Slide 1: Graham Smith, Executive Vice President & Chief Financial Officer
Graham Smith Executive Vice President & Chief Financial Officer
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: Our Mission: Cloud Computing Driver, Catalyst & Evangelist
Our Mission: Cloud Computing Driver, Catalyst & Evangelist 1960’s 1980’s Today Mainframe Client/server Enterprise Cloud Computing Forecast for software: cloudy. 3
Slide 4: Applications Moving to the Cloud
Applications Moving to the Cloud 1960’s 1980’s Today Mainframe Client/server Cloud Computing Applications 4
Slide 5: Platforms Moving to the Cloud
Platforms Moving to the Cloud 1960’s 1980’s Today Mainframe Client/server Cloud Computing Platforms 5
Slide 6: The Cloud Computing Model
The Cloud Computing Model Multi-tenant Pay-as-you-go Subscriptions Elastic No Capital Expense Modest Operating Expense Scales With Your Business Yefim Natis, VP, Distinguished Analyst Great for times like these. 6
Slide 7: First Cloud Company to Exceed $1.1 Billion
First Cloud Company to Exceed: $1.1 Billion + 263 276 290 305 TTM 248 217 Quarterly Revenue ($M) 192 177 162 144 130 118 105 91 83 72 64 55 41 46 35 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Revenue through fiscal quarter ended 04/30/09 7
Slide 8: Strong Growth in New Customers
Strong Growth in New Customers 59,300+ 55,400 Paying Customers 41,000 3,900 net new customers in 29,800 Q110 Based on publicly available customer numbers. Bars represent fiscal quarters. 20,500 13,900 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal Year 8
Slide 9: 150 Customers with over 1,000 Subscribers
150 Customers with over 1,000 Subscribers 9
Slide 10: Customer Success Across All Industries
Customer Success Across All Industries Business Services Retail Financial Healthcare/Pharma Manufacturing Media Hi-Tech Hardware Hi-Tech Software Travel 10
Slide 11: Customer Success Across Diverse Segments
Customer Success Across Diverse Segments ENTERPRISE Even Revenue Distribution Among Large, Mid-sized, & Small Business MID-MARKET SMALL BUSINESS 11
Slide 12: Our Strategy
Our Strategy 12
Slide 13: Growth of Market Share in Core Markets
Growth of Market Share in Core Markets 10.6% 8.4% 6.8% 4.8% 3.2% 2004 2005 2006 2007 2008 CRM Share 2008 Source: Gartner, Inc., Market Share: CRM Software, Worldwide, 2008, June 10, 2009 13
Slide 14: Growing Near and Long Term Opportunity
Growing Near and Long Term Opportunity Infrastructure Software vs. CRM $16.2 Billion $144.4B $16.2B ‘06 ‘07 ‘08 ‘09 2009 IDC WW On-Demand & Total CRM Applications Gartner Inc: December 2008 2009-2013 Forecast, March 2009 14
Slide 15: The Real-Time Cloud
The Real-Time Cloud ISO 27001 Proven Proven, Real-Time Query Real-Time Transparent Certified Security Reliability Real-Time Scalability Optimizer System Status Real-Time Upgrades Proven Real-Time Sandbox Salesforce to 3 Global Data Centers Real-Time integration Environments Salesforce & Disaster Rec
Slide 16: The Real-Time Cloud
The Real-Time Cloud Unlimited Real-Time Programmable Programmable Real-Time Workflow Real-Time Customization User Interface Cloud Logic & Approvals Web Sites Real-Time Mobile Integrated Content Real-Time Granular Security 750+ Integrated Deployment Library Analytics & Sharing Applications ISO 27001
Slide 17: The Real-Time Cloud
The Real-Time Cloud Unlimited Real-Time Programmable Programmable Real-Time Workflow Real-Time Customization User Interface Cloud Logic & Approvals Web Sites Real-Time Mobile Integrated Content Real-Time Granular Security 750+ Integrated Deployment Library Analytics & Sharing Applications ISO 27001
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Slide 19: Salesforce is the Sales Cloud Leader
Salesforce is the Sales Cloud Leader Complete, Leading Leader in Customer Market Leader Technology Success Innovation #1 Market Share #1 in Customer Success Leader & Groundswell #1 On-Demand Success Visionary Award Provider Metrics 2008 2007 2007 2009 19
Slide 20: The World's Most Complete Sales Application
The World’s Most Complete Sales Application Email & Productivity Real-Time Approvals Integrated Content & Workflow Library Genius Forecasting & Analytics Partners Leads & Opportunities AppExchange Accounts & Contacts 20
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Slide 22: Salesforce is the Service Cloud Leader
Salesforce is the Service Cloud Leader Complete, Leading Fastest Growing Largest Customer Technology Base Visionary Leader 35% Growth 6,800+ Service Cloud Customers 2008 Customer Service MQ 2008 Wave for Customer Service Fastest growing CSS vendor in 2007 1 1,000,000+ Customer Portal Subscribers 1 I
Slide 23: Yesterday's Contact Center Needs to Evolve
Yesterday’s Contact Center Needs to Evolve Companies Invested Here: But Their Customers are here: Discussion Groups Partner Websites Contact Center Social Communities 23
Slide 24: Join the Conversation
Customer Portal Ideas Chat Partners Email to Search Case Join the Conversation Call Center Social Service Cloud Manager 24
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Slide 26: The Fast Way to Build in the Cloud
Programmable User Interface Real-Time Workflow Real-Time Mobile & Approvals Deployment Real-Time Websites Programmable Cloud Logic Real-Time Content Library The Fast Way to Build in the Cloud Granular Security & Real-Time Sharing Analytics Unlimited Real-Time Customization AppExchange 26
Slide 27: The Fastest Way to Build Apps
The Fastest Way to Build Apps Months/ Years to Build Days/Weeks to Build Build App time “…developing Apps on force.com is 5x faster than .net or Java…” Nucleus Research 27
Slide 28: Incredible Platform Momentum
Incredible Platform Momentum ~150,000+ developers, up 2x Y-Y ~110,000+ custom applications, up 2x Y-Y ~45M lines of Apex code, up over 25x Y-Y ~200,000+ custom workflow rules, up 2x Y-Y ~13.5B transactions in Q1, up 33% Y-Y ~180,000+ custom Visualforce interfaces, up 15x Y-Y 28
Slide 29: AppExchange
App Exchange Your Choice of 750+ Partner Applications Trusted Native Apps Reviewed by Salesforce.com View, Try, Install Built on Force.com Best-in-class CRM & Non-CRM 750+ Apps Apps 50+ Native Apps 29
Slide 30: Financial Overview
Financial Overview 30
Slide 31: Managing a Subscription Business
Managing a Subscription Business: 31
Slide 32: Adjusting Hiring to the IT Spending Environment
Adjusting Hiring to the IT Spending Environment Total Headcount 3,650 3,607 3,566 3,150 2,650 2,606 2,150 2,070 1,650 1,150 1,304 650 150 FY2006 FY2007 FY2008 FY2009 Q110 32
Slide 33: Visibility Provides Growing Profitability
Visibility Provides Growing Profitability GAAP Operating Margin GAAP EPS 33
Slide 34: Strong Operating and Free Cash Generation
Strong Operating and Free Cash Generation Operating Cash Flow $1.95/Share TTM Free Cash Flow $1.55/Share TTM ($ Millions) * Free cash flow = operating cash flow minus capital expenditures Per share values based on average share count during the period 34
Slide 35: Strong Cash and Liquidity
Strong Cash and Liquidity $984M or $7.85/share of Cash and Equivalents with No Debt ($ Millions) Cash & Marketable Securi2es 35
Slide 36: Expanding Portfolio of Services
Expanding Portfolio of Services SFA Versus Non-SFA Apps Non-SFA Apps Trailing 12-Months ~ 25% ~ 75% Sales Force Automation Non-SFA products as a % of new business 5% of New Business 36
Slide 37: Investment Summary
Investment Summary Salesforce.com: Success in the Cloud • Customer Success • 59,300+ Global Customers • Diversified by Size, Vertical and Geography • Seed & Grow Strategy • Technology Success • Complete Cloud Applications • Real-Time Cloud Infrastructure • Fast Application Development Platform • Fin
Slide 38: Graham Smith, Executive Vice President & Chief Financial Officer
Graham Smith Executive Vice President & Chief Financial Officer