Record Total Revenue of $58.7 Million; 31% Year-Over-Year Increase in Application Business Signed; Added 197 SMB Customers; 31% Increase Year-Over-Year
HRchitect featured Taleo in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems vendors that businesses should consider. Kevin Marasco, VP Brand Marketing with Taleo appeared on the HRchitect WebMingle on November 6, 2009. If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation. Simply put, do not invest in any kind of HR technology without consulting with the experts first. HRchitect is here to help!
Taleo Corporation, the leading provider of on-demand talent management solutions, today announced its financial results for the quarter ended September 30, 2010.
“Smart organizations are mapping their business plans to parallel talent plans, ensuring they have the right people aligned to roles for both current and future business needs,” said Michael Gregoire, Chairman and Chief Executive Officer of Taleo. “Businesses recognize the need to know their people in order to grow their businesses and that requires better Talent Intelligence. Our third quarter results show the growing need for our unique blend of products and ecosystem.”
Taleo’s third quarter market momentum included:
– Launch of two, easy-to-use, cloud-based analytics products, Taleo Insight(TM) for small and medium-sized businesses and a new version of Taleo Analytics(TM) for larger enterprises.
– Crossed a market adoption milestone, surpassing more than one million performance management and compensation users under contract.
– Acquisition of Learn.com, a leading next generation provider of social and formal learning solutions. With Learn.com, Taleo becomes the industry’s only company to offer best-in-class solutions across all four pillars of a talent-optimized organization: recruiting, performance, compensation and learning management.
– Hosting 1,200 industry leaders in talent management at the company’s annual global user forum, Taleo World, September 13-16 in Chicago. The agenda included perspectives on talent from General Colin Powell and Proctor and Gamble’s A.G. Lafley.
Financial and customer highlights in the third quarter included:
– Total revenue of $58.7 million, an increase of 16% year-over-year;
– Cash flow from operations of $15.4 million; total cash at $264 million as of September 30, 2010;
– Signed 214 new customers, including 17 new Taleo Enterprise customers and 197 new Taleo Business Edition customers;
– Closed 4 large enterprise transactions with average annual contract values in excess of $250,000;
– New customers included: Chipotle Mexican Grill, Cummins, Corinthian Colleges, Gate Gourmet Switzerland GmbH, Gefco, RHODIA, Epic Systems, Information Experts, KPMG LLP, MSC Industrial, Skype, Thomas & Betts Corporation and Winn-Dixie Stores; and
– Existing customers who chose to expand their Talent Management set of solutions with Taleo included: AT&T, Hitachi Data Systems, Phoebe Putney Memorial Hospital, and Total System Services, Inc.
Taleo delivered the following financial results for the third quarter of 2010:
Revenue: Total revenue for the third quarter was $58.7 million, an increase of 16% on a year-over-year basis. Application revenue for the third quarter was $48.6 million, an increase of 8% on a year-over-year basis. Services revenue for the third quarter was $10.1 million, an increase of 72% on a year-over-year basis.
Net Income and Net Income Per Share to Common Stockholders: Net income was $1.6 million for the third quarter, compared to a net loss of $(1.1) million for the same period last year. Net income for the third quarter of 2010 includes $3.0 million in amortization expense related to acquisitions, $2.1 million in acquisition-related transaction costs, and $4.2 million in stock-based compensation expense. Net income per diluted share was $0.04 for the third quarter, based on 41.0 million weighted average shares outstanding, compared to a loss per share of ($0.04) for the same period last year, based on 30.9 million weighted average shares outstanding.
Non-GAAP Net Income and Non-GAAP Net Income Per Share to Common Stockholders: Non-GAAP net income was $11.0 million for the third quarter, compared to non-GAAP net income of $6.7 million for the same period last year. Non-GAAP net income includes amounts excluded from GAAP revenue due to the write down of the deferred revenue associated with purchase accounting for Worldwide Compensation, and excludes acquisition-related transaction costs, stock-based compensation expense, amortization of acquired intangibles, and the write-off of the Worldwide Compensation purchase option. Non-GAAP net income per fully diluted share was $0.25 for the third quarter based on 43.2 million fully diluted weighted average shares outstanding, compared to non-GAAP net income per fully diluted share of $0.20 for the same period last year based on 33.9 million fully diluted weighted average shares outstanding. The fully diluted weighted average shares outstanding used to compute non-GAAP net income per share have been calculated without giving consideration to the treasury stock method.
For more information on Taleo, please visit www.taleo.com
Matt Lafata, HRchitect
