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Q4 FY18 Financial Update Salesforce

NYSE: CRM @Salesforce_ir

1

Safe Harbor

"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about our financial results, which may include expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, diluted earnings per share, operating cash flow growth, operating margin improvement, deferred revenue growth, expected revenue run rate, expected tax rates, stock-based compensation expenses, amortization of purchased intangibles, amortization of debt discount and shares outstanding. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied by the forward-looking statements we make.

The risks and uncertainties referred to above include -- but are not limited to -- risks associated with the effect of general economic and market conditions; the impact of foreign currency exchange rate and interest rate fluctuations on our results; our business strategy and our plan to build our business, including our strategy to be the leading provider of enterprise cloud computing applications and platforms; the pace of change and innovation in enterprise cloud computing services; the competitive nature of the market in which we participate; our international expansion strategy; our service performance and security, including the resources and costs required to prevent, detect and remediate potential security breaches; the expenses associated with new data centers and third-party infrastructure providers; additional data center capacity; real estate and office facilities space; our operating results and cash flows; new services and product features; our strategy of acquiring or making investments in complementary businesses, joint ventures, services, technologies and intellectual property rights; the performance and fair value of our investments in complementary businesses through our strategic investment portfolio; our ability to realize the benefits from strategic partnerships and investments; our ability to successfully integrate acquired businesses and technologies; our ability to continue to grow and maintain deferred revenue and unbilled deferred revenue; our ability to protect our intellectual property rights; our ability to develop our brands; our reliance on third-party hardware, software and platform providers; our dependency on the development and maintenance of the infrastructure of the Internet; the effect of evolving domestic and foreign government regulations, including those related to the provision of services on the Internet, those related to accessing the Internet, and those addressing data privacy and import and export controls; the valuation of our deferred tax assets; the potential availability of additional tax assets in the future; the impact of new accounting pronouncements and tax laws, including the U.S. Tax Cuts and Jobs Act, and interpretations thereof; uncertainties affecting our ability to estimate our non-GAAP tax rate; the impact of expensing stock options and other equity awards; the sufficiency of our capital resources; factors related to our outstanding convertible notes, revolving credit facility, term loan and loan associated with 50 Fremont; compliance with our debt covenants and capital lease obligations; current and potential litigation involving us; and the impact of climate change.

Further information on these and other factors that could affect the company’s financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of the company’s website at www.salesforce.com/investor.

Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

2

Company Overview The global leader in CRM

Founded in 1999, public listing (NYSE: CRM) 2004.

#1 CRM provider for the fifth year in a row

.

Fastest growing top five enterprise software company with $10.48B in revenue FY18 (25% Y/Y).

1

Doubled operating cash flow ($1.2B-$2.7B) over the past three years (FY15-FY18) while nearly doubling revenue ($5.4B-$10.5B).

Headquartered in San Francisco, with >29,000 Employees focused on CRM and customer success.

#1 The Future 50

Best Places to Work for LGBTQ Equality

The World’s Most Innovative Companies

#1 World’s Most Innovative Companies

#1 Top 50 Companies that Care

1Based on IDC 2017H1 Market Share Revenue Worldwide. Source: IDC, Worldwide Semiannual Software Tracker, Oct 2017

3

Financial Overview Annual Results

4

FY18 Financial Summary

GAAP

Non-GAAP1

Annual Results

Increase / (Decrease) y/y

Annual Results

Increase / (Decrease) y/y

Revenue

$10,480M

Deferred Revenue

$7,095M

Unbilled Deferred Revenue

N/A

25%

28%

N/A

Operating Margin

2.2%

148 bps

Diluted Earnings Per Share

$0.172

Operating Cash Flow

$2,738M

(35%)

27%

$10,381M CC

24% CC

$6,965M CC

25% CC

$13,300M

48%

14.5%

$1.352

N/A

128 bps

34%3

N/A

1The Non-GAAP columns present only non-GAAP financial metrics and the related non-GAAP growth rates as compared to prior periods. Non-GAAP revenue and non-GAAP deferred revenue represent CC results. Refer to slide 8 for an explanation of non-GAAP CC revenue and to slide 14 for an explanation of non-GAAP CC deferred revenue. Unbilled Deferred Revenue is an operational measure and represents future billings under our non- cancelable subscription agreements that have not been invoiced and, accordingly, are not recorded in deferred revenue. Non-GAAP operating margin and non-GAAP EPS are non-GAAP financial measures. Refer to the Appendix for an explanation of non-GAAP financial measures, and why we believe these measures can be useful, as well as a reconciliation of non-GAAP financial measures to the most comparable GAAP measures, when applicable. 2Diluted EPS calculation utilizes GAAP revenue results disclosed above. 3Non-GAAP Diluted EPS year-over-year growth is calculated using the EPS results for the current and prior periods rounded to the nearest whole cent, as presented in the Appendix.

5

FY18 Financial Results

$10,480M

$8,392M

$6,667M

$5,374M

10.7% 12.4% 13.2% 14.5%

1.7%

0.8%

2.2%

-2.7%

$2,738M

$2,162M

$1,672M

$1,181M

FY15

FY16

FY17

FY18

FY15

FY16

FY17

FY18

Quarterly Revenue Operating Margin Non-GAAP Operating Margin

1Non-GAAP operating margin excludes the effects of stock-based compensation, amortization of purchased intangibles, and lease termination resulting from purchase of office building. A complete reconciliation of GAAP to non-GAAP measures can be found in the Appendix and at www.salesforce.com.

Operating Cash Flow

6

Annual Subscription and Support Revenue by Cloud Complete portfolio of CRM products

+16% y/y

+24% y/y

$3.6B

$2.9B

+34% y/y

$1.9B

+45% y/y

$1.3B

FY18 FY17 Sales Cloud

FY18

FY17 Service Cloud

FY18

FY17 Salesforce Platform & Other

FY17

FY18

Marketing Cloud & Commerce Cloud2

37%

29%

FY18

14%

20%

Subscription and Support Revenue by Cloud1

1Percentages represent annual cloud revenues as a proportion of total annual Subscription and Support revenue. 2Marketing Cloud revenue, excluding Commerce Cloud revenue, grew 34% during FY18.

7

FY18 Revenue by Region Strong revenue growth across geographies

AMERICAS

EMEA

APAC

$7,579M +22% y/y +22% y/y CC1

$1,904M +39% y/y +31% y/y CC1

$997M +26% y/y +27% y/y CC1

1Non-GAAP revenue CC growth rates as compared to the comparable prior period. We present CC information for revenue to provide a framework for assessing how our underlying business performed excluding the effects of foreign currency rate fluctuations. To present CC revenue, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the weighted average exchange rate for the quarter being compared to for growth rate calculations presented, rather than the actual exchange rates in effect during that period.

8

Financial Overview Quarterly Results

9

Q4 FY18 Financial Summary

GAAP

Non-GAAP1

Quarterly Results

Increase y/y

Quarterly Results

Increase y/y

Revenue

$2,851M

Deferred Revenue

$7,095M

Unbilled Deferred Revenue

N/A

24%

28%

N/A

Operating Margin

2.7%

375 bps

Diluted Earnings Per Share

$0.092

Operating Cash Flow

$1,051M

229%

49%

$2,787M CC

21% CC

$6,965M CC

25% CC

$13,300M

48%

13.5%

$0.352

N/A

62 bps

25%3

N/A

1The Non-GAAP columns present only non-GAAP financial metrics and the related non-GAAP growth rates as compared to prior periods. Non-GAAP revenue and non-GAAP deferred revenue represent CC results. Refer to slide 8 for an explanation of non-GAAP CC revenue and to slide 14 for an explanation of non-GAAP CC deferred revenue. Unbilled Deferred Revenue is an operational measure and represents future billings under our non- cancelable subscription agreements that have not been invoiced and, accordingly, are not recorded in deferred revenue. Non-GAAP operating margin and non-GAAP EPS are non-GAAP financial measures. Refer to the Appendix for an explanation of non-GAAP financial measures, and why we believe these measures can be useful, as well as a reconciliation of non-GAAP financial measures to the most comparable GAAP measures, when applicable. 2Diluted EPS calculation utilizes GAAP revenue results disclosed above. 3Non-GAAP Diluted EPS year-over-year growth is calculated using the EPS results for the current and prior periods rounded to the nearest whole cent, as presented in the Appendix.

10

Total Quarterly Revenue and Operating Margin Balanced top-line and bottom-line growth

$2,851M

$1,809M

12.1%

1.1%

$1,445M

10.9%

-2.4%

$2,294M

12.9%

13.5%

-1.0%

2.7%

Q4 FY18 +24% / +21% CC1

y/y revenue growth

GAAP operating margin

+510 bps

3 year improvement

Non-GAAP operating margin2

+260bps

3 year improvement

Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418

Quarterly Revenue

Operating Margin

Non-GAAP Operating Margin

2

1Refer to slide 8 for an explanation of non-GAAP revenue CC growth rate as compared to the comparable prior period. 2Non-GAAP Operating Margin is the proportion of non-GAAP income from operations as a percentage of revenue and is a non-GAAP financial measure. Refer to the Appendix for an explanation of which items are excluded from our non-GAAP financial measures, and why we believe these measures can be useful, as well as a reconciliation of non-GAAP financial measures to the most comparable GAAP measures, when applicable.

11

Quarterly Subscription and Support Revenue by Cloud Complete portfolio of CRM products

+16% y/y

+28% y/y

$0.9B

$0.8B

+37% y/y

30%

35%

+33% y/y

Q4 FY18

$0.5B

$0.4B

Q417 Q418 Sales Cloud

Q417 Q418 Service Cloud

Q417 Q418 Salesforce Platform & Other

Q417 Q418 Marketing Cloud & Commerce Cloud

20%

15%

Subscription and Support Revenue by Cloud1

1Percentages represent quarterly cloud revenues as a proportion of total quarterly Subscription and Support revenue. 2Marketing Cloud revenue, excluding Commerce Cloud revenue, grew 31% during Q4 FY18.

12

Q4 FY18 Revenue by Region Strong revenue growth across geographies

AMERICAS

EMEA

APAC

$2,042M +19% y/y +19% y/y CC1

$536M +48% y/y +31% y/y CC1

$273M +27% y/y +26% y/y CC1

1Refer to slide 8 for an explanation of Non-GAAP CC revenue.

13

Quarterly Deferred Revenue: Billed and Unbilled Consistent growth on and off the balance sheet

$9,021M

$5,700M

$3,321M

$11,392M

$7,100M

$4,292M

$14,543M

$9,000M

$5,543M

$20,395M

$13,300M

$7,095M

Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418

Deferred Revenue

Unbilled Deferred Revenue

1

1Unbilled Deferred Revenue is an operational measure and represents future billings under our non-cancelable subscription agreements that have not been invoiced and, accordingly, are not recorded in deferred revenue. 2Non-GAAP CC growth rates as compared to the comparable prior periods. We present CC information for deferred revenue to provide a framework for assessing how our underlying business performed excluding the effects of foreign currency rate fluctuations. To present CC deferred revenue, we convert the deferred revenue balances in local currencies in previous comparable periods using the United States dollar currency exchange rate as on the most recent balance sheet date.

Q4 FY18 y/y growth

+40%

Total Billed and Unbilled Deferred Revenue

+48%

Unbilled Deferred Revenue

+28% / +25% CC1

Deferred Revenue

14

Quarterly Operating Cash Flow Operating cash flow growth outpaces revenue growth

$337M

$470M

$1,051M

$706M

Q4 FY18 y/y growth

+49%

operating cash flow

Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418

Free Cash Flow

1

Capex

1Free cash flow is a non-GAAP financial measure. Refer to the Appendix for an explanation of non-GAAP financial measures, and why we believe these measures can be useful, as well as a reconciliation of non- GAAP free cash flow to the most comparable GAAP measure.

15

Quarterly Cash and Marketable Securities

Q4 FY18 y/y growth

+105%

Total Cash and Marketable Securities

+228%

Marketable Securities

+58%

Cash

$4,522M

$2,725M

$2,209M

$1,890M

Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418

Cash

Marketable Securities

16

Business Overview

17

CRM is Now the Fastest Growing Enterprise Software Segment

$75B

$60B

$45B

$30B

$15B

$0B

O/S

ERP

DBMS

CRM

O/S

ERP

DBMS

CRM

2016

2021

Chart created by Salesforce based on Gartner research. CRM and ERP is part of the Enterprise Application Software market. DBMS and O/S is part of the Infrastructure Software market. Source: Gartner, Forecast: Enterprise Software Markets, Worldwide, 2014-2021, 4Q17 Update, 12.15.17

O/S*

ERP

DBMS*

CRM

18

$72 Billion Market Opportunity Today…

CY16 Market Share1

38%

19%

11%

4%2

5%

<1%

CY16 TAM3

$12B

$8B

$7B

$5B

$26B

$14B

Sales

Service

Marketing

Commerce

Platform & Other

Analytics

Calculations performed by Salesforce and graphics created by Salesforce based on Gartner research. 1Source: Sales, Service, Marketing, and Commerce per Gartner, Market Share All Software Markets, Worldwide, 2016, 4.14.17. Platform & other and Analytics market share calculated by Salesforce using the definitions below. 2Salesforce acquired Demandware on July 11, 2016. Market share includes Demandware’s 2016 commerce contribution of $115.8M. 3Source: Gartner Total Enterprise Software Revenue for All Software Segments and Regions, 2014-2021, 4Q17 Update, 12.15.17. Platform & Other market defined as Application Platform Software, Application Platform Software as a Service (aPaaS), Other AD, Data Integration Tools, Business Process Management Suites, Identity Governance and Administration, Mobile Application Development Platforms, Testing, Full Life Cycle API Management, Web Access Management. Analytics market defined as Modern BI Platforms, Traditional BI Platforms, Data Science Platforms, Analytic Applications.

19

…Growing to $123B in 2021

Market Growth (CAGR 16-21)1

12%

15%

16%

15%

CY21 TAM1

$24B

$14B

$16B

$10B

8%

$38B

9%

$21B

Sales

Service

Marketing

Commerce

Platform & Other

Analytics

Calculations performed by Salesforce and graphics created by Salesforce based on Gartner research. 1Source: Gartner Total Enterprise Software Revenue for All Software Segments and Regions, 2014-2021, 4Q17 Update, 12.15.17. Platform & Other market defined as Application Platform Software, Application Platform Software as a Service (aPaaS), Other AD, Data Integration Tools, Business Process Management Suites, Identity Governance and Administration, Mobile Application Development Platforms, Testing, Full Life Cycle API Management, Web Access Management. Analytics market defined as Modern BI Platforms, Traditional BI Platforms, Data Science Platforms, Analytic Applications. Note: data has been updated to reflect Gartner’s forecast as of December 2017 and therefore are different from what was presented at Salesforce’s Investor Day on November 7, 2017.

20

The Only Complete Cloud CRM Platform No other company is better positioned to drive digital transformation

COMMUNITIES Customer, partner, and employee experiences

SERVICE Drive service transformations

SALES Transform sales from lead to cash to loyalty

COMMERCE Intelligent, unified shopper experiences across any channel

MARKETING Deliver personalized consumer engagement at scale

COLLABORATION Quip team collaboration platform

INDUSTRIES World’s #1 CRM reimagined for your industry

21

Salesforce. #1 in CRM Worldwide CRM applications 2017H1 market share by IDC

19.9%

8.4%

6.1%

2012

2013

2014

2015

2016

2017 H1

Source: IDC Worldwide Semiannual Software Tracker, October 2017.

22

Traction in Target Industries Industry leaders rely on Salesforce

Financial Services

HLS

Retail

Travel, Transport & Hospitality

18 OF 20

Top U.S. & European Banks1

16 OF 20

Top Global Pharmaceutical Companies

11 OF 20

Top Global Retailers

7 OF 10

Top Hospitality Companies

Manufacturing

8 OF 10

Top Discrete Manufacturers

Communications & Media

Consumer Goods

High Tech

8 OF 10

Top Global Telecom Companies

11 OF 15

Top CPG Companies

12 OF 15

Top Tech Companies

1Represents top 10 U.S. banks and top 10 European banks.

23

The Salesforce Economy Thriving ecosystem of customers, partners, and developers

$859B

in GDP impact by 20201

3.3M

Salesforce related jobs created by 20201

2 of theTop 10

jobs in 2017 are Salesforce-specific

300K

job postings today with Salesforce related skills3

1IDC White Paper sponsored by Salesforce, The Salesforce Economy Forecast: 3.3 Million New Jobs, $859 Billion New Business Revenues to Be Created from 2016 to 2022, October 2017. 2Indeed, Mar 2017 3Burning Glass Report, “Salesforce Skills Demand”, Aug 2016

24

Global Events and Ad Campaign Extending our brand presence globally

World Tour & Events

Ad Campaign

Sydney March 6

TrailheaDX March 28 - 29

Washington D.C. April 4

Boston April 5

Amsterdam April 12

New York April 26

Toronto May 3

London May 17

Paris June 6

Dreamforce Sept. 25 - 28

25

26

Appendix

27

Seasonality of Financial Metrics Deferred Revenue and Operating Cash Flow

28

Seasonal Nature of Deferred Revenue and Operating Cash Flow Quarterly metric seasonality evolving

Deferred revenue primarily consists of billings to customers for our subscription service and we generally invoice our customers in annual cycles.

• We typically issue renewal invoices in advance of the renewal service period, and depending on timing, the initial invoice for the subscription and services contract and the subsequent renewal invoice may occur in different quarters. This may result in an increase in deferred revenue.

There is a disproportionate weighting towards annual billings in the fourth quarter, primarily as a result of large enterprise account buying patterns. Our fourth quarter has historically been our strongest quarter for new business and renewals. The year on year compounding effect of this seasonality in both billing patterns and overall new and renewal business causes the value of invoices that we generate in the fourth quarter for both new business and renewals to increase as a proportion of our total annual billings.

Given the year on year compounding effect of this seasonality, the quarterly sequential changes in Deferred Revenue and Operating Cash Flow have historically become more pronounced.

o As it relates to Deferred Revenue, the sequential change from our third quarter to our fourth quarter has historically increased. The

sequential change in our first three quarters has historically decreased.

o As it relates to Operating Cash Flow, our first quarter and, increasingly, our fourth quarter are our largest collections and operating cash flow quarters. Our second quarter and third quarter are seasonally smaller in regards to collections and operating cash flow.

29

Q1 Deferred Revenue Sequential Change Q1 seasonality evolving

h t w o r g

l

a i t n e u q e S

20%

15%

10%

5%

0%

-5%

-10%

-15%

9%

8%

5%

4%

Q105 Q106 Q107 Q108 Q109 Q110 Q111 Q112 Q113 Q114 Q115 Q116 Q117 Q118 Q119 Guide

1

(2%)

(2%)

(3%)

(6%)

(8%)

(7%)

(8%)

(8%)

(7%)

(9%)

(12%)

1Based on the mid-point of the guidance provided on February 28, 2017.

30

Q2 Deferred Revenue Sequential Change Q2 seasonality evolving

20%

18%

12%

11%

9%

2%

3%

2%

Q205

Q206

Q207

Q208

Q209

0% Q210

Q211

Q212

Q213

Q214

Q215

3%

1%

0%

h t w o r g

l

a i t n e u q e S

15%

10%

5%

0%

-5%

-10%

(1%)

Q216

Q217

Q218

(4%)

(5%)

31

Q3 Deferred Revenue Sequential Change Q3 seasonality evolving

21%

8% 8%

6%

Q305

Q306

Q307

Q308

Q309

Q310

Q311

(2%)

Q312 (2%)

2%

(1%)

h t w o r g

l

a i t n e u q e S

25%

20%

15%

10%

5%

0%

-5%

-10%

-15%

Q313

Q314

Q315

Q316

Q317

Q318

(3%)

(3%)

(5%)

(6%)

(9%)

(9%)

32

Q4 Deferred Revenue Sequential Change Q4 seasonality evolving

h t w o r g

l

a i t n e u q e S

60%

45%

30%

29%

33%

29%

41%

Annual invoicing1

35%

27%

29%

62%

59%

50%

49% 51%

44% 45%

15%

0%

Q405

Q406

Q407

Q408

Q409

Q410

Q411

Q412

Q413

Q414

Q415

Q416

Q417

Q418

33

Operating Cash Flow Sequential Change OCF seasonality evolving

h t w o r g

l

a i t n e u q e S

700%

600%

500%

400%

300%

200%

100%

0%

-100%

736%

358%

74%

99%

74%

6%

172%

118%

189%

124%

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 (59%)(47%)

(36%)(23%)

(50%)(48%)

(38%)

(76%)

(73%)(62%)

34

Non-GAAP Financial Measures

This presentation includes information about non-GAAP diluted earnings per share, non-GAAP income from operations, non-GAAP free cash flow, and constant currency revenue and constant currency deferred revenue growth rates (collectively the “non-GAAP financial measures”). These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP. Management uses both GAAP and non-GAAP measures when planning, monitoring, and evaluating the company’s performance.

The primary purpose of using non-GAAP measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the company’s results in the same way management does. Management believes that supplementing GAAP disclosure with non-GAAP disclosure provides investors with a more complete view of the company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the company’s business. Further, to the extent that other companies use similar methods in calculating non-GAAP measures, the provision of supplemental non-GAAP information can allow for a comparison of the company’s relative performance against other companies that also report non-GAAP operating results.

Non-GAAP diluted earnings per share excludes, to the extent applicable, the impact of the following items: stock-based compensation, amortization of acquisition-related intangibles, amortization of acquired leases, the net amortization of debt discount on the company’s convertible senior notes, gains/losses on conversions of the company’s convertible senior notes, gains/losses on sales of land and building improvements, gains/losses on company-initiated acquisitions of entities in which the company held an equity investment, and termination of office leases, as well as income tax adjustments. These items are excluded because the decisions that give rise to them are not made to increase revenue in a particular period, but instead for the company’s long-term benefit over multiple periods.

Non-GAAP income from operations excludes the impact of the following items: stock-based compensation, amortization of acquisition-related intangibles, and termination of office leases.

The company defines the non-GAAP measure free cash flow as GAAP net cash provided by operating activities, less capital expenditures. For this purpose, capital expenditures does not include our strategic investments, nor does it include any costs or activities related to our purchase of 50 Fremont land and building, and building - leased facilities.

Constant currency information is provided as a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. To present constant currency revenue, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the weighted average exchange rate for the quarter being compared to for growth rate calculations presented, rather than the actual exchange rates in effect during that period. To present deferred revenue on a constant currency basis, we convert the deferred revenue balances in local currencies in previous comparable periods using the United States dollar currency exchange rate as of the most recent balance sheet date.

35

GAAP to Non-GAAP Financial Reconciliation Annual Results

(in thousands) Non-GAAP income from operations GAAP income (loss) from operations Plus: Amortization of purchased intangibles Stock-based expense Less: Operating lease termination resulting from purchase of 50 Fremont, net Non-GAAP income from operations

Fiscal Year Ended January 31, 2018 235,768

2017 64,228

$

$

$

2016 114,923

2015 (145,633)

$

286,885 997,013

225,277 820,367

158,070 593,628

154,973 564,765

0 1,519,666

$

0 1,109,872

$

(36,617) 830,004

$

0 574,105

$

Non-GAAP diluted earnings per share GAAP diluted net income (loss) per share Plus: Amortization of purchased intangibles Amortization of acquired lease intangible Stock-based expense Amortization of debt discount, net Less: Gains from acquisitions of strategic investments Income tax effects and adjustments Non-GAAP diluted earnings per share Shares used in computing Non-GAAP diluted net income per share

Fiscal Year Ended January 31,

$

2018 0.17

$

2017 0.26

0.39 0.00 1.36 0.04

0.32 0.00 1.17 0.04

0.00 (0.61) 1.35 734,598

$

(0.02) (0.76) 1.01 700,217

$

36

GAAP to Non-GAAP Financial Reconciliation Quarterly Results

(in thousands) Non-GAAP income from operations GAAP income (loss) from operations Plus: Amortization of purchased intangibles Stock-based expense Non-GAAP income from operations

Three Months Ended January 31,

2018 77,869

$

2017 (23,345)

$

2016 20,560

$

2015 (34,816)

$

68,932 237,682 384,483

$

74,214 244,387 295,256

$

39,250 158,972 218,782

$

39,971 151,802 156,957

$

Non-GAAP diluted earnings per share GAAP diluted net income (loss) per share Plus: Amortization of purchased intangibles Amortization of acquired lease intangible Stock-based expense Amortization of debt discount, net Less: Gains from acquisitions of strategic investments Income tax effects and adjustments Non-GAAP diluted earnings per share Shares used in computing Non-GAAP diluted net income per share

(in thousands) Free cash flow analysis, a non-GAAP measure Operating cash flow GAAP net cash provided by operating activities Less: Capital expenditures Free cash flow

Three Months Ended January 31,

$

2018 0.09

$

2017 (0.07)

0.09 0.00 0.32 0.01

0.10 0.00 0.34 0.01

0.00 (0.16) 0.35 749,464

$

0.00 (0.10) 0.28 711,203

$

Three Months Ended January 31,

2018

2017

2016

2015

$

1,051,320

$

706,146

$

470,208

$

336,506

(137,759) 913,561

$

(143,974) 562,172

$

(68,495) 401,713

$

(85,354) 251,152

$

37