Ariba Reports Results for Second Quarter of Fiscal Year 2012
Subscription revenue grows 32% year-over-year, Network revenue up 59% year-over-year
SUNNYVALE, Calif., April 26, 2012 – Ariba, Inc. (Nasdaq: ARBA), the world’s business commerce network, today announced results for the second quarter of fiscal year 2012 ended March 31, 2012.
Quarterly Financial and Operational Highlights from Continuing Operations:
- Subscription revenue of $89.2 million, up 32% year-over-year
- Network revenue of $45.4 million, up 59% year-over-year
- Total revenue of $131.5 million, up 21% year-over-year
- Earnings of $0.02 per share from continuing operations; non-GAAP EPS of $0.25 from continuing operations, up 34% year-over-year
“As evidenced by our strong quarterly results, Ariba continues to perform at a high level,” said Bob Calderoni, Chairman and CEO, Ariba. “We are executing our strategy, bringing to market new innovations and strategic partnerships that will make it even easier for buyers and sellers to connect and collaborate more efficiently. The combination of these factors is strengthening Ariba’s position as the leader of the Networked Enterprise.”
Results for the Second Quarter of Fiscal Year 2012
Revenue from Continuing Operations:
Total revenues from continuing operations were $131.5 million for the second quarter of fiscal year 2012, an increase of 21% compared to $108.8 million for the second quarter of fiscal year 2011. Subscription and maintenance revenues for the second quarter of fiscal year 2012 were $102.1 million, an increase of 23% compared to $82.8 million for the second quarter of fiscal year 2011. Within subscription and maintenance revenues, subscription software revenue was $89.2 million for the second quarter of fiscal year 2012, an increase of 32% compared to $67.6 million for the second quarter of fiscal year 2011. Services and other revenues for the second quarter of fiscal year 2012 were $29.4 million, an increase of 13% compared to $25.9 million for the second quarter of fiscal year 2011.
Operating Income from Continuing Operations:
Operating income from continuing operations for the second quarter of fiscal year 2012 was $4.2 million, an increase of $5.3 million compared to an operating loss from continuing operations of $1.1 million for the second quarter of fiscal year 2011. Operating income from continuing operations for the second quarter of fiscal year 2012 included expenses of $4.8 million for amortization of intangible assets and $18.0 million for stock-based compensation. Excluding these items, non-GAAP operating income for the second quarter of fiscal year 2012 was $27.0 million, representing a 20.5% non-GAAP operating margin and an increase of 48% compared to $18.2 million of non-GAAP operating income for the second quarter of fiscal year 2011. Non-GAAP operating income for the second quarter of fiscal year 2011 excluded expenses of $3.3 million for amortization of intangible assets, $14.2 million for stock-based compensation, restructuring costs of $0.2 million, and transaction costs of $1.5 million.
Earnings Per Share from Continuing Operations:
Income from continuing operations for the second quarter of fiscal year 2012 was $1.8 million, or $0.02 per share, an increase compared to a net loss from continuing operations of $1.6 million, or $0.02 per share, for the second quarter of fiscal year 2011. Non-GAAP net income from continuing operations was $24.6 million, or $0.25 per share, an increase of 34% compared to $0.19 per share for the second quarter of fiscal year 2011.
Balance Sheet and Cash Flow
Total cash, cash equivalents, investments and restricted cash were $262.1 million at March 31, 2012, an increase of $39.5 million compared to $222.6 million at December 31, 2011. The company generated net cash flow from continuing operations of $38.7 million for the three months ended March 31, 2012. Total deferred revenue was $142.6 million at March 31, 2012, compared to $142.3 million at March 31, 2011 and $129.1 million at December 31, 2011.
Conference Call Information
Ariba will hold a conference call today at 5:00 p.m. ET to discuss its results for the second quarter of fiscal year 2012. To join the call, please dial 877-407-8031 in the United States and Canada, or 201-689-8031 internationally. The conference call will also be webcast live and can be accessed on the investor relations section of the company's website at www.ariba.com or by logging in at www.vcall.com.
A replay of the conference can be accessed by calling 877-660-6853 in the United States and Canada or 201-612-7415 internationally and entering account number 286 and conference ID number: 392221.
