Saba Software (SABA)
Q4 2011 Earnings Call
July 20, 2011 5:00 pm ET
Bobby Yazdani - Founder, Chairman of the Board and Chief Executive Officer
Roy Lobo - Investor Relations
William Slater - Chief Financial Officer, Principal Accounting Officer and Executive Vice President
Scott Berg - Feltl and Company, Inc.
Chad Bennett - Northland Securities Inc.
Kevin Liu - B. Riley & Co., LLC
Ryan Bergan - Craig-Hallum Capital Group LLC
Unknown Analyst -
Previous Statements by SABA
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Thank you. Good afternoon, everyone. Welcome and thank you for attending Saba's Fourth Quarter and Fiscal Year 2011 Conference Call. With me on the call today is Chairman and Chief Executive Officer, Bobby Yazdani; and our Chief Financial Officer, Bill Slater.
If you have not received today's earnings release, you may download a copy of the press release from our website at investors.saba.com. Before I turn the call over to our executives, I would like to remind everyone that 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 these 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. A reconciliation of GAAP to non-GAAP results is included with the financial statements accompanying our earnings release.
With that, let me turn the call over to Bobby Yazdani, our Chairman and CEO at Saba. Bobby?
Thank you, Roy. Good afternoon, everyone. In today's call, I will highlight our Q4 and fiscal year financial results and review the major accomplishments we achieved in fiscal year '11 and highlight our roadmap and strategy for fiscal year '12.
Fiscal year '11 was characterized by 3 major dynamics: First, our customers accelerated their preference for our cloud offerings. Second, our customers purchased additional modules of our talents management suite other than just learning. And third, our customers used Saba for broader set of business solutions beyond corporate training and compliance.
These 3 dynamics help drive higher adoption and higher average selling price for our solutions. This is why 4 out of the 5 largest transactions in the company's history were all signed in fiscal year '11. And just to point out, all 4 customers elected to run their applications on the Saba People Cloud.
We now have one of the fastest growing SaaS businesses among public companies. These will be the results. We recorded total non-GAAP revenues of $30 million in the quarter and $116.7 million in fiscal year '11, up 7% from fiscal year '10. Our SaaS revenues, which are part of our subscription revenues, grew 59% in the quarter and 33% for the year.
In fact, we have seen a steady increase in the year-over-year quarterly growth of our SaaS revenues from 8% in Q1 to 19% in Q2, 42% in Q3 and ending the year at 59%.
Our annual contract value for new SaaS bookings grew 276% year-over-year and grew 210% in fiscal year '11 over fiscal year '10.
We saw 153 new enterprise customers in fiscal year '11 and 40 new customers in the quarter. Total deferred revenue grew to a record $45.8 million, up 24% year-over-year and 8% sequentially. Total bookings in the quarter were $33.3 million, up 9% year-over-year.
This quarter, we consciously accelerated our investments in a number of key areas to support our fiscal year 2012 growth initiatives. First, we invested in expanding our sales force to add country managers in Canada, India and China, and we continued our expansion of sales capacity and management in existing and new markets.
We remain on target to end this year with over 70 [ph] carrying account executives. Second, we invested in expanding internationally by launching our operations in China and growing our operations in Latin America and Asia Pacific.
Third, we invested in our global cloud operations in preparation for the major release of our new People Cloud Applications, which we plan to debut in the Fall. We also invested in number of new technological innovations, such as Try & Buy, which allow customers to come to saba.com, discover our solutions, try our solutions and subscribe to the solution of choice.
We are aggressively building out this technology so that by year end, all of our solutions will be available in this fashion. This, we believe, is truly how a SaaS company should operate.
We also invested in value engineering our solutions for our customers and prospects. What value engineering means, we have gathered data from hundreds of customers in best practice that offer talents and learning management suite and the benefits they receive from deploying the solution or solutions.