Media Contact:
|
Investor Relations Contact: | |
Jason Davis
|
Carolyn Bass, Jon Avidor | |
Horn Group
|
Market Street Partners | |
646-688-0588
|
415-445-3240 | |
jdavis@horngroup.com
|
ir@taleo.com |
• | Revenues of $31.0 million, an increase of 32% year-over-year, and 8% quarter over quarter. | ||
• | GAAP net loss of $(1.8) million, or $(0.07) per fully diluted share, an improvement year-over-year of 4% and 30%, respectively. | ||
• | Non-GAAP net income of $2.8 million, or $0.10 per fully diluted share compared to a non-GAAP net loss of $(192,000), or $(0.01) per fully diluted share reported in the second quarter of 2006. | ||
• | Customer base grew to over 1,200 customers with more than 1,080,000 users. |
• | Signed 188 new customers, bringing Taleo’s customer base to over 1,200 organizations around the world. | ||
• | New customers include: Paychex, Telstra Corporation, Purdue University, Fresh Market, Garmin International, BJC Healthcare, Group Banques Populaires, Export Development Canada, Hutchison Telecommunications, Taranaki District Health Board, Arthur D. Little Inc., Alexis Healthcare, The Motley Fool, CARE USA, Tropicana Casinos and Resorts, CHANEL, E! Networks, BlackRock, and Insight. | ||
• | Released Taleo Enterprise Edition™ 7.5 and migrated three leading adopters to the new release: Proctor and Gamble, Starwood Hotels and Intermountain HealthCare. Taleo Enterprise Edition™ 7.5 features Web 2.0 technologies and hundreds of enhancements that improve talent management processes for recruiters, hiring managers, and job candidates at large enterprises. | ||
• | Announced implementation of Taleo’s Enterprise Edition at InterContinental Hotels Group and Omni Industries. | ||
• | Launched new business unit focused on small and medium businesses headed by Jason Blessing, Group Vice President. | ||
• | Strengthened management team with the addition of Chief Marketing Officer, Al Campa. |
• | Processed over 1.2 billion customer transactions, more than 300,000 hires, and 9.9 million applications from 5.8 million new candidates. | ||
• | Maintained 99.98% system availability, during the release of the company’s largest product rollout. | ||
• | Grew global presence by adding more than 95,000 new users to bring the total number of users to over 1,080,000 worldwide, with candidates using the application in 21 languages and in over 100 countries. |
June 30, | December 31, | |||||||
2007 | 2006 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 69,020 | $ | 58,785 | ||||
Restricted cash |
238 | 2,722 | ||||||
Accounts receivable, net |
31,993 | 25,952 | ||||||
Prepaid expenses and other current assets |
5,012 | 3,657 | ||||||
Investment credit receivable |
3,645 | 4,395 | ||||||
Total current assets |
109,908 | 95,511 | ||||||
Property and equipment, net |
17,837 | 12,928 | ||||||
Restricted cash |
848 | 1,048 | ||||||
Other assets |
2,687 | 1,448 | ||||||
Goodwill |
8,058 | 6,028 | ||||||
Other Intangibles, net |
1,429 | 457 | ||||||
Total assets |
$ | 140,767 | $ | 117,420 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ | 17,400 | $ | 18,708 | ||||
Customer deposits |
1,752 | 80 | ||||||
Deferred revenue |
28,238 | 18,547 | ||||||
Capital lease obligation, short-term |
96 | 381 | ||||||
Total current liabilities |
47,486 | 37,716 | ||||||
Customer deposits and long-term deferred revenue |
— | 360 | ||||||
Other liabilities |
5,703 | 1,101 | ||||||
Capital lease obligation, long-term |
3 | 17 | ||||||
Class B Redeemable Common Stock |
— | — | ||||||
Total liabilities |
53,192 | 39,194 | ||||||
Exchangeable share obligation |
458 | 796 | ||||||
Stockholders’ equity: |
||||||||
Capital stock |
— | — | ||||||
Additional paid-in capital |
142,163 | 133,610 | ||||||
Accumulated deficit |
(56,115 | ) | (56,329 | ) | ||||
Treasury stock |
— | (158 | ) | |||||
Accumulated other comprehensive income |
1,069 | 307 | ||||||
Total stockholders’ equity |
87,117 | 77,430 | ||||||
Total liability and stockholders’ equity |
$ | 140,767 | $ | 117,420 | ||||
Three Months Year Ended | Six Months Year Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Revenue: |
||||||||||||||||
Application |
$ | 25,596 | $ | 19,031 | $ | 49,251 | $ | 37,247 | ||||||||
Consulting |
5,358 | 4,441 | 10,420 | 8,389 | ||||||||||||
Total revenue |
30,954 | 23,472 | 59,671 | 45,636 | ||||||||||||
Cost of revenue (note 1): |
||||||||||||||||
Application |
5,304 | 4,572 | 10,368 | 8,809 | ||||||||||||
Amortization of acquired intangibles |
36 | 249 | 72 | 498 | ||||||||||||
Total cost of application revenue |
5,340 | 4,821 | 10,440 | 9,307 | ||||||||||||
Consulting |
4,670 | 3,212 | 8,459 | 6,533 | ||||||||||||
Total cost of revenue |
10,010 | 8,033 | 18,899 | 15,840 | ||||||||||||
Gross profit |
20,944 | 15,439 | 40,772 | 29,796 | ||||||||||||
Operating expenses (note 1): |
||||||||||||||||
Sales and marketing |
8,471 | 7,919 | 16,988 | 14,272 | ||||||||||||
Research and development |
5,492 | 4,818 | 10,895 | 9,600 | ||||||||||||
General and administrative |
6,482 | 5,287 | 11,876 | 9,774 | ||||||||||||
Total operating expenses |
20,445 | 18,024 | 39,759 | 33,646 | ||||||||||||
Income / (loss) from operations |
499 | (2,585 | ) | 1,013 | (3,850 | ) | ||||||||||
Other income / (expense): |
||||||||||||||||
Interest income |
676 | 777 | 1,349 | 1,486 | ||||||||||||
Interest expense |
(10 | ) | (13 | ) | (29 | ) | (43 | ) | ||||||||
Total other income |
666 | 764 | 1,320 | 1,443 | ||||||||||||
Income / (loss) before provision for income tax |
1,165 | (1,821 | ) | 2,333 | (2,407 | ) | ||||||||||
Provision for income taxes |
2,918 | 7 | 3,178 | 15 | ||||||||||||
Net loss attributable to Class A common stockholders |
$ | (1,753 | ) | $ | (1,828 | ) | $ | (845 | ) | $ | (2,422 | ) | ||||
Net loss per share attributable to Class A common stockholders — basic and diluted |
$ | (0.07 | ) | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.13 | ) | ||||
Weighted average Class A common shares — basic and diluted |
23,908 | 19,229 | 23,359 | 19,013 | ||||||||||||
1. Includes share-based compensation expense pursuant to SFAS 123(R) |
||||||||||||||||
Application COS |
$ | 79 | $ | 47 | $ | 142 | $ | 88 | ||||||||
Service COS |
121 | 51 | 211 | 91 | ||||||||||||
COS Subtotal |
200 | 98 | 353 | 179 | ||||||||||||
Sales & Marketing Operating Cost |
403 | 246 | 763 | 463 | ||||||||||||
R&D Operating Cost |
285 | 154 | 528 | 277 | ||||||||||||
G&A Operating Cost |
692 | 889 | 1,321 | 1,293 | ||||||||||||
SG&A Subtotal |
1,380 | 1,289 | 2,612 | 2,033 | ||||||||||||
Total share-based compensation expense |
$ | 1,580 | $ | 1,387 | $ | 2,965 | $ | 2,212 | ||||||||
Three Months Year Ended | Six Months Year Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
GAAP net loss reported above |
$ | (1,753 | ) | $ | (1,828 | ) | $ | (845 | ) | $ | (2,422 | ) | ||||
Add back: |
||||||||||||||||
Loss on disposal of fixed assets |
— | — | — | 181 | ||||||||||||
Share-based compensation expense (SFAS 123(R)) |
1,580 | 1,387 | 2,965 | 2,212 | ||||||||||||
Amortization of acquired intangibles |
97 | 249 | 149 | 498 | ||||||||||||
Non-cash income tax reserve |
2,899 | — | 2,899 | — | ||||||||||||
4,576 | 1,636 | 6,013 | 2,891 | |||||||||||||
Non-GAAP net income / (loss) |
$ | 2,823 | $ | (192 | ) | $ | 5,168 | $ | 469 | |||||||
Non-GAAP net income / (loss) per share |
||||||||||||||||
Basic |
$ | 0.12 | $ | (0.01 | ) | $ | 0.22 | $ | 0.02 | |||||||
Diluted |
$ | 0.10 | $ | (0.01 | ) | $ | 0.20 | $ | 0.02 | |||||||
Reconciliation of basic and fully diluted share count: |
||||||||||||||||
Basic |
23,908 | 19,229 | 23,359 | 19,013 | ||||||||||||
Add: Weighted Average — Series B common stock |
1,274 | — | 1,476 | 3,896 | ||||||||||||
Weighted Average — warrants & options |
3,057 | — | 1,545 | 2,576 | ||||||||||||
Diluted |
28,239 | 19,229 | 26,380 | 25,485 | ||||||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2007 | 2006 | |||||||
Cash flows from operating activities: |
||||||||
Net loss |
$ | (845 | ) | $ | (2,422 | ) | ||
Adjustments to reconcile net loss to net cash provided
by operating activities: |
||||||||
Depreciation and amortization |
2,827 | 2,314 | ||||||
Loss on disposal of fixed assets |
— | 181 | ||||||
Amortization of tenant inducements |
(93 | ) | (52 | ) | ||||
Stock-based compensation expense |
2,965 | 2,212 | ||||||
Director fees settled with stock |
112 | — | ||||||
Bad debt expense |
310 | 1 | ||||||
Interest earned on restricted cash |
1 | — | ||||||
Changes in working capital accounts: |
||||||||
Accounts receivable |
(5,986 | ) | (1,962 | ) | ||||
Prepaid expenses and other assets |
(1,272 | ) | (664 | ) | ||||
Investment credit receivable |
1,115 | 1,658 | ||||||
Accounts payable and accrued liabilities |
(218 | ) | (115 | ) | ||||
Deferred revenues and customer deposits |
10,747 | 6,971 | ||||||
Net cash provided by operating activities |
9,663 | 8,122 | ||||||
Cash flows from investing activities: |
||||||||
Acquisition of property and equipment |
(4,082 | ) | (5,100 | ) | ||||
Restricted cash — decrease |
2,704 | 46 | ||||||
Acquisition of business |
(3,071 | ) | — | |||||
Net cash used in investing activities |
(4,449 | ) | (5,054 | ) | ||||
Cash flows from financing activities: |
||||||||
Principal payments on capital lease obligations |
(308 | ) | (293 | ) | ||||
Proceeds from stock options and warrants exercised |
5,083 | 859 | ||||||
Net cash provided by financing activities |
4,775 | 566 | ||||||
Effect of exchange rate changes on cash and cash equivalents |
246 | 70 | ||||||
Increase in cash and cash equivalents |
10,235 | 3,704 | ||||||
Cash and cash equivalents: |
||||||||
Beginning of period |
58,785 | 59,346 | ||||||
End of period |
$ | 69,020 | $ | 63,050 | ||||
Supplemental cash flow disclosures: |
||||||||
Cash paid for interest |
$ | 7 | $ | 25 | ||||
Cash paid for income taxes |
$ | 124 | $ | — | ||||
Supplemental disclosure of non-cash financing and investing
activities: |
||||||||
Property and equipment purchases included in
accounts payable and accrued liabilities |
$ | 3,686 | $ | 2,625 | ||||
Contingent shares issuable |
$ | — | $ | 80 | ||||
Contingent shares issued |
$ | — | $ | 81 | ||||
Class B common stock exchanged for Class A common
stock |
$ | 16,101 | $ | 12,090 | ||||
Treasury stock issued to employees under ESPP |
$ | 450 | $ | — | ||||
Treasury stock acquired to settle payroll taxes |
$ | 292 | $ | — |