Saba Software, Inc. (SABA)
F1Q2011 Earnings Call Transcript
September 23, 2010 5:00 pm ET
Bill Slater – CFO
Bobby Yazdani – Chairman and CEO
Eric Martinuzzi – Craig-Hallum
Kevin Liu – B. Riley & Co.
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Later we will conduct a question and answer session with instructions being given at that time. If you should require assistance during the call please press star then zero. As a remind r this call is being recorded.
I would now like to turn the conference over to your host, Bill Slater.
Good afternoon. Welcome and thank you for attending Saba Software's first quarter fiscal year 2011 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 call 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, 2010, and subsequent Saba periodic reports which are available through the Investor Relations section of our website at www.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 would now like to turn the call over to Bobby Yazdani, Chairman and Chief Executive Officer of Saba.
Thank you, Bill. Thank you, and good afternoon, everyone. In today’s call, I will cover the first quarter highlights and provide our expectations for fiscal year 2011. I will then turn the call over to Bill who will provide more financial details.
In Q1, Saba moved forward on a number of fronts that we believe position us well to capitalize on our opportunities in the quarters to come.
We continue to acquire new customers worldwide, increase our footprint within our installed base, introduce new innovative products in the market, and invest in initiatives to foster relationships with current and potential customers to show how Saba can power up their people and transform their businesses with strategic (inaudible) assistance.
Let me dive into each of these areas. Saba added 30 enterprise customers in the first quarter including worldwide brands such as Halliburton, New Balance and Sony Picture.
In fact, we signed three contracts that exceeded $3 million underscoring the confidence enterprise customers have in Saba's people systems and our ability to service and support their needs and requirements.
Another promising sign was customers demand for our robust SaaS offerings which was particularly strong and resulted in nearly tripling of the annual contract value of new SaaS deals signed in the first quarter versus a year ago.
Feedback from new customers during the evaluation and selection process consistently thought that Saba solutions to be best-in-class, more user friendly, and offering better scalability and security than our competitors.
Product innovation is the hallmark of Saba and in the first quarter, we continued this theme.
In Q1, Saba announced the general availability of Saba Live, our next generation cloud-based enterprise business networking solution.
Saba Live combines the best elements of popular social networking tools that enable employees, customers, & partners to communicate, cultivate know-how and share ideas and materials in real-time from anywhere in the world.
Individuals can create rich personal profiles, provide Twitter-like feedback, tag and both as well as create and join groups to promote learning and collaboration all within a secure platform.
We also released the Saba Collaboration Suite which combines Saba Live and Saba Centra an enterprise class web conference solution infusing real-time collaboration and enterprise business networking capabilities into learning and performance management people processes.
We are very excited with the reception that these products have received.
As I mentioned in the last quarter’s call, we have plans to aggressively market Saba people systems in 2011 through three major initiatives.
The Saba Global People Tour, Digital Technology Conference next week in Chicago and the People 2010 Saba Global Summit; our annual user conference being held in Boston during the first week in November.
The Saba Global People Tour is currently under way. This 24 city tour provides customers with presentation formal discussion with top Saba executives and customers sharing strategies and successes for a new class of people system that help organizations mobilize and engage their people, transform their businesses, and outperform their competition. So far, we have covered three cities and feedback from the attendees have been tremendous.
Next up will be Saba's attendance at HR Technology Conference. This year, Saba will have a strong presence at the conference with participation in product (inaudible), one of the only eight companies selected to participate and recognition from Human Resources executive who selected Saba as one of the – one of its top HR products of