Team project analyzing the business of Salesforce.com I presented to Accounting 300 class.

1. Team 3 Punit Dewani Marianna Feldmansky Stella Karemi Josh Quitoriano Josh Weckesser

8. The overall CRM market is expected to reach $18 billion by 2010 Data as of 11/13/08 Hoovers Inc. Competitors Overview

9. 47,700+ Customers http://www.salesforce.com/customers/ Cisco Google

10. "Combining the power and simplicity of Salesforce with Google AdWords helps businesses find and keep customers to ultimately drive their continued success.” -Eric Schmidt, CEO Google Diverse Customer Appeal

11. Financial Analysis

12. Net Income Gross Profit and Revenue

13. Revenue By Region

14. Cash from Operating Activates

21. Should we lend money? Ratio Return on Equity 0.05 Return on Assets 0.02 Profit Margin 0.02 Current Ratio 1.22 Quick Ratio 1.11 DSO 85.01 EPS 0.16 Price/Earnings 165 Long-term Debt/Equity 0.09 Debt/Equity 1.39

22. Growth Rates North America remains the largest market for CRM, accounting for almost half of global revenues, with total spending on software reaching $4.3 billion in 2007. That will almost double to $7.6 billion by 2012. Europe is expected to exhibit steady, positive growth, rising from $2.6 billion in 2007 to $3.9 billion in 2012, says Gartner.

23. Questions

24. Competition Data as of 11/13/08 yahoo financials 1.48 3.65 3.20 P/S: 0.83 0.77 1.98 PEG (5 yr expected): 18.33 16.11 101.78 P/E: N/A 1.100 0.269 EPS: N/A 5.76B 33.44M Net Income: -1.50% 35.85% 5.26% Oper Margins: 4.68M 9.93B 78.72M EBITDA: 59.61% 77.92% 78.66% Gross Margin: 158.57M 23.23B 920.41M Revenue: 19.80% 17.70% 49.00% Qtrly Rev Growth (yoy): 390 84,233 3,046 Employ­ees: 96.50M 91.34B 3.31B Market Cap: Industry ORCL CRM