FY20 TAM $26B $26B $25B 11% 4 year CAGR $24B 10% 4 year CAGR $18B $17B $17B $16B 9% 4 year CAGR $12B $12B $11B $
Slide 29: New Growth via Industries
New Growth via Industries Industries deliver new markets and customers Customer Count: Customer Count: Fortune 1000 $10M+ Annual Spend Growth Industry FY16 FY20 FY16 - FY20 Financial Services 5 23 4.6x Customer Count Growth Media & Comms 7 9 1.3x High Tech 6 11 1.8x ~ Retail & CG 2 10 5.0x 3X Health
Slide 30: Value From Industry Focus
Value From Industry Focus Speaking the language of the customer drives economic benefits $ ~ 3 ~ 4 160B 50% 30% 3% Higher TAM1 New Logos2 Higher ASPs Low Attrition New products Specialized industry Customers spend more Solutions that solve increase potential features attract new for out-of-the-box s
Slide 31: Ecosystem Advantage: SIs
Ecosystem Advantage: SIs Partners and ISVs are aligned by industry Consulting Partners +30% ~100 Partner Certified Industry Focused Individuals Partners (1000+ Total Partners) 1 Growth stats based on FY20 H1 compared to FY19 H1 2 AppExchange listings based on 10/18/2019
Slide 32: Ecosystem Advantage: ISVs
Ecosystem Advantage: ISVs Largest B2B app exchange in the world supports our innovation Independent Software Vendors 5,000+ +20% App Exchange FY20 Installs Listings 1 Growth stats based on FY20 H1 compared to FY19 H1 2 AppExchange listings based on 10/18/2019
Slide 33: International Success Sustains Growth
International Success Sustains Growth Language of Digital Transformation is global 34% International 29% International Annualized Revenue four year CAGR FY16-FY20 29% International FY16 FY17 FY18 FY19 FY20 N. America Annualized Revenue International Annualized Revenue Note: Annualized Revenue as of
Slide 34: Building International Scale
Building International Scale Leadership and autonomy in local markets Miguel Milano President, EMEA, APAC, and LACA Sales Gavin Patterson Chairman, EMEA Shinichi Koide Chairman, President & CEO, Japan 30% International Jayne-Anne Gadhia total headcount CEO, UK & Ireland three year CAGR FY17-FY20 Ang
Slide 35: Trailhead Momentum
Trailhead Momentum Paving the way for the next generation of Trailblazers +50% YoY 1.5M+ LEARNERS 15M Badges Earned FY15 FY16 FY17 FY18 FY19 FY20 +88% YoY Herbin Ngohe Engie Trailblazer
Slide 36: Strategic Technology Partners
Strategic Technology Partners Extending the capabilities of the Salesforce Customer 360
Slide 37: Innovation
Innovation Innovation Markets Organic and Inorganic Secular Tailwinds Strategies Enterprise, Geos and Industries Drivers Managing Growth Wrap-Up Margins and Cash Tradeoffs of Growth and Margin
Slide 38: Innovation Drives Growth: Most Complete Portfolio
Innovation Drives Growth Serving customers with the most complete portfolio of products Sales Service Marketing eCommerce Communities Collaboration Platform Integration Industries Inbox Field Service Social Studio B2B & B2C Self Service Slides & Sheets Heroku Connectivity Government HCLS CPQ Self Se
Slide 39: Innovation Drives Growth: Organic Innovation
Innovation Drives Growth Executing ongoing organic innovation Sales Service eCommerce Communities Collaboration Platform Industries Field Service Self Service Government HCLS Self Service Order Mgmt. PRM Social Chat IoT Mfg PRM Portal Workflows Analytics Fin Serv Consumer Goods High Velocity Bots Mo
Slide 40: Innovation Drives Growth: Inorganic Innovation
Innovation Drives Growth Integrating inorganic innovation and building upon it Sales Service Marketing eCommerce Collaboration Platform Integration Industries Inbox Field Service Social Studio B2B & B2C Slides & Sheets Heroku Connectivity CPQ DMP API Design & Mgmt Philanthropy Engagement Journeys AI
Slide 41: M&A Framework
M&A Framework Driven by customer needs Tech & Talent Adjacencies New Markets Complimentary Specific IP to augment Deliver scaled new products which extend Rationale organic innovation offerings organic innovation Historical Total ~50 ~10 4 Example Growth Impact Future Tailwind Tailwind Impact Margin
Slide 42: Complimenting Organic Innovation
Complimenting Organic Innovation Sales Success Service Delivering Partners Marketing Customer Industries Einstein AI Commerce Success Trailblazers Apps & Reskilling Employee Analytics, BI & Experience Visualization Integration
Slide 43: Source of Entrepreneurial Talent
Source of Entrepreneurial Talent Bret Taylor Adam Selipsky Simon Parmett Adam Blitzer Margaret Francis President & Chief Product Officer CEO, Tableau CEO, MuleSoft CEO, Marketing Cloud SVP Product and GM, Heroku Mary Kay Huse Alexandre Dayon Richard Socher Katrin Ribant Andy Kofoid EVP, Consumer Eng
Slide 44: Financial Implications of Acquisitions
Financial Implications Acquisitions create both tailwinds and headwinds to growth and margin Acquired RPO fair value adjustment (write down) persists Tailwinds Headwinds over the the average contract length (e.g. 2-3 years, etc.) Revenue Purchase RPO 30%-40% Fair Value Contribution Accounting Adjust
Slide 45: Growth & Margin Impacts
Growth & Margin Impacts Near term margin dilution improves to long term margin accretion Synergies Post Acquisition Scaling of Operations Op Margin % Pre Acquisition Pre Acquisition Op Margin % Op Margin % Non-GAAP -6% Operating Purchase Accounting Post Acquisition Margin 3% Op Margin % Acquired Dil
Slide 46: Track Record of Successful Acquisitions
Track Record of Successful Acquisitions Returns on M&A capital allocation strategy Date Revenue at Growth at Revenue Growth >$300M Acquired Acquisition1 Acquisition2 Today3 Today Pardot Annualized Revenue ~5x ExactTarget July 2013 ~$286M ~30% ~$1,450M ~24% in six years Demandware July 2016 ~$227M ~2
Slide 47: Finance Review with John Cummings, SVP Investor Relations
Finance Review with John Cummings SVP Investor Relations
Slide 48: Managing the Business
Managing the Business A portfolio of unique unit economic margins Who LATAM Enterprise JAPAN Commercial Where APAC Small Business EMEA Industries AMER Essentials Sales Cloud Service Cloud Marketing & Commerce Salesforce Platform Integration & Analytics What Note: For illustration purposes only.
Slide 49: Unit Economic Margins: Attrition, Cost to Book, Cost to Serve
Unit Economic Margins1 Attrition, Cost to Book, and Cost to Serve Key Terms and Expressions Attrition: 1 Defines expected life of $1 of recurring revenue Lifetime Revenue (LTR): 2 Cumulative value of $1 recurring revenue over expected life (Value = $1/Attrition) Cost to Book (CTB): 3 Cost to acquire
Slide 50: Margin Frontier
Margin Frontier Unit Economic Margins will change over time Faster Unit economic margins define the growth and margin frontier. Value = Revenue - (CTS) - CTB x (Attrition + Growth) Revenue Unit economic margin defines limit of Growth profitability, at zero growth. Value = (LTR - CTB - CTS)/LTR Slowe
Slide 51: Margin Frontier: Change in Key Inputs
Margin Frontier Unit Economic Margins will change over time Faster Change in key inputs to Unit Economic Margin (e.g. CTB, CTS, Attrition) can shift the frontier over time Growth Slower Lower Unit Economic Margin Higher
Slide 52: Margin Frontier Varies by Region
Margin Frontier Varies by Region Faster Unit Economics by Region Unit Margin = xx% Growth AMER ~40% Slower Lower Unit Economic Margin Higher
Slide 53: Margin Frontier Varies by Region
Margin Frontier Varies by Region Faster Unit Economics by Region Unit Margin = xx% EMEA JAPAC Growth AMER ~37% ~40% ~43% Slower Lower Unit Economic Margin Higher
Slide 54: Margin Frontier Varies by End Market
Margin Frontier Varies by End Market Faster Unit Economics by End Market Unit Margin = xx% Growth Small Business ~35% Slower Lower Unit Economic Margin Higher
Slide 55: Margin Frontier Varies by End Market
Margin Frontier Varies by End Market Faster Unit Economics by End Market Unit Margin = xx% Enterprise Growth Small Business ~35% ~40% Slower Lower Unit Economic Margin Higher
Slide 56: Margin Frontier Varies by Product
Margin Frontier Varies by Product Faster Unit Economics by Product Unit Margin = xx% Growth Sales ~44% Slower Lower Unit Economic Margin Higher
Slide 57: Margin Frontier Varies by Product
Margin Frontier Varies by Product Faster Unit Economics by Product Unit Margin = xx% Service Growth Sales ~44% ~50% Slower Lower Unit Economic Margin Higher
Slide 58: Margin Frontier Varies by Product
Margin Frontier Varies by Product Faster Unit Economics by Product Unit Margin = xx% Marketing Service Growth Sales ~26% ~44% ~50% Slower Lower Unit Economic Margin Higher
Slide 59: Portfolio of Unit Economic Margins
Portfolio of Unit Economic Margins1 Lifetime economic margins today Sales Service Platform Commerce Marketing Integration ~44% ~50% ~33% ~39% ~26% ~53% 13% YOY Growth2 22% YOY Growth 24% YOY Growth 28% YOY Growth 39% YOY Growth 52% YOY Growth Attrition Attrition Attrition Attrition Attrition Attriti
Slide 60: Aggregate Unit Economic Margin: Approximately 35% in FY18
Aggregate Unit Economic Margin Approximately 35% in FY18 Faster Salesforce Unit Economics Growth FY18 Slower ~35% Lower Unit Economic Margin Higher
Slide 61: Aggregate Unit Economic Margin Improved ~500 bps
Aggregate Unit Economic Margin Improved ~500 basis points FY18-FY20 Faster Salesforce Unit Economics ~500 BPS Growth FY18 FY20 Slower ~35% ~40% Lower Unit Economic Margin Higher
Slide 62: Aggregate Unit Economic Margin: Tailwinds and Headwinds
Aggregate Unit Economic Margin Improved ~500 basis points FY18-FY20 Faster Salesforce Unit Economics Tailw inds: ~500 BPS Lower Attrition and Cost to Serve Headwinds: Growth FY18 FY20 Higher Cost to Book due to mix Slower ~35% ~40% Lower Unit Economic Margin Higher
Slide 63: History of Declining Attrition
History of Declining Attrition 10 years of improvement sustains growth and long term value ~21% Dollar Attrition Rate <10% Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 Q2'20 Note: Chart of dollar attrition as a percentage of revenue when compared to the year-ago period for Salesforce
Slide 64: Balancing Growth and Profitability
Balancing Growth and Profitability Margin expansion throughout period of significant investment REVENUE AND OPERATING MARGIN $17.0B 16.6% 11.6% 3.8% 0% Operating Margin % $1.1B -3.6% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20E GAAP Operating Margin % Revenue $s Non-GAAP Operating Margin % High end of FY2
Slide 65: Cash Flow Generation at Scale
Cash Flow Generation at Scale Operating Margin improvement accelerates cash flow growth OPERATING CASH FLOW FREE CASH FLOW3 A $4.15B1 $3.5B2 A3 MOODY’S $1.7B $1.4B 25% 26% CAGR CAGR FY16-FY20 FY16-FY20 FY16 FY17 FY18 FY19 FY20E FY16 FY17 FY18 FY19 FY20E 1FY20 operating cash flow guide of 21% to 22% y
Slide 66: FY21 Margin Expansion Dynamics
FY21 Margin Expansion Dynamics Improving organic operating efficiencies ~125-150 bps 79 bps FY21 Net Expansion Purchase Accounting Acquired Dilutive Op Margin New Investments Integration Costs FY21 Organic FY21 Tailwind FY21 FY20 Non-GAAP (salesforce.org Headwinds FY21 Ending Operating non-cash (Prior
Slide 67: Closing Thoughts
Closing Thoughts Innovation Markets Organic and Inorganic Secular Tailwinds Strategies Enterprise, Geos and Industries Drivers Managing Growth Wrap-Up Margins and Cash Tradeoffs of Growth and Margin
Slide 68: Sustained Growth at Scale: Years of Sequential Revenue Growth
Sustained Growth at Scale 20 Years of sequential revenue growth $ 4.45B Q3 FY201 FY00 FY10 FY20 Note: Revenue prior to Q1 FY17 shown as reported (prior to adoption of ASC 606) 1 Represents Q3 FY20 Revenue Guidance as of August 22nd 2019
Slide 69: Years of Growth
20 Years of Growth Very few companies sustain growth over the long term U.S. Public Companies 78 with uninterrupted, consecutive years revenue growth >20% N = ~1,300 Companies 3 Years Source: BofA Securities, CapIQ. Salesforce years include pre-IPO. Statistics capture U.S. publicly traded companies
Slide 70: Years of Growth
20 Years of Growth Very few companies sustain growth over the long term U.S. Public Companies 78 with uninterrupted, consecutive years revenue growth >20% N = ~1,300 42 Companies 3 Years 5 Years Source: BofA Securities, CapIQ. Salesforce years include pre-IPO. Statistics capture U.S. publicly traded
Slide 71: Years of Growth
20 Years of Growth Very few companies sustain growth over the long term U.S. Public Companies 78 with uninterrupted, consecutive years revenue growth >20% N = ~1,300 42 Companies 9 3 Years 5 Years 10 Years Source: BofA Securities, CapIQ. Salesforce years include pre-IPO. Statistics capture U.S. publ
Slide 72: Years of Growth
20 Years of Growth Very few companies sustain growth over the long term U.S. Public Companies 78 with uninterrupted, consecutive years revenue growth >20% N = ~1,300 42 Companies 9 1 1 3 Years 5 Years 10 Years 15 Years 20 Years Source: BofA Securities, CapIQ. Salesforce years include pre-IPO. Statis
Slide 73: Unprecedented Growth at Scale
Unprecedented Growth at Scale Growth Playbook sets us apart ~$35B FY24 target1 $22.9B Fastest to $10B $9.7B Fastest to $5B $3.6B 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Years Since Company Founded Note: Salesforce revenue of $5.4B in FY15 and $10.5B in FY19. Source for Microsoft, Oracle, and
Slide 74: Thank You
thank y u
Slide 75: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes information about non-GAAP income from operations, non-GAAP operating margin and free cash flow (collectively the “non-GAAP financial measures”). These non-GAAP financial measures are measurements of financial performance that are not prepared in ac
Slide 76: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in millions) ASC 606 ASC605 Non-GAAP income from operations FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY09 GAAP income (loss) from operations $535 $454 $64 $115 -$146 -$286 -$111 -$35 $97 $115 $64 Plus: Amortization of purchased intangibles $447 $287 $225 $15