- Record total bookings of $37.1 million, up 15% year-over-year
- 351% increase in annual contract value of new SaaS bookings year-over-year
- Subscription revenue up 17% year-over-year
- Added 113 new enterprise customers year-to-date; 41 in the third quarter
- Cash flow from operations grew 52% year-over-year
HRchitect featured Saba in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top Learning Management Systems vendors that businesses should consider. A.G. Lambert, the VP of Marketing with Saba appeared on the HRchitect WebMingle on August 14, 2009. Matt Lafata with HRchitect attended the 2010 Saba Global Summit and Analyst Day in Boston, MA
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!
Saba (NASDAQ:SABA), the premier provider of people systems, today reported financial results for its third fiscal quarter ended February 28, 2011.
“Saba delivered record total revenues, subscription revenue, bookings and deferred revenue in the quarter,” said Bobby Yazdani, Chairman and CEO of Saba. “Exemplified by new enterprise wins at organizations such as Eli Lilly and John Deere, this quarter we once again experienced accelerating adoption of the Saba People Cloud. With our unified and complete set of cloud applications, Saba is well positioned for long-term growth.”
In the quarter, Saba achieved record total bookings of $37.1 million. The growth in total bookings was fueled by a four-fold increase year-over-year in the number of new SaaS transactions over $50,000. Our top 4 transactions in the quarter, and 9 of our 12 largest deals in the quarter, were for Saba People Cloud offerings. The growth in the Saba People Cloud business is driving increased recurring revenue, with year-over-year subscription revenue growth rates increasing from 7% in the first quarter to 10% in the second quarter and now 17% this quarter.
Results for the Third Quarter of Fiscal Year 2011
Revenues: Total revenues increased 14% to a record $30.3 million in the third quarter ended February 28, 2011 from $26.7 million in the same period last year. Subscription revenue increased 17% to a record $16.7 million in the third quarter of fiscal year 2011 over the same period last year.
Total revenues, deferred revenue, and earnings per share were impacted by the accounting changes described below.
Deferred Revenue: Deferred revenue increased 18% to a record $42.4 million at the end of the third fiscal quarter of 2011, from $36.0 million at the end of the same period last year.
Earnings per Share: GAAP earnings per share was breakeven in the third quarter of fiscal year 2011 compared to fully diluted earnings per share of $0.01 in the same period last year. Non-GAAP fully diluted earnings per share was $0.05 in the third quarter of fiscal year 2011 compared to non-GAAP fully diluted earnings per share of $0.07 in the third quarter of last year. These results reflect the acceleration toward Saba People Cloud offerings over traditional license transactions and our continued investment in sales and marketing in support of our strong bookings growth.
Our non-GAAP results are calculated by adjusting GAAP results for the impact of certain items including (i) non-cash amortization of intangibles, (ii) non-cash charges related to share-based compensation expenses and (iii) non-operating reorganization costs. A reconciliation of GAAP to non-GAAP results is included in the financial statements accompanying this press release.
Share Repurchase: The Company repurchased 201,417 shares of common stock during the quarter for $1.3 million, bringing the total number of shares repurchased under its share repurchase program to 533,643 shares for an aggregate purchase price of approximately $3.1 million. The Company now has approximately $6.9 million remaining under the repurchase program.
Customers: We added 41 new enterprise customers in the quarter including: Eli Lilly, John Deere, Bloomberg, Boston Consulting Group, Infocomm International, Illumina, Mead Johnson, Pioneer Natural Resources, and Tele Tech.
In addition, we expanded our footprint with a number of our existing customers in the quarter including: Sanofi Aventis, Stanford University, Western Australia Department of Education, Saudi Aramco, Novartis, Allina Hospital, Guitar Center, Halliburton, and Chrysler.
Partners: We added 12 partners in the third quarter including Wipro, Pinneast, Dingxum in China and Kbizz in Brazil to join our existing partners IBM, HP, ACS, Comenius, and HCL among others. These partners helped us win a number of deals this quarter, including deals at Eli Lilly, Italian Ministry of Finance, Tim Cellular, and Falabella.
The following statements are based on current expectations as of the date of this release. These statements are forward-looking, and actual results may differ materially. Saba does not undertake any obligations to update these forward-looking statements.
For fiscal year 2011, ending May 31, 2011, we are forecasting bookings to grow in the range of 14% to 16% over fiscal year 2010.
Total revenues are forecasted to be in the range of approximately $117 million to $119 million. We expect our license revenue contribution to account for approximately 16% of total revenues in fiscal year 2011. Due to the anticipated higher revenue contribution from our Saba People Cloud business, we expect GAAP net loss to range from $0.10 to $0.14 per share and non-GAAP fully diluted earnings to be in the range of $0.08 to $0.12 per share.
Fiscal year 2011 non-GAAP outlook excludes non-cash amortization of intangibles and charges related to stock-based compensation expenses.