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Ariba Inc. (ARBA) filed Quarterly Report for the period ended 2011-12-31.
Ariba Inc. has a market cap of $2.82 billion; its shares were traded at around $28.41 with a P/E ratio of 135.3 and P/S ratio of 6.4.
This is the annual revenues and earnings per share of ARBA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ARBA.
Highlight of Business Operations:
Our revenues increased to $125.7 million in the three months ended December 31, 2011 compared to $90.4 million in the three months ended December 31, 2010. This was an increase of $35.3 million, or 39%. Subscription and maintenance revenues increased $31.3 million. Subscription revenues increased $33.7 million, or 67%, including 25% before subscription revenues related to the acquisitions of Quadrem and b-process. Services and other revenues increased $3.9 million, or 16%. In addition to our acquisitions, our growth reflects increased demand for our global network solutions and subscription software products.Operating expenses increased to $76.7 million in the three months ended December 31, 2011 compared to $55.9 million in the three months ended December 31, 2010. The increase in operating expenses is primarily the result of an increase in compensation and benefits expense related to an increase in headcount in the three months ended December 31, 2011 and increased costs as a result of the acquisitions of Quadrem and b-process. In summation, our total net expenses from continuing operations, including costs of revenues and other items, increased to $126.4 million in the three months ended December 31, 2011 compared to $81.9 million in the three months ended December 31, 2010. Combined with the increase in revenue, this resulted in a loss from continuing operations for the three months ended December 31, 2011 of $718,000 compared to income from continuing operations of $8.5 million in the three months ended December 31, 2010.
Subscription revenues consist mainly of network-related software access and transaction fees and software access subscription fees. Subscription revenues for the three months ended December 31, 2011 were $84.0 million, an increase of $33.8 million, or 67%, including 25% before subscription revenues related to the acquisitions of Quadrem and b-process, compared to $50.2 million for the three months ended December 31, 2010. In addition to our acquisitions, our growth reflects increased demand for our global network solutions and subscription software products. Maintenance revenues consist primarily of Ariba Buyer and Ariba Sourcing product maintenance fees. Maintenance revenues for the three months ended December 31, 2011 were $13.2 million, a 15% decrease from the $15.6 million recorded in the three months ended December 31, 2010. The decrease was primarily due to a decline in on-premise application sales. We anticipate that subscription revenues will increase in the year ending September 30, 2012 compared to the year ended September 30, 2011, in part as a result of the acquisitions of Quadrem and b-process, partially offset by modest declines of maintenance revenues.
Sales and marketing includes costs associated with our sales and marketing personnel and consists primarily of compensation and benefits, which includes salaries, benefits, commissions, bonuses, and stock-based compensation; promotional and advertising and travel and entertainment expenses related to these personnel; and the provision for doubtful accounts. Sales and marketing expenses increased in the three months ended December 31, 2011 compared to the three months ended December 31, 2010 primarily due to the following: (1) increased compensation and benefits of $7.9 million related to an increase in overall sales and marketing headcount, sales commission and bonus expense related to the increase in revenues noted above, restricted stock awards and the acquisitions of Quadrem and b-process; (2) increased marketing expense of $989,000; and (3) increased travel costs of $924,000 related to an increase in overall sales and marketing headcount. We anticipate that sales and marketing expenses will remain relatively consistent or slightly lower as a percentage of revenues in the year ending September 30, 2012 compared to the year ended September 30, 2011.
The changes in cash flows from investing activities primarily relate to acquisitions, dispositions, capital expenditures and the timing of purchases, maturities and sales of our investments. Net cash used in investing activities was $51.7 million for the three months ended December 31, 2011 compared net cash provided by investing activities of $37.3 million for the three months ended December 31, 2010. The net cash used in investing activities the three months ended December 31, 2011 was primarily due to cash paid for the acquisition of b-process, net of cash acquired, of $47.7 million. The net cash provided by investing activities in the three months ended December 31, 2010 was primarily due to proceeds from the sale of our Sourcing Services Business of $39.0 million.
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