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  "documentTitle": "2018 Q4FY18 Earnings Presentation",
  "authorId": "Salesforce",
  "authorName": "Salesforce",
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  "notes": "The slide explains the financial mechanics behind seasonality in Salesforce's business model.",
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      "text": "There is a disproportionate weighting towards annual billings in the fourth quarter, primarily as a result of large enterprise account buying patterns.",
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      "text": "Deferred revenue primarily consists of billings to customers for our subscription service and we generally invoice our customers in annual cycles.\nWe 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.\nThere 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.\nGiven 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.\nAs 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.\nAs 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.",
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      "text": "Seasonal Nature of Deferred Revenue and Operating Cash Flow",
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      "text": "Quarterly metric seasonality evolving",
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