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Customer Base Increases 106% to 1,750 and Exceeds Three Million Users

-- Revenue up 95% year-over-year to $63.4 million

-- Bookings of $112 million, an increase of 88% year-
over-year

-- Deferred revenue up 93% year-over-year to $101 million

-- Company initiates first quarter and full year fiscal 2008 guidance

SAN MATEO, Calif.--(BUSINESS WIRE)--Feb. 15, 2008--SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions, today announced results for its fourth quarter and fiscal year 2007 ended December 31, 2007.

"95% revenue growth in 2007, and passing $100 million in annual bookings in our first six years, is an extraordinary achievement," said Lars Dalgaard, president and CEO, SuccessFactors. "We did this through our colleagues' passionate execution and our customers' unwavering commitment. Global demand for our products has never been stronger. Even in a challenging economy, customers have a large appetite for products that increase revenue and decrease costs. We do both."

SuccessFactors' results for the fourth quarter of fiscal year 2007 were as follows:
-- Q4 FY07 Revenue: Revenue was $19.2 million, an increase of 70% on a year-over-year basis and an increase of 15% on a quarter-over-quarter basis compared to the third quarter of 2007.

-- Q4 FY07 Bookings: Bookings, defined as revenue plus change in total deferred revenue during the period, was $45.7 million, an increase of 69% on a year-over-year basis and an increase of 65% on a quarter-over-quarter basis compared to the third quarter of 2007.

-- Q4 FY07 Customers: Customers rose approximately 350, a new record, during the quarter and totaled approximately 1,750 as of December 31, 2007, an increase of 106% from December 31, 2006, and an increase of 25% from September 30, 2007.

-- Q4 FY07 Net Loss per Share: On a GAAP basis, the net loss per common share, basic and diluted, was $1.11. The non-GAAP net loss per common share, basic and diluted, was $0.49, which excludes approximately $1.8 million in stock-based compensation, $1.2 million of other expense related to the fair value of our previously outstanding convertible preferred stock warrants, and $1.6 million of debt issuance and related costs associated with these warrants. For the basis of GAAP and non-GAAP net loss calculations, there were 23.7 million and 43.9 million weighted average shares outstanding during the quarter, respectively. Together, these items reduced reported GAAP net loss per common share, basic and diluted, by $0.62 per share.

-- Q4 FY07 Total Deferred Revenue: Total deferred revenue as of December 31, 2007 was $101 million, an increase of 93% compared to December 31, 2006 and 36% compared to September 30, 2007.

Results for the fiscal year 2007:

-- FY2007 Revenue: Revenue was $63.4 million, an increase of 95% on a year-over-year basis.

-- FY2007 Bookings: Bookings were $112 million, an increase of 88% on a year-over-year basis.

-- FY2007 Cash: Cash used in operations for fiscal 2007 was $28.5 million. Total cash, cash equivalents, and marketable securities at the end of the year were $90.8 million.

-- FY2007 Customers: Customers rose approximately 900, to a new record of approximately 1,750 as of December 31, 2007, an increase of 106% from the end of 2006.

-- FY2007 Net Loss per Share: On a GAAP basis, the net loss per common share, basic and diluted, was $8.35. The non-GAAP net loss per common share, basic and diluted, was $1.73, which excludes approximately $4.4 million in stock-based compensation, $2.5 million of other expense related to the fair value of our previously outstanding convertible preferred stock warrants, and $1.9 million of debt issuance and related costs associated with these warrants. For the basis of GAAP and non-GAAP net loss calculations, there were 9.0 million and 38.5 million weighted average shares outstanding during the year, respectively. Together, these items reduced reported GAAP net loss per common share, basic and diluted, by $6.62 per share.

Additional Fourth Quarter and Fiscal 2007 Highlights:

-- Examples of customer wins and additional product deployments in 2007 include Toyota, Goldman Sachs, Thomson Learning, Meridian Health, Fannie Mae, Mylan Laboratories, Sepracor, Baylor Health Care System, Transocean, Barrick Gold, Tesoro Petroleum, Suncor Energy, Avery Dennison, Canadian Pacific Railway, Premier Farnell, Cadbury Schweppes, Lincoln Financial Group, Eclipse Aviation, NFL Players Association, Northwest Airlines, Johnson & Johnson, Gambro, and La Poste.

-- In 2007, 135 deals exceeded $250,000 in total contract value, 62 deals exceeded $500,000 in total contract value, and 15 deals exceeded $1 million in total contract value.

-- Announced one of the world's largest software-as-a-service deployments, Wachovia Bank, with more than 85,000 employees, is actively utilizing the SuccessFactors Performance and Talent Management Suite.

-- Honored nationally as one of the 50 Best Companies to Work For in America by the Society of Human Resource Management and the Great Place To Work Institute.

-- Recognized as one of the Top 100 Best Places to Work in Greater Bay Area by the San Francisco Business Times, Silicon Valley/San Jose Business Journal, and East Bay Business Times.

-- Successfully achieved SAS 70 Type I and II compliance.

-- In November, SuccessFactors launched a new program called OneVoice to help enable constant, ongoing collaboration between our customers and product teams. With more than 1000 members, OneVoice is a community of customers focused on driving the direction of SuccessFactors' products, helping the company to prioritize its development decisions.

Guidance

SuccessFactors is initiating guidance for its first quarter and for its full fiscal year 2008.
-- Q1 FY08: Revenue for the Company's first fiscal quarter is projected to be in the range of approximately $20.5 million to $21.5 million. Non-GAAP net loss per common share, basic and diluted, is expected to be in the range of approximately ($0.40) to ($0.42). Non-GAAP net loss per common share estimates exclude the effects of stock-based compensation expense and assume an average weighted share count of 51.8 million shares.

-- Full Year FY08: The Company expects full year revenue for fiscal 2008 to be approximately $101 million to $103 million. The company also expects non-GAAP net loss per common share, basic and diluted, for fiscal 2008 to be in the range of approximately ($1.63) to ($1.67). Non-GAAP net loss per common share estimates exclude the effects of stock-based compensation expense and assume an average weighted share count of 53.1 million shares.

Conference Call

SuccessFactors will host a conference call to discuss its fourth quarter and fiscal 2007 results at 2:00 p.m. Pacific Standard Time today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations website at http://www.successfactors.com/investor. In addition, an archive of the webcast can be accessed through the same link until February 22, 2008. Participants who choose to call into the conference call can do so by dialing domestically at 866-923-9739 and internationally at 706-634-0915. A domestic replay will be available at 800-642-1687 or 706-645-9291 internationally, passcode 30758194, until February 22, 2008.

About SuccessFactors, Inc.

SuccessFactors is the leading provider of on-demand employee performance and talent management solutions that enable organizations of every size, across every industry and geography, to achieve high-performing workforces by enabling goal alignment and execution, talent development and planning, and pay-for-performance initiatives. SuccessFactors currently has more than 1,750 customers across more than 60 industries, with more than 3 million end users in over 156 countries using the application in 22 languages. Founded in 2001 with offices around the world, the company employs more than 700 people, all passionately focused on revolutionizing the future of work. For more information, visit: http://www.successfactors.com.

"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.
This release contains forward-looking statements about expected revenue and non-GAAP earnings per share for the first fiscal quarter of 2008, the full fiscal year 2008, related items, and demand for our products. Factors that could cause actual results to differ materially include: our ability to continue to experience high customer renewal rates; whether customers renew their agreements for additional modules or users; pricing pressures; the fact that our market is at an early stage of development, and it may not develop as rapidly as we predict; competitive factors; outages or security breaches; our ability to develop, and market acceptance of, new services; our ability to manage our growth; our ability to improve our internal controls; our ability to successfully expand our sales force and its effectiveness; and general economic conditions. If any such risks or uncertainties materialize or if any of the assumptions proves 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 our financial results is included in the section entitled "Risk Factors" in our Registration Statement on Form S-1 and in the reports on Form 10-K, 10-Q and in other filings we make with the Securities and Exchange Commission from time to time.

These documents are or will be available on the SEC Filings section of the Investor Information section of our website at www.successfactors.com/investor.
SuccessFactors, Inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

SuccessFactors is a trademark of SuccessFactors, Inc., San Mateo, California. Other names used may be trademarks of their respective owners.

For more information on specific figures, please go to www.successfactors.com or please contact:

Kim Squire
Devonshire Marketing
Tel: 0870 7000 166
Email: kim@devonshiremarketing.com

This press release was distributed by ResponseSource Press Release Wire on behalf of Devonshire Marketing in the following categories: Education & Human Resources, Computing & Telecoms, for more information visit http://pressreleasewire.responsesource.com/about.