Slide 1: The Future of Software: Computing in The Cloud
The Future of Software Computing in The Cloud… Investor Presentation June 2008
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: Salesforce.com's Mission: Innovation Driver, Catalyst & Evangelist
Salesforce.com’s Mission: Innovation Driver, Catalyst & Evangelist Software as a Mainframe Client/Server Service Mid 20th Late 20th 21st Century Platforms Century Platforms Century Platforms 3
Slide 4: The SaaS Model: Multi-Tenant, Subscriptions
The SaaS Model: Multi-Tenant, Subscriptions Multi-Tenancy Subscription Faster Vendor Innovation Economies of Scale Scalability Automatic Upgrades 4
Slide 5: SaaS Market Opportunity is Massive
SaaS Market Opportunity is Massive Small, Medium And Large Customers All Benefit from Shared Solutions ~9,000 Firms >52M Employees (>1,000 Employees) ENTERPRISE ~100,000 Firms MID-MARKET >23M Employees (100 - 1,000 Employees) ~6M Firms (<100 Employees) SMALL BUSINESS >42M Employees More than 6M Busi
Slide 6: From SFA Provider, to CRM Leader, to a Growing Family of Applications
From SFA Provider, to CRM Leader, to a Growing Family of Applications 6
Slide 7: Broad Industry Recognition for Innovation
Broad Industry Recognition for Innovation 2008 Leader Top 100 Innovative PaaS CRM &Visionary Companies 2007 Forrester Groundswell Award Visionary Visionary & Leader Top Ten Disruptors of PC Magazine Editor’s Technology of 2006 Choice: UE the Year Enterprise Application SFA and Customer Service Serve
Slide 8: Customer Adoption Continues
Customer Adoption Continues 2,600 Net New Customers in Q1 FY09 43,600 Paying Customers April 30, 2008 2001 2002 2003 2004 2005 2006 2007 2008 2009 Fiscal Year Based on publicly available customer and subscriber numbers. Bars represent fiscal quarters. 8
Slide 9: The Enterprise Standard for SaaS
The Enterprise Standard for SaaS ~60,000 ~60,000 ~40,000 ~40,000 ~30,000 ~30,000 ~30,000 ~30,000 ~25,000 ~25,000 ~20,000 ~20,000 ~9,000 ~9,000 ~11,000 ~11,000 ~5,000 ~5,000 ~4,200 ~4,200 ~4,000 ~4,000 ~4,000 ~4,000 ~2,600 ~2,600 ~2,600 ~2,600 ~2,500 ~2,500 Number of Subscribers 9
Slide 10: Strong History of Revenue Growth
Strong History of Revenue Growth Approaching $1Billion Annual Run Rate in FY09 248 217 Q1 Annualized Revenue Run 193 Rate Exceeds $950M 177 162 144 130 118 105 83 91 72 64 55 46 41 35 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 FY2005 FY2006 FY2007 FY2008 FY2
Slide 11: Strong Deferred Revenue Position
Strong Deferred Revenue Position Deferred Revenue and Unbilled Backlog in excess of $1B 481 470 Deferred Revenue rose 59% from Q1 a year ago 341 322 284 296 219 203 169 182 117 127 105 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 FY2006 FY2007 FY2008 11
Slide 12: Margin Expansion
Margin Expansion Continued Operating and Net Profit Improvements 7.0% Operating Margin 6.20% 6.0% 4.9% 5.0% 4.0% 3.2% 3.0% 2.0% 1.9% 1.0% 0.1% 0.0% Q108 Q208 Q308 Q408 Q109 GAAP EPS $0.08 $0.06 $0.05 $0.03 $0.01 Q108 Q208 Q308 Q408 Q109 12
Slide 13: Strong Operating and Free Cash Flow
Strong Operating and Free Cash Flow Operating Cash more than $250M (trailing 12 months) 80.8 83.8 Free Cash Roughly $200M (trailing 12 months) 52.0 72.4 38.2 36.8 34.7 59.6 30.0 30.6 42.9 12.4 30.5 27.2 24.6 21.5 20.9 9.8 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 FY2007 FY2008 FY2009 *Free Cash F
Slide 14: Excellent Cash and Liquidity Position
Excellent Cash and Liquidity Position Over $750M in Cash and Equivalents with no debt 751 Cash & Marketable 670 Securities 571 497 448 413 371 297 298 334 257 233 217 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 FY2006 FY2007 FY2008 FY2009 14
Slide 15: Just As Applications Have Moved to SaaS: Platforms Are Now Moving to Cloud Computing
Just As Applications Have Moved to SaaS: Platforms Are Now Moving to Cloud Computing Mainframe Client / Server Cloud Platforms & App Server Platforms Computing App Engine 15
Slide 16: The Cloud Empowers Every Developer
The Cloud Empowers Every Developer Access to Unlimited Computing Power Plug into any Utility Service Access to Every Customer Globally Leverage The Work Of Others 16
Slide 17: Force.com: Platform as a Service
Force.com: Platform as a Service Cloud Computing for the ISVs & the Enterprise Build and Run Any App in the Cloud Scale Your Apps and Business Instantly Leverage an Entire Technology and Distribution Solution 17
Slide 18: Global Infrastructure as a Service
Global Infrastructure as a Service 150M+Transactions Daily $100 Million Investment 2 Fully Mirrored Data Centers Average Speed 210ms Scalable Architecture Disaster Recovery ~37%Global Deployments Globally Distributed Data Centers 18
Slide 19: The Most Trusted & Secure Infrastructure
The Most Trusted & Secure Infrastructure Security Transparency SAS 70 Type II SysTrust Certified Network and Physical Security IP Restricted Access Option Flexible Single Sign-On Options Identity Confirmation 19
Slide 20: Your Database on Our Service
Your Database on Our Service 8,700,000+ Create any table Customizations Add any field Build any relationship 160,000 SQL Statements per Sec Security & sharing built-in Automatic audit history tracking Scales from Automatic tuning 1-XXX,000+ users Automatic backups Automatic upgrades 20
Slide 21: Your Integrations on Our Service
Your Integrations on Our Service Native ERP Middleware Developer Mash-ups from Desktop Connectors Connectors Toolkits AppExchange Connectors 1.8+ Billion 28+ Billion API calls per month Total API calls 21
Slide 22: Your Code on Our Service
Your Code on Our Service First Multi-Tenant Live Programming Language in Production Programmatic Business Logic 1.5 Million Stored Procedures Apex System Requests Triggers per Day Data Validation 1.6 Million Complex Transactional Logic Lines of Apex Code 22
Slide 23: Create Any Application and Any Interface
Create Any Application and Any Interface 4,100+ Any User Interface Registered Users Any Application 10,500+ Custom Any Device Interfaces Created Visualforce opens up a new world of possibility for user interface design. It helps us build compelling user interfaces packed with powerful business logic
Slide 24: Any User. Any App. Any Interface.
Any User. Any App. Any Interface. 24
Slide 25: Native ISV Apps on Force.com
Native ISV Apps on Contract & Finance & Vertical CRM for ERP Proposal Accounting Life Sciences Management Productivity & Sales Collaboration Compensation Human Capital Tools Management Management 25
Slide 26: Application Exchange as a Service
Application Exchange as a Service 800+ Apps Pre-integrated 65,000+ Apps Installed Applications View, Try, Install 285,000+ Test Drives Build on Force.com 450+ Total ISVs CRM & Non-CRM Apps 30+ Japanese ISVs 26
Slide 27: Our Vision: The World's First Multi-Application, Multi-Category SaaS Company
Our Vision: The World’s First Multi-Application, Multi-Category SaaS Company 27