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SaaS Roundup

Posted on Monday, May 5th 2008

As we have seen in our earlier posts (available here and here), SaaS companies have been doing well in the face of a weak economy as SaaS deployments require less upfront investment.

A case in point is Concur Technologies Inc. (NASDAQ: CNQR) (earlier coverage ) whose second-quarter net income tripled to $3.7 million, or 8 cents per share. Analysts estimated 11 cents per share on sales of $50.1 million. Concur, which is into corporate expense-management software, reported revenue of $53.7 million, an increase of 74% y-o-y and 9% q-o-q. Deferred revenues were $4.33 million, up from $1.35 million last year. It bought back 1.1 million shares of its common stock in the quarter.

For Q3, Concur expects total revenue to be $53.0 million and $211.0 million for fiscal 2008. It expects EPS for Q3 to be $0.07 and for fiscal 2008 to be $0.29. Analysts expect profit of 12 cents per share on sales of $51.8 million for Q3. For the 2008 fiscal year, the company expects profit of 79 cents per share on sales of $211 million, excluding one-time costs and benefits. Analysts are predicting profit of 47 cents per share on sales of $206.1 million.

Its stock is trading around $38 with market cap around $1.7 billion.

Chart for Concur Technologies, Inc. (CNQR)

This week on April 30, RightNow Technologies Inc. (RNOW) (earlier coverage here) also reported lesser first quarter net loss of $3.4 million, or 10 cents a share, compared to net loss of $6 million or 18 cents a share last year. Analyst estimates were per-share loss of 10 cents on revenue of $32 million. Revenue also beat estimates growing 28% to $32.9 million. Net deferred revenue was $30 million, up from $27.8 million last quarter.

Its international business accounted for 30% of the revenue. RNOW added 64 customers in the quarter, up from 60 additions in the last quarter. However, its total number of customers has been 1800 since Q3 2006, indicating same level of churn as addition.

In an earlier post, we had talked about RNOW’s business model transition from one-time (perpetual) to recurring subscription fees. In the first quarter, perpetual licenses amounted to $0.144 million or almost 0% of the revenue, down from 2% in the last quarter. This would signal the completion of its shift to the recurring subscription-based revenue model.

Based on its strong Q1 performance, RightNow has raised its full year guidance to $136 to $141 million, with recurring revenue growth of about 25%. Net loss per share for 2008 is expected to be between $0.32 and $0.25. Non GAAP net loss per share is expected to be between $0.12 and $0.05 above analyst consensus of $0.13. For Q2, its estimates were in-line with analyst consensus. Revenue is expected in the range of $34 to $35 million and net loss per share in the range of $0.12 to $0.10. Its shares soared with its strong quarter and upbeat guidance. Its stock is trading around $13 with market cap around $430 million. It hit a 52-week low of $9.7 on January 31.

A recent report from Gartner expects worldwide CRM software revenue will grow 14.2% to $8.9 billion in 2008 and we can expect RightNow also to flourish. There could also be some consolidation in the CRM space.

Chart for Rightnow Technologies Inc. (RNOW)

Omniture (OMTR) (earlier coverage here and here) on April 30 reported 117% y-o-y and 47% q-o-q growth to achieve revenue of $63.2 million. However, GAAP net loss increased to $12.9 million or $0.19 per diluted share from $2.4 million or $0.05 per diluted share last year mainly due to acquisition, amortization and stock based compensation charges. Excluding these charges, non GAAP net income was $7.3 million or $0.10 per diluted share.

Omniture completed the acquisition of web optimization company Offermatica (for $65 million) and real-time analytics applications provider Visual Sciences (for $394 million) in December and January, respectively and reported contribution of $21 million in non GAAP revenue from them.

Deferred revenues were $13.2 million compared to $4.39 last year. It added 250 new customers taking its total customer count to 4500, up from 4350 last quarter and its retention rate is 95%. Revenue from outside US grew 27% compared to 23% last year. It strengthened its business in China with a partnership with the leading Chinese language Internet search provider, Baidu.com.

For Q2, Omniture expects revenue in the range of $70 to $72 million and GAAP net loss between $0.13 and $0.14 per share. For 2008, it expects revenue between $295 and $300 million and GAAP net loss between $0.44 and $0.49 per share. On a non GAAP basis, it expects net income of $0.10 to $0.11 per diluted share in Q2 and $0.41 to $0.46 per diluted share in 2008. Its stock is trading around $23 with a market cap of around $1.65 billion.

Chart for Omniture Inc. (OMTR)

Citrix (CTXS) reported its first quarter results last week. Earlier coverage is available here and here. Revenue was $377 million, up 22% while net income dipped 10.5% due to higher costs to $34 million or $0.18 per diluted share. Operating expenses grew 27% to $306.3 million. Deferred revenue also grew 22% to $459 million. It repurchased shares for about $148 million.

Citrix online had revenue of $62 million, up 31%. Product license revenue grew 20% to $147 million. App networking grew 17% to $38 million. App virtualization group grew 19% to 268 million led by the success of XenApp Platinum. With the $500 million XenSource acquisition in October, Citrix is trying to rebrand itself as an end-to-end virtualization vendor with application, server, and desktop virtualization solutions.

International revenue grew 30% with revenue in EMEA region growing 31%, Pacific region 28%, and Americas just 13%.

For fiscal 2008, Citrix expects net revenue in the range of $1.600 to $1.645 billion and GAAP diluted EPS in the range of $0.78 to $0.89. For Q2, it expects net revenue in the range of $380 million to $390 million, GAAP diluted EPS in the range of $0.16 to $0.20, and non GAAP EPS of $0.35-$0.38. Analyst estimates were more upbeat at $392.8 million revenue and EPS $0.38. Its stock is trading around $34 with a market cap of around $6.4 billion. It hit a 52-week low of $29.15 on April 1.

Chart for Citrix Systems, Inc. (CTXS)

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