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Taleo Announces Third Quarter 2006 Financial Results.

Article Excerpt
DUBLIN, Calif., Nov. 13 /PRNewswire-FirstCall/ -- Taleo Corporation , the leading provider of on demand talent management solutions, today announced financial results for its fiscal third quarter ended September 30, 2006.



Business Highlights Include: * Q3 2006 revenue increased by 25% year-over-year to $24.9 million. * Q3 2006 recurring application revenue increased by 27% year-over-year to over $20.3 million.

"In the quarter we continued to see steady demand for our talent management solutions. We added 110 new customers -- 15 large enterprise customers and 95 SMB customers bringing our total customer count to over 720," stated Michael Gregoire, president and CEO of Taleo. "We are pleased to report strong organic growth that was driven by both new business sales and service engagements as well as strong cross sales of our new Taleo OnBoarding(TM) and Taleo Reporting and Analytics(TM) products to our installed base of customers."

"We are also very excited to announce today that Taleo is developing a new suite of Performance Management applications," commented Gregoire. "According to IDC, the Performance Management market is the fastest growing segment of talent management with an estimated market size of $495 million in 2008. Furthermore, our customers have expressed strong interest in a performance management offering from us. In response to this significant market opportunity and customer demand, Taleo will develop and deliver a fully integrated enterprise-class product that will be highly differentiated from the current competitive offerings. We anticipate these new offerings will be available in the fall of 2007."

Taleo announced the following results for the quarter ended September 30, 2006:

Revenue: Total revenue for the third quarter was $24.9 million, an increase of 25% on a year-over-year basis. Recurring application revenue for the third quarter was $20.3 million, an increase of 27% on a year-over-year basis.

Net Loss and Loss Per Share: Net Loss in accordance with accounting principles generally accepted in the United States, or GAAP, was $(0.8) million for the third quarter, compared to a net loss of $(1.6) million for the same period last year. Net loss for the third quarter of 2006 includes share-based payment expense of $1.2 million pursuant to the adoption on January 1, 2006 of Financial Accounting Standards Board (FASB) Statement No. 123R, "Share-Based Payment" (SFAS 123R), which requires companies to expense the fair value of employee stock options and similar stock based compensation awards. Net loss...