SuccessFactors Wins Deployment at Siemens AG With 420,000 Users…from SuccessFactors

June 8, 2009

 

SuccessFactors Will Enable 420,000 Siemens Users across 80 Countries in 20 Languages to be Unified and Linked in One System to Executive Strategy, Driving the Next Paradigm of Superior Business Execution

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.

SuccessFactors, Inc. (Nasdaq: SFSF), the global leader in on-demand performance and talent management solutions, today announced the signature of a new “Software as a Service” contract with Siemens AG. The electronics and electrical engineering giant, has purchased a global enterprise subscription of virtually all of SuccessFactors modules to link strategy to executed business results with its worldwide corporate talent management vision, for 420,000 users across 80 countries in 20 different languages.

The project is a strategic board level initiative for Siemens to develop and leverage the strengths of its employees, and foster excellent leadership as part of its FIT4 2010 strategic program.

Linking executive strategy and the vision of developing proven talent to execute breakthrough innovations that give Siemens customers a unique competitive edge, enable society to master their most vital challenges, and create sustainable value through responsibility, excellence and innovation.

Most modules in the SuccessFactors’ Cloud platform, some of which include Goal Management, Performance Management, Career Development Planning, Compensation Management, Variable Pay, Succession Planning and Recruiting Management, will replace Siemens’ existing multiple talent systems globally, and become the corporate standard strategic talent management platform of choice for all Siemens businesses worldwide to link executive strategy to executed business results.

“Our board has a global vision which is a worldwide strategic focus for us today,” said Mrs. Horstmann, Head of Corporate Human Resources, Strategy and Leadership Development of Siemens AG. “SuccessFactors will be instrumental in helping us achieve these core objectives by closing the gap between strategy and execution. It will also enable us to globalize onto a single platform, clearly separate strategic execution and management from transactional HR. We conducted an in-depth market evaluation of 30 leading vendors and seven system providers Siemens already had over five months, with our end-users stress testing the software quality, global scalability, and innovation potential. SuccessFactors was the clear winner by a significant margin based on its usability, ease of integration and rich functionality.” Mr. Kleinjohann, head of CIT, “The Enterprise Cloud Computing business model is a strategic direction for us. It not only lowers IT costs, and creates faster end to end processes, but can also grow with our requirements both globally and locally.”

Lars Dalgaard, CEO of SuccessFactors added, “We are honored and delighted to be selected as the only provider who could assist Siemens, Europe’s largest engineering conglomerate with over $110 billion in revenue, in their global strategic aim for closing the gap between strategy and execution, and on an unprecedented scale for more than 400,000 employees. SuccessFactors aims to leverage the systems and knowledge that have helped almost 5 million users and 2,700 companies across the globe. As the world’s largest known Enterprise Cloud Computing deployment, Siemens is leading the way in its vision for talent management and the implementation of its global values. The size, scope, scalability and multi-lingual nature of this deployment also underpins why SuccessFactors is now the global market leader in Enterprise Cloud Computing and for such an amazing company as Siemens to decide to eliminate so many systems and standardize on SuccessFactors in the Cloud is obviously a testimony to SuccessFactors delivering more large business clients over the web than anyone else.”

For more information on SuccessFactors, please visit www.successfactors.com

 
Matt Lafata, HRchitect

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Latin America Enters the SuccessFactors Cloud…from SuccessFactors

May 20, 2009

 

International Supermarket Retailer, H-E-B of Mexico, Deploys SuccessFactors On-Demand Solutions to Enable Unprecedented Speed and Agility in Business and Talent Management

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.

SuccessFactors, Inc. (NASDAQ: SFSF), the global leader in on-demand performance and talent management solutions, announced today that H-E-B of Mexico, an international supermarket retailer employing more than 6,000 people in this country, has selected SuccessFactors as its performance and talent management solution. Using five SuccessFactors integrated modules, including Employee Profile, Succession, Recruiting, Performance and Goal Management, H-E-B Mexico will streamline processes and communications, and align individual and corporate goals for strategic management of the company’s overall business.

As an international company, H-E-B Mexico has enlisted SuccessFactors to integrate its independently operated HR programs and streamline initiatives that were previously run on several different on-premise platforms with separate standards and procedures in each location. By using cloud computing and SuccessFactors’ on-demand product suite, H-E-B will be able to align goals, eliminate manual processes, prepare succession plans and leverage employee data to make better management decisions in order to save critical execution time and add value to the business.

“H-E-B has been an innovative and respected retailer for more than 100 years and has been operating in Mexico for more than 13 years. In order to maintain and enhance our success in a services-based industry, we must leverage and manage our people via cloud computing, and to do that, we needed a comprehensive on-demand performance and talent management solution,” said Macedonio Garza, Human Resources Director at H-E-B Mexico Division. “SuccessFactors is the best and most scalable product on the market and they’ve shown us that they can meet our needs of connecting and aligning a large workforce spread across our company in a way and speed that only cloud computing can enable.”

 H-E-B Mexico selected SuccessFactors and was able to implement its suite of applications in 5 months. Garza said, “This has been a great experience for us. SuccessFactors has enabled H-E-B’s business leaders to better link company strategy to solid execution with greater information and collaboration.”

“International organizations face so many challenges trying to manage a large, widespread workforce, and H-E-B is a great example of a company addressing those challenges head on with unprecedented communication, alignment, and collaboration via the on-demand world of cloud computing,” said Lars Dalgaard, Founder and CEO of SuccessFactors. “H-E-B understands that to succeed it must leverage, energize and engage its workforce by communicating corporate objectives, individual career paths, skill sets and areas of improvement, while also giving employees control of their own career future. The SuccessFactors platform and cloud computing helps make this happen by linking strategy to execution at record speed.”

For more information on SuccessFactors, please visit www.successfactors.com

 
Matt Lafata, HRchitect

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SuccessFactors Announces Record First Quarter Fiscal 2009 Results…from SuccessFactors

May 2, 2009

 

Revenues Grow 50%, Cash Flow From Operations of $2.7 million Record revenue of $35.2 million, increase of 50% year-over-year from $23.5 million and 7% sequentially

Cash flow generated from operating activities improves to $2.7 million compared to a use of ($4.0) million in Q108

Non-GAAP gross margin improves year-over-year from 61% to 77%

Non-GAAP operating margin improves year-over-year from minus 77% to minus 9%

Reiterates full fiscal year 2009 revenue guidance of 30% annual growth; raises non-GAAP EPS guidance

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.

SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions, today announced results for its first fiscal quarter of 2009 which ended March 31, 2009.

“Q1 was a challenging quarter for SuccessFactors, as businesses of all sizes and industries slowed their decision-making and reduced spending on software products and services. Our market was no exception. In the face of this challenging environment, I am proud to report that our team delivered year-over-year revenue growth of 50% in Q1, while improving non-GAAP gross margin by 26% year-over-year, and non-GAAP operating margin by 88%, compared to Q1 2008. We have also sustained our commitment to cash flow positive operations, with positive cash flow of $2.7 million for Q1, improving cash flow 4X over the previous quarter,” said Lars Dalgaard, chief executive officer for SuccessFactors.

“As we said to you in February, we view this economic environment as an appropriate time to increase our focus on expense management and profitability, while continuing to invest in the highest levels of product quality, support, and total value for our customers,” Dalgaard continued. “While we have maintained the highest revenue growth rate in our industry through the recession that began in 2007, we believe that these investments, coupled with a steady improvement in profitability, will enable us to continue to outperform our market when this recession is over.”

SuccessFactors’ results for the first quarter fiscal year 2009:

 

  • Q1 FY09 Revenue: Q109 revenue was $35.2 million, compared to prior guidance of $34.0 million to $34.5 million, and compared to $23.5 million for the same period last year, an increase of 50% year-over-year, and an increase of 7% sequentially from Q408.
  • Q1 FY09 Cash Flows Generated from Operations: For the quarter ended March 31, 2009, the company generated approximately $2.7 million of cash from operating activities, compared to the $4.0 million use in the quarter ended March 31, 2008, and an increase of 286% sequentially from the $0.7 million generated in Q408. Total cash, cash equivalents and marketable securities at March 31, 2009 was $105.5 million.
  • Q1 FY09 Net Loss per Share: On a GAAP basis, for the quarter ended March 31, 2009, the net loss per common share, basic and diluted, was $0.10. The non-GAAP net loss per common share, basic and diluted, was $0.06, which excludes approximately $2.4 million in stock-based compensation expense, compared to a non-GAAP net loss per share, basic and diluted, of $0.06 in Q408 and $0.34 in Q108, an improvement of 82% year-over-year. GAAP and non-GAAP net loss per common share calculations are based on 56.3 million weighted average shares outstanding during the first quarter of 2009.

Additional First Quarter Fiscal 2009 Highlights:

SuccessFactors continues to lead the way among enterprise cloud applications with more than 4.5 million users with one of the world’s largest-known enterprise cloud deployments of 300,000 users by one of the world’s largest retailers. SuccessFactors now has 8 customers with greater than 50,000 users, more than 30 customers with greater than 25,000 users, and more than 100 customers with greater than 10,000 users resulting in the most widely-deployed enterprise cloud application.

  • SuccessFactors appoints former VP of Technology Strategy and acting CTO at eBay and technology industry veteran, Tom Fisher, to lead SuccessFactors’ cloud strategy and third party developer programs as Vice President of Cloud Computing.
  • SuccessFactors appoints former Yahoo! Executive, Dmitri Krakovsky, as Vice President of Product Management. Previously, Krakovsky was vice president of business and marketplace operations, and sponsored search at Yahoo! He also held vice president of product positions for Yahoo!’s advertiser and publisher group and small business services. Before joining Yahoo! in 2005, Krakovsky spent five years at Intuit where he led the product management team for small-business accounting software, QuickBooks.
  • SuccessFactors announces the availability of EasyReviews, a free, web-based solution for managers to create fast and professional performance reviews for up to 10 users. More information can be found at www.easyreviews.com or http://www.successfactors.com/easyreviews/.
  • SuccessFactors drives business performance in Asia Pacific with number of customers up 160% since 2006. With a 160 percent compounded annual growth rate since early 2006, SuccessFactors has grown its customer base more than 85 percent year-over-year and now has more than 550 customers and 270,000 users with a presence in Asia Pacific, with logins up nearly 100% to 4.4 million in the last 12 months alone. SuccessFactors is also seeing great traction and discernable potential in Japan, Australia, China, Singapore, Korea, New Zealand and India.
  • SuccessFactors appoints Murray Sargant, former SAP APAC Senior Vice President and PeopleSoft APAC executive, as Asia Pacific Vice President of Sales. Before joining SuccessFactors, Sargant served as a senior vice president of sales at SAP, where he focused on new sales, service and delivery for the Asia Pacific region. Prior to joining SAP following Oracle’s 2005 acquisition of PeopleSoft, Sargant oversaw PeopleSoft’s expanding APAC presence since 1998 to include the major markets of Australia, Japan and North Asia, including Hong Kong, China, Korea and Taiwan.
  • SuccessFactors announces that Orange, France Telecom’s leading brand for Internet, television, mobile and other digital services, has deployed SuccessFactors to 13,000 employees in the UK from the Chief Executive Officer down.

Guidance:

SuccessFactors is initiating guidance for its second quarter and is raising its full fiscal year 2009 EPS guidance.

Q2 FY09: Revenue for the company’s second fiscal quarter is projected to be in the range of approximately $35.5 million to $35.75 million. Non-GAAP net loss per common share, basic and diluted, is expected to be in the range of approximately ($0.05) to ($0.07). Non-GAAP net loss per common share estimates exclude the effects of estimated stock-based compensation expense and assume an average weighted share count of approximately 56.7 million shares.

Full Year FY09: The company is reiterating guidance for full fiscal 2009 revenue of approximately $145 million to $146 million or 30% annual growth. The company now expects the non-GAAP net loss per common share for fiscal 2009 to be in the range of ($0.18) to ($0.22); previous guidance had been in the range of ($0.23) to ($0.27). Non-GAAP net loss per common share estimates exclude the effects of estimated stock-based compensation expense and assume an average weighted share count of approximately 57 million shares.

For more information on SuccessFactors, please visit www.successfactors.com
Matt Lafata, HRchitect

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SuccessFactors Announces Availability of EasyReviews, a Free, Web-Based Solution for Managers to Create Fast and Professional Performance Reviews…from SuccessFactors

April 27, 2009

 

SuccessFactors Continues to Innovate and Deliver Value Worldwide with Easy to Use Applications Available to Everyone via the Enterprise Cloud

 

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.

 

SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions, announced today the availability of EasyReviews, an easy to use application for individual managers to create fast and professional performance reviews online.

 

Ideally suited for an individual manager conducting reviews on up to ten employees, EasyReviews is a highly useful and complimentary solution that gives users immediate access to the SuccessFactors on-demand platform and enables users to experience the value of SuccessFactors with zero investment.

 

With SuccessFactors EasyReviews, managers can write professional performance reviews on their direct reports quickly, painlessly and from anywhere. EasyReviews is designed for managers working at companies of all sizes and includes a simple 3-step guide to help managers get started, built-in performance review templates and a powerful “writing assistant” to help managers provide high quality feedback to their employees. EasyReviews, which is built on SuccessFactors’ on-demand platform, is available today and can be accessed at http://www.successfactors.com/easyreviews/.

 

“SuccessFactors continues to push the envelope on innovation and the social enterprise with highly intuitive, unique offerings that deliver powerful value,” said Lars Dalgaard, founder and CEO of SuccessFactors. “EasyReviews delivers ease of use and drop dead simplicity in line with today’s most popular consumer services. Ultimately, we want everyone in the world to benefit from our products, and this is the next step for us to spread SuccessFactors’ value across the globe and increase worldwide productivity by 50 percent.”

 

For more information on SuccessFactors, please visit www.successfactors.com

Matt Lafata, HRchitect

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Former Yahoo! Executive, Dmitri Krakovsky, Joins SuccessFactors as Vice President of Product Management…From SuccessFactors

April 16, 2009

 

HRchitect 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.

 

SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions, today announced that the company has named former Yahoo! executive Dmitri Krakovsky as vice president of product management.

 

“Dmitri’s exceptional track record in leading the most important products with some of the most successful and loved web applications ever built is going to drive unbelievable and fantastic innovation at SuccessFactors,” said Lars Dalgaard, chief executive officer for SuccessFactors. “With consumer and enterprise Web experience, from Yahoo to Intuit, over to small business products, Web 2.0 and 3.0, cloud expertise, he’s a perfect fit for the company.”

 

“My favorite thing about Dmitri is that he has the kind of passion and grit that is critical to executing and his life experience demonstrates it loud and clear,” Dalgaard continued. “He defected from Russia as a young adult and put himself through Harvard Business School, although humility derived through his family would have no tolerance for throwing his degree in your face. The list is short of people who played club level soccer in Russia, graduated with a masters in computer science, and got themselves through HBS. This is exactly the type of drive that we are looking for in our leaders.”

 

“SuccessFactors is a truly exceptional company, so it was a no-brainer to come here and join this innovative team,” said Dmitri Krakovsky, vice president of product management at SuccessFactors. “I am excited about joining a group of people unified by the common passion and focused on solving real-life customer problems. The SuccessFactors’ platform, proven scale, and flexibility are a real testament to the customer value. I’m excited to roll up my sleeves and work with this team to evolve our product strategy and the roadmap to create great, easy to use on-demand product – as powerful as leading enterprise applications and as easy to use as consumer products.”

 

Dmitri joins SuccessFactors from Yahoo!, where he was recently vice president of Business and Marketplace Operations, and Sponsored Search. Previously, Dmitri held vice president of product positions for Yahoo!’s Advertiser and Publisher group and Small Business Services. Before joining Yahoo! in 2005, Dmitri spent five years at Intuit where he led the product management team for small-business accounting software, QuickBooks.

 

For more information on SuccessFactors, please visit www.successfactors.com

Matt Lafata, HRchitect

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SuccessFactors’ SuccessConnect 2009 Goes Local; Annual Conference to Take Place in San Francisco, Chicago and New York…from SuccessFactors

April 10, 2009

 

New Localized Format and Complimentary Registration Reaches More Customers Across All Regions and Industries

 

HRchitect featured SuccessFactors in our May 2008 release of The Suite Life of Integrated Talent Management. HRchitect also includes SuccessFactors in its list of top Talent Management Systems vendors that businesses should consider.

 

SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions, announced today that SuccessConnect 2009 will bring together more customers across all regions and industries by taking place locally in San Francisco, Chicago, and New York in June.

 

Intended for organizations committed to optimizing and aligning their workforces with business goals and strategy, SuccessConnect 2009′s new localized format and free registration underscores SuccessFactors commitment to customer success. Comprised of high-impact keynotes, customer presentations and best practices sessions, SuccessConnect Local 2009 will take place in:

 

  • San Francisco, June 8-9 at The Hilton San Francisco;
  • Chicago, June 15-16 at the Summit Executive Centre; and,
  • New York, June 18-19 at The New York Marriott Eastside.

 

“With today’s economic environment in mind, we made the decision to change the format of SuccessConnect Annual User Conference to fit the budget and needs of our customers by having the conference tour three cities: San Francisco, New York and Chicago,” said Lars Dalgaard, founder and CEO of SuccessFactors. “It’s a new, but very strategic format that gives our customers an even better opportunity to listen, learn and share with peers about how to maximize the performance of their businesses, and it makes this event accessible to more customers across North America. We’ve already seen immense interest and record number of submissions for presentations and we’re anticipating another successful event with record global attendance.”

 

SuccessConnect 2009 will also give customers a chance to meet one-on-one with the SuccessFactors’ executives so that they can share company goals and discuss how to implement new strategies. Advanced Admin Bootcamps, a main stage and popular sessions, which were sold out at SuccessConnect 2008, will take place in San Francisco, Chicago and New York and will feature experts delivering best practices on how to effectively manage SuccessFactors solutions. SuccessFactors customers will be delivering breakout presentations to their peers on the successful management strategies they have employed with SuccessFactors. The events will also include the announcement of the SuccessAwards winners — a program designed to recognize the best of the best in reaping demonstrated value from SuccessFactors implementations.

 

Similar user conferences in Asia and Europe will follow and announced in the coming months.

 

For more information on SuccessConnect 2009 and to register, please visit: www.successfactors.com/successconnect

Matt Lafata, HRchitect

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Destination Hotels & Resorts Launches Comprehensive Strategy with SuccessFactors Focused on Cultivating Top Talent…from SuccessFactors

March 6, 2009

 

SuccessFactors’ Customer to Present Best Practices at the HR in Hospitality Conference on March 17

 

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.

 

SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions, announced today that Destination Hotels & Resorts, the fifth largest independent management company in the United States, has begun an aggressive strategy to drive workforce productivity, initially implementing SuccessFactors’ succession management and goal management solutions.

 

A wholly owned subsidiary of Lowe Enterprises, a privately-held, national real estate organization active in commercial and hospitality property investment, management, and development, Destination Hotels & Resorts began in 1972 and has grown to become the country’s fifth largest independent management company with more than 6,500 employees and more than $1.7 billion in assets under management.

 

Before selecting SuccessFactors, Destination Hotels had disparate systems for managing its people, and the lack of integration was a pain. The company’s leadership sought a single solution, and after an exhaustive search, chose SuccessFactors for its ease of use and true integration delivered from a single code base. The company also believed the Web 2.0-functionality in the SuccessFactors suite would help ensure high user adoption, and management saw it as the best solution to strategically look at talent planning for optimal decision making.

 

“A thorough search lead us to SuccessFactors, and we’re pleased with our decision,” said Robert Mellwig, senior vice president of human resources for Destination Hotels & Resorts. “The pricing, delivery model, ease of use and relationship we’ve developed with the company have all been great. During the selection process, our conversations with existing SuccessFactors customers were even more impressive – all indicated that they’d make the same decision to go with SuccessFactors again – and the company’s customer-first mentality continues to impress us.”

 

Destination Hotels first deployed succession management because they already had an existing process, and believed it was the fastest way to realize a return on the investment. Soon after, the company implemented solutions for managing employee goals and performance, and is currently evaluating SuccessFactors Stack Ranker, which enables managers to effortlessly rate and assess their talent across defined competencies for a visual and intuitive stack ranking of employees to accelerate a course of action.

 

Robert Mellwig will offer a two-part presentation on his vision and actions in executing an integrated talent management strategy at the HR in Hospitality Conference, to be held in Orlando, Florida from March 17 – 19, 2009. From recruitment and on-boarding through performance management and succession planning, Robert will discuss how to integrate these critical HR activities into a comprehensive strategy that produces results greater than the sum of its parts.

 

“SuccessFactors is thrilled to work with Destination Hotels on its aggressive talent management strategy, as now more than ever, organizations need to focus on their people to drive even higher business results,” said Lars Dalgaard, founder and president of SuccessFactors.

 

For more information on SuccessFactors, please visit www.successfactors.com


Matt Lafata, HRchitect

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Top Analyst Firm Positions SuccessFactors in “Leaders” Quadrant in 2009 Report on Employee Performance Management Software…from SuccessFactors

February 17, 2009

 

SuccessFactors’ Position is Based on Its Completeness of Vision and Ability to Execute

 

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.

 

SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions, today announced that it has been positioned in the “Leaders” quadrant by Gartner, Inc. for the Magic Quadrant for Employee Performance Management Software.

 

The “Magic Quadrant for Employee Performance Management Software,” by Jim Holincheck and Thomas Otter, and published February 3, 2009, estimates, “that the market for EPM software was more than $450 million for the 12 months ending on 30 September 2008.” Gartner defines leaders in this Magic Quadrant as companies that had “strong product functionality and superior customer experience with the vendor and its products… and strong or emerging multinational solutions (with corresponding service and support).”

 

With SuccessFactors’ announcement that the company exceeds 4.5 million global users, with more than 1.5 million users added in 2008, SuccessFactors is now one of the largest SaaS companies and is the leading provider of on-demand performance and talent management solutions.

 

“Now more than ever, organizations of all sizes are looking for unbiased, thoughtful analysis of where to invest their dollars, so SuccessFactors is honored to be recognized as a leader by Gartner in its Magic Quadrant for our market. I would personally like to thank the hard-working team I’m fortunate to lead at SuccessFactors,” said Lars Dalgaard, founder and president of SuccessFactors. “I believe this recognition validates the constant innovation and customer-first attitude that the world has come to expect from SuccessFactors.”

 

The SuccessFactors Performance and Talent Management Suite, which includes Performance Management, Goal Management, 360 Degree Reviews, Succession Management, Compensation Management, Learning and Development, Recruiting Management, Employee Profile, and Analytics and Reporting applications, creates a company-wide network of information related to employee performance, including skill-sets, interests, career aspirations, ability to relocate, experience, languages spoken and more. By providing deep, real-time, company-wide visibility into such critical performance data, companies are able to make better, more informed decisions about how to promote, recruit, compensate, reward and manage their entire employee base.

 

For more information on SuccessFactors, please visit www.successfactors.com

Matt Lafata, HRchitect

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SuccessFactors Announces Fourth Quarter and Fiscal 2008 Results…from SuccessFactors

February 10, 2009

 

Total 2008 Revenues Grow 77%, While Improving Operating Margin By 99%, and Achieving Cash Profitability in Q4

 

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.

 

SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions, today announced financial results for its fourth quarter and fiscal 2008 which ended December 31, 2008.

 

“SuccessFactors continues to deliver Software-as-a-Service (SaaS) leading revenue growth of 77% year-over-year,” said Lars Dalgaard, chief executive officer for SuccessFactors. “We achieved cash profitability 9 months ahead of our original target. In a recessionary environment, SuccessFactors has proven we have the ability to act quickly and nimbly, always focused on building a highly profitable company. Now with greater than $125 million in an annual recurring revenue base, we continue to maintain customer focus, producing a record 1,000 go-lives in 2008. In just 90 days, we were able to increase non-GAAP gross margin above 70% for the first time, from 67% to 71%, and up 18 full percentage points from 53% in Q407. We also were able to improve non-GAAP operating margin by 51 full percentage points from minus 61% in Q308 and by 99 full percentage points in total for 2008 from minus 109% in Q407 to minus 10% in Q408 — putting GAAP profitability on the horizon.”

 

“SuccessFactors has the largest individual SaaS deployments and the largest user base, with more than 4.5 million paying and unique users across 185 countries, up a record 1.5 million users in 2008. Our customers around the world in more than 60 industries are improving their businesses and driving increased shareholder value through increased employee alignment, motivation, and collaboration. Despite that, there remain more than a billion workers that can be monetized, which is why SuccessFactors continues to invest in this huge opportunity, having only penetrated less than 0.25% of a potential multi-billion dollar market. SuccessFactors has the leadership position to unlock this value.”

 

SuccessFactors’ results for the fourth quarter and fiscal year 2008:

  • Q4 FY08 Revenue: Q408 revenue was $33.0 million, compared to prior guidance of $31.0 million to $31.5 million, and $19.2 million for the same period last year, an increase of 72% year-over-year, and an increase of 11% sequentially from Q308.
  • FY 2008 Revenue: Fiscal 2008 revenue was $111.9 million, compared to prior guidance of $109.9 million to $110.4 million, and $63.4 million for FY 2007, an increase of 77%.
  • Q4 FY08 Cash Flows Generated from Operations: For the quarter ended December 31, 2008, the Company generated approximately $0.7 million of cash from operating activities which includes receipt of one-time payments upon settlements of litigation matters totaling $3.7 million, compared to the $12.3 million used in the quarter ended December 31, 2007.
  • FY 2008 Cash Flows Used in Operations: For the fiscal year ended December 31, 2008, the Company used $12.0 million of cash in operating activities, an improvement of 58% from the $28.5 million used in fiscal 2007. Total cash, cash equivalents and marketable securities at December 31, 2008 are $102.4 million, up $11.6 million and 13% from the same period last year, and an increase of 1% sequentially from Q308.
  • Q4 FY08 Net Loss per Share: On a GAAP basis, for the quarter ended December 31, 2008, the net loss per common share, basic and diluted, was $0.11. The non-GAAP net loss per common share, basic and diluted, was $0.06, which excludes approximately $2.7 million in stock-based compensation expense, compared to a non-GAAP net loss per share, basic and diluted, of $0.33 in Q308 and $0.49 in Q407, an improvement of 82% quarter-over-quarter and 88% year-over-year. GAAP and non-GAAP net loss per common share calculations are based on 55.8 million weighted average shares outstanding during the fourth quarter of 2008.
  • FY 2008 Net Loss per Share: On a GAAP basis, the net loss per common share, basic and diluted, was $1.21. The non-GAAP net loss per common share, basic and diluted, was $1.05, which excludes approximately $8.6 million in stock-based compensation, compared to a non-GAAP loss per share of $1.73 in fiscal 2007, an improvement of 39% year-over-year. The fiscal 2007 non-GAAP loss per share excludes approximately $4.4 million in stock-based compensation, $2.5 million of other expense related to the fair value of our previously outstanding convertible preferred stock warrants and $1.9 million of debt issuance and related costs associated with these warrants. For the basis of GAAP and non-GAAP net loss calculations, there were 53.8 million weighted average shares outstanding during 2008 and 38.5 million for 2007.

 

Additional Highlights:

  • SuccessFactors launched SuccessFactors Stack Ranker, enabling executives and managers to quickly and effortlessly assess their team and create a visual and intuitive stack ranking of employees to help them make better and immediate business decisions
  • SuccessFactors became SAP Certified and delivered the SuccessFactors Connector Toolkit 2.0 for SAP, enabling customers to quickly pull master data from any SAP instance
  • SuccessFactors Launched Business Performance Accelerators in January to enable global organizations from the C-suite down to optimize workforce performance and drive increased shareholder value for our customers
  • SuccessFactors advanced the next phase of its relationship with IBM by making available a set of integrations between the SuccessFactors Performance and Talent Management Suite and IBM Lotus Connections and IBM WebSphere portal. These integrations will help drive higher levels of employee performance via collaboration and social networking

 

FY 2009 Guidance:

SuccessFactors is initiating guidance for its first quarter and full fiscal year 2009 as of February 9, 2009.

  • Q1 FY09: Revenue for the Company’s first fiscal quarter is projected to be in the range of approximately $34.0 million to $34.5 million. Non-GAAP net loss per common share, basic and diluted, is expected to be in the range of approximately ($0.10) to ($0.12). Non-GAAP net loss per common share estimates exclude the effects of stock-based compensation expense and assume an average weighted share count of 56.3 million shares. The Company plans to maintain ongoing positive cash flow from operations.
  • Full Year FY 2009: The Company expects full year revenue for fiscal 2009 to be in the range of approximately $145 million to $146 million, reflecting approximate 30% year-over-year total revenue growth. The Company also expects non-GAAP net loss per common share, basic and diluted, for fiscal 2009 to be in the range of ($0.23) to ($0.27). Non-GAAP net loss per common share estimates exclude the effects of estimated stock-based compensation expense and assume an average weighted share count of approximately 57.0 million shares.

 

“Our guidance shows we expect healthy revenue growth during a period when many software companies are showing negative growth,” said Bruce Felt, chief financial officer for SuccessFactors. “We have begun to moderate our spending in favor of reaching our profitability targets sooner and we remain significantly invested in the strategic talent management category we created. As our guidance reflects, we remain cautiously optimistic about 2009 and expect to achieve annual revenue growth and an improved bottom line at the same time.”

 

For more information on SuccessFactors, please visit www.successfactors.com

Matt Lafata, HRchitect

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