Kenexa Announces Financial Results for Fourth Quarter and Full Year 2011…from Kenexa

February 8, 2012

 

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in 2010 & 2011 and the Kenexa World Conference from 2009-2011.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 15 years, HRchitect has 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 always available to help!

 

Kenexa (NYSE: KNXA), a global provider of business solutions for human resources, this week announced operating results for the fourth quarter and for the year, ended December 31, 2011.

For the fourth quarter of 2011, Kenexa reported total GAAP revenue of $78.2 million. Non-GAAP revenue, which eliminates the GAAP adjustment to deferred revenue resulting from the October 2010 acquisition of Salary.com, Inc., was $79.6 million for the fourth quarter of 2011, an increase of 24% compared to $64.1 million for the fourth quarter of 2010. Within total non-GAAP revenue, subscription revenue was $56.0 million for the fourth quarter of 2011, an increase of 15% compared with $48.6 million in the fourth quarter of 2010. Professional services and other revenue was $23.5 million for the fourth quarter of 2011, an increase of 52% compared to $15.5 million for the fourth quarter of 2010.

“Our fourth quarter results were above our expectations and represented a strong finish to a record year for Kenexa. The company’s market share gains are being driven by our end-to-end business model, which enables HR organizations to serve as a strategic function that drives business value,” said Rudy Karsan, Chief Executive Officer of Kenexa. “Uncertainty regarding the global economy remains at a very high level, however, we have continued to experience solid global demand for our solutions. As we look ahead, we are cautiously optimistic regarding Kenexa’s outlook for 2012. We expect our differentiated offering to drive continued market share gains, and we are targeting modest non-GAAP operating margin expansion as we continue to invest in proven growth strategies.”

Karsan added, “Our acquisition of OutStart, announced separately today, provides Kenexa with a next generation e-learning solution. We believe that Kenexa is the only vendor capable of meeting growing demand for an end-to-end, integrated talent management solution that includes e-learning along with recruiting, performance management, compensation management, proprietary content and services expertise to help implement best practices.”

Non-GAAP income from operations, which excludes share-based compensation expense, amortization of acquired intangibles, the purchase accounting impact to Salary.com’s deferred revenue, acquisition related fees, and a gain related to an asset sale, was $9.9 million for the three months ended December 31, 2011. This represented a 12.4% non-GAAP operating margin and an increase of 35% compared to non-GAAP income from operations of $7.4 million for the three months ended December 31, 2010.

Non-GAAP net income available to common shareholders, which excludes the items listed above and accretion associated with a variable interest entity and a non-GAAP tax adjustment was $7.5 million for the three months ended December 31, 2011, compared to $5.4 million for the three months ended December 30, 2010. Non-GAAP net income available to common shareholders was $0.27 per diluted share for the fourth quarter of 2011, above the Company’s guidance of $0.25 to $0.26 and based on 27.9 million weighted average shares outstanding. Non-GAAP net income available to common shareholders was $0.23 per diluted share for the fourth quarter of 2010, based on 23.7 million weighted average shares outstanding.

Kenexa’s income from operations for the three months ended December 31, 2011, determined in accordance with GAAP, was $2.9 million, compared to a loss from operations of $3.6 million for the same period of 2010. GAAP net income available to common shareholders was approximately $0.6 million, or $0.02 per diluted shares for the three months ended December 31, 2011, compared to net loss of $6.9 million, or ($0.30) per basic and diluted share, in the same period of 2010.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Kenexa had cash, cash equivalents and investments of $129.0 million at December 31, 2011, an increase from $124.9 million at the end of the prior quarter. The Company generated $23.9 million in cash from operations for the fourth quarter, which was partially offset primarily by $11.0 million used for acquisitions and $5.5 million associated with capital expenditures and capitalized investments.

Deferred revenue was $88.8 million at December 31, 2011, an increase of 17% from December 31, 2010.

Other Fourth Quarter and Recent Highlights

  • This week announced and closed the acquisition OutStart, a leading innovator in the learning management industry. The company delivers a portfolio of inter-related mobile, social and learning knowledge solutions and has been recognized as a visionary in Gartner’s Magic Quadrant for the last 7 years, in addition to winning a wide range of awards for having the top learning portal in the industry. Using cash on hand, Kenexa paid $38.9 million, subject to working capital and other adjustments described in the Merger Agreement.
  • More than 70 “preferred partner” customers were added during the fourth quarter (defined as customers that spend more than $50,000 annually), an increase from the over 50 preferred partner customer additions in the year ago period.
  • The average annualized revenue from the company’s top 80 customers, or P-cubed metric, was greater than $1.6 million in the fourth quarter of 2011, an increase from the over $1.2 million level in the fourth quarter of 2010.
  • During the fourth quarter, announced the acquisition of Batrus Hollweg (BHI). BHI’s wealth of research and content regarding talent best practice, as well as their assessment solutions, are recognized as some of the top notch content and solutions in our industry today. The combination of Kenexa and BHI provides the most researched and proven talent solutions content, particularly in the hospitality industry.
  • Announced details of its alliance with LinkedIn, including integrations with LinkedIn to support candidates throughout the job application process and enable recruiters to work faster, smarter and more effectively in managing these candidates. Kenexa is committed to accelerating the benefits of social recruiting for our global clients, and the new tools for LinkedIn are being incorporated into future product releases from Kenexa.
  • Transferred the listing of its common stock to the New York Stock Exchange (“NYSE”) effective November 9, 2011. Kenexa continues to trade under the “KNXA” ticker symbol.

Full Year 2011 Financial Results

For the full year 2011, Kenexa reported total GAAP revenue of $282.9 million, with non-GAAP revenue of $291.1 million, an increase of 46% compared to non-GAAP revenue of $199.4 million for the full year 2010. Non-GAAP subscription revenue was $212.4 million and professional services revenue was $78.7 million for the full year 2011, compared to $157.8 million and $41.7 million, respectively, in the year ago period.

Non-GAAP income from operations, which excludes share-based compensation expense, amortization of acquired intangibles, expenses related to our acquisitions, a benefit related to a legal settlement, the deferred revenue write-down related to the Salary.com acquisition, a gain related to an asset sale and non-recurring litigation charges was $29.6 million for the year ended December 31, 2011, representing a 10.2% non-GAAP operating margin and an increase of 68% compared to $17.6 million in the year ended December 31, 2010. Non-GAAP net income available to common shareholders, which excludes the items listed above and accretion associated with a variable interest entity and a non-GAAP tax adjustment, was $22.2 million, or $0.84 per diluted share, for the year ended December 31, 2011, an increase of 35% compared to $0.62 in the year ago period.

Kenexa’s income from operations for the full year 2011, determined in accordance with GAAP, was $1.9 million, compared with a loss from operations of $0.3 million for 2010. GAAP net loss allocable to common shareholders’ was $7.3 million or loss of ($0.28) per diluted and basic share for the full year 2011, compared to a net loss allocable to common shareholders’ of $5.8 million or a loss of ($0.25) per diluted and basic share for the full year 2010.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Business Outlook

Based on information as of today, February 6, 2012, the Company is issuing financial guidance as follows:

First Quarter 2012*: The Company expects GAAP revenue to be $75.8 million to $76.8 million. Excluding the GAAP adjustment to deferred revenue, resulting from the Salary.com and OutStart acquisitions, the Company expects non-GAAP revenue to be $78 million to $79 million, and non-GAAP operating income to be $6.1 million to $6.5 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 28 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.15 to $0.17.

First quarter guidance assumes that the OutStart acquisition contributes approximately $1 million to GAAP revenue, $2 million to non-GAAP revenue and has no material impact on non-GAAP operating income.

Full Year 2012*: The Company expects GAAP revenue to be $344 million to $354 million. Excluding the GAAP adjustment to deferred revenue, the Company expects non-GAAP revenue to be $352 million to $362 million, and non-GAAP operating income to be $36 million to $40 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 28.6 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.95 to $1.07.

Full year 2012 guidance assumes that the OutStart acquisition contributes approximately $13.5 million to GAAP revenue, $17 million to non-GAAP revenue and $1.5 million to $2.0 million to non-GAAP operating income.

* Kenexa’s non-GAAP guidance excludes stock-based compensation expense, amortization of acquired intangibles, acquisition-related fees, the purchase accounting reduction for Salary.com’s and OutStart’s revenue, and accretion associated with a variable interest entity.

For more information on Kenexa, please visit www.kenexa.com

To learn more about HRchitect’s expertise in HR technology strategy, selection and implementation services, and how HRchitect can help your organization, please visit www.HRchitect.com

 
Matt Lafata, HRchitect

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Kenexa Expands Leadership Team with the Appointment of Goldschmidt to Chief Customer Officer…from Kenexa

February 4, 2012

 

New Role Strengthens Kenexa as a Leader in Customer Service Excellence

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in 2010 & 2011 and the Kenexa World Conference from 2009-2011.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 15 years, HRchitect has 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 always available to help!

 

Kenexa (NYSE: KNXA), a global provider of business solutions for human resources, today announced that Andrew Goldschmidt has been named chief customer officer. By promoting Goldschmidt to CCO, Kenexa solidifies its commitment to providing outstanding customer service to its clients.

In his new role, Goldschmidt will oversee customer experience, retention and overall satisfaction for Kenexa’s roster of clients, which includes many Fortune 500 companies.

Since 2008, Goldschmidt has led Client Services for Kenexa’s Recruitment Process Outsourcing business unit. He was responsible for managing customer satisfaction, cross-selling services, account growth and renewals.

“Andrew has proven to be a true leader who focuses his talents on helping clients improve their businesses,” said Rudy Karsan, chief executive officer at Kenexa. “Since Andrew has been a part of the RPO leadership team, the division has grown in size, expanded its range of scope and services and, most significantly, grown in stature within our industry.”

Goldschmidt joined Kenexa in 1996 and worked with the organization’s insurance and financial services sector. He also served as a program director for Kenexa’s earliest RPO clients, including Corning, Pfizer and Rohm & Haas.

For more information on Kenexa, please visit www.kenexa.com

To learn more about HRchitect’s expertise in HR technology strategy, selection and implementation services, and how HRchitect can help your organization, please visit www.HRchitect.com

 
Matt Lafata, HRchitect

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Kenexa Announces Partnership with Eli Lilly and Company to Enhance Global Recruitment Services…from Kenexa

November 16, 2011

 

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in 2010 & 2011 and the Kenexa World Conference from 2009-2011.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

 

Kenexa (NYSE: KNXA), a global provider of business solutions for human resources, today announced that Eli Lilly and Company (NYSE:LLY), the 10th largest pharmaceutical company in the world, will be using Kenexa’s global recruitment process outsourcing (RPO) services in some of the major markets where Lilly conducts business globally. The five year engagement represents Kenexa’s largest global RPO partnership, and also includes Kenexa’s award-winning onboarding, recruiting, assessment, and survey solutions and employment branding.

In making its decision, Lilly sought to consolidate many of its global recruitment processes with an experienced pharmaceutical expert such as Kenexa, in order to increase efficiencies in the end-to-end recruiting process. Lilly and Kenexa share a strong presence in several global growth markets which further established synergies between the companies.

Rudy Karsan, CEO of Kenexa, commented, “Improving outcomes, enriching lives is the mantra of Kenexa’s relationship with Lilly. Kenexa is proud to be an integral part of Lilly’s global recruiting program.”

“Our selection process was rigorous and Kenexa met our expectations by showcasing their global RPO services capabilities and providing access to their centers of excellence in Asia, Europe, and the Americas,” said Nancy Lange, senior director for Global Recruiting and Staffing for Lilly.  “The company demonstrated their strengths in integrating services, technology, and relevant content.”

For more information on Kenexa, please visit www.kenexa.com

 
Matt Lafata, HRchitect

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Kenexa Announces Acquisition of Batrus Hollweg…from Kenexa

November 14, 2011

 

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in 2010 & 2011 and the Kenexa World Conference from 2009-2011.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

 

Kenexa® (NYSE: KNXA), a leading provider of business solutions for human resources, today announced the acquisition of Batrus Hollweg (BHI). BHI’s talent management solutions, particularly in the hospitality sector, along with their extensive research on talent management best practices, will add to the company’s existing research and content portfolio.

Founded in 1969 in Frisco, Texas, BHI specializes in talent management solutions that help organizations maximize success through their people. The acquisition of BHI further expands Kenexa’s talent management expertise by adding some of the most experienced consultants and researchers in the category, creating one of the strongest talent solutions teams in the industry.

Rudy Karsan, Kenexa’s Chief Executive Officer, said, “We’re delighted to welcome BHI and their clients to the Kenexa family. BHI’s wealth of research and content regarding talent best practice, as well as their assessment solutions, are recognized as some of the top notch content and solutions in our industry today. The combination of Kenexa and BHI will provide the most researched and proven talent solutions content, particularly in the hospitality industry. BHI is a valuable addition to the Kenexa family and our clients will benefit from the strength of its offerings.”

BHI’s clients will also benefit from Kenexa’s award-winning technology offerings and comprehensive solutions for employment branding, recruitment technology, employee assessment, recruitment process outsourcing, performance management, employee surveys and HR analytics.

“Joining with Kenexa is an exciting opportunity for BHI and our clients,” said Lewis Hollweg, President, Chief Executive Officer and Chairman of BHI. “Kenexa’s business solutions approach to human resources fits perfectly with BHI’s consulting and assessment offering. The strength of our combined company broadens significantly the services we can offer to our clients.”

For more information on Kenexa, please visit www.kenexa.com

 
Matt Lafata, HRchitect

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Kenexa Announces Financial Results for Third Quarter 2011…from Kenexa

November 1, 2011

 

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in 2010 & 2011 and the Kenexa World Conference from 2009-2011.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

 

Kenexa (Nasdaq: KNXA), a global provider of business solutions for human resources, today announced operating results for the third quarter, ended September 30, 2011.

For the third quarter of 2011, Kenexa reported total GAAP revenue of $75.7 million, with non-GAAP revenue of $77.2 million after eliminating the $1.5 million GAAP adjustment to deferred revenue resulting from the October 2010 acquisition of Salary.com, Inc.  Non-GAAP revenue was $50.8 million for the third quarter of 2010.  Within total non-GAAP revenue, subscription revenue was $55.0 million for the third quarter of 2011, an increase of 38% compared with $39.8 million in the third quarter of 2010.  Professional services and other revenue was $22.2 million for the third quarter of 2011, an increase of 102% compared to $11.0 million for the third quarter of 2010.

“Our third quarter financial results were above our expectations and reflect the building momentum of Kenexa’s unique value proposition in the market place.  The combination of our software and content continue to drive the majority of our revenue, while our RPO business experienced a record quarterly performance and included the two largest customer wins in the history of our company,” said Rudy Karsan, Chief Executive Officer of Kenexa.  “While we continue to watch the global economy carefully, our confidence regarding Kenexa’s long-term market position has never been greater and we are increasing our 2011 outlook based on our strong third quarter performance and continued market share gains.”

Non-GAAP income from operations, which excludes share-based compensation expense, amortization of acquired intangibles and the purchase accounting impact to Salary.com’s deferred revenue, was $8.3 million for the three months ended September 30, 2011.  This was above the Company’s guidance of $7.1 million to $7.5 million and represented an increase of 98% compared to non-GAAP income from operations of $4.2 million for the three months ended September 30, 2010.

Non-GAAP net income available to common shareholders, which excludes the items listed above and accretion associated with a variable interest entity, was $6.3 million for the three months ended September 30, 2011, compared to $3.7 million for the three months ended September 30, 2010.  Non-GAAP net income available to common shareholders was $0.23 per diluted share for the quarter ended September 30, 2011, up 44% compared to $0.16 per diluted share in the third quarter of 2010.  Non-GAAP net income per diluted share for the third quarter of 2011 was $0.03 above the high-end of the Company’s guidance of $0.19 to $0.20.

Kenexa’s income from operations for the three months ended September 30, 2011, determined in accordance with GAAP, was $1.3 million, compared to income from operations of $1.5 million for the same period of 2010. GAAP net loss available to common shareholders was approximately $3.1 million, or a loss of $0.12 per basic and diluted shares for the three months ended September 30, 2011, compared to net income of $0.2 million, or $0.01 per basic and diluted share, in the same period of 2010.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Kenexa had cash, cash equivalents and investments of $124.9 million at September 30, 2011, compared to $127.5 million at the end of the prior quarter.  The decrease in cash was primarily related to $4.2 million used to pay down long-term debt and $1.8 million used to settle legacy shareholder lawsuits for Salary.com.  The Company also generated $10.9 million in cash from operations for the third quarter.

Deferred revenue was $87.3 million at September 30, 2011, an increase of 49% from September 30, 2010 and up from $84.9 million at the end of the second quarter of 2011.

Other Third Quarter and Recent Highlights

• More than 60 “preferred partner” customers were added during the quarter (defined as customers that spend more than $50,000 annually), an increase from the over 40 preferred partner customer additions in the year ago period.
• The average annualized revenue from the Company’s top 80 customers, or P-cubed metric, was greater than $1.6 million, an increase from the over $1.2 million level in the third quarter of 2010.
• Announced the launch of Kenexa 2x Perform™, which offers integrated, enterprise-class performance management, succession and compensation planning tools to drive organizational alignment and ensure top performers are retained and engaged.
• Announced an alliance with SkillSoft, a leading SaaS provider of e-learning content, technology and services, to integrate and market Kenexa’s Global Talent Management solutions with SkillSoft’s learning content and platform technology.

Business Outlook

Based on information as of today, November 1, 2011, the Company is issuing financial guidance as follows:

Fourth Quarter 2011*: The Company expects GAAP revenue to be $74.7 million to $76.7 million.  Excluding the GAAP adjustment to deferred revenue, resulting from the Salary.com acquisition, the Company expects non-GAAP revenue to be $76.0 million to $78.0 million, and non-GAAP operating income to be $9.2 million to $9.6 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 28.0 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.25 to $0.26.

Full Year 2011*: The Company expects GAAP revenue to be $279.4 million to $281.4 million.  Excluding the GAAP adjustment to deferred revenue, the Company expects non-GAAP revenue to be $287.4 million to $289.4 million, and non-GAAP operating income to be $28.9 million to $29.3 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 26.5 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.81 to $0.82.

* Kenexa’s non-GAAP results  exclude stock-based compensation expense, amortization of acquired intangibles, acquisition-related fees, the purchase accounting reduction for Salary.com’s revenue, a benefit related to a legal settlement, non-recurring litigation charges and accretion associated with a variable interest entity.

For more information on Kenexa, please visit www.kenexa.com

 
Matt Lafata, HRchitect

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Kenexa to Transfer to the New York Stock Exchange…from Kenexa

October 30, 2011

 

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in 2010 & 2011 and the Kenexa World Conference from 2009-2011.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

 

Kenexa® (Nasdaq: KNXA), a global provider of business solutions for human resources, today announced that it is transferring the listing of its common stock to the New York Stock Exchange (“NYSE”). The company expects to begin trading on the NYSE on November 9, 2011, under its current ticker symbol “KNXA”. The company will continue to trade on the NASDAQ until the transfer is completed.

Rudy Karsan, CEO of Kenexa, commented, “Many of our clients are NYSE-listed multinational organizations. With our move to the New York Stock Exchange, we’re proud to take a position among them.”

“We welcome Kenexa’s decision to join NYSE Euronext’s growing community of listed companies,” said Scott Cutler, EVP and Head of Listings, Americas, NYSE Euronext. “Kenexa is a leader and innovator in enabling organizations to optimize their workforces through integrated talent acquisition and talent management solutions, and we look forward to being a valued partner in the company’s future growth by providing the highest quality markets and services.”

In celebration of the transfer, representatives from Kenexa will ring the NYSE Opening Bell at 9:30 a.m. ET on November 9, 2011.

For more information on Kenexa, please visit www.kenexa.com

 
Matt Lafata, HRchitect

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HireVue and Kenexa Team to Offer Integrated Recruiting and Interview Management…from HireVue

October 10, 2011

 

Details Available during This Week’s Kenexa World Conference

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

 

HireVue, providers of an amazing new way to interview – on demand, today announced that they have partnered with Kenexa, a global provider of business solutions for human resources, to provide mutual customers with a pre-integrated interview and recruiting management solution.

Under the new partnership, HireVue’s Digital Interview Platform™ and On Demand Digital Interviews™ will be pre-integrated with Kenexa 2x BrassRing™ to provide recruiters with single sign-on access to both platforms. Scheduled for release this November, the solutions will directly synchronize to streamline processes and reduce administration. For example, candidate information added to one platform will automatically populate to other portions of the combined solution. Recruiters will also be able to order HireVue’s breakthrough On Demand Digital Interviews directly from Kenexa 2x BrassRing and, once completed, a link to the interview will be stored to the candidate’s profile.

“Our customers are always seeking ways to gain a competitive edge when recruiting. HireVue’s On Demand Digital Interviews save recruiters countless hours and dollars previously spent interviewing candidates that are not the right fit for an organization,” noted Rudy Karsan, CEO of Kenexa. “We’re thrilled to add value to our customers’ investments by integrating with HireVue’s Digital Interview Platform. Regardless of the interview method, recruiters will have strategic control over the entire interview process – from scheduling screenings to making hiring decisions.”

Mark Newman, CEO of HireVue, added, “Kenexa shares our mission to change the way companies find, identify and interact with candidates. Its industry-leading solution delivers a unified talent record across the employment lifecycle, linking recruitment, outsourcing, performance management and mobility on one technology platform. Now hiring companies can combine the power of HireVue and have the insight provided by Kenexa 2x BrassRing at their fingertips.”

“Recruiting is as challenging today as it ever has been.  What has changed is how much more we leverage technology to find the best-fit candidates,” said Mike Grennier, senior director, Corporate Recruiting, Walmart. “I’m excited that HireVue and Kenexa’s platforms will be talking to each other to help us source and evaluate candidates more effectively.”

Attendees of this week’s 2011 Kenexa World Conference can learn more about the partnership and integration, or test drive HireVue’s Digital Interview Platform, by visiting with HireVue during the conference.  “The Conference of Grown-up Dreams” will take place Tuesday, October 11 and Wednesday, October 12 at Walt Disney’s Yacht and Beach Club Resort in Lake Buena Vista, Fla.

For more information on HireVue, please visit www.hirevue.com. For more information on Kenexa, please visit www.kenexa.com

 

 

Matt Lafata, HRchitect

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C&S Wholesale Grocers Partners With Kenexa to Improve Recruiting Processes…from Kenexa

September 16, 2011

Company Cites Innovative, Interactive Solution as Primary Reason for Selection

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced that C&S Wholesale Grocers, Inc., the largest food wholesaler in the U.S. with approximately 17,000 employees, has selected Kenexa Simulations to engage candidates through interactive web-based job simulations.

Serving approximately 4,600 stores from more than 60 warehouses in 11 states, C&S is responsible for distributing food to supermarkets, retail stores and military bases across the country. The company will utilize Kenexa Simulations during the recruitment process to identify the candidates who are most likely to be successful within C&S and in a specific role. The interactive solution will integrate with C&S’s existing Applicant Tracking System to create a seamless candidate experience.

“Many of our candidates have grown up in the era of Smartphones, iPads and video games, and they expect a certain level of interactivity during the recruitment process. The Kenexa Simulation offers a unique virtual experience that is not only easy to use and engaging but will also provide a realistic job preview,” commented John Leech, Senior Director, Field Talent Management, C&S. “When we were looking for a partner to create this one-of-a-kind solution to help us attract and retain the best talent, we looked to Kenexa because of their industry recognition and know how.”

“Kenexa administers about 21 million assessments each year in multiple languages and countries, which demonstrates our ability to deliver on the science of predicting individual performance and potential. For example, our assessments have enabled clients to experience dramatic improvements in absenteeism and turnover rates, as well as increases in productivity, customer satisfaction and profitability. We are pleased that C&S chose us as a partner, and we look forward to helping them select and retain top performers for their warehouse positions,” stated Rudy Karsan, Kenexa’s Chief Executive Officer.

Kenexa Simulations deliver accurate job previews and ensure candidates thoroughly understand the demands of a particular role, leading to a better candidate fit. As a result, companies are able to drive high performance within the organization while reducing the overall cost of hire. The simulations engage candidates in a virtual environment that can help identify the most talented employees.

C&S will deliver a presentation with Kenexa about the value of simulations as recruiting tools at Kenexa’s upcoming 2011 World Conference, which will be held at the Walt Disney World Resort in Orlando, Fla., on October 11 and 12, 2011.

For more information on Kenexa, please visit www.kenexa.com

Matt Lafata, HRchitect

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Kenexa Announces Financial Results for Second Quarter 2011…from Kenexa

August 9, 2011

 

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

Kenexa (Nasdaq: KNXA), a global provider of business solutions for human resources, last week announced operating results for the second quarter, ended June 30, 2011.

For the second quarter of 2011, Kenexa reported total GAAP revenue of $69.0 million, with non-GAAP revenue of $71.3 million after eliminating the $2.3 million GAAP adjustment to deferred revenue resulting from the October 2010 acquisition of Salary.com, Inc.  Non-GAAP revenue was $44.9 million for the second quarter of 2010. Within total non-GAAP revenue, subscription revenue was $52.2 million for the second quarter of 2011, an increase of 45% compared with $36.1 million in the second quarter of 2010.  Professional services and other revenue was $19.1 million for the second quarter of 2011, an increase of 119% compared to $8.7 million for the second quarter of 2010. 

“Kenexa’s better than expected second quarter performance was the result of high customer interest levels, solid execution and Kenexa’s differentiated value proposition.  An increasing number of organizations around the world are looking for a strategic HR solutions partner, and Kenexa’s unique combination of software, proprietary content and services is driving continued market share gains,” said Rudy Karsan, Chief Executive Officer of Kenexa.  “We are increasing our outlook for 2011 based on our strong second quarter results and client momentum, though we continue to monitor the economic environment closely as macro data points remain highly variable on a global basis.”

Non-GAAP income from operations, which excludes share-based compensation expense, acquisition-related fees, amortization of acquired intangibles, the purchase accounting impact to Salary.com’s deferred revenue, a benefit related to a legal settlement, and non-recurring litigation charges, was $6.4 million for the three months ended June 30, 2011.  This was above the Company’s guidance of $5.4 million to $5.8 million and represented an increase of 69% compared to non-GAAP income from operations of $3.8 million for the three months ended June 30, 2010. 

Non-GAAP net income available to common shareholders, which excludes the items listed above and accretion associated with a variable interest entity, was $4.7 million for the three months ended June 30, 2011, compared to $3.1 million for the three months ended June 30, 2010.  Non-GAAP net income available to common shareholders was $0.18 per diluted share for the quarter ended June 30, 2011, up 38% compared to $0.13 per diluted share in the second quarter of 2010.  Non-GAAP net income per diluted share for the second quarter of 2011 was $0.01 above the Company’s guidance of $0.16 to $0.17 and included a $0.01 negative impact from higher shares outstanding.  The Company’s follow-on offering of common shares during the quarter was not anticipated at the time guidance was provided.  

Kenexa’s income from operations for the three months ended June 30, 2011, determined in accordance with GAAP, was $0.4 million, compared to income from operations of $1.7 million for the same period of 2010. GAAP net loss available to common shareholders was approximately $1.6 million, or a loss of $0.06 per basic and diluted shares for the three months ended June 30, 2011, compared to net income of $1.0 million, or $0.04 per basic and diluted share, in the same period of 2010.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Kenexa had cash, cash equivalents and investments of $127.5 million at June 30, 2011, compared to $19.7 million at the end of the prior quarter.  The increase in cash was primarily related to the company’s follow-on offering of common shares during the quarter, which provided $91.7 million in net proceeds including the execution of the overallotment option.  The Company also generated $16.8 million in non-GAAP cash from operations for the second quarter. 

Deferred revenue was $84.9 million at June 30, 2011, an increase of 47% from June 30, 2010 and up from $82.2 million at the end of the first quarter of 2011. 

Other Second Quarter and Recent Highlights

 

  • More than 50 “preferred partner” customers were added during the quarter (defined as customers that spend more than $50,000 annually), an increase from the over 30 preferred partner customer additions in the year ago period.
  • The average annualized revenue from the Company’s top 80 customers, or P-cubed metric, was greater than $1.5 million, an increase from the over $1.1 million level in the second quarter of 2010.
  • On May 25, the company completed a public offering of 3,450,000 shares of its common stock at $27.75 per share. Kenexa received net proceeds of approximately $91.7 million after taking into consideration the execution of the overallotment option and deducting underwriting discounts and commissions and offering expenses that are payable by Kenexa.

Business Outlook

Based on information as of today, August 2, 2011, the Company is issuing financial guidance as follows: 

Third Quarter 2011*: The Company expects GAAP revenue to be $70.5 million to $72.5 million.  Excluding the GAAP adjustment to deferred revenue, resulting from the Salary.com acquisition, the Company expects non-GAAP revenue to be $72.0 million to $74.0 million, and non-GAAP operating income to be $7.1 million to $7.5 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 28.0 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.19 to $0.20. 

Full Year 2011*: The Company expects GAAP revenue to be $271.0 million to $275.0 million.  Excluding the GAAP adjustment to deferred revenue, the Company expects non-GAAP revenue to be $279.0 million to $283.0 million, and non-GAAP operating income to be $27.5 million to $28.5 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 26.5 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.77 to $0.80.

* Kenexa’s non-GAAP results  excludes stock based compensation expense, amortization of acquired intangibles, acquisition-related fees, the purchase accounting reduction for Salary.com’s revenue, a benefit related to a legal settlement, non-recurring litigation charges and accretion associated with a variable interest entity.

For more information on Kenexa, please visit www.kenexa.com

 
Matt Lafata, HRchitect

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Kenexa Announces 2011 World Conference Keynote Speakers: Oakland A’s Billy Beane and Former Navy Commander Mike Abrashoff…from Kenexa

June 2, 2011

 

Beane and Abrashoff to Share Experiences on Transformative Management Strategies and GrassRoots Leadership Methods

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced that internationally renowned speakers, Billy Beane, vice president and general manager of the Oakland Athletics, and Mike Abrashoff, former Navy Commander and author of “It’s Your Ship,” will present inspirational, leadership-focused keynote presentations during Kenexa’s upcoming 2011 World Conference, “The Conference of Grown-Up Dreams.”

Considered one of the most progressive and talented baseball executives in the game today, Billy Beane has guided the Oakland Athletics into a perennial postseason contender since becoming the team’s general manager in 1997. Under Beane’s direction, the A’s ended a string of losing seasons, reaching the playoffs four times and winning the second most regular season games of any time in baseball. His management approach of identifying and using undervalued assets to create and sustain a competitive edge and the organization’s philosophy are the subject of Michael Lewis’ best-selling book, “Moneyball: The Art of Winning an Unfair Game,” and a full-length feature film due to premier this fall.

Former Navy Commander and author of “It’s Your Ship” and “Get Your Ship Together,” Mike Abrashoff will explain how GrassRoots Leadership helped transform his former ship, the U.S.S. Benfold, to be the best ship in the Pacific Fleet.  Overcoming challenges of exceptionally low morale and poor performance, Abrashoff replaced common command and control management methods with commitment and cohesion, engaging the hearts, minds and loyalties of the ship’s workers. Using personal interviews with all team members – regardless of station – Abrashoff generated invaluable ideas and inspired his crew, making each member feel invested and improving a ship that few thought could ever change.

“Kenexa is thrilled to have such pioneering leaders as Mike Abrashoff and Billy Beane joining us at the 2011 World Conference,” commented Rudy Karsan, Chairman and CEO of Kenexa. “Their keynote sessions will provoke conference attendees to dream big, even in the face of opposition and motivational challenges, and to encourage innovative leadership within their own organizations, ultimately creating a path for heightened levels of success.”

“The Conference of Grown-Up Dreams” will be held at the Walt Disney World Resort in Orlando, Fla. on October 11 and 12, 2011, and include a full agenda of breakout sessions led by industry experts, keynote presentations, entertainment and special events.  Additional speakers are to be announced. Those interested are encouraged to register early as extended discount conference rates are available now through June 15, 2011.

More information on Kenexa’s 2011 World Conference, including full speaker bios and registration, can be directly accessed at http://www.kenexaworldconference.com/.

For more information on Kenexa, please visit www.kenexa.com

 
Matt Lafata, HRchitect

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Kenexa Announces Financial Results for First Quarter 2011…from Kenexa

May 4, 2011

 

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

Kenexa (Nasdaq: KNXA), a global provider of business solutions for human resources, today announced operating results for the first quarter, ended March 31, 2011. 

For the first quarter of 2011, Kenexa reported total GAAP revenue of $60.0 million, with non-GAAP revenue of $63.0 million after eliminating the $3.0 million GAAP adjustment to deferred revenue resulting from the October 2010 acquisition of Salary.com, Inc.  Non-GAAP revenue increased 59% compared to $39.7 million for the first quarter of 2010. Within total non-GAAP revenue, subscription revenue was $49.2 million for the first quarter of 2011, an increase of 48% compared with $33.3 million in the first quarter of 2010.  Professional services and other revenue was $13.8 million for the first quarter of 2011, an increase of 116% compared to $6.4 million for the first quarter of 2010. 

“The first quarter was a strong start to 2011, with all major areas of our business performing at or above our expectations,” said Rudy Karsan, Chief Executive Officer of Kenexa.  “With the economy improving and hiring beginning to increase, we are seeing a growing number of organizations looking for a strategic HR solutions provider that can help them transform their recruiting and overall talent management business processes.  Our unique combination of software, proprietary content and services is a key driver to Kenexa’s growing market share and success with global organizations.”

Karsan added, “For the second quarter in a row, we are materially increasing our FY11 revenue guidance reflecting what we see as Kenexa’s growing momentum.  In addition, we are increasingly optimistic about Kenexa’s long-term market position and believe the company is at the early stages of realizing the benefits from our increased investments in sales and marketing as well as R&D.”

Non-GAAP income from operations, which excludes share-based compensation expense, amortization of acquired intangibles, fees related to our acquisitions and the purchase accounting impact to Salary.com’s deferred revenue, was $5.0 million for the three months ended March 31, 2011.  This was above the Company’s guidance of $4.4 million to $4.8 million and represented an increase of 119% compared to non-GAAP income from operations of $2.3 million for the three months ended March 31, 2010. 

Non-GAAP net income available to common shareholders, which excludes the items listed above, was $3.7 million for the three months ended March 31, 2011, compared to $2.2 million for the three months ended March 31, 2010.  Non-GAAP net income available to common shareholders was $0.15 per diluted share for the quarter ended March 31, 2011, above the Company’s guidance of $0.13 to $0.14 and up 50% compared to $0.10 per diluted share in the first quarter of 2010.  

Kenexa’s loss from operations for the three months ended March 31, 2011, determined in accordance with GAAP, was $2.8 million, compared to income from operations of $62,000 for the same period of 2010. GAAP net loss available to common shareholders was approximately $3.2 million, or a loss of $0.14 per basic share for the three months ended March 31, 2011, compared to a net loss of $18,000, or $0.00 per diluted share, in the same period of 2010.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Kenexa had cash and cash equivalents of $19.7 million at March 31, 2011, compared to $52.5 million at the end of the prior quarter.  During the quarter, the company used approximately $23 million in cash to reduce its long-term debt and approximately $10 million as consideration for two small acquisitions made during the quarter.  Deferred revenue was $82.2 million at March 31, 2011, an increase of 51% from March 31, 2010 and up from $76.1 million at the end of the fourth quarter of 2010. 

Other First Quarter and Recent Highlights

  • More than 50 “preferred partner” customers were added during the quarter (defined as customers that spend more than $50,000 annually), an increase from the over 30 preferred partner customer additions in the year ago period.
  • The average annualized revenue from the Company’s top 80 customers, or P-cubed metric, was greater than $1.4 million, an increase from the over $1.0 million level in the first quarter of 2010.

Business Outlook

Based on information as of today, May 3, 2011, the Company is issuing financial guidance as follows: 

Second Quarter 2011*: The Company expects GAAP revenue to be $64.0 million to $66.0 million.  Excluding the GAAP adjustment to deferred revenue, resulting from the Salary.com acquisition, the Company expects non-GAAP revenue to be $66.0 million to $68.0 million, and non-GAAP operating income to be $5.4 million to $5.8 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 24.4 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.16 to $0.17. 

Full Year 2011*: The Company expects GAAP revenue to be $259 million to $265 million.  Excluding the GAAP adjustment to deferred revenue, the Company expects non-GAAP revenue to be $267 million to $273 million, and non-GAAP operating income to be $24.0 million to $27.0 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 24.4 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.70 to $0.82.

* Kenexa’s non-GAAP results  excludes stock based compensation expense, amortization of intangibles associated with acquisitions, fees related to closing acquisitions and the purchase accounting reduction to Salary.com’s revenue

For more information on Kenexa, please visit www.kenexa.com
Matt Lafata, HRchitect

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Kenexa Introduces New Recruitment Process Outsourcing Solution: ZOOMRecruit…from Kenexa

March 23, 2011

 

Global RPO Leader Gives Companies Innovative Option for Rapid Recruiting of High-Quality Candidates

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. After 14 years, HRchitect has 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 always available to help!

Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced the release of ZOOMRecruit, a new rapid recruitment process outsourcing (RPO) option for companies that need to hire top talent quickly–often in less than a year.

Developed in response to the accelerated hiring blitz that many companies are undergoing thanks to a recovering U.S. economy, ZOOMRecruit makes it easier for companies to source candidates quickly, efficiently and cost-effectively. The solution provides two levels of RPO support – project-based RPO and sourcing. The project-based RPO solution delivers all of the components of Kenexa’s complete RPO solution, including sourcing and recruiting, employment branding and employee assessments, for a short, defined period. With the sourcing only solution, Kenexa sources and recruits top candidates and then submits them to the requesting company for next actions.

“As our economy begins to heat up, many companies need to hire talent quickly to backfill positions that had been reduced. Companies need these hires yesterday to keep up with growing demand. Kenexa has developed an innovative RPO solution that is in keeping with our promise to provide flexible, customized solutions for our clients,” stated Phil Stewart, president, Recruitment Process Outsourcing, Kenexa. “ZOOMRecruit allows for a company to benefit from a full-blown RPO solution in a relatively short period of time – a year or less – and often targeted to a very specific staffing need. Ramping up a company’s workforce has never been easier.”

Powered by Kenexa 2x BrassRing®, the new product combines Kenexa’s global RPO solution, which is renowned for delivering a higher quality of candidate, with BrassRing’s world-class recruiting technology. ZOOMRecruit also has the flexibility to integrate with a company’s existing applicant tracking system (ATS).

Stewart continued, “As one of the most respected RPO providers around the world, we have a long history of creating groundbreaking solutions that evolve to meet market demand. ZOOMRecruit will deliver the same cost reductions and high-quality candidates that our existing RPO solution provides.”

ZOOMRecruit is available immediately for new and existing Kenexa customers.

For more information on Kenexa, please visit www.kenexa.com
Matt Lafata, HRchitect

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Kenexa Announces Financial Results for Fourth Quarter and Full Year 2010…from Kenexa

February 9, 2011

 

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. HRchitect has 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 always available to help!

Kenexa (Nasdaq: KNXA), a global provider of business solutions for human resources, today announced operating results for the fourth quarter and full year, ended December 31, 2010. 

For the fourth quarter of 2010, Kenexa reported total GAAP revenue of $61.0 million, with non-GAAP revenue of $64.1 million after eliminating the $3.1 million GAAP adjustment to Salary.com’s deferred revenue. Non-GAAP revenue increased 64% compared to $39.1 million for the fourth quarter of 2009. In 2009, all revenues are reported using GAAP. Within total non-GAAP revenue, subscription revenue was $48.6 million for the fourth quarter of 2010, an increase of 46% compared with $33.3 million in the fourth quarter of 2009. Professional services and other revenue was $15.5 million for the fourth quarter of 2010, an increase of 170% compared to $5.7 million for the fourth quarter of 2009. 

“We are pleased with the Company’s performance in the fourth quarter, which was highlighted by revenue and profitability that were better than our expectations,” said Rudy Karsan, Chief Executive Officer of Kenexa. “The fourth quarter represented a strong close to a successful year for Kenexa. In the face of a challenging economic environment, we returned the Company’s total revenue to solid organic growth, expanded our market opportunity and value proposition with the acquisition of Salary.com, and increased investments in sales, marketing and R&D to position Kenexa for continued market share gains as the economic environment improves.“

Karsan added, “We are still early in the new year, but we are more optimistic about the economic environment and jobs market for 2011 as compared to our view in recent quarters. We believe Kenexa is well positioned to benefit from the increased level of investment in our business, and our optimism is reflected by the solid increase in our revenue growth outlook for 2011.” 

Non-GAAP income from operations, which excludes share-based compensation expense, amortization of acquired intangibles, fees related to our acquisitions and the purchase accounting adjustment to Salary.com’s deferred revenue, was $7.4 million for the three months ended December 31, 2010. This was above the Company’s guidance of $6.0 million to $6.9 million and represented an increase of 123% compared to non-GAAP income from operations of $3.3 million for the three months ended December 31, 2009. 

Non-GAAP net income available to common shareholders, which excludes the items listed above as well as the accretion of the noncontrolling interest in our variable interest entity, was $5.4 million for the three months ended December 31, 2010, compared to $2.9 million for the three months ended December 31, 2009. Non-GAAP net income available to common shareholders was $0.23 per diluted share for the quarter ended December 31, 2010, above the Company’s guidance of $0.19 to $0.22 and up 77% compared to $0.13 per diluted share in the fourth quarter of 2009.  

Kenexa’s loss from operations for the three months ended December 31, 2010, determined in accordance with GAAP, was $3.6 million, compared to income from operations of $0.8 million for the same period of 2009. GAAP net loss available to common shareholders was approximately $6.9 million, or loss of $0.30 per basic share for the three months ended December 31, 2010, compared to net income of $0.3 million, or $0.01 per diluted share, in the same period of 2009.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Kenexa had cash and cash equivalents of $52.5 million at December 31, 2010, a decrease from $90.4 million at the end of the prior quarter due to payments associated with the Salary.com acquisition. The Company generated cash from operations of $3.3 million during the fourth quarter of 2010 and $11.5 million excluding non-recurring payments and fees associated with the Salary.com acquisition. Deferred revenue was $76.1 million at December 31, 2010, an increase of 52% from December 31, 2009. 

Other Fourth Quarter and Recent Highlights  

  • More than 50 “preferred partner” customers were added during the quarter (defined as customers that spend more than $50,000 annually).
  • The average annual revenue from the Company’s top 80 customers was greater than $1.2 million, an increase from the $1.0 million level in the fourth quarter of 2009.
  • Kenexa joined with General Information Services (GIS) and Sterling Infosystems, leading providers of background screening services, to provide full-service background screenings for Kenexa’s Integrated Talent Management solutions, including Kenexa 2x BrassRing™ and Kenexa 2x Recruit™.

 Full Year 2010 Financial Results

For the full year 2010, Kenexa reported total GAAP revenue of $196.3 million, with non-GAAP revenue of $199.4 million after eliminating the $3.1 million GAAP adjustment to Salary.com’s deferred revenue. Non-GAAP revenue increased 26% compared to $157.7 million for the full year 2009. Subscription revenue was $157.7 million and professional services revenue was $41.7 million for the full year 2010, compared to $133.9 million and $23.8 million, respectively, in the year ago period.  

Non-GAAP income from operations, which excludes share-based compensation expense, amortization of acquired intangibles, expenses related to our acquisitions and the deferred revenue write-down related to the Salary.com acquisition, was $17.7 million for the year ended December 31, 2010, representing a 9% non-GAAP operating margin and compared to $15.9 million in the year ended December 31, 2009. Non-GAAP net income was $14.4 million, or $0.62 per diluted share, for the year ended December 31, 2010, compared to $0.62 in the year ago period. 

Kenexa’s loss from operations for the full year 2010, determined in accordance with GAAP, was $0.3 million compared with a loss from operations of $29.0 million for 2009. GAAP net loss was $5.8 million or loss of $0.25 per basic share for the full year 2010, compared to a net loss of $31.1 million or a loss of $1.38 per basic share for the full year 2009. GAAP loss from operations, net loss and loss per share included the impact of a non-cash goodwill impairment charge of $33.3 million for the full year 2009.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Business Outlook

Based on information as of today, February 8, 2011, the Company is issuing financial guidance as follows: 

First Quarter 2011*: The Company expects GAAP revenue to be $57.0 million to $59.0 million. Excluding the GAAP adjustment to Salary.com’s deferred revenue, the Company expects non-GAAP revenue to be $60.0 million to $62.0 million, and non-GAAP operating income to be $4.4 million to $4.8 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 23.5 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.13 to $0.14. 

Full Year 2011*: The Company expects GAAP revenue to be $240 million to $248 million. Excluding the GAAP adjustment to Salary.com’s deferred revenue, the Company expects non-GAAP revenue to be $248 million to $256 million, and non-GAAP operating income to be $21.0 million to $27.0 million. Assuming an effective tax rate for reporting purposes of approximately 20% and approximately 24 million shares outstanding, Kenexa expects its non-GAAP net income per diluted share to be $0.62 to $0.82.

* Kenexa’s non-GAAP results will exclude stock based compensation expense, amortization of intangibles associated with acquisitions, fees related to closing the Salary.com acquisition and the purchase accounting reduction to Salary.com’s revenue.

For more information on Kenexa, please visit www.kenexa.com
Matt Lafata, HRchitect

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Kenexa CEO Rudy Karsan Hits Best Seller Lists with “We”…from Kenexa

February 4, 2011

 

Employee Engagement Book in High Demand as Employers and Employees Seek Satisfaction

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Derek Bluestone, VP Product Marketing appeared on the HRchitect WebMingle on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. HRchitect has 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 always available to help!

Kenexa (NASDAQ:KNXA), a global provider of business solutions for human resources, today announced that its Chairman and CEO, Rudy Karsan’s book, “We: How to Increase Performance and Profits Through Full Engagement,” is on both The New York Times and USA Today bestseller lists. Released in January 2011, “We” has ranked number two on USA Today’s Money list and number seven on the New York Times’ Hardcover Advice, How-To and Miscellaneous list.   

Karsan teamed with Kevin Kruse, CEO of Kr? Research, on this workplace leadership and employee job satisfaction guide and Tony Hsieh, CEO of Zappos.com, wrote its foreword.    

We argues that while an employee can be successful despite dissatisfaction and happy without engagement, true success comes when the goals of the company and its employees are aligned. The book makes clear that employees must actively manage their careers and adapt successfully to change if they want to achieve security in today’s global economy. The authors also demonstrate that achieving full workplace engagement is the responsibility of both employer and employee.  

“During these challenging times, Karsan and Kruse remind us that successful businesses are built by dedicated workers,” remarked author of “Taking the Hill,” and Pennsylvania Congressman Patrick Murphy. “We: How to Increase Performance and Profits through Full Engagement should be read by everyone interested in building high-performing teams.” 

Karsan and Kruse identify three common factors that keep employees engaged and productive:  growth, recognition and trust. The human resources and business experts rely on research findings from over 10 million worker surveys and case studies that point to employee job satisfaction and emotional investment as major contributing factors to overall business profitability and, just as importantly, the quality of life experienced by the organization’s employees.   

“If you take just one message away from this book, make it this: the idea that work and life are separate entities is an illusion.  Everything is your life.  And you spend far too much time ‘at work’ for it not to be an enjoyable, fulfilling, and yes, an engaging experience,” noted Karsan and Kruse in the book’s first chapter. “But the We approach is one that says stop striving for a work-life balance, and begin to craft a work-life blend.”  

“We” is available in hardcover through Amazon.com, Barnes & Noble, Borders and Indie Bound. The list price is $24.95; ISBN: 978-0-47076743-6.  

For more information on Kenexa, please visit www.kenexa.com
Matt Lafata, HRchitect

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New Book Reveals Reasons Behind Record-Breaking Employee Dissatisfaction…from Kenexa

January 25, 2011

 

Data-Rich ‘We’ Calls for Deeper Engagement From Companies and Individuals

HRchitect featured Kenexa in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems and top Talent Management Systems vendors that businesses should consider. Ron Hanscome, VP of Product Strategy with Kenexa appeared on the HRchitect WebMingle on June 26, 2009 and Derek Bluestone, VP Product Marketing appeared on June 17, 2010. HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended the Kenexa Analyst Day in May, 2010 and the Kenexa World Conference in 2009 and 2010.

If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. HRchitect has 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 always available to help!

Kenexa (NASDAQ: KNXA), a global provider of business solutions for human resources, today announced the publication of “We: How to Increase Performance and Profits Through Full Engagement.” Coauthored by Rudy Karsan, Cofounder, Chairman and CEO of Kenexa, and Kevin Kruse, CEO of Krū Research, the book was published in January 2011 by Wiley.

Karsan observed, “We live in a new era where work and life are blended as opposed to balanced, entitlements are a thing of the past, and job satisfaction is at a record low. This is a crisis for individuals because negative emotions at work spill over to our personal lives and cross over to those around us.”

For businesses, disengaged employees lead to lower levels of productivity and service and it’s been shown that companies with disengaged workers have five times lower shareholder returns than those companies with the most engaged workers. For individuals, research confirms that disengaged employees weigh five pounds more, have an elevated risk of heart attack, experience less marital intimacy and have children who are more likely to misbehave at school.

Based on vast global research and made accessible through anecdotes, interactive exercises, and online videos, Karsan and Kruse make their advice actionable for immediate personal and organizational growth. In “We: How to Increase Performance and Profits Through Full Engagement” Karsan and Kruse dig deep to reveal the nature of work in the modern organization and share secrets to achieving emotional buy-in and commitment at work. Based on findings from more than 10 million worker surveys annually and on their own experience as award-winning leaders of fast-growing companies, Karsan and Kruse highlight the three most common factors that drive engagement: 

  • Growth: We need to feel that we are advancing in our careers or are learning new things.
  • Recognition: We need to feel appreciated and believe that our ideas count.
  • Trust: We need to trust our senior leaders and feel confident about the future.

“Your kids, your spouse, your friends, your colleagues — all of us — we need you to find meaning and be engaged at work. If you’re a manager, we need you to be committed to the engagement and alignment of the workers on your team. We need each other to reach our shared goals. We need to harmonize our lives and our work,” said Karsan.

“If you think smoking kills, then you should know that having a bad job is just as lethal (literally) to both the employee and the company. What Rudy and Kevin understand is that both the employee and their leadership have dual roles in fixing this toxic situation — and they outline in detail the three drivers needed to create an engaged workplace, based on their experience and research from over 10 million people,” said Verne Harnish, CEO, Gazelles Inc. and author of “The Rockefeller Habits.”

“In my years as a business journalist I’ve interviewed, spent time with and learned from hundreds of executives. Rudy Karsan’s insights into career growth, employee engagement and leadership have stood out. This book is a must read,” stated Ali Velshi, CNN Anchor & Chief Business Correspondent.

The book is available in hardcover now through Amazon.com. The list price is $24.95; ISBN: 978-0-47076743-6.

For more information on Kenexa, please visit www.kenexa.com
Matt Lafata, HRchitect

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