Saba Software (SABA)
Q3 2011 Earnings Call
March 24, 2011 5:00 pm ET
Bobby Yazdani - Founder, Chairman, Chief Executive Officer and President
Roy Lobo - Investor Relations
William Slater - Chief Financial Officer, Principal Accounting Officer and Executive Vice President
Scott Berg - Feltl and Company, Inc.
Ryan Bergan -
Kevin Liu - B. Riley & Co., LLC
Previous Statements by SABA
» Saba Software CEO Discusses F2Q2011 Results – Earnings Call Transcript
» Saba Software CEO Discusses F1Q2011 Results - Earnings Call Transcript
» Saba Software F4Q10 (Qtr End 05/31/2010) Earnings Call Transcript
Ladies and gentlemen, thank you for standing by, and welcome to the Saba Third Quarter Fiscal Year 2011 Earnings Call. [Operator Instructions] I would now like to turn the call over to your host, VP of Investor Relations, Roy Lobo. Please go ahead.
Good afternoon, everyone. Welcome and thank you for attending Saba Software Third Quarter Fiscal Year 2011 Conference Call. With me on the call today are Chairman and Chief Executive Officer, Bobby Yazdani; and Chief Financial Officer, Bill Slater. If you have not received today's earnings release, you may download a copy of this press release from our website at
investor.saba.com. There you will also find income statement and balance sheet tables for fiscal year '10 and the first three quarters of fiscal year 2011.
Before I turn the call over to our executives, I would like to remind everyone that during the course of this conference call, we will be making forward-looking statements regarding our business outlook, future performance and expectations for 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, 2010, and subsequent Saba periodic reports, which are available through the Investor Relations section of our website or through the SEC's website at sec.gov. We assume no duty or obligation to publicly update or revise any forward-looking statements. In addition, we intend to discuss both GAAP and non-GAAP financial measures during this call. A reconciliation of GAAP to non-GAAP financial results is included with these financial statements accompanying our earnings release. With that I would now like to turn the call over to Bobby Yazdani, our Chairman and CEO.
Thank you, Roy. Good afternoon, everyone. I'm excited to report that we had a strong quarter, while Saba People Cloud offering is gaining mind share with customers in the mid-market, enterprise and the public sector. Our top four deals in the quarter were also on our Saba People Cloud offering. We also have a number of our existing large enterprise customers who initially purchased our software behind the firewall and are now communicating their interest to move their applications over to the Saba People Cloud.
Our employees, our customers and our partners are embracing our strategy. We are successfully accelerating our business to the cloud, delivering record results and generating cash. We achieved record ACD bookings this quarter of $37.1 million, up 15% year-over-year. That is annual contract value, not total contract value. These are a fourfold increase in the number of new SaaS transactions of over $50,000 and our annual contract value for new SaaS bookings increased 351% on a year-over-year basis.
Our SaaS revenues are also being positively impacted. Our year-over-year growth rate for our SaaS revenue grew nicely and doubled sequentially. We signed 41 new customers in the quarter with nine of our 12 largest deals in the quarter being for our Saba People Cloud offering. We added such names as John Deere, Eli Lilly, Bloomberg Financial and TeleTech Holdings to name a few. But the more exciting news to us beyond these more key customer names is how these customers are expanding the use of our solutions beyond the traditional ways. Whereas once our solutions were used primarily for compliance training, they are now being expanded to also be used for sales enablement, new products introductions, business transformation and new market expansions.
Our solutions were not only being deployed to the employee base, they are now being expanded to the extended enterprise. And recently, we have seen a number of our customers expand beyond their extended enterprise to reach their customers and end users. This is big news for us. Our ability to continuously innovate and promote users of our applications beyond the traditional boundaries has positive implications for Saba. The growth opportunity ahead of us looks very promising. We will continue to innovate and leverage the knowledge and expertise we gained from serving our large global enterprise customers to serve our customers on the market in new, nontraditional ways.
Let me shift gears to update you on our three-pronged strategy at Saba that focuses on growth, product innovation and building an inspiring company and bank. While we have talked a little bit about our growth opportunity, we have a number of additional growth prospects. We have now a dedicated mid-market sales team whose sole focus is to sell our Saba People Cloud offering to organizations between 2,000 and 7,000 employees. We have a dedicated client executive team who's also responsible to upsell and cross-sell our unified cloud applications to our existing customers.
On the international front, Asia Pacific and Latin America continue to be strong growth areas for the company and we are planning our China launch on April 20 in Beijing. We continue to invest and expand our global alliances and channel programs, and the Saba ecosystem now includes over 70 partners around the world and growing. This quarter, we added 12 partners including a new global relationship with Winthrop, additional resellers in China, Vietnam and Brazil, among others. Our partner community delivered over 50% of our new business and brought us our second largest deal in the quarter. We will continue to strategically add global HRO consulting partners as well as expand our reach to both resellers and influences in the regions.