Salesforce, Inc. · NYSE:CRM
Salesforce — Salesforce COM — Investor Day (September 2018)
73 slides from Salesforce's investor day presentation, Sep 26, 2018
Slide 1: Salesforce Investor Day September 26, 2018
Salesforce Investor Day September 26, 2018 Charlie Sylvia Kroll Kawn Ellevest Ellevest 1
Slide 2: Safe Harbor
Safe Harbor "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about our financial results, which may include expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue,
Slide 3: Mark Hawkins, President and CFO
Mark Hawkins President and CFO 3
Slide 4: Durable Growth Powered by Competitive Advantage
Durable Growth Powered by Competitive Advantage 4
Slide 5: Durable Growth
Durable Growth $21B - $23B FY22 target FY21 Revenue Growth FY20 $13.175B FY19 guidance2 20% FY19 Projected CAGR FY19-FY221 1 Compound annual growth rate based on high end of guide in footnote 2 and high end of projected target of $21 billion to $23 billion in FY22. 2 High end of Salesforce FY2019 re
Slide 6: Consistent Execution
Consistent Execution Balancing revenue growth with increasing non-GAAP profitability and cash flow Total Revenue and Operating Margin Operating Cash Flow $10.5B $2.7B 16.5% 13.6% 14.5% 5.9% 4.3% 2.3% $1.1B $0.2B FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Slide 7: Consistent Execution
Consistent Execution Balancing revenue growth with increasing non-GAAP profitability and cash flow $13.125B - +15%-16% $13.175B1 Total Revenue Operating Cash Flow Y/Y $1.1B $0.2B FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18FY19E FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19E Revenue (ASC
Slide 8: Market Opportunity
a ~ Market Opportunity
Slide 9: Right Market at the Right Time
Right Market at the Right Time CRM is the fastest growing segment in enterprise software “Customer experience will overtake price and product quality as the key brand differentiator.”1 Operating ERP Database CRM Operating ERP Database CRM Operating ERP Database CRM Systems Systems Systems FY12 FY17
Slide 10: We Are a Generational Company
We Are a Generational Company Never underestimate what can be done in a decade Operating ERP Database CRM Operating ERP Database CRM Operating ERP Database CRM Systems Systems Systems FY12 FY17 FY22 Enterprise Software Addressable Market Source: Salesforce estimates. Historical data from Cowen, Soci
Slide 11: The Digital Transformation Imperative
The Digital Transformation Imperative DX initiatives are a top priority for CIOs IDC FutureScape: Worldwide IT Industry 2018 Top 10 Predictions1 DX Economy Tipping Point 1 By 2020 By 2020 DX Platforms Cloud 2.0: 2 Distributed and Open Companywide specialized 3 10 API Ecosystems Everyone a Data Provi
Slide 12: Competitive Advantage
Competitive Advantage 12
Slide 13: Our Values Drive Our Competitive Advantage
Our Values Drive Our Competitive Advantage A differentiated company since our inception TRUST Communicate openly and deliver the highest level of service CUSTOMER SUCCESS Focus on customer success to drive mutual growth INNOVATION Deliver new technology that empowers Trailblazers to innovate EQUALITY
Slide 14: Ultimate Competitive Advantage: The Customer
Ultimate Competitive Advantage: The Customer The customer is at the center of everything we do “The only sustainable source of competitive advantage, the only defensible position, is to concentrate on knowledge of and engagement with customers.” —Forrester1 1 Forrester, Competitive Strategy In The A
Slide 15: Technology Advantage
Technology Advantage Driven by strong organic and inorganic innovation Datorama Integration Cloud MuleSoft B2B Commerce Quip Lightning Marketing Platform Commerce Cloud Analytics Einstein Cloud Salesforce Trailhead Salesforce IoT Mobile Chatter Heroku Salesforce Platform Service Cloud & AppExchange
Slide 16: Product Advantage
Product Advantage Most complete portfolio in the industry Cloud Sales Service Marketing eCommerce Communities Collaboration Integration Industries Platform 16
Slide 17: Product Advantage
Product Advantage Unmatched depth of functionality Cloud Sales Service Marketing eCommerce Communities Collaboration Platform Integration Industries Inbox Field Service Social Studio B2B & B2C Self Service Slides & Sheets Heroku Connectivity Government Media CPQ Self Service DMP Order Management PRM
Slide 18: Success in Core Markets
Success in Core Markets Momentum across all segments of CRM Sales Service Marketing Commerce Platform & Other Market Share 32%1 19%1 10%1 5%1 8%2 CY17 Market Rank #11 #11 #21 #31 n/a CY17 Market Growth 11%3 12%3 13%3 15%3 7%4 CY18 - CY22 CAGR Revenue Growth 13%5 27%5 37%5 32%5 Fiscal Q219 Y/Y Calcul
Slide 19: Large and Growing Addressable Markets
Large and Growing Addressable Markets More products, more opportunities Total Addressable Market CY18 to CY22 $, Growth CAGR % Total TAM Sales $16B, 11%1 Service $26B, 12%1 $140B Marketing $17B, 13%1 Commerce $11B, 15%1 Platform & Other $35B, 7%2 Analytics $23B, 8%1 Integration $12B, 10%3 Calculatio
Slide 20: Cloud Leadership Advantage
Cloud Leadership Advantage Growth and scale across clouds 26% Growth Y/Y CORE PRODUCTS Q219 Q2 annualized revenue Q215 49% cloud revenue 13% Sales ~$4.0B (% total) 15% 27% Service ~$3.6B 10% 32%1 Platform & Other ~$2.5B1 34% 30% 37% Marketing & Commerce ~$1.8B Q219 cloud revenue (% total) 15% 21%1 1
Slide 21: Cloud Leadership Advantage
Cloud Leadership Advantage Product add-ons enhance core growth Growth Y/Y CORE PRODUCTS ADD-ONS Growth Y/Y Q219 Q2 annualized revenue Q2 annualized revenue Q219 13% Sales ~$4.0B >$100M Salesforce CPQ ~100% 27% Service ~$3.6B >$80M Field Service ~800% 32%1 Platform & Other ~$2.5B1 >$250M Heroku ~30%
Slide 22: Multi-Cloud Advantage
Multi-Cloud Advantage Customers want a 360 degree view of their customers Average Spend 38% 92% 38% 92% of customers of revenue from are multi-cloud multi-cloud >10X customers multi-cloud 62% 8% customers vs Multi-Cloud Multi-Cloud Single Cloud Single Cloud single cloud Note: Data is as of Q2 FY19.
Slide 23: Integration Advantage
Integration Advantage MuleSoft elevates our digital transformation capability Integration 23
Slide 24: Customer Success Advantage
Customer Success Advantage Land and expand drives durable growth Incremental Revenue FY17 FY18 FY19 New Logos 26% 27% 27% Installed Base 74% 73% 73% New products into installed base Additional seats, upgrades, and SELAs into installed base 43% 57% 52% 48% 49% 51% Note: Proportions based on sales dur
Slide 25: Salesforce #1 in CRM
Salesforce #1 in CRM Worldwide CRM applications 2017 market share by IDC 19.6% 7.1% 6.5% 4.0% 3.2% 2013 2014 2015 2016 2017 Source: IDC Worldwide Semiannual Software Tracker, April 2018. CRM Applications market includes the following IDC-defined functional markets: Sales, Customer Service, Contact C
Slide 26: Our Strategic Value Continues to Grow
Our Strategic Value Continues to Grow Rapidly expanding footprint in large customers Customer Count by Annual Revenue FY18 FY19 17% ~1,870 ~1,600 31% ~340 40% ~260 67% ~140 ~100 40 24 $1M+ $5M+ $10M+ $20M+ Note: Customer count as of Q2 for the fiscal years noted. Data excludes counts from recent acq
Slide 27: A View from the Top
A View from the Top Growing relationships with top customers across diverse industries TOP 10 Q2 FY15 TOP 10 Q2 FY19 Customer A $54M Technology Customer C $79M Technology B FinServe B FinServe C Technology K Retail D Technology H Telco E Conglomerate D Technology F Conglomerate L Internet G FinServe
Slide 28: Accelerating Traction in Verticals
Accelerating Traction in Verticals Speaking the language of the customer Customer Count: Customer Count: Fortune 1000 $10M+ Annual Spend Growth Industry FY15 FY19 FY15 - FY19 Average Customer Spend Financial Services 3 21 7x Media & Comms 6 10 1.7x High Tech 5 10 2x 3X F1000 Retail & CG 2 8 4x compa
Slide 29: Digital Transformation Need is Global
Digital Transformation Need is Global The language of the customer is universal Americas EMEA APAC Americas 71% Headcount CAGR1 18% 28% 31% FY15 - FY19 Q219 geographic Revenue Growth2 25% 32% 28% revenue Y/Y (% of total) Global Datacenter Footprint APAC EMEA 10% 19% 1Headcount as of Q2 for the fisca
Slide 30: Culture is a Competitive Advantage
Culture is a Competitive Advantage Creates customer and employee advocacy #1 BEST WORKPLACES FOR BEST WORKPLACES FOR BEST PLACES TO WORK FOR “CHANGE THE WORLD”LIST GIVING BACK WOMEN LGBTQ EQUALITY - FORTUNE MAGAZINE - FORTUNE MAGAZINE - FAIRYGODBOSS - HUMAN RIGHTS CAMPAIGN #1 ON THE FORTUNE “THE BES
Slide 31: Scale Advantage
Scale Advantage Unmatched team of focused CRM professionals 33,000 Hiring Growth 21% total headcount five year CAGR FY14-FY191 800 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Q219 Total Company Headcount 1 Headcount growth as of Q2 for the fiscal years noted. 31
Slide 32: The Trailblazer Advantage
The Trailblazer Advantage Customers and our ecosystem as evangelists Trailblazers CUSTOMER TECHNOLOGY COMMUNITY INNOVATORS DISRUPTORS SHAPERS 32
Slide 33: Autodesk is a Trailblazer
Autodesk is a Trailblazer “Trailhead helps us reach more people, Autodesk depends on Trailhead faster, and gives us a deeper understanding of Salesforce to deliver sales onboarding and capabilities.” enablement. Damian O’Farrill, Product Manager AI, Sales Automation and Analytics, Autodesk. Challeng
Slide 34: Ecosystem Advantage
Ecosystem Advantage Extends our reach and value Consulting Partners Independent Software Vendors +29% +150% Partner Certified Partner-earned Individuals1 Trailhead Badges1 5,000 +40% AppExchange FY19 Installs1 Solutions2 1 Growth rates based on FY19 H1 compared to FY18 H1. 2 AppExchange Solutions as
Slide 35: Partnerships Enhance Value Proposition
Partnerships Enhance Value Proposition Strategic relationships complement technology and product breadth and depth Redefining the mobile experience with new Empower CIOs to simplify how data and events iOS apps including Salesforce Mobile, are shared across AWS and Salesforce services Mytrailhead ap
Slide 36: Increasing Competitive Advantage
Increasing Competitive Advantage Drives durable growth Values Ecosystem Customer Trailblazers Technology Scale Product Cloud Culture Leadership Land & Expand 10x Customer Multi-Cloud Success Integration 36
Slide 37: Continue to Make History
Continue to Make History $ $ On track to be the fastest growing to $20B 21B - 23B FY22 target $14B Fastest to $10B $10B Fastest to $5B $1.6B 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Years Since Company Founded Note: Salesforce revenue of $5.4B in FY15 and $10.5B in FY19. Source for Microsoft, Oracl
Slide 38: David Havlek, EVP, Deputy CFO
David Havlek EVP, Deputy CFO 38
Slide 39: Measuring Our Success
si Se Measuring Our Success
Slide 40: New Accounting Standards
New Accounting Standards ASC 606 ASC 340-40 Unearned Revenue (UR) Capitalized Commissions Remaining Performance Obligation (RPO) ASU 2016-01 Current Remaining Performance Obligation (cRPO) Marked-to-Market Accounting Contract Asset of Strategic Investments The Year of Accounting! 40
Slide 41: Unearned Revenue is the new Deferred Revenue
ASC 606 Unearned Revenue is the new Deferred Revenue 605 Value 606 Value Difference between UR and DR is cumulative pull- forward of revenue to prior years Deferred Revenue Unearned Revenue PY1 PY2 PY3 PY4 Revenue 41
Slide 42: Revenue pull-forward results in immaterial difference between UR and DR
ASC 606 Revenue pull-forward results in an immaterial difference between UR and DR $-100M $7,095 $6,995 $6,201 $-74M $5,883 $-70M 24% $5,043 $4,969 $-80M $4,819 $4,749 Q219 growth $4,392 $4,312 Y/Y Q118 Q218 Q318 Q418 Q119 Q219 Deferred Revenue (ASC 605) DR Adjustment ($-xxM) Unearned Revenue (ASC 60
Slide 43: DR/UR Seasonality Continues to Deepen
DR/UR Seasonality Continues to Deepen Seasonal invoicing, more linear amortization Q1 Sequential Change 9% 8% 5% 4% (2%) (2%) (3%) Sequential growth Sequential (6%) (7%) (7%) (8%) (8%) (8%) (9%) (11%) Q105 Q106 Q107 Q108 Q109 Q110 Q111 Q112 Q113 Q114 Q115 Q116 Q117 Q118 Q119 Deferred Revenue (605) U
Slide 44: DR/UR Seasonality Continues to Deepen
DR/UR Seasonality Continues to Deepen Seasonal invoicing, more linear amortization 18% Q2 Sequential Change 12% 11% 9% 3% 3% 2% 2% 1% 0% 0% (1%) (4%) Sequential growth Sequential (5%) (5%) Q205 Q206 Q207 Q208 Q209 Q210 Q211 Q212 Q213 Q214 Q215 Q216 Q217 Q218 Q219 Deferred Revenue (605) Unearned Reve
Slide 45: DR/UR Seasonality Continues to Deepen
DR/UR Seasonality Continues to Deepen Seasonal invoicing, more linear amortization 21% Q3 Sequential Change 8% 8% 6% 2% (1%) (2%) (2%) (3%) (3%) Sequential growth Sequential (5%) (6%) (9%) (9%) (12%) Q305 Q306 Q307 Q308 Q309 Q310 Q311 Q312 Q313 Q314 Q315 Q316 Q317 Q318 Q319E1 Deferred Revenue (605)
Slide 46: DR/UR Seasonality Continues to Deepen
DR/UR Seasonality Continues to Deepen Seasonal invoicing, more linear amortization Q4 Sequential Change 62% 59% 50% 49% 51% 44% 45% 41% 33% 35% 29% 29% 29% 27% Sequential growth Sequential Q405 Q406 Q407 Q408 Q409 Q410 Q411 Q412 Q413 Q414 Q415 Q416 Q417 Q418 Deferred Revenue (605) Unearned Revenue (
Slide 47: Remaining Performance Obligation
Remaining Performance Obligation Current RPO provides incremental insight to future revenue Financial Disclosure Example Remaining Performance Obligation $20.6B $20.4B $21.0B $15.8B $15.0B$15.4B $11.0B $10.8B $11.2B Backlog Unbilled Unbilled Noncurrent RPO $7.9B $7.4B $7.7B Unbilled Current RPO $9.6
Slide 48: UR, RPO and cRPO in Action
UR, RPO and cRPO in Action A deal example $ millions Year 1 Year 2 Year 3 Year 4 H1 H2 H1 H2 H1 H2 H1 UR 20 10 20 10 20 10 0 RPO 60 50 40 30 20 10 0 cRPO 20 20 20 20 20 10 0 Revenue 0 10 10 10 10 10 10 Deal Terms Value: $60 million Term: 3 years Inv. Frequency: Annual Timing: Signed last day of Q2 4
Slide 49: UR, RPO and cRPO in Action
UR, RPO and cRPO in Action cRPO is more consistent than UR and RPO $ millions Year 1 Year 2 Year 3 Year 4 H1 H2 H1 H2 H1 H2 H1 UR 20 10 20 10 20 10 0 RPO 60 50 40 30 20 10 0 cRPO 20 20 20 20 20 10 0 Revenue 0 10 10 10 10 10 10 H1 H2 Early Renewal Terms UR Value: $80 million 20 10 … Term: 4 years RPO
Slide 50: UR, RPO and cRPO in Action
UR, RPO and cRPO in Action cRPO is more consistent than UR and RPO $ millions Year 1 Year 2 Year 3 Year 4 H1 H2 H1 H2 H1 H2 H1 UR 20 10 20 10 20 10 0 RPO 60 50 40 30 20 10 0 cRPO 20 20 20 20 20 10 0 Revenue 0 10 10 10 10 10 10 H2 H1 H2 Early Renewal Terms Value: $80 million UR 20 10 20 … Term: 4 yea
Slide 51: UR, RPO and cRPO in Action
UR, RPO and cRPO in Action cRPO is more consistent than UR and RPO $ millions Year 1 Year 2 Year 3 Year 4 H1 H2 H1 H2 H1 H2 H1 UR 20 10 20 10 20 10 0 RPO 60 50 40 30 20 10 0 cRPO 20 20 20 20 20 10 0 Revenue 0 10 10 10 10 10 10 H2 H1 H2 Early Renewal Terms Value: $80 million UR 20 10 20 … Term: 4 yea
Slide 52: UR, RPO and cRPO in Action
UR, RPO and cRPO in Action cRPO is more consistent than UR and RPO $ millions Year 1 Year 2 Year 3 Year 4 H1 H2 H1 H2 H1 H2 H1 UR 20 10 20 10 20 10 0 RPO 60 50 40 30 20 10 0 cRPO 20 20 20 20 20 10 0 Revenue 0 10 10 10 10 10 10 H2 H1 H2 Early Renewal Terms Value: $80 million UR 20 10 20 … Term: 4 yea
Slide 53: UR, RPO and cRPO in Action
UR, RPO and cRPO in Action cRPO is more consistent than UR and RPO $ millions Year 1 Year 2 Year 3 Year 4 H1 H2 H1 H2 H1 H2 H1 UR 20 10 20 10 20 10 0 RPO 60 50 40 30 20 10 0 cRPO 20 20 20 20 20 10 0 Revenue 0 10 10 10 10 10 10 H2 H1 H2 Early Renewal Terms Value: $80 million UR 20 10 20 … Term: 4 yea
Slide 54: UR, RPO and cRPO in Action
UR, RPO and cRPO in Action cRPO is more consistent than UR and RPO $ millions Year 1 Year 2 Year 3 Year 4 H1 H2 H1 H2 H1 H2 H1 UR 20 10 20 10 20 10 0 RPO 60 50 40 30 20 10 0 cRPO 20 20 20 20 20 10 0 Revenue 0 10 10 10 10 10 10 H2 H1 H2 Early Renewal Terms Value: $80 million UR 20 10 20 … Term: 4 yea
Slide 55: Components of Growth
Components of Growth Contract timing, duration and terms impact growth component measures SaaS Model Past Today A Simple Formula Revenue Known Known A - B + C = D Contracted DR UR & Billed cRPO Contracted ST & Unbilled LT RPO Timing Renewals ? ? Duration New Business ? ? Terms ASC 605 ASC 606 Beginn
Slide 56: Contract Asset: Revenue Ahead of Invoicing
Contract Asset: Revenue Ahead of Invoicing Provides insights to cash flow results Illustrative Example Deal Terms: Value: $600 $300 Term: 3 years Inv. Terms: Annually on day 1 of Q1 $200 Invoice Invoice Invoice Revenue recognition $100 $200 $300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $100 Revenue 50 50
Slide 57: Contract Asset: MuleSoft Term License
Contract Asset: MuleSoft Term License Provides insights to cash flow results Illustrative Example Deal Terms: Value: $600, 50% license, 50% maintenance Term: 3 years Inv. Terms: Annually on day 1 of Q1 $200 $200 $200 Invoice Invoice Invoice $200 $200 $200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue r
Slide 58: Implications of Other New Standards
Implications of Other New Standards ASC 340-40 ASU 2016-01 Capitalized Commissions Marked-to-Market Accounting of Strategic Investments 4 years 2 years new business renewals $0.43 commissions commissions benefit to GAAP amortization period amortization period EPS in 1H19 New capitalized items: Non-q
Slide 59: Strong Operating Cash Flow
Strong Operating Cash Flow New accounting standards have no impact on cash flow $2.7B $2.2B 28% 26% $1.7B 26% 26% 24% 25% 21% 21% 22% 22% $1.2B $0.9B $0.8B $0.6B $0.5B $0.3B $0.2B FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 OCF Yield OCF Note: OCF Yield is defined as operating cash flow over re
Slide 60: Cash Flow Seasonality Continues to Deepen
Cash Flow Seasonality Continues to Deepen Seasonal invoicing, more linear cash expenses 736% Q1 Q2 Q3 Q4 358% 189% 172% Sequential growth Sequential 118% 124% 99% 74% 74% 6% (36%) (23%) (38%) (50%) (59%) (48%) (47%) (76%) (73%) (62%) Q114 Q115 Q116 Q117 Q118 Q214 Q215 Q216 Q217 Q218 Q314 Q315 Q316 Q
Slide 61: Managing Our Success
Managing Our Success 61
Slide 62: Subscription Economics Planning
Back to School Subscription Long-Range Economics Planning Where Who What Beginning Ending Ending Ending Ending ARR ARR ARR ARR ARR 62
Slide 63: Camper: Constant New ARR Dollars
Camper: Constant New ARR Dollars Rapid revenue deceleration drives high model leverage Assumptions $15 $16 Attrition: 10% $18 CTB: $2.00 $20 $30 CTS: 40% $30 $30 $30 $100 $120 $138 $154 $169 +20% +15% +12% +10% Beginning ARR New Ending Ending Ending Ending ARR Attrition ARR ARR ARR ARR ARR Revenue $
Slide 64: Explorer: Constant Net-New ARR Dollars
Explorer: Constant Net-New ARR Dollars Moderate revenue deceleration drives moderate model leverage Assumptions $20 $20 Attrition: 10% $20 CTB: $2.00 $20 $36 CTS: 40% $34 $32 $30 $100 $120 $140 $160 $180 +20% +17% +14% +13% Beginning ARR New Ending Ending Ending Ending ARR Attrition ARR ARR ARR ARR
Slide 65: Pioneer: Constant Net-New ARR Growth Rate
Pioneer: Constant Net-New ARR Growth Rate Durable growth drives no model leverage $35 Assumptions $29 Attrition: 10% $24 $52 CTB: $2.00 $20 $43 CTS: 40% $36 $30 $100 $120 $144 $173 $208 +20% +20% +20% +20% Beginning ARR New Ending Ending Ending Ending ARR Attrition ARR ARR ARR ARR ARR Revenue $110 $
Slide 66: Long-Range Plan
Long-Range Plan Predictable subscription model creates long-term visibility $21.0B - $23.0B ~80% of revenue under contract at start of year $13.175B1 $5.4B ~60% of revenue under contract two years out FY15 FY16 FY17 FY18 FY19E FY20E FY21E FY22E 1 Represents high end of Salesforce’s FY19 revenue guid
Slide 67: Long-Range Plan
Long-Range Plan Subscription economics underly profit and growth investment planning $21.0B - $23.0B Durable Top Line Growth Flat Margins (Equals Top Line Growth Rate) $13.175B1 Core Profit Flat CTB/CTS Model leverage External Commitment Operating leverage $5.4B Incremental Investment Operating Plan
Slide 68: Durable Sales Capacity Growth
Durable Sales Capacity Growth Translates to durable new business and revenue growth Total 33K 21% Headcount Total headcount five year CAGR FY14-FY191 Sales Capacity x Productivity = New Business 23% Sales headcount Total five year CAGR 13K FY14-FY191 16% G&A headcount five year CAGR FY14-FY191 FY14
Slide 69: Top and Bottom Line Growth
Top and Bottom Line Growth Planning and delivering consistent organic revenue and operating margin growth $13.175B1 175bps 177bps 33% 32% 152bps $10.5B 27% 78bps 25% 25% 25-50bps3 24% $8.4B $6.7B $5.4B $4.1B Non-GAAP Operating Margin Change Y/Y2 -276bps FY14 FY15 FY16 FY17 FY18 FY19E FY14 FY15 FY16
Slide 70: Durable Growth
Durable Growth $21B - $23B FY22 target FY21 Revenue Growth FY20 $13.175B FY19 guidance2 20% FY19 Projected CAGR FY19-FY221 1 Compound annual growth rate based on high end of guide in footnote 2 and high end of projected target of $21 billion to $23 billion in FY22. 2 High end of Salesforce FY2019 re
Slide 71: 71
71
Slide 72: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes information about non-GAAP income from operations and constant currency revenue (collectively the “non-GAAP financial measures”). These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance wit
Slide 73: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in millions) ASC 606 ASC605 Non-GAAP income from operations FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY09 GAAP income (loss) from operations $ 454 $ 64 $ 115 $ (146) $ (286) $ (111) $ (35) $ 97 $ 115 $ 64 Plus: Amortization of purchased intangibles $ 287 $ 225 $