SuccessFactors Revenue Nears $200M As SaaS Grows Up - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
IT Leadership // CIO Insights & Innovation
Commentary
7/27/2010
04:24 PM
Bob Evans
Bob Evans
Commentary
50%
50%

SuccessFactors Revenue Nears $200M As SaaS Grows Up

While Salesforce.com's the unquestioned SaaS revenue leader, Taleo, RightNow, NetSuite and SuccessFactors are all closing in on annual run rates of $200 million. With SuccessFactors this week reporting 27% quarterly revenue growth to $46.8 million, these and other high-growth SaaS vendors have proven they've got industrial-strength enterprise chops.

While Salesforce.com's the unquestioned SaaS revenue leader, Taleo, RightNow, NetSuite and SuccessFactors are all closing in on annual run rates of $200 million. With SuccessFactors this week reporting 27% quarterly revenue growth to $46.8 million, these and other high-growth SaaS vendors have proven they've got industrial-strength enterprise chops.For SuccessFactors-the creator of the "business-execution software" category that promises to help companies interlace strategy and execution-that nice jump in revenue was paired with a 35% increase in billings, all of which caused the company to raise its guidance for the full year to somewhere between $198 million and $200 million.

From the company's earnings press release:

"The growth is fuelled by bigger purchases, and more users from both new and existing customers, in all of the market segments: Enterprise, Medium, Small, and all geographies," said Lars Dalgaard, founder and CEO for SuccessFactors.

"Q2 had more than 50% of new sales coming from existing customers. With customers' proven interest in buying more of our secure, scalable, easy-to-use platform, we continue to expand it."

SuccessFactors also agreed during the second quarter to acquire CubeTree Inc., whose social-software technologies will be integrated to make SuccessFactors' applications more engaging and interactive, the company said.

In the company's earnings statement, the effusive Dalgaard summarized the company's prospects for continued growth by pointing to its enhanced and expanded set of products, their ability to be deployed rapidly, and their appeal to a wide range of businesses around the world. Said Dalgaard:

"In the first half of 2010, SuccessFactors has launched new-to-market products and acquired unique strategic teams and products that, combined with our existing applications, offer the global market a productivity suite of cloud business execution applications, never seen before, that can take only weeks to deploy. We believe we have an unmatched offering targeting a very large greenfield market."

In approaching the $200M mark in annual revenue, SuccessFactors has some company in the forms of Taleo, NetSuite, and RightNow:

Taleo: For the quarter ended March 31, revenue of $55 million, up 14.5%.

NetSuite: For the quarter ended March 31, revenue of $43.9 million.

RightNow: For the quarter ended March 31, revenue of $42.1 million, up 17%.

RECOMMENDED READING:

Global CIO: Larry Ellison Looms Large Over Put-Down Of Oracle President

Global CIO: Oracle's Top 10 Retail Insights A Must-Read For All CIOs

Global CIO: Oracle Reveals Strategy & Customers For White-Hot Exadata

Global CIO: Larry Ellison's IBM-Slayer Is Oracle Exadata Machine

Global CIO: Larry Ellison's Hardware Boasts Are Nonsense, Says IBM

Global CIO: Apple CEO Steve Jobs Should Tell Sen. Schumer To Shut The Hell Up

Global CIO: An Open Letter To Apple CEO Steve Jobs

Global CIO: Is Steve Jobs Blowing Smoke About Apple TV?

Global CIO: Cutting Google And Apple Down To Size

Global CIO: What Is Microsoft CEO Steve Ballmer's #1 Competitive Statistic?

Global CIO: Apple's Steve Jobs Torpedoes Another Stale Business Model

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
Future IT Teams Will Include More Non-Traditional Members
Lisa Morgan, Freelance Writer,  4/1/2020
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Slideshows
Flash Poll