- Billings grow to $65.9 million, an increase of 32% year-over-year
- Non-GAAP revenues grow to $53.4 million, an increase of 38% year-over-year
- Cash flow from operations grows to $13 million, an increase of 264% year-over-year
- Raises 2010 non-GAAP revenue guidance from $198 million to $200 million, to $203.2 million to $203.7 million
HRchitect featured SuccessFactors in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems vendors that businesses should consider. 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!
SuccessFactors, Inc. (Nasdaq: SFSF) this week announced results for its third quarter fiscal 2010 which ended September 30, 2010.
“We believe the era of Business Execution Software is here. In Q3 2010, SuccessFactors saw strong performance from our sales organization with impressive transactions from current and new customers, contributing to an all-time high in quarterly billings at $65.9 million, which grew 32% year-over-year – we were really proud we broke above 30%. It feels really strong, a lot harder to do 30% than 10% and 20%, each point is so hard given the denominator has become large, we are just so proud of the team,” said Lars Dalgaard, founder and CEO for SuccessFactors.
“SuccessFactors also hit an all-time high in quarterly non-GAAP revenue at $53.4 million, growing 38% year-over-year. SuccessFactors posted record 3rd quarter cash flow from operations of $13 million, expanding 264% year-over-year. And SuccessFactors billings margin expanded from 12% in Q210 to 19% in Q310.
“SuccessFactors continues to see increased adoption and tangible value generated to customers using our software. Our leadership in the new category of Business Execution Software, which we created, is fueling our growth.”
Results for the Third Quarter Fiscal 2010:
- Q3 FY10 Non-GAAP Revenue: For the quarter ended September 30, 2010, non-GAAP revenue was $53.4 million, compared to the company’s prior guidance of $52.5 million to $53.5 million, and compared to $38.7 million in the quarter ended September 30, 2009, an increase of approximately 38% year-over-year and an increase of 8% sequentially from Q210.
- Q3 FY10 Non-GAAP Operating Profit: For the quarter ended September 30, 2010, non-GAAP operating profit was $80,000. Non-GAAP operating profit excludes approximately $8.5 million in stock-based compensation expense, amortization of intangibles, future cash consideration of acquisitions and integration costs and a $3.1 million revaluation of contingent consideration for the quarter ended September 30, 2010.
- Q3 FY10 Total Deferred Revenue: Total deferred revenue as of September 30, 2010 was $206.1 million, up approximately 10% sequentially from $188.2 million at June 30, 2010 and up approximately 28% year-over-year from $161.0 million at September 30, 2009.
- Q3 FY10 Cash Flow Generated from Operations: For the quarter ended September 30, 2010, cash flow generated from operating activities was $13 million, up approximately 264% from $3.6 million for the quarter ended September 30, 2009.
- Q3 FY10 Net Income (Loss) per Common Share: On a GAAP basis, for the quarter ended September 30, 2010, net loss per common share, basic and diluted, was $(0.04). Non-GAAP net income per common share, basic and diluted was $0.01, which excludes approximately $8.5 million in stock-based compensation expense, amortization of intangibles, future cash consideration of acquisitions and integration costs, a $3.1 million revaluation of contingent consideration related to business combinations and $3.5 million unrealized foreign exchange gain on an intercompany acquisition loan related to Inform, compared to breakeven of $0.00 in Q210 which excluded approximately $4.5 million of stock-based compensation and $0.01 in Q309 which excluded approximately $2.6 million of stock-based compensation. For the third quarter of 2010, GAAP and non-GAAP net income (loss) per common share calculations assume average weighted basic and diluted share counts of approximately 74.6 million shares and 81.7 million shares, respectively.
Guidance:
SuccessFactors is raising guidance for full fiscal year 2010 and initiating guidance for its fourth quarter fiscal 2010, as of November 2nd, 2010.
- Q4 FY10: Non-GAAP revenue for the company’s fourth fiscal quarter is projected to be in the range of approximately $55.5 million to $56.0 million. Note that non-GAAP revenue includes the effect of deferred revenue from acquired companies that is required to be written down for GAAP purposes under purchase accounting rules. Non-GAAP net income per common share, basic and diluted, is expected to be breakeven. Non-GAAP net income per common share estimates exclude the effects of estimated stock-based compensation expense, amortization of intangible assets, future cash consideration of acquisitions, integration costs and revaluation of contingent consideration related to business combinations and any unrealized foreign exchange gains/losses on an intercompany acquisition loan and assumes average weighted basic and diluted share counts of approximately 75.9 million shares and 82.9 million shares, respectively.
- Full Year 2010: Non-GAAP revenue for the company’s full fiscal 2010 is now expected to be in the approximate range of $203.2 million to $203.7 million, raised from the non-GAAP revenue range of approximately $198 million to $200 million given going into in Q310 which was raised from the approximate GAAP range of $178 million to $180 million going into 2010. The company now expects non-GAAP net income per common share for fiscal 2010 to be between $0.06 and $0.07 from prior guidance of around breakeven. Non-GAAP net income per common share estimates exclude the effects of estimated stock-based compensation expense, amortization of intangible assets, future cash consideration of acquisitions, integration costs and revaluation of contingent consideration related to business combinations and any unrealized foreign exchange gains/losses on an intercompany acquisition loan and assumes average weighted basic and diluted share counts of approximately 73.8 million shares and 80.8 million shares, respectively.
For more information on SuccessFactors, please visit www.successfactors.com
Matt Lafata, HRchitect
