Comments on: SuccessFactors IPO - My Take and What It Means for HCM http://humancapitalist.com/?p=431 A blog by Jason Corsello about HR technology, services and outsourcing trends Thu, 09 Sep 2010 20:59:44 +0000 http://wordpress.org/?v=2.1 By: » SaaS Goes IPO (again): SuccessFactors Files, and Now the Questions Begin | Enterprise Anti-matter | ZDNet.com http://humancapitalist.com/?p=431#comment-564 » SaaS Goes IPO (again): SuccessFactors Files, and Now the Questions Begin | Enterprise Anti-matter | ZDNet.com Mon, 23 Jul 2007 22:08:52 +0000 http://humancapitalist.com/?p=431#comment-564 [...] S-1 filing was first pointed out to me by fellow Enterprise Irregular Jason Corsello, who has blogged on this IPO and Successfactors in general several times. Jason has some of his own excellent analysis, which I [...] […] S-1 filing was first pointed out to me by fellow Enterprise Irregular Jason Corsello, who has blogged on this IPO and Successfactors in general several times. Jason has some of his own excellent analysis, which I […]

]]> By: Lovthe Blog http://humancapitalist.com/?p=431#comment-565 Lovthe Blog Tue, 24 Jul 2007 04:42:36 +0000 http://humancapitalist.com/?p=431#comment-565 Buying a market can be a strategy if its executed on a strong SaaS platform. Salesforce started off exceeding revenue with sales and marketing spend. The difference here is the Gross Margins Salesforce posted where excellent (2003-80%,2004-82%) proving they had low cost to deliver on the revenue. -check out their S-1 at sec.gov Successfactors on the other hand, is delivering terrible gross margins (2005-41%,2006-56%) showing a very high cost to deliver their solution. If you have built a scaleable application it will show in your gross margins. Buying a market can be a strategy if its executed on a strong SaaS platform. Salesforce started off exceeding revenue with sales and marketing spend.
The difference here is the Gross Margins Salesforce posted where excellent (2003-80%,2004-82%) proving they had low cost to deliver on the revenue. -check out their S-1 at sec.gov

Successfactors on the other hand, is delivering terrible gross margins (2005-41%,2006-56%) showing a very high cost to deliver their solution.

If you have built a scaleable application it will show in your gross margins.

]]> By: » SuccessFactors joins the rush for the (IPO) exit | Software as Services | ZDNet.com http://humancapitalist.com/?p=431#comment-566 » SuccessFactors joins the rush for the (IPO) exit | Software as Services | ZDNet.com Tue, 24 Jul 2007 13:59:19 +0000 http://humancapitalist.com/?p=431#comment-566 [...] some excellent analysis of the SuccessFactors filing from two Enterprise Irregulars: Jason Corsello posted his thoughts on Friday, and fellow ZDNet blogger Josh Greenbaum added his own thoughtful questions yesterday. [...] […] some excellent analysis of the SuccessFactors filing from two Enterprise Irregulars: Jason Corsello posted his thoughts on Friday, and fellow ZDNet blogger Josh Greenbaum added his own thoughtful questions yesterday. […]

]]> By: SuccessFactors IPO??? I’m going short . . . « TO’B HR Blog http://humancapitalist.com/?p=431#comment-567 SuccessFactors IPO??? I’m going short . . . « TO’B HR Blog Wed, 25 Jul 2007 04:56:08 +0000 http://humancapitalist.com/?p=431#comment-567 [...] - or else I might refrain from commenting on this, but looking over the SuccessFactors IPO (thanks Jason) just makes me [...] […] - or else I might refrain from commenting on this, but looking over the SuccessFactors IPO (thanks Jason) just makes me […]

]]> By: tom obrien http://humancapitalist.com/?p=431#comment-568 tom obrien Wed, 25 Jul 2007 05:00:27 +0000 http://humancapitalist.com/?p=431#comment-568 Hi Jason: Long time no comment, but when I saw your write-up on this IPO, I just couldn't resist. I was writing a long detailed comment, (losses > revenue, questionable accounting, shrinking customer size, profligate spending) on this but instead went ahead and posted my commentary over on my blog. <a href="http://tomob.wordpress.com/2007/07/24/successfactors-ipo-im-going-short/" title="SuccessFactors IPO??? I’m going short . . ." rel="nofollow"> If this comes out, it is a sure sign that we are back to irrational exuberance. Tom O'B Hi Jason:

Long time no comment, but when I saw your write-up on this IPO, I just couldn’t resist.

I was writing a long detailed comment, (losses > revenue, questionable accounting, shrinking customer size, profligate spending) on this but instead went ahead and posted my commentary over on my blog.

If this comes out, it is a sure sign that we are back to irrational exuberance.

Tom O’B

]]> By: systematicHR - Human Resources Strategy and Technology » What is SuccessFactors Doing? http://humancapitalist.com/?p=431#comment-570 systematicHR - Human Resources Strategy and Technology » What is SuccessFactors Doing? Thu, 26 Jul 2007 12:50:11 +0000 http://humancapitalist.com/?p=431#comment-570 [...] was written before the IPO announcement.  Check out Jason’s SuccessFactors IPO announcement here. Bookmark:These icons link to social bookmarking sites where readers can share and discover new [...] […] was written before the IPO announcement.  Check out Jason’s SuccessFactors IPO announcement here. Bookmark:These icons link to social bookmarking sites where readers can share and discover new […]

]]> By: Hypefree http://humancapitalist.com/?p=431#comment-572 Hypefree Thu, 26 Jul 2007 13:40:53 +0000 http://humancapitalist.com/?p=431#comment-572 Well... this certainly explains the explosion of hype around this company over the past few months. Now the covers have been pulled back and we can see beyond Lars bluster. All politeness aside - To me it looks like he has been outright lieing about the make-up of SuccessFactor's customer base and the number of end users over the past couple of years. Kind of goes against the SF mantra of integrity and forthright communication that they put forth in their values statements. Even insiders at SF that I know were not aware of the amount of money the company has been losing. Well… this certainly explains the explosion of hype around this company over the past few months. Now the covers have been pulled back and we can see beyond Lars bluster. All politeness aside - To me it looks like he has been outright lieing about the make-up of SuccessFactor’s customer base and the number of end users over the past couple of years. Kind of goes against the SF mantra of integrity and forthright communication that they put forth in their values statements. Even insiders at SF that I know were not aware of the amount of money the company has been losing.

]]> By: Ian Cole http://humancapitalist.com/?p=431#comment-573 Ian Cole Fri, 27 Jul 2007 11:56:46 +0000 http://humancapitalist.com/?p=431#comment-573 There are also European players in the emerging Talent Mnagement market that readers may want to look at. One is our company, StepStone, which in Q1 2007 posted revenues from e-recruitment and talent management of $12m, is growing at 50% organically year on year and is both profitable and cash positive. This market is rapidly globalising and readers could do worse than look at http://www.stepstone.com/EN/IR/ for a non US perspective Ian Cole CFO StepStone There are also European players in the emerging Talent Mnagement market that readers may want to look at. One is our company, StepStone, which in Q1 2007 posted revenues from e-recruitment and talent management of $12m, is growing at 50% organically year on year and is both profitable and cash positive.

This market is rapidly globalising and readers could do worse than look at http://www.stepstone.com/EN/IR/ for a non US perspective

Ian Cole
CFO StepStone

]]> By: SuccessFactors IPO and the international element « Donald H Taylor http://humancapitalist.com/?p=431#comment-574 SuccessFactors IPO and the international element « Donald H Taylor Fri, 27 Jul 2007 15:47:30 +0000 http://humancapitalist.com/?p=431#comment-574 [...] 27th, 2007 · No Comments Jason Corsello’s item on SaaS poster child Success Factor’s recent S-1 filing had me thinking - a [...] […] 27th, 2007 · No Comments Jason Corsello’s item on SaaS poster child Success Factor’s recent S-1 filing had me thinking - a […]

]]> By: Colin Kingsbury http://humancapitalist.com/?p=431#comment-581 Colin Kingsbury Tue, 31 Jul 2007 20:55:59 +0000 http://humancapitalist.com/?p=431#comment-581 Recurring revenue models can wash away a whole lot of sins if the renewal rates are good. From where I sit, I see $32m spent in 06 to acquire $32m in revenue. When that's recurring revenue, that's a great model. Bear in mind that Kenexa et. al. have been paying 3-4x revenue to acquire companies in the space that are full of thorny legacy problems. Recurring revenue models can wash away a whole lot of sins if the renewal rates are good. From where I sit, I see $32m spent in 06 to acquire $32m in revenue. When that’s recurring revenue, that’s a great model. Bear in mind that Kenexa et. al. have been paying 3-4x revenue to acquire companies in the space that are full of thorny legacy problems.

]]> By: Ian Cole http://humancapitalist.com/?p=431#comment-749 Ian Cole Thu, 11 Oct 2007 21:43:58 +0000 http://humancapitalist.com/?p=431#comment-749 In case you missed it Successfactors filed an amendment to their S1 yesterday. Most significant change is the disclosure that they are burning cash like it is going out of fashion and have had to borrow another $10m - see page 26. In case you missed it Successfactors filed an amendment to their S1 yesterday. Most significant change is the disclosure that they are burning cash like it is going out of fashion and have had to borrow another $10m - see page 26.

]]> By: Marvin http://humancapitalist.com/?p=431#comment-770 Marvin Fri, 19 Oct 2007 07:02:03 +0000 http://humancapitalist.com/?p=431#comment-770 Pretty disappointed in Successfactors' story really. A lot of bluster. How about those others out there that are going global and expanding? Hard to know how their real revenues are stacking up - maybe investors are scrutinizing more now that successfactors filed and oncovered some nasties. Pretty disappointed in Successfactors’ story really. A lot of bluster. How about those others out there that are going global and expanding? Hard to know how their real revenues are stacking up - maybe investors are scrutinizing more now that successfactors filed and oncovered some nasties.

]]> By: Marvin http://humancapitalist.com/?p=431#comment-819 Marvin Sun, 04 Nov 2007 18:14:17 +0000 http://humancapitalist.com/?p=431#comment-819 I am also disappointed in the Vurv product lineup. They have a long road ahead of them and a long list of hit and runs behind them. I am also disappointed in the Vurv product lineup. They have a long road ahead of them and a long list of hit and runs behind them.

]]> By: The Human Capitalist » The Looming SuccessFactors IPO http://humancapitalist.com/?p=431#comment-841 The Human Capitalist » The Looming SuccessFactors IPO Fri, 16 Nov 2007 16:54:25 +0000 http://humancapitalist.com/?p=431#comment-841 [...] Their story is very well-known as to their “market share at all costs” play right now, but CFO Felt did articulate a goal to become cash-flow positive by Q3 [...] […] Their story is very well-known as to their “market share at all costs” play right now, but CFO Felt did articulate a goal to become cash-flow positive by Q3 […]

]]> By: EHRMS http://humancapitalist.com/?p=431#comment-878 EHRMS Thu, 06 Dec 2007 18:46:25 +0000 http://humancapitalist.com/?p=431#comment-878 Well, now they have floated and pocketed some $100mio, let's see where this money is going to more mkt or r&d or both? however, one question remains: buy or not to buy ... Well, now they have floated and pocketed some $100mio, let’s see where this money is going to more mkt or r&d or both? however, one question remains: buy or not to buy …

]]> By: The Human Resource » Blog Archive » SuccessFactors IPO??? I’m going short . . . http://humancapitalist.com/?p=431#comment-1272 The Human Resource » Blog Archive » SuccessFactors IPO??? I’m going short . . . Thu, 24 Apr 2008 02:28:56 +0000 http://humancapitalist.com/?p=431#comment-1272 [...] - or else I might refrain from commenting on this, but looking over the SuccessFactors IPO (thanks Jason) just makes me [...] […] - or else I might refrain from commenting on this, but looking over the SuccessFactors IPO (thanks Jason) just makes me […]

]]> By: Ex-SF Guy http://humancapitalist.com/?p=431#comment-1946 Ex-SF Guy Tue, 13 Jan 2009 17:01:58 +0000 http://humancapitalist.com/?p=431#comment-1946 Well, as a bit of a follow up to this, SuccessFactors has done a round of lay-offs in 2008, and as recent as Jan 2009. There goes the bubble... Ironically, SuccessFactors hired a large number of people in 2007 in order to bring the headcount to a major "high" but then what was really weird was that at the time of filing the S1, some people were voluntarily leaving: Something you wouldn't see in a company where everyone would supposedly be enthusiastic to stay on and take advantage of the stock options and all that. Really fishy... So many newbies left or were let go. Well, as a bit of a follow up to this, SuccessFactors has done a round of lay-offs in 2008, and as recent as Jan 2009.

There goes the bubble…

Ironically, SuccessFactors hired a large number of people in 2007 in order to bring the headcount to a major “high” but then what was really weird was that at the time of filing the S1, some people were voluntarily leaving: Something you wouldn’t see in a company where everyone would supposedly be enthusiastic to stay on and take advantage of the stock options and all that.

Really fishy… So many newbies left or were let go.

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