Investor Presentation

Transcription

1 Investor Presentation September 2009

2 Safe Harbor Statement With the exception of historical information, this presentation contains forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including any statements that use words such as may, will, expects, projects, plans, estimates, and believes. Forward-looking statements include GAAP and non-gaap projections for fiscal 2009, pro forma operating objectives for fiscal 2009, projected market growth rates, percent of indirect sales, and future valuation scenarios. These statements are based on management s current expectations and are subject to certain assumptions, risks, uncertainties and changes in circumstances. Such forward-looking statements involve important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements or from historical results, due to changes in economic, business, competitive and/or technological factors. More detailed information about risk factors that could affect actual results is set forth in filings by Saba with the Securities and Exchange Commission, including Saba s annual report on Form 10-K for the fiscal year ended May 31, 2008 and other filings with the SEC. Saba is not obligated to (and expressly disclaims any obligation to) revise or update any forward-looking statement. 2 Saba Confidential

3 The People Management Company The leader in people management software and solutions Talent Management Learning Collaboration Performance Compensation 3 Saba Confidential

4 People Management The Opportunity Saba Markets Growing at Double Digits Source: Bersin & Associates and Gartner Group

5 People Management Market Main Drivers 1.Worker productivity declining Q3 to Q4 2008* 2. The new organization: flat, collaborative and extended Manager Peer Contractor Customer -3.9% Employee Partner Expert *Output per employee hour Source: US Bureau of Labor Statistics, Economic News Release 5/7/09

6 People Management Market Main Drivers 3. Engagement and Retention are Declining 4. Changing Workforce

7 People Management Market Main Drivers 5. Increased need for compliance, certification, training... But certification and training costs are increasing

8 People Management: Solutions That Work Organizations with people management solutions have significant advantages lower turnover among high performers lower overall voluntary turnover higher revenue per employee less likely to have downsized during greater ability to hire the best people Source: Bersin 2009 Talent Management Fact Book

9 Saba Solves Problems for Big Companies Trained 2 million personnel Saved $86 million in education costs Offered online training to 4,000 employees Increased customer satisfaction by 42% Training platform for sales force of 15,000 Reduced training costs by 75% Retail sales and product training Reduced product launches from 4-6 weeks to days

10 Saba. A Market Leader Million Users Million in Revenue Of Fortune 100 are customers of customers are enterprise (>7,500 employees) Top Customers

11 Saba. A Global Leader North America Europe Asia Pacific Latin America Australia ~575 Employees (180 in India) 30% of revenues are global Deployed in 150 countries

12 Strong Sustainable Financial Results Positive Earnings Track Record $0.26 $0.30 Cash Flow Positive in $12.7 $0.22 $0.15 $5.1 $0.07 $0.08 $0.1 Non-GAAP EPS $(2.5) Excludes one-time charges, stock-based compensation and other non-cash charges. 12 Saba Confidential

13 Resilient in Recession Non-GAAP Net Income* Over the Past 12 Months Operating Cash Flow* Ending Cash Balance* Examples of 100+ Customer Wins *$ thousands 13 Saba Confidential

14 Resilient in Recession Over Past 12 Months Added Bench Strength & Boosted Sales Force by 50% Andrew Salzman Joins Saba as Chief Marketing Officer August 2009 Saba Appoints Bill Slater as Chief Financial Officer December 2008 Saba Appoints Jeff Carr President of Global Field Operations April Saba Confidential

15 The Value of a Hybrid Model Growing Recurring Revenue >50% Recurring: Support and OnDemand <50% License and Services ($ millions) Saba Revenue Trends (May 31 Year End) 20.0 May 2005 Thinq Acquisition Feb Centra Acquisition - FY04 FY05 FY06 FY07 FY08 License Support OnDemand Services 15 Saba Confidential

16 Delivering What the Customer Wants Drivers of customer demand for OnDemand Non-capital expenditures Faster installations Drivers of customer demand for perpetual license Privacy Customized Solutions Security 16 Saba Confidential

17 Growth Initiatives. IBM Outsourcing Deal IBM selling Saba worldwide IBM selling 3rd party software is unprecedented Potentially hundreds of IBM reps selling Saba solutions Expect to start seeing results in Q3, Q4 17 Saba Confidential

18 Growth Initiatives. Saba s Organic Suite Portfolio Solution Competitive Differentiators Drives cross-selling opportunities Customers get one-stop shopping from a single provider Customers migrating away from multiple applications from multiple providers Single sign-on Integrated data 18 Saba Confidential

19 Investment Summary Growing need and demand for people management solutions Large market opportunity Management team that generates strong financial performance in good times and bad Competitive position strengthened during downturn Delivering what the customer wants Important growth initiatives 19 Saba Confidential