Slide 1: Welcome to Cloud 2
Welcome to P Cloud.
Slide 2: Safe Harbor
Safe Harbor Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results
Slide 3: Ten Year Computing Cycles
Ten Year Computing Cycles 10x More Users with each cycle 2000s Mobile Cloud Computing 1990s Desktop Cloud Computing 1980s Client/server Computing 1970s Mini Computing 1960s Mainframe Computing 3
Slide 4: Fundamental Shift in Cloud Computing
Fundamental Shift in Cloud Computing Easy . Fast . Low Cost Social . Mobile . Open 4
Slide 5: Cloud Computing Opportunity
Cloud Computing Opportunity Forecasted 5-Yr CAGR of 25%; >5x that of On-Premise Software System Infrastructure $40.5 Application Development Applications $20.6 $32.5 $26.8 $17.5 $ in billions $21.8 $15.3 $17.1 $13.0 $13.1 $10.4 $8.6 $8.1 $6.1 $4.3 $3.1 $1.6 $2.3 $3.4 $7.2 $8.9 $11.3 $4.4 $5.7 2009 2
Slide 6: Growing Customer Base
Growing Customer Base 97,700+ As of April 30, 2011 97,700 92,300 20,000+ 87,200 Net New Customers TTM 82,400 77,300 72,500 67,900 63,200 59,300 55,400 51,800 47,700 43,600 41,000 38,100 35,300 32,300 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 6
Slide 7: Democratizing Software Makes Every Business a Prospect
Democratizing Software Makes Every Business a Prospect With 97K Customers, Penetration is Low 1 POTENTIAL ENT. DEMONSTRATED Communities Communities U.S. Market* Oracle1: 370K (26%) ~ 6M+ Companies (<2%) MID-MARKET ADP2: 550K (17%) Top 10 Global Economies** ~ 15M+ Companies (<1%) Amazon.com3: 2M+ (5%
Slide 8: Welcome to Cloud 2
Welcome to Cloud > ae a aa Sales Service . 3 . [ ‘ ‘ radian igsaw f x Cloud Cloud Marketing Cloud 9: Cloud orce Cloud Platform database.com sforce Qe 8
Slide 9: The First Enterprise Database Built for Cloud 2
The First Enterprise Database Built for Cloud 2 Open for any language, platform, and device Trusted by 97,000+ companies Cloud 2 database for social & mobile apps 9
Slide 10: Force.com: Open Platform for Building Enterprise Apps
Force.com: Open Platform for Building Enterprise Apps Fastest path to Fastest path to Fastest path to Fastest path to departmental marketing enterprise java Ruby Apps apps websites apps 10
Slide 11: World's Leading Sales Application
World’s Leading Sales Application Accounts & Marketing & Opportunities Workflow & Contacts Leads & Quotes Approvals Email & Real-time Partner Calendaring Analytics Management 11
Slide 12: The Next Generation of Customer Service
The Next Generation of Customer Service Email Call Scripting Search Partners Contracts & Dashboards & Entitlements Reports Social Live Social Self-Service Collaborative Social Monitoring Agent Contact Center Communities Knowledge Analytics 12
Slide 13: The World's Leading Cloud Computing Marketplace
The World’s Leading Cloud Computing Marketplace IT Help Desk Accounting Field Service eSignature Data Cleansing Compensation Contract Proposals & Email Management Recruiting Management Presentations Marketing 13
Slide 14: Social Collaboration for the Entire Enterprise
Social Collaboration for the Entire Enterprise Profiles Status Groups File Sharing App Updates Updates Feeds Security & Real-time Mobile Sharing Model Analytics 14
Slide 15: Worldwide Leader in Social Media Marketing
Worldwide Leader in Social Media Marketing Listen Engage Analyze Social Media Social Media Social Profile Engagement Social Social Mobile Monitoring Filtering Analytics Insights
Slide 16: Strong Financial Growth To-Date
Strong Financial Growth To-Date
Slide 17: Quarterly Revenue ($M)
First Cloud Company to Exceed: $2.0 Billion Annual Revenue Run Rate 49% 504 43% 457 429 Revenue 34% 394 34% Quarterly Revenue ($M) Y/Y Growth 377 354 30% 29% 331 305 316 25% 290 23% 24% 276 22% 263 20% 20% Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 17
Slide 18: Historical Deferred Revenue
Historical Deferred Revenue Invoicing Seasonality Drives Q4 Peaks Deferred Revenue Y/Y Growth 59% 935 915 49% 704 683 695 665 38% 38% 594 33% 549 549 545 470 480 470 27% 24% 24% 21% 19% 17% 15% 16% Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Deferred Revenue $M 18
Slide 19: Our Focus on Growth Investments
Our Focus on Growth Investments
Slide 20: Talent Accelerates Growth
Talent Accelerates Growth Ramp in Hiring in Last Twelve Months 1,400+ 37% Net Addition TTM 5,513 35% 5,306 34% 32% 34% 4,758 28% 26% 4,447 4,106 25% 3,969 3,814 22% 3,566 3,607 3,653 3,318 20% 3,046 2,864 15% 14% 11% Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Full-Time Employee
Slide 21: Sales Executive Economics
Sales Executive Economics Sales Headcount Additions Impact Margins Profit Ramp Time to Profit 2-3 qtrs 4-6 qtrs Profit Breakeven Loss 6-9 quarters Time 21
Slide 22: Data Center Investments
Data Center Investments Foundation for Customer Success: 31B Transactions in Q1 Global Data Centers Mid-West Production Data Center Planned Tokyo Production Data Center West Coast 2 East Coast Production Production Data Center Data Centers Asia Pacific Production Data Center Certified Security 99.99
Slide 23: Strategic Acquisitions Accelerate Growth
Strategic Acquisitions Accelerate Growth Acquisitions Can Be Dilutive Factors that Cause Dilution: • Revenue: Lower due to deferred revenue write-down • Expense: Higher as we scale businesses and integrate technologies • Business Model: Transition to subscription or usage model 23
Slide 24: Strong Operating Performance
Strong Operating Performance Increasing Earnings & Cash Flow While Investing in Growth EPS Operating Cash Flow ($M) Non-GAAP +43% 4-Year CAGR +69% Y-Y Growth $459 +6% $1.22 $1.15 $271 $204 $230 $111 FY10 FY07 FY11 FY08 FY09 FY10 FY11 FYQ1:12 Non-GAAP EPS $0.28 vs. $0.30 a year ago FYQ1:12 Operat
Slide 25: Investment Summary
Investment Summary Strong Company Momentum Financial Customer Technology Leadership Success Innovation $2.0 Billion+ 97,700+ Customers Annual Rev Run Rate 3 Million+ Subscribers $915 Million+ Deferred Revenue Attrition Down (FYQ1:12) 7 Consecutive Qtrs $455 Million+ 31 Billion+ Transactions Operatin
Slide 26: Thank You.
Thank You. =