Business Context and Reporting Period
Company: Salesforce, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 15, 2006
Reporting Period: Quarter ended October 31, 2006 (Q3 FY2007)
This filing announces the results of operations for the quarter ended October 31, 2006, and discloses a correction to previously reported paying subscription numbers due to an internal system error.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. These metrics are contained in the attached press release (Exhibit 99.1) which is incorporated by reference but not detailed in the provided text.
Revised Operational Metric (Paying Subscriptions): The Company corrected an error that resulted in an overstatement of paying subscriptions by a cumulative total of approximately 6,000 through July 31, 2006.
Material Changes and Corrections
The Company discovered a minor error in reporting paying subscriptions starting in the second quarter of the prior year. The following table details the revision from previously reported figures to actual figures:
| Date | Previously Reported | Actual (Revised) |
|---|---|---|
| July 31, 2005 | 308,000 | 307,000 |
| October 31, 2005 | 351,000 | 347,000 |
| January 31, 2006 | 399,000 | 393,000 |
| April 30, 2006 | 444,000 | 438,000 |
| July 31, 2006 | 501,000 | 495,000 |
Net Additions by Quarter:
- Quarter ended July 31, 2005: Revised from 41,000 to 40,000.
- Quarter ended October 31, 2005: Revised from 43,000 to 40,000.
- Quarter ended January 31, 2006: Revised from 48,000 to 46,000.
- Quarters ended April 30, 2006 and July 31, 2006: No change to net additions.
Guidance, Outlook, and Risks
The filing text does not contain specific guidance, outlook, or management commentary regarding future performance, risks, or contingencies beyond the disclosure of the reporting error. The error was identified during the process of upgrading internal systems.
Investor Verification Checklist
- Review the attached Press Release (Exhibit 99.1) for specific revenue, profit, and cash flow figures for the quarter ended October 31, 2006.
- Verify the impact of the 6,000 subscription correction on historical growth rate calculations.
- Confirm that the correction does not affect the net additions reported for the most recent two quarters (April and July 2006).