Executives
Peter E. Williams - Chief Financial Officer, Executive Vice President and Secretary
Roy Lobo -
Elaine Kitagawa -
Bobby Yazdani - Founder, Chairman of The Board and Chief Executive Officer
Analysts
Ian Kell - Northland Securities Inc., Research Division
Mark W. Schappel - The Benchmark Company, LLC, Research Division
Scott R. Berg - Feltl and Company, Inc., Research Division
Ryan Bergan - Craig-Hallum Capital Group LLC, Research Division
Kevin Liu - B. Riley & Co., LLC, Research Division
Saba Software (SABA) Q2 2012 Earnings Call January 5, 2012 5:00 PM ET
Operator
Ladies and gentlemen, thank you for standing by. Welcome to the Second Quarter Fiscal 2012 Earnings Conference call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Roy Lobo, Vice President of IR. Please go ahead.
Roy Lobo
Thank you, Kathy. Good afternoon, everyone. Welcome, and thank you for attending Saba's Second Quarter Fiscal Year 2012 Earnings Conference Call. With me on the call today are Founder and Chief Executive Officer, Bobby Yazdani; and our Interim Chief Financial Officer, Pete Williams. If you have not received today's earnings release, you may download a copy of this press release from our website at investor.saba.com.
Before I turn the call over to our executives, I would like to remind everyone that during the course of this conference call, we will be making forward-looking statements regarding our business outlook, future performance and expectations of future events. These statements are based solely on the information available to us today and are subject to risks and uncertainties.
For information concerning factors that could cause actual results to differ materially from those in the forward-looking statements, we encourage you to review our annual report on Form 10-K for the year ended May 31, 2011, and subsequent Saba periodic reports, which are available through the Investor Relations section of our website or through the SEC's website at sec.gov.
We assume no duty or obligation to publicly update or revise any forward-looking statements. In addition, we intend to discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP results is included with the financial statements accompanying our earnings release.
With that, I would now like to turn the call over to Bobby Yazdani, Chairman and Chief Executive Officer of Saba.
Bobby Yazdani
Great. Thanks, Roy. Two years ago, we made the strategic decision to transform Saba to a cloud business, and we knew that this transformation would yield a significantly better offering for our customers on the market, as well as greater financial predictability, as a result, increase shareholder value. But I'm happy to report that we have successfully transitioned our business to the cloud and have done so, well ahead of our plan. Our dependence on license revenue to increase total revenue and billings growth have been eliminated. We believe our Cloud business has emerged as one of the fastest-growing publicly traded cloud businesses. Our second quarter results reflect this growth as our cloud revenue was $9.7 million and represented the majority of our subscription revenue.
We doubled the number of million-dollar deals we signed this quarter versus last quarter. We added over 1 million subscribers in Q2 alone, and our cloud customers are signing longer-term contracts with us.
We are also gaining efficiencies in delivering our Cloud solution as it was the primary driver behind our 200 basis points increase in subscription gross margin year-over-year.
Our Cloud billings grew almost 90% year-over-year, and this was on top of the 60% growth we achieved in Q2 of last year. We grew our cloud bookings 81% during the quarter.
Turning to the competitive landscape. We see many technology vendors have fallen short of developing modern HTM applications beyond the traditional HRIS systems. Enterprises are not going to rely on solutions from their legacy vendors. Rather, they will demand best-of-class solutions from vendors with innovative technology who are leaders in their application category.
On that front, Saba has been the clear leader in the enterprise learning space, with 51% of Fortune 100 as customers, and we are the only vendor in this space to offer fully integrated real-time collaboration, testing and assessment capabilities. Additionally, we have over 2 million user deploying our performance and talent solutions, and we essentially have every major pharmaceutical company deploying our testing and assessment capabilities.
More importantly, we have been developing our next-generation Saba People Cloud offerings. The Saba People Cloud will provide an open trusted environment to develop, engage and inspire all the people in your people network to change the way they work by combining the best of social and collaboration technology with modern people and management practices. The Saba People Cloud is designed to be a unified, people-centric and social platform to enable the transformative workplace.
The transformative workplace is an interactive, always on, flexible environment that enables organizations and governments to provide their entire people network: employees; customers; suppliers; partners and citizens, with the development, engagement and inspiration they need to constantly transform themselves and their organization to meet the dynamic challenges of the knowledge economy and be more competitive through better innovation, speed, agility and trust. This is why Saba is not a traditional talent management provider, but instead a provider of people networks deliver in the Saba People Cloud. Legacy talent management solutions have failed to change the way work gets done in the organizations. These legacy solutions have been designed for top-down control of talent, learning and recruiting, resources and processes. They are not designed to empower frontline managers and employees to align themselves to organizational strategies, connect with the right people, information or ideas to get their job done and take charge of their own professional development.
With the Saba People Cloud, instead of HR or learning functions, pushing content and processes that may or may not be relevant, the Saba People Cloud will automatically enable and provide access to the most relevant content experts so people can take advantage of both formal and informal resources from the entire people network to get their work done.
Instead of career paths being defined and dictated by organizations, the Saba People Cloud will dynamically track the real career path of successful individuals throughout the people network and provide that visibility to employees and managers. Instead of once a year compliance-driven performance reviews, the Saba People Cloud will enable managers and employees, through the people network, to engage in a continuous cycle of feedback loops and constant development activities.
Organizational silos, lack of field connection with partners and customers and the barriers of time and space are the biggest obstacles to innovation. The Saba People Cloud will eliminate these barriers with the most robust collaboration and social technologies available today to enable unprecedented levels of innovation and collaboration from every corner of the people network.
We plan to showcase the Saba People Cloud at our Global User Conference in Miami, Florida on March 19 to 22 of March. We encourage you to attend our Global User Summit and get an opportunity to meet our executive team, our customers and our partners.
In summary, we have successfully transitioned Saba from an enterprise software vendor to a leading cloud company. And we are about to introduce our latest innovation of the Saba People Cloud, which we believe will further accelerate our growth. We have a bright future ahead of us. In the second half of fiscal 2012, we expect to begin to see more leverage in the new model as we return to profitability. The anticipated continued growth in new cloud billing during fiscal year 2012 will increase the run rate of our Cloud business as we enter 2013. On top of this baseline, we expect to continue to accelerate cloud billings as we add new customers.
Lastly, I would like to inform everyone that we have concluded our search for our new CFO, and I want to welcome Elaine Kitagawa to Saba. Elaine is present with us today on today's call and will assume the role of Chief Financial Officer on January 7th, right after our 10-Q is filed. Elaine is a seasoned executive with over 20 years of global, financial and operational experience. Elaine joined us from Gaia Interactive where she served as CFO and later a Chief Operating Officer. Prior to Gaia, Elaine spent 9 years at Ariba and played an integral part in the company's transformation from an enterprise software company to a business commerce solution provider.
With that, I would like to turn the call over to Elaine for a few remarks.
Elaine Kitagawa
Well, thank you very much, Bobby, and good afternoon, everyone. As Bobby mentioned, I have joined Saba and will assume the role of CFO after the 10-Q is filed. It is an exciting time to join the company. Saba's mission to transform the world of work with its Saba People Cloud and its emergence as one of the fastest-growing public cloud companies in the industry are some of the reasons I was attracted to Saba.
And as some of you may know, prior to accepting this new role, I was CFO and COO of Gaia Interactive and was also formerly VP of Corporate Finance and CFO of EMEA at Ariba. During my tenure at Ariba, we experienced a very similar evolution from an on-premise to a cloud-based business solution provider. Drawing on these experiences, I look forward to joining a team to drive greater success in Saba's transformation.
I had the pleasure of getting to know many of you while I was at Ariba and Gaia, and I look forward to reconnecting and meet with you in the near future.
With that, I will turn the call over to Pete to review the results for the quarter.
Peter E. Williams
Thanks, Elaine. I will focus my review on our GAAP financial results and year-over-year growth rates unless otherwise stated.
Cloud revenue increased 64% to $9.7 million in the quarter compared to $5.9 million in the same quarter last year. Our cloud revenues now account for the majority of our subscription revenues. Our cloud billings, which we define as cloud GAAP revenue plus the change in cloud deferred revenue, increased 89% to $13.8 million. This is the second straight quarter with cloud billings growth in excess of 80%.
We have added a supplemental table to our press release that breaks out our cloud revenue, cloud deferred revenue and cloud billings for the quarter as well as for past quarters.
Renewal rates on our Cloud business in the quarter were 95%. Subscription revenues, which include our Cloud business and our updates and product support business, increased 23% to $19.1 million in the quarter compared to $15.6 million in the same quarter last year.
Subscription gross margin expanded approximately 200 basis points to 77% in the quarter from 75% in the same quarter last year. The increased efficiency and leverage of our Cloud business is the primary driver of the increase in our subscription gross margin.
Professional services revenue was $9.9 million, up 13% from the same period in the prior year. License revenue was $1.3 million in the quarter, 72% lower than the same period in the prior year, further evidencing the success of our transition.
Total revenues in the second quarter reached $30.4 million, an increase of 4% compared to $29.2 million in the same quarter last year. The increase in total revenues and total billings further indicates the strength of our Cloud business as the growth in cloud revenues and cloud billings more than offset the 72% decline in license revenue.
Total deferred revenue grew 33% year-over-year to $47.3 million at the end of the quarter. This growth was fueled by our 113% year-over-year increase in cloud deferred revenue to $24 million at the end of the quarter.
Non-GAAP operating expenses were $22.8 million for the quarter. While up 24% over the same quarter last year, operating expenses were relatively flat with last quarter's operating expenses. Other income was $679,000 for the quarter, primarily attributable to a favorable foreign exchange gain. We recorded an income tax benefit of $155,000 in the quarter due primarily to the release of a tax reserve following a favorable foreign tax audit. As a result, the non-GAAP net loss for the second quarter was $2.8 million or $0.10 per share.
We ended the second quarter with $15 million in cash. Cash flow from operations for the quarter was a use of $4.4 million. Let me remind everyone, the historical pattern for the company is to use cash in the first half of the year and generate positive cash flow in the second half of the year, due to expected strong renewals and bookings in the second half of the year.
With regard to guidance for fiscal year 2012, we reiterate our forecast for total GAAP revenues to be in the range of $130 million to $133 million, and total billings could grow in the range of 16% to 18% in fiscal year 2012 over fiscal year 2011.
Following our successful transformation to the cloud, we are introducing guidance for fiscal 2012 cloud billings growth. We believe this key metric better reflects the growth of the company's core business. We are forecasting our cloud billings growth to grow in excess of 60% in fiscal year 2012 over fiscal year 2011.
We also reiterate our forecast for GAAP net loss to range from $0.39 to $0.45 per share and non-GAAP net loss to range from $0.17 to $0.23 per share. We expect to return to non-GAAP profitability in the second half of fiscal year 2012.
With that, let me turn the call back to Roy.
Roy Lobo
Thank you, Pete. This concludes our prepared remarks, and we will be happy to take questions from the audience. Operator?
Question-and-Answer Session
Operator
[Operator Instructions].
Roy Lobo
While the operator is pooling for questions, I would like to inform everyone that Saba will be presenting at the 14th Annual Needham Growth Conference in New York, at the Stifel Nicolaus Annual Technology & Telecom Conference in Dana Point, California and at the Baird's 19th Annual Business Solutions Conference in Boston. With that, I'll turn the call back to the operator.
Operator
Our first question comes from Scott Berg with Feltl and Company.
Scott R. Berg - Feltl and Company, Inc., Research Division
A couple of questions here, and I guess let me be the first to welcome Elaine to the crew, congratulations. I guess we'll have to talk to Bobby on why he's making you start on a Saturday, however. I guess with that, let's get to the quarter. And let's start with deal flow, Bobby, on the enterprise segment. You signed 29 deals in the quarter, which was a slight deceleration from the first quarter and down year-over-year. Can you talk about the environment on the enterprise deals and why optically the deals were down? It sounds like you signed some really large deals in the quarter so the billing numbers came in very well, but just talk about why the deal flow seems to be at least a little bit on the light side.
Bobby Yazdani
Yes, I think the 29 deals that, Scott, you're referring to are net new logos. There were significantly more transactions than we've ever seen that closed during the quarter. So the number of transactions, specifically over $50,000 transactions, that we tracked pretty closely was significantly up year-over-year, so the 29 number you're mentioning are the net new logos. And of course, a lot of the net new logos happened to got pushed to the December because it's the end of the year for a number of customers and we had a very good start essentially for the third quarter. In terms of the deal flows, it remain to be very strong. We had very good, solid -- we sold a lot of multiyear, multimillion dollar contract, as I mentioned in my remarks. During the quarter, we saw -- we announced that we signed a major contract with Shell, a major contract with ANZ Bank in Australia. Very, very pleased with the contract we signed globally with Vodafone. Again, we remain to do extremely well with large enterprises, with global operations, global product lines. And with -- the pipeline is quite strong, and the environment looking to the second half of the year, it also remained quite healthy. I'm not seeing anything that concerns me for the second half of the year. We reiterate our confidence on our guidance. I reiterate it's getting back to profitability. We reiterate in terms of the growth of our billings. As I mentioned, December was a great start to the third quarter, very pleased with that. Our teams feel very good worldwide, honestly. It feels pretty good.
Scott R. Berg - Feltl and Company, Inc., Research Division
Very good to hear, I like to hear that obviously. Can you give some color on deal flow in the learning segment versus your talent management applications? I know you've had a couple of large talent management deals over the last 3, 4 quarters, but just looking for some color on the difference in sales.
Bobby Yazdani
Yes. We keep going at the talent managements that we picked up new customers who have selected the entirety of the suite during the quarter, which includes both the learning, as well as the Performance and Talent Management, so we picked up again new customers in that segment. Still, if you look at the learning, the enterprise learning as a market, which includes now the traditional, the kind of the LMS market plus the virtual classroom and now the additional testing and assessment market, it probably is about 70%, 75% of the total bookings is coming from all of those markets. We are picking up also in the Centra and the Collaboration standalone large enterprises there and then, of course, the remainder comes from the talent management space. So it's very good. We feel very good about the markets we are in, the offerings that we have. We still remain quite focused on the large enterprises, companies over 10,000 employees and the government agencies over 10,000 employees.
Scott R. Berg - Feltl and Company, Inc., Research Division
Great. Last question for you is a geographically based question, is we've seen some other companies report, mainly Oracle, that talked about some deal slippage in the quarter and, obviously, the concern over in EMEA. I know you signed some large deals in the quarter. I assume Shell was a deal that was based over there to some extent, but any color on what you're seeing in terms of pipelines or demand into the EMEA?
Bobby Yazdani
Yes. We don't have a large presence in Southern Europe with the exception of course -- we have a strong presence in France. The Germany, United Kingdom and the Nordic market, we are not seeing really what Oracle saw. As you know, Shell was a great win as Europe Vodafone is another one. Both of them came from Europe. We're not necessarily seeing what was described on the Oracle call.
Operator
We have a question from Ian Kell with Northland Capital Markets.
Ian Kell - Northland Securities Inc., Research Division
Bobby, I'm just wondering, with some of the acquisitions, the M&A here that's going on over the past few months, is kind of you how you view the space now? I don't know if you said anything about it lately. And as the competitive landscape kind of changes a little bit, does it change at all how you go to market?
Bobby Yazdani
It's a very, very good question, and I want the opportunity to talk about this great topic. I think there are 2 things that's going on in the market. One, there is the broader shift to the cloud computing. So large enterprises, I think there was a tipping point and it has already occurred where large enterprises are adopting cloud solutions quite rapidly. So it's no surprise to us large established vendors like Oracle, SAP, what have you, they need to strengthen essentially their offering in the cloud because the market demands strong solutions in the cloud. So now talking about specifically our application category in our space, I believe for a long time that there would be a multiple innings to this game, and ultimately, the innovators are going to win. And there will be number of our competitors who will choose to expand their offerings through acquisitions, and we strongly believe that that's a flawed strategy for early market, early-stage market like ours. We believe that innovation has to come through partnership with customers and we focus on that. And with our new offering that's coming out, we feel that we have a very, very strong differentiating product. We have a very good foundation of the business now that has transformed to a Cloud business. We have been in an R&D cycle for the past 2 years, have been in beta cycle with our new offering in the past 9 months. We feel that our new offerings would be very, very attractive to the market and would be able -- we can easily differentiate ourself with what I refer to as legacy talent management solutions. I think SuccessFactors acquisition of SAP, we view this acquisition positive for us. Some 80% of their customers are non-SAP customers. We welcome those non-SAP customers to take a hard look at our innovation, our product offerings. We feel that we have a very strong, of course, offering in the learning management, the plateau customers that SAP -- SuccessFactors and subsequently SAP acquired are, I have no idea what's going to happen to that product line, we would welcome them as well that they can rely on a very strong growth map by Saba and we can service them very nicely. So all in all, the SuccessFactors acquisition, we see positively for Saba. The trends that establish large suppliers like Oracle and SAP, the level of interest for having cloud category revenues and having a cloud offerings as a positive for the market and expanded market. And our business strategy is to stay extremely focused on right software, and that's what we've done. We built a business in a very disciplined way. We transitioned the business in a very disciplined way, and we want to differentiate ourself with our product and technology. It was a long-winded answer, but all in all, we feel very good about where we are.
Ian Kell - Northland Securities Inc., Research Division
Yes, that one was thorough. All right. And just in terms of a large deal, I think you said they doubled sequentially. Can you point to any certain dynamic that would cause a jump like that?
Bobby Yazdani
Yes. I mean, I can tell you, I've been on the road now and I don't know, 7 or 8 countries, have been on the road for 7 or 8 weeks. And I tell you, I think that the notion, the trends that I'm seeing is that organizations, large organizations have strategic projects looking at their people assets, and they want to have a much more substantial and a much stronger strategies around their people, their people processes and people strategies. So I think the conversations at the boardroom, at the senior level of these organizations around people and people productivity, globalization of the workforces and the dynamics that the organizations have to deal with, with the workforces, the multigenerational workforce, it's real and they have to deal with it. And there are substantial projects now being assigned to senior executives in places like Shell or places like Vodafone where very senior executives are leading these projects. They have the blessing of their executive officers to look at these processes, capabilities, and that's why we are seeing large enterprises adopting and going for these very strategic projects. So it's a positive trend in terms of the market and the need and the pain point. We are seeing good strength in the energy sector. We are seeing good strength from global companies with expansion strategies in Asia, in Latin America. Globalization is a very big driver behind some of these large projects. I think that the globalization also note important terms of the markets, we're taking new markets to distributors. Resellers is one part of it which is revenue driven. The other part of it is the shift of workforce from one economy to another economy is there because of the cost basis or the talent that's available in those markets. All of those things are very large drivers. I mean, we are seeing big shift, companies moving 20,000, 30,000 jobs from one market to other markets and these are significant projects.
Ian Kell - Northland Securities Inc., Research Division
Great. And last one for me, just on the sales and marketing line, I think you had some expenses that are supposed to be pushed into Q2 here, but that line actually went down sequentially. What...
Bobby Yazdani
We're not hiring fast enough.
Ian Kell - Northland Securities Inc., Research Division
I'm sorry?
Bobby Yazdani
We're not hiring fast enough.
Ian Kell - Northland Securities Inc., Research Division
Okay.
Bobby Yazdani
We're not hiring fast enough and that's the bottom line. And we had a good kickoff in December. We've been able to pick up, of course, because of number of these consolidations talent, but we're just not hiring fast enough, that's the bottom line.
Operator
We have a question from Kevin Liu with B. Riley & Company.
Kevin Liu - B. Riley & Co., LLC, Research Division
Just, I guess, in terms of the large million-dollar-plus deals that you guys signed, I'm assuming the majority of those were cloud-based deals. But if you could talk a little bit about that, how many engagements were from new customers versus existing, perhaps migrations?
Bobby Yazdani
I mean, Kev -- maybe, Pete, you can help me out. I think that I can see right now the top 5, the top 5 -- 4 out of the top 5 were net new customers, that there are 7-figure deals. And I don't know the -- what about the rest of them?
Peter E. Williams
I think 9 out of 10 were SaaS, of the large deals, cloud deals.
Kevin Liu - B. Riley & Co., LLC, Research Division
Got it. And were there any large chunks of either license or services revenues that ended up getting deferred and put on balance sheet?
Bobby Yazdani
Yes, there might be few things that are tied to the future deliverables, but it's substantially -- the new deals that we signed there are really cloud deals, that's what's going on.
Kevin Liu - B. Riley & Co., LLC, Research Division
Great. And could you talk a little bit about the opportunity or success you've had in terms of upselling additional modules into your existing base?
Bobby Yazdani
Yes. So we had number of really good business cases around the upselling the Centra product line. One of our largest deployments now was IRS. We've now, in the government sector especially with the Centra, we are seeing expanded usage of the Centra product line. I'm seeing like maybe 30% to 40% of the learning management projects, we either attach it as Centra product or the testing assessment. One big indicator that the average selling price was substantially up quarter-over-quarter in the second quarter. That's a very important statement. I like everybody to hear that the average selling price is nicely trending for this business, and we are upselling a broader set of capabilities in every one of these, both in terms of the term of the contract, is gone more from 3- to 5-year contracts, and then, of course, the average selling price improved substantially sequentially quarter-over-quarter.
Kevin Liu - B. Riley & Co., LLC, Research Division
And then could you talk about the contribution from acquisitions in the quarter, and whether you've been able to accelerate the growth rates at those companies?
Bobby Yazdani
Yes, we don't really break that out, I don't think in our financials, but I can tell you we are very pleased with both acquisitions. We are very pleased in terms of the customers that we inherited. We have an opportunity to go back to their install base. We have a couple of those cases already, and we have a very good pipeline selling back to their install base our learning management solution to testing assessment customers. And we also had, as I mentioned, a number of business cases where we bundled the testing and assessment and differentiated ourselves in the sales cycle with those capabilities, so happy with that. We are also extremely happy with the talent that came to Pedagogue and Comartis. They are experts in this market. They are experts in our -- in the testing and assessment. They really provide a differentiated view to our customers. They make a huge difference to create better value in the sales cycles for the customers.
Operator
We have a question from Ryan Bergan with Craig-Hallum.
Ryan Bergan - Craig-Hallum Capital Group LLC, Research Division
I know we're talking kind of a small number now, but I want to address license revenue. It was down sequentially more than I had expected. Just wondering if we expect a similar step-down through the back half of the year.
Bobby Yazdani
I believe we have guided, Ryan, early in the year that somewhere in the ranges of $8 million to $10 million is going to be license revenue for the full year. So I think it's safe to be within that range. I think what we are also suggesting to all of you that we are really seeing a strong uptake of the cloud solution. We are very pleased with that. So from a billing and cash flow standpoint, it doesn't really make any difference. It's all good as far as we're concerned, and we sell the solution to the customers. In terms of their revenue, immediate revenue impact, there would maybe few hundred thousand dollars here and there, but the trends remain quite positive.
Ryan Bergan - Craig-Hallum Capital Group LLC, Research Division
Talk about -- you said you're not hiring fast enough, but I want to address what is your sales headcount as of the end of the quarter, maybe where is it today and where do you expect it to be at the end of the year? And what role could porting some SuccessFactors sales folks over from there to over to Saba?
Bobby Yazdani
Right, right. So Ryan, we are north of 70 people who are quarter carrying or channel management capabilities over 70 people. Last year this time, we were some 45 people, I believe in the same group, so it's substantially up year-over-year. We still have a number of open headcounts both in North America and our international markets. So my expectation, if they keep the hiring and take care of our people, we should be north of 80 people by the end of this calendar year. So we still have another probably 10 senior position to fill for the remainder of this fiscal year. Yes, I mean, we've clearly -- after, for instance, the acquisition of the Plateau by SuccessFactors, there was an opportunity for us to work with a number of talent who are looking to come over. And we are going to -- we expect to see a similar type of a trend once the deal between SuccessFactors and Plateau is concluded -- I'm sorry, SAP is concluded.
Ryan Bergan - Craig-Hallum Capital Group LLC, Research Division
And then you've announced the program to, I think, bring over those SuccessFactors customers that are up for renewals over to the Saba platform. Can you talk about any material success you've had there?
Bobby Yazdani
Not in terms of signing them, but I was quite pleased and surprised to see how many inbound calls we received after we announced the program. So we have -- we are in a bit of a number of conversations with number of both Plateau as well as SuccessFactors customers today. They have invited us to have meetings with them and to review our programs with them, and we are quite pleased with that.
Operator
[Operator Instructions] We have a question from Mark Schappel with Benchmark Company.
Mark W. Schappel - The Benchmark Company, LLC, Research Division
Nice job in the quarter and Elaine, welcome aboard. So Bobby, most of my questions have been answered, but I do have one question. And I realized it's still early in your relatively new partnerships with Accenture and Kronos, but I was wondering if either of those 2 organizations contributed any meaningful revenue in the quarter.
Bobby Yazdani
We -- you're talking about Workday, I suppose. I'm sorry, Accenture.
Mark W. Schappel - The Benchmark Company, LLC, Research Division
Yes, from last quarter, I think it was announced.
Bobby Yazdani
No. Accenture, we have a very nice solid pipeline with Accenture that we are developing. There are a number of very, very important large projects that we are working with them. These are some of their existing Accenture clients who are interested to take a deep dive and take a hard look at the Saba technology, so that's going very well. We are very excited about the Kronos relationship. Our team, very excited about the Kronos relationship on a global basis. We have a very good pipeline that's developing with Kronos. They attended and they have been in a number of our -- we have had a number of combined sales rallies essentially where both teams have attended each other's either trainings or relationship-building events with Kronos team. And more importantly, I have to tell you that the IBM relationship remain to be quite strong. IBM has not only been an excellent partner for us as a go-to-market partner, they've been a great customer of ours for many years and they have been a great technology partner, where they have facilitated and offered their labs so that they would help to develop our technology, their labs with them especially with their cloud capabilities and the scale that they can provide these kind of capabilities to us is been a tremendous relationship. Very pleased, Mark, with our partnership with all of these names.
Operator
There are no further questions. Please continue.
Roy Lobo
Thank you, operator. A telephone replay of this conference call can be accessed by dialing 1 (800) 475-6701. The access code for this telephone replay is 228093. You can access this replay call also by going to the Investor Relations section of our website at investor.saba.com. The replay will be available till February 5, 2012. Thank you, everyone, for joining us on today's conference call, and I'd like to turn the call back to the operator for closing.
Operator
Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation and for using AT&T Executive TeleConference Service. You may now disconnect.
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