SuccessFactors Announces Record Fourth Quarter and Fiscal 2010 Results…from SuccessFactors

 

Non-GAAP revenue grows 46 percent
— Q410 billings hit an all-time high of $88.5 million, growing 41 percent year-over-year.
— 2010 cash generated from operations was approximately $43.4 million representing 182 percent growth over 2009.
— Deferred revenue increases to a record $234.4 million; including backlog, revenue visibility grows to $417.5 million.
— Initiates first quarter and full year fiscal 2011 guidance.

HRchitect featured SuccessFactors in our 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. 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!

SuccessFactors, Inc. (Nasdaq: SFSF) today announced results for its fourth quarter fiscal and fiscal year 2010 which ended December 31, 2010.

“SuccessFactors had an outstanding quarter and a great year in 2010. Once again the company achieved record quarterly results, highlighted by an all-time high in quarterly billings at $88.5 million, up 41 percent year-over-year,” said Lars Dalgaard, founder and CEO for SuccessFactors. “When we were at a $40 million revenue run rate we were growing more than 100 percent, and now at more than $200 million we are growing more than 40 percent. I’m proud that we continue to be one of the fastest growing public SaaS companies.”

Results for the fourth quarter fiscal 2010:  

  • Q4 FY10 Non-GAAP Revenue: For the quarter ended December 31, 2010, non-GAAP revenue was approximately $61.7 million, compared to the company’s prior guidance of $55.5 million to $56.5 million, and compared to $42.2 million in the quarter ended December 31, 2009, an increase of approximately 46 percent year-over-year and an increase of 15 percent sequentially from Q310.
  • Q4 FY10 Non-GAAP Operating Profit: For the quarter ended December 31, 2010, the Company recognized non-GAAP operating income of $372,000 and GAAP loss from operations of $5.4 million. The non-GAAP operating income excludes approximately $9.1 million in stock-based compensation expense, amortization of intangibles, future cash consideration of acquisitions and integration costs and a $4.8 million gain on revaluation of contingent consideration for the quarter ended December 31, 2010.
  • Q4 FY10 Total Deferred Revenue and Backlog: Total deferred revenue as of December 31, 2010 was $234.4 million, up approximately 14 percent sequentially from approximately $206.1 million at September 30, 2010 and up approximately 29 percent year-over-year from $181.6 million at December 31, 2009. Unbilled backlog as of December 31, 2010 totaled $183.1 million, up 28 percent from $143.1 million at December 31, 2009.
  • Q4 FY10 Cash Flow Generated from Operations: For the quarter ended December 31, 2010, cash flow generated from operating activities was approximately $13.9 million, up approximately 69 percent from the approximately $8.2 million for the quarter ended December 31, 2009.
  • Q4 FY10 Net Loss per Common Share: For the quarter ended December 31, 2010, on a GAAP basis, net loss per share was $0.05. On a non-GAAP basis, net income per share, basic and diluted, was $0.00. Non-GAAP net income per common share, both basic and diluted, excludes approximately $9.1 million in stock-based compensation expense, amortization of intangibles, future cash consideration of acquisitions and integration costs, a $4.8 million gain on revaluation of contingent consideration related to business combinations and $1.5 million unrealized foreign exchange gain on an intercompany acquisition loan related to Inform. This compares to non-GAAP net income per share of $0.01 in the third quarter of 2010 which excluded $8.5 million of stock-based compensation expense, amortization of intangibles, future cash consideration of acquisitions and integration costs, a $3.1 million gain on revaluation of contingent consideration related to business combinations and $3.5 million unrealized foreign exchange gain on an intercompany acquisition loan related to Inform, and non-GAAP net income per share of $0.01 in the fourth quarter of 2009 which excluded $3.0 million of stock-based compensation. For the fourth quarter of 2010, GAAP net loss per common share calculations assume a weighted share count of approximately 76.4 million. Non-GAAP net income per common share calculations assume average weighted basic and diluted share counts of approximately 76.4 million shares and 84.0 million shares, respectively.

SuccessFactors’ results for fiscal year 2010:  

  • FY 2010 Non-GAAP Revenue: Fiscal 2010 non-GAAP revenue was approximately $209.4 million, compared to prior guidance of $203.2 million to $203.7 million for the year. Compared to fiscal 2009 revenue of approximately $153.1 million, 2010 revenue increased 37 percent year over year.
  • FY 2010 Cash Flow Generated from Operations: For the fiscal year ended December 31, 2010, the company generated approximately $43.4 million of cash from its operating activities, compared to $15.4 million generated from operations in fiscal 2009. Total cash, cash equivalents and marketable securities at December 31, 2010 were approximately $356.5 million, up $33.2 million, or 10 percent, from the same date last year, and an increase of 7 percent sequentially from September 30, 2010.
  • FY 2010 Net Loss per Common Share: On a GAAP basis, for the year ended December 31, 2010, net loss per share was $0.17. Non-GAAP net income per common share, basic and diluted was $0.07 which excludes approximately $27.2 million in stock-based compensation expense, amortization of intangibles, future cash consideration of acquisitions and integration costs, an approximately $7.9 million gain on revaluation of contingent consideration related to business combinations and approximately $5.0 million unrealized foreign exchange gain on an intercompany acquisition loan related to Inform. This compares to a non-GAAP net loss per share of ($0.04) for the prior year which excluded $10.4 million of stock-based compensation expense. GAAP net loss per common share calculations assume average weighted basic share count of 73.9 million. Non-GAAP net income per common share calculations assume average weighted basic and diluted share counts of approximately 73.9 million shares and 80.9 million shares.

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

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