Saba Software Inc. (SABA)
F4Q10 (Qtr End 05/31/2010) Earnings Call
July 20, 2010 5:00 p.m. ET
Eric Martinuzzi – Craig-Hallum
Kevin Liu – B. Riley & Company
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Ladies and gentlemen, thank you for standing by, and welcome to the Fourth Quarter and Fiscal Year 2010 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session with instructions being given at that time. (Operator Instructions) As a reminder this call is being recorded.
I’d now like to turn the conference over to your host, Bill Slater. Please go ahead.
Good afternoon. Welcome and thank you for attending Saba Software’s fourth quarter and fiscal year end 2010 conference call. With me today is Chairman and Chief Executive Officer, Bobby Yazdani.
If you have not received today’s earnings release, you may download it at www.saba.com. During the course of this conference, we will be making forward-looking statements regarding our business outlook, future performance and expectations of future events. These statements are based solely on information available to us today and are subject to risks and uncertainties.
For information concerning factors that could cause actual results to differ materially from those in the forward-looking statements we encourage you to review our annual report on Form 10-K for the year ended May 31, 2009 and subsequent Saba periodic reports which are available through the Investor Relations section of our website at Saba.com or through the SEC’s website at sec.gov. We assume no duty or obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
In addition, we intend to discuss today both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP results is included with the financial statements accompanying our earnings release.
I will now turn the call over to Bobby Yazdani.
Thank you, Bill. Thank you and good afternoon, everyone. In today’s call, I will cover the fourth quarter and full year highlights for fiscal year 2010 as well as expectations for our fiscal year 2011. I will then turn the call over to Bill who will provide more details.
Saba had a strong fourth quarter and fiscal year 2010, in which we successfully executed on our plans. We delivered strong financial results, developed industry leading product innovations across Saba People System that encompass enterprise learning, people management and collaboration technologies, and acquired new customers worldwide that have partnered with Saba to realize their people-driven strategies.
Let’s cover the key financial highlights. Saba reported record top and bottom-line results. We delivered record Q4 revenue of $29.6 million, a 15.9% year-over-year increase and record fiscal year revenue of $109.6 million. For the year, we also delivered record bottom-line results with non-GAAP EPS of $0.30, an increase of 36.4% on our previous fiscal year and record GAAP EPS of $0.10 per share.
Saba signed a record number of 41 new enterprise customers in the fourth quarter compared to 22 last quarter, bringing our total number of new enterprise customers acquired in the year to 113. This brings Saba’s total customer accounts to over 1,400.
During the fourth quarter, Saba signed number of new customer contracts for Saba People Systems offerings and expanded existing relationships with a number of organizations worldwide, including BP Oil UK, Canada - Department of National Defense, Fiat Group, Fox Entertainment, Smart Technologies, Team Health, Thai Airways and Toyota Motors.
In fiscal year 2010, we experienced strong adoption of our Saba People Suite that encompasses a combination of Saba Learning, Saba Performance, Saba Succession and Workforce Planning for marquee customers, including Baker Hughes, Cisco, Sydney Waters, Queensland Health, and Royal Mail.
We also grooving in several key vertical industries with significant new customer wins and expansions in the public sector, financial services, high tech and energy industries during fiscal year 2010.
We experienced increased demand for our SaaS offerings, which is now serving over 4.5 million people from customer organization including Brinker International, E Trade Financial and Komatsu.
We continue to be at the forefront of product and technology innovation. In July, we announced the Saba Collaborations Suite, a real-time collaboration and enterprise business networking solution designed to enable social learning and collaborative people performance management.
During the fourth quarter, Saba introduced Breakthrough Mobility Capabilities to our people platform which makes it easy for mobile workers to meet at a moment’s notice, attend online webinars and learn on the go. These new solutions enable today’s global workforce to easily work together on an iPhone or in any web browser, both online and offline across the extended enterprise of employees, partners and customers.
Additional product innovation introduced by Saba in fiscal year 2010 include the announcement of the general availability of Saba compensation, broadening our people suite. During the year, Saba received much recognition from the industry analyst for our company leadership, our products and our customer satisfaction.
Specifically Saba was recognized for Bersin & Associates as a market share leader in Talent Management solutions for large enterprises as a leader in customer satisfaction for global enterprises.
Saba also received an award for excellence in social networks by Chief Learning Officers Magazine. I am very pleased with the progress we’ve made in fiscal year 2010. And we are well position for growth and innovation in the coming year.