Q4 Revenue of $50.5 Million; Record Q4 GAAP and Non-GAAP Fully Diluted EPS of $0.13 and $0.23; Record Q4 Cash Flow From Operations of $20.6 Million; 186 New Customers Added in Q4; Posts 25% Year-Over-Year Growth in Application Revenue
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. Taleo participated in the Talent Management Systems panel and Talent Acquisition Systems panel on June 10, 2009 as part of theHRshow. 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.
Taleo Corporation (NASDAQ: TLEO), the leading provider of on demand talent management solutions, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2009.
“Like many of our world-class customers, Taleo invested through the recession in our people and in product innovation, and we are now stronger competitively and financially,” said Michael Gregoire, Taleo Chairman and CEO. “We are in a tremendous position to take full advantage of the recovery, and we plan to keep up our blistering pace of innovation to help our customers drive their own re-invention and growth.”
Annual business highlights included:
– Product: Launched Taleo10(TM) Talent Management Solution for Enterprise and Small and Medium sized business.
– Community: Delivered Talent Grid(TM), a set of three communities with online access to Taleo’s ecosystem of customers, partners and candidates.
– Acquisition: Announced a definitive agreement to acquire Worldwide Compensation, Inc. the leading independent provider of global compensation management technology. The acquisition was completed on January 1, 2010.
– Accolades: Industry analysts from Gartner, Bersin & Associates and IDC lauded Taleo for Leadership and Innovation in their respective Recruiting, Performance Management and Talent Management market reports; Performance Management received “HR product of the year” CODiE Award and “Top 10 HR Products of the Year” from Human Resource Executive Magazine; and Taleo’s Service and Support Organization received “Rated Outstanding” certification from the Service and Support Professionals Association and the Fall 2009 STAR Award for Service Excellence from the Technology Services Industry Association.
Fourth quarter highlights included:
– GAAP revenues of $50.5 million, an increase of 5% year-over-year.
– GAAP application revenue of $44.5 million, an increase of 11% year-over-year.
– GAAP net income of $4.6 million or $0.13 per fully diluted share.
– Non-GAAP net income of $8.6 million, or $0.23 per fully diluted share, an increase of 44% year-over-year.
– Cash flow from operations of $20.6 million and free cash flow of $19.2 million.
– Net cash at December 31, 2009 of more than $244 million.
– Signed 186 new customers, including 18 new Taleo Enterprise customers and 168 new Taleo Business Edition customers.
– Closed 7 large enterprise deals with annual contract values in excess of $250,000.
– Signed more than 45 new performance management customers, increasing total performance management customer base to more than 200.
Fourth quarter customer momentum included:
– New enterprise customers include: Associated Bank, Equifax, Kingfisher Plc, RTI International, Teradata Operations, Cook County, Illinois, Thales UK, Amalgamated Holdings Limited and Tyco International Management Company.
– New small and medium-sized customers (companies with up to 5,000 employees) include: Provenance Hotels, Association for the Blind and Vision Impaired, Teach for All, Rand McNally, Prosperity Bank, Munroe Regional Medical Center, JM Smucker, Delaware State University, Sherwin Williams, Janney Montgomery Scott, Warner Chilcott, and Alliance Building.
– Continued momentum in joint Recruiting and Performance Management suite deals with several customers, including: American Life Insurance Company, Navteq, Acxiom, and the City of Edmonton. Additionally, existing customer VF Corporation added Compensation Management to its existing Taleo solution.
2009 highlights included:
– GAAP revenues of $198.4 million, an increase of 18% year-over-year.
– GAAP application revenue of $173.5 million, an increase of 25% year-over-year.
– GAAP net income of $1.3 million or $0.04 per fully diluted share.
– Non-GAAP net income of $26.4 million, or $0.77 per fully diluted share, an increase of 48% year-over-year.
– Cash flow from operations of $50.7 million and free cash flow of $41.5 million.
– Signed 664 new customers, including 65 new Taleo Enterprise customers and 599 new Taleo Business Edition customers.
– Closed 25 large enterprise deals with annual contract values in excess of $250,000.
– Application revenue backlog increases to more than $350 million as of December 31, 2009.
Taleo delivered the following financial results for the fourth quarter of 2009:
Revenue: Total revenue for the fourth quarter was $50.5 million, an increase of 5% on a year-over-year basis. Application revenue for the fourth quarter was $44.5 million, an increase of 11% on a year-over-year basis.
Net Income (Loss) and Net Income (Loss) Per Share to Common Stockholders: Net income was $4.6 million for the fourth quarter, compared to a net loss of $(2.5) million for the same period last year. Net income includes $3.6 million in amortization expense related to the acquisition of Vurv, $2.9 million in stock-based compensation expense and a gain of $2.5 million related to settlement of Vurv escrow claims. Net income per fully diluted share was $0.13 for the fourth quarter of 2009, based on 35.6 million fully diluted shares outstanding, compared to a net loss per share of $(0.08) for the same period in 2008, based on 29.8 million weighted average shares outstanding.
Non-GAAP Net Income and Non-GAAP Net Income Per Share: Non-GAAP net income was $8.6 million for the fourth quarter of 2009, compared to non-GAAP net income of $5.0 million in 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 the Vurv acquisition, and excludes stock-based compensation expense, amortization of acquired intangibles, restructuring and severance expense, and the gain associated with the settlement of the Vurv escrow account. Non-GAAP net income per fully diluted share was $0.23 for the fourth quarter of 2009 based on 37.5 million fully diluted weighted average shares outstanding, compared to non-GAAP net income per fully diluted share of $0.16 for the same period in 2008 based on 31.1 million fully diluted weighted average shares outstanding.
For more information on Taleo, please visit www.taleo.com
Matt Lafata, HRchitect