Taleo Announces Record Quarterly Revenues of $67.2 Million, up 33% Year-Over-Year; Application Revenue Growth of 24% to $55.2 Million…from Taleo

 

Record Quarterly Non-GAAP Revenue of $71.2 Million, up 41% Year-Over-Year; Non-GAAP Application Revenue of $57.8 Million, up 30% Year-Over-Year; Record Full Year GAAP Revenue of $237.3 Million, up 20% Year-Over-Year; Non-GAAP Revenue of $241.8 Million, up 21% Year-Over-Year

HRchitect featured Taleo in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Acquisition Systems vendors that businesses should consider. Kevin Marasco, VP Brand Marketing with Taleo appeared on the HRchitect WebMingle on November 6, 2009. HRchitect attended the 2010 TaleoWorld conference and HRchitect’s Matt Lafata, one of the industry’s leading talent management systems analysts, attended Taleo’s annual Sales and Services meeting in 2010 & 2011.

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!

Taleo Corporation (NASDAQ: TLEO), the leading provider of on-demand Talent Management solutions, today announced record-setting results for its fiscal fourth quarter and the year ended December 31, 2010, completing a year of break-through performance.

“Taleo’s Talent Intelligence value proposition — providing insight for organizations to better know their people and grow their business — is putting talent management at the front of the business agenda,” said Michael Gregoire, Chairman and CEO of Taleo. “Our performance in 2010 reflects tremendous market adoption of our talent management suite of Recruiting, Performance, Compensation and Learning wrapped around powerful analytics.”

Taleo delivered the following results for the fourth quarter and full year 2010:

Fourth Quarter Revenue: Total revenue for the fourth quarter was $67.2 million, an increase of 33% on a year-over-year basis. Application revenue for the fourth quarter was $55.2 million, an increase of 24% on a year-over-year basis. Services revenue for the fourth quarter was $12.0 million, an increase of 101% on a year-over-year basis.

Total fourth quarter non-GAAP revenue was $71.2 million, an increase of 41% on a year-over-year basis. Non-GAAP application revenue for the fourth quarter was $57.8 million, an increase of 30% on a year-over-year basis. Non-GAAP services revenues for the fourth quarter was $13.4 million, an increase of 123% on a year-over-year basis.

2010 Revenue: Total revenue for the full year 2010 was $237.3 million, an increase of 20% on a year-over-year basis. Application revenue for the full year 2010 was $199.3 million, an increase of 15% on a year-over-year basis. Services revenue for the full year 2010 was $38.0 million, an increase of 52% on a year-over-year basis.

For the full year 2010, the company reported Non-GAAP revenue of $241.8 million, an increase of 21% from the prior year. Non-GAAP application revenue for the full year 2010 was $202.4 million, an increase of 16% on a year-over-year basis. Non-GAAP services revenue for the full year 2010 was $39.3 million, an increase of 58% on a year-over-year basis.

Fourth Quarter Earnings per Share: Fourth quarter loss per share was $(0.02), compared to net income per fully diluted share of $0.13 a year ago. Non-GAAP income per fully diluted share was flat year-over-year at $0.23. The company’s non-GAAP results include amounts excluded from GAAP revenue due to the write down of the deferred revenue associated with purchase accounting for Worldwide Compensation and Learn.com, and exclude the effects of $3.9 million in stock-based compensation expense, $5.3 million in amortization of acquired intangibles, and $3.8 million in acquisition related transaction costs. GAAP fourth quarter EPS calculations are based on 40.3 million basic weighted average shares outstanding, while non-GAAP fourth quarter EPS calculations are based on 43.4 million fully diluted weighted average shares outstanding. The fully diluted weighted average shares outstanding used to compute non-GAAP earnings per share have been calculated without giving consideration to the treasury stock method.

2010 Earnings per Share: For the full year 2010, net income per fully diluted share declined to $0.01 from $0.04 a year ago. Non-GAAP net income per fully diluted share for the full year 2010 rose to $0.78 compared to $0.77 a year ago. The company’s non-GAAP results include amounts excluded from GAAP revenue due to the write down of the deferred revenue associated with purchase accounting for Worldwide Compensation and Learn.com, and exclude the effects of $14.9 million in stock-based compensation expense, $14.5 million in amortization of acquired intangibles, and $6.8 million in acquisition related transaction costs. GAAP full year 2010 EPS calculations are based on 40.9 million fully diluted weighted average shares outstanding, while non-GAAP full year 2010 EPS calculations are based on 43.0 million fully diluted weighted average shares outstanding. The fully diluted weighted average shares outstanding used to compute non-GAAP earnings per share have been calculated without giving consideration to the treasury stock method.

Customers: In the fourth quarter, 304 new businesses chose Taleo’s Talent Management solutions for recruiting, performance, learning and/or compensation management, including: DHL Global, Panda Restaurant Group, Southern California Edison, St. Joseph Health systems and Universal City Studios. A record 16 new contracts in the fourth quarter were larger than $250,000 in first year application revenue, underscoring the market interest in larger, global deployments and in multiple component suite solutions. The performance management product line performed exceptionally well with a record 57 transactions in our fourth quarter and over 170 transactions in 2010.

Cash: Cash from operations for full year 2010 was $35.8 million, down 29% from $50.7 million in 2009. Cash flow from operations was down in 2010 due primarily to the impact of operating liabilities assumed in our 2010 acquisitions of Worldwide Compensation and Learn.com, and the timing of fourth quarter 2010 billings. Total cash and cash equivalents finished the year at $141.6 million, a decrease of $102.6 million from the prior year, which includes approximately $137.5 million in net outflow from the company’s acquisitions of Worldwide Compensation and Learn.com in 2010.

For more information on Taleo, please visit www.taleo.com
Matt Lafata, HRchitect

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