SAN MATEO, Calif., Feb. 2, 2012 /PRNewswire/ -- SuccessFactors, Inc.
(NYSE: SFSF) today announced that based on currently available,
unaudited information, the Company expects fiscal 2011 fourth
quarter GAAP revenue of approximately $97
million and non-GAAP revenue of approximately $100 million. The difference between GAAP and
non-GAAP revenue is approximately $3
million associated with the net impact of acquisition
related deferred revenue before fair value adjustment. Billings,
defined as GAAP revenue plus change in deferred revenue, are
expected to be approximately $144
million for the fourth quarter. Billings profit, defined as
billings less non-GAAP cost of revenue and operating expenses, is
expected to be approximately $44.5
million, which translates into a fourth quarter billings
margin of 31 percent. Deferred revenue as of Dec. 31, 2011 is expected to be approximately
$295 million. Cash flow from
operations for the fourth quarter is expected to be approximately
$24.0 million.
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GAAP operating loss for the quarter is expected to be
$8.3 million, and GAAP net loss per
share for the quarter is expected to be $0.02. Non-GAAP operating income for the quarter
is expected to be $0.1 million and
non-GAAP net loss per share for the quarter is expected to be
$0.02. The non-GAAP measures used by
SuccessFactors in this press release include the net impact of
acquisition related deferred revenue before fair value adjustment,
and exclude the impact of stock-based compensation expense, the
amortization of intangible assets, integration costs, future cash
consideration of acquisitions and deal related costs, revaluation
of contingent consideration or write-downs for fair value
accounting related to business combination, any unrealized foreign
exchange gain/loss on an intercompany loan related to the
acquisition of Inform, and a tax benefit related to the acquisition
of Jobs2web.
Q4 FY11 Financial Results Conference Call:
SuccessFactors will host a conference call today at 2 p.m. PST/ 5 p.m.
EST to discuss its fourth quarter results. Due to the
pending merger with SAP AG management will not be hosting a live
question and answer session during this conference call. To listen
to management's prepared remarks please dial +1 (888) 895-8076 or
+1 (973) 200-3188 internationally. A live webcast of the event will
be available on SuccessFactors' Investor Relations website at
http://www.successfactors.com/investor. A domestic replay will be
available at +1 (855) 859-2056 or +1 (404) 537-3406
internationally, using passcode 44281856, and available via webcast
replay until Feb. 23, 2012.
Use of Non-GAAP Financial Information:
SuccessFactors provides quarterly and annual financial
statements that are prepared in accordance with generally accepted
accounting principles (GAAP). To help understand SuccessFactors'
past financial performance and future results, SuccessFactors has
supplemented its financial results that it provides in accordance
with GAAP, with non-GAAP financial measures. The method
SuccessFactors uses to produce non-GAAP financial results is not
computed according to GAAP and may differ from the methods used by
other companies. The non-GAAP measures used by SuccessFactors in
this press release include non-GAAP revenue, billings, billings
profit, billings margin, non-GAAP operating income and non-GAAP net
loss per share. Non-GAAP operating income and non-GAAP loss per
share exclude the impact of stock-based compensation expense, the
amortization of intangible assets, integration costs, future cash
consideration of acquisitions and deal related costs, revaluation
of contingent consideration or write-downs for fair value
accounting related to business combination, any unrealized foreign
exchange gain/loss on an intercompany loan related to the
acquisition of Inform, and a tax benefit related to the
acquisitions of Jobs2web. The Company defines billings as revenue
plus change in total deferred revenue. Non-GAAP revenue includes
the net impact of acquisition related deferred revenue that is
required to be adjusted to fair value for GAAP purposes under
purchase accounting rules. SuccessFactors' reference to these
non-GAAP financial results should be considered in addition to
results that are prepared under current accounting standards but
should not be considered as a substitute for, or superior to, the
financial results that are presented as consistent with GAAP.
SuccessFactors' management believes each of these supplemental
non-GAAP financial measures is useful to investors because these
supplemental non-GAAP financial measures are used internally by
management to understand, manage and evaluate SuccessFactors'
business and make operating decisions. These non-GAAP financial
measures are among the factors SuccessFactors' management uses in
planning for and forecasting future periods. Reconciliation to the
nearest GAAP financial measures of the non-GAAP financial measures
is included in this press release.
About SuccessFactors
SuccessFactors is the leading provider of cloud-based Business
Execution Software, and delivers business alignment, team
execution, people performance, and learning management solutions to
organizations of all sizes across more than 60 industries. With
approximately 15 million subscription seats globally, we strive to
delight our customers by delivering innovative solutions, content
and analytics, process expertise and best practices insights from
serving our broad and diverse customer base. Today, we have more
than 3,500 customers in more than 168 countries using our
application suite in 35 languages.
It's Time to Love Work Again.
Follow us: http://twitter.com/SuccessFactors
Like us: http://facebook.com/SuccessFactors
"Safe harbor" statement under the Private Securities Litigation
Reform Act of 1995:
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements are SuccessFactors' current expectations
and beliefs.
These forward-looking statements include statements about the
benefits of the proposed acquisition. Factors that could cause
actual results to differ materially from those contemplated by
these forward-looking statements include: our ability to retain
customers and to experience high customer renewal rates;
integration risks, including risks related to integration of
Jobs2web products, technologies and personnel and managing
geographically-dispersed operations; assumption of liabilities;
whether customers of Jobs2web will desire to continue as customers
pricing pressures; the uncertain impact of the overall global
economic conditions, including on customers, prospective customers
and partners, renewal rates and length of sales cycles; the fact
that the business execution market is at an early stage of
development, and may not develop as rapidly as we anticipate;
competitive factors; outages or security breaches; our ability to
develop, and market acceptance of, new services; the impact of any
discovered product defects or outages; our ability to continue to
sell our services outside the HR area; our ability to manage our
growth; our ability to successfully expand our sales force and its
effectiveness; whether our resellers and other partners will be
successful in marketing our products; our ability to continue to
manage expenses; the impact of unforeseen expenses, including as a
result of integrating acquisitions; and general economic conditions
worldwide. If any such risks or uncertainties materialize or if any
of the assumptions prove incorrect, our results could differ
materially from the results expressed or implied by the
forward-looking statements we make.
Further information on these and other factors that could affect
these forward-looking statements is included in the section
entitled "Risk Factors" in our Annual Report on Form 10-K and in
our most recent report on Form 10-Q and in other filings we make
with the Securities and Exchange Commission from time to time.
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SuccessFactors, Inc.
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Reconciliation of GAAP to
Non-GAAP Measures
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(unaudited, in
thousands)
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|
|
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Three Months
Ended
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December
31,
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|
2011
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Non-GAAP Revenue
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GAAP Revenue
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$
97,263
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(a) Net impact of acquisition
related deferred revenue before fair value adjustment
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2,780
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Non-GAAP Revenue
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$
100,043
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|
Billings
reconciliation:
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|
|
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GAAP Revenue
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$
97,263
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|
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|
|
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Ending total deferred
revenue
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295,169
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Less: Beginning total
deferred revenue
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243,918
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|
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Less: Beginning total
deferred revenue from acquisitions
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4,118
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Change in total deferred
revenue
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47,133
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|
|
|
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Billings (revenue plus change in
total deferred revenue)
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$
144,396
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Billings profit and margin
reconciliation:
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Billings
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$
144,396
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Non-GAAP total cost of revenue
and operating expenses (total spend)
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99,916
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Billings profit
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$
44,480
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Billings margin
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31%
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Total spend
reconciliation:
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GAAP total cost of revenue and
operating expenses
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$
105,521
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(b) Stock-based compensation
expense, amortization of intangibles, future cash consideration of
acquisitions, and due diligence and integration costs
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20,869
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(c) Revaluation of contingent
considerations
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(15,264)
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Non-GAAP total cost of revenue
and operating expenses (total spend)
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$
99,916
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Operating income
reconciliation:
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|
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GAAP loss from
operations
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$
(8,258)
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(a) Net impact of acquisition
related deferred revenue before fair value adjustment
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2,780
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|
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(b) Stock-based compensation
expense, amortization of intangibles, future cash consideration of
acquisitions, and due diligence and integration costs
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20,869
|
|
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(c) Revaluation of contingent
considerations
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(15,264)
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Non-GAAP income from operations
less stock-based compensation and other items
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$
127
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Net loss and net loss per share
reconciliations:
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|
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GAAP net loss
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$
(1,308)
|
|
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(a) Net impact of acquisition
related deferred revenue before fair value adjustment
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2,780
|
|
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(b) Stock-based compensation
expense, amortization of intangibles, future cash consideration of
acquisitions, and due diligence and integration costs
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20,869
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(c) Revaluation of contingent
considerations
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(15,264)
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(d) Foreign exchange unrealized
gain on intercompany acquisition loan related to Inform
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(1,319)
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(e) Tax benefit related to
Jobs2web
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(7,757)
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Non-GAAP net loss excluding
stock-based compensation expense and other items
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$
(1,999)
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GAAP net loss per common share -
basic and diluted
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$
(0.02)
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Non-GAAP net loss per common
share (excluding stock-based compensation expense and other items)
- basic
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$
(0.02)
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Non-GAAP net loss per common
share (excluding stock-based compensation expense and other items)
- diluted
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$
(0.02)
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|
|
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GAAP shares used in computing
net income (loss) per common share, basic
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83,969
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|
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GAAP shares used in computing
net income (loss) per common share, diluted
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83,969
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Contact:
For investor inquiries:
Karen Moran
+1-650.645.4439
kmoran@successfactors.com
For media inquiries:
Andrea Meyer
+1-415.370.7329
ameyer@successfactors.com
SOURCE SuccessFactors, Inc.