SuccessFactors reported better-than-expected sales in the second quarter and raised its outlook for the rest of the year.
The company, which provides on-demand human resources and business alignment software, reported a net loss of $4.47 million, or 6 cents a share, on revenue of $46.84 million. Non-GAAP earnings were break even. Wall Street was expecting SuccessFactors to break even on revenue of $45.52 million.
SuccessFactors, which recently acquired Inform and CubeTree, raised its outlook for the third quarter and fiscal 2010. The company projected revenue of $52.5 million to $53.5 million and break even non-GAAP earnings. For 2010, SuccessFactors said it expects revenue to be $198 million to $200 million. Earnings will be around break even.
Relative to Wall Street estimates, SuccessFactors' third quarter and 2010 outlook was mixed (statement). Revenue will be better than expected, but Wall Street was expecting a 2010 profit of 2 cents a share. In addition, SuccessFactors' new outlook includes the contribution from Inform and CubeTree, two deals that closed in July.
By the numbers:
- SuccessFactors' organic revenue growth averaged 31 percent over the last five quarters.
- 50 percent of second quarter sales came from existing customers.
- Deferred revenue as of June 30 was $191.8 million, up 28 percent from a year ago and 3 percent sequentially.