Callidus Software Inc. (CALD, Financial) filed Quarterly Report for the period ended 2012-03-31.
Callidus Softwr has a market cap of $266.4 million; its shares were traded at around $5.65 with and P/S ratio of 3.2.
Recurring Revenues. Recurring revenues, which consists of SaaS revenues and maintenance revenues, increased by $2.2 million, or 15% in the three months ended March 31, 2012 compared to the same period in 2011. The increase was primarily due to the growth in our SaaS (on-demand hosted and subscription) revenues which increased by 28% in the three months ended March 2012 compared to the same period in 2011. The increase in total recurring revenues was partially offset by maintenance revenues associated with perpetual license which decreased by $0.6 million, or 13% compared to 2011. The decrease was primarily due to our conversion of customers from on-premise license to on-demand subscription service.
Cost of Recurring Revenues. Cost of recurring revenues decreased by $0.4 million, or 5%, in the three months ended March 31, 2012 compared to the same period in 2011. The decrease was primarily due to lower third-party data center costs of $0.6 million, lower professional fees of $0.5 million and third-party support maintenance costs of $0.2 million, which was partially offset by increases in personnel-related costs of $0.4 million, offshore third-party technical services and support costs of $0.2 million and hosting fees of $0.2 million. Our third-party data center costs decreased as we transitioned certain functions from external to internal resources. Our professional fees were lower due to the decrease in contract employees upon completion of a specific customer project. Our third-party maintenance and support costs decreased as we brought the customer support process in-house and eliminated the associated third-party maintenance contract. Our personnel-related costs increased due to increased headcount from our 2011 and 2012 acquisitions and new hires, our technical services and support costs increased to support increased on-demand subscription services and our hosting fees increased due to pre-existing arrangements our acquired companies had with third-party service providers. The costs associated with supporting our on-demand subscription service are generally higher than our on-premise license customer as we are responsible for the full operation of the software in our hosting facility.
Sales and Marketing. Sales and marketing expenses increased by $2.7 million, or 65%, in the three months ended March 31, 2012 compared to the same period in 2011. Overall sales and marketing expenses increased compared to the same period in 2011, primarily from our seven acquisitions and new hires in sales. The increase was primarily driven by increased personnel-related costs of $1.7 million, increased commission expense of $0.5 million and increased marketing events and programs of $0.2 million. The increase in personnel-related costs was due to additional headcount from our 2011 and 2012 acquisitions as well as the addition of sales people in January, an increase in commission expense due to increased sales and a rise in marketing expense related to the new offerings of Callidus. Travel related expenses also increased by $0.2 million due to our annual reward conference, which was in the first quarter of 2012, but was held in the second quarter in 2011. Stock-based compensation expense increased by $0.4 million in 2012 due to new hire, merit and retention stock grants.
In the three months ended March 31, 2012, net cash used in investing activities was $8.4 million compared to $1.5 million in the same period of 2011. The cash used in our investing activities in 2012 was primarily related to $2.8 million net inflows from the sales or maturities and purchases of investments, $7.0 million for our acquisitions, $3.6 million in payments for intangible assets and $0.6 million of equipment expenditures.
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Callidus Softwr has a market cap of $266.4 million; its shares were traded at around $5.65 with and P/S ratio of 3.2.
Highlight of Business Operations:
SaaS revenue growth continued to drive the growth in recurring revenues as well as the growth in total revenues for the three months ended March 31, 2012. SaaS revenues grew to a record $12.8 million for the quarter representing a 28% increase over the same period last year Total recurring revenues grew by 15% over the same period reflecting the strong growth in Saas revenues offset by an expected decline in recurring maintenance revenues. Recurring revenues continue to account for over 75% of our total revenues and we expect this trend to continue going forward. Total revenues for the three months ended, March 31, 2012 were $22.0 million, up $2.2 million, or 11%, from the same period in 2011.Recurring Revenues. Recurring revenues, which consists of SaaS revenues and maintenance revenues, increased by $2.2 million, or 15% in the three months ended March 31, 2012 compared to the same period in 2011. The increase was primarily due to the growth in our SaaS (on-demand hosted and subscription) revenues which increased by 28% in the three months ended March 2012 compared to the same period in 2011. The increase in total recurring revenues was partially offset by maintenance revenues associated with perpetual license which decreased by $0.6 million, or 13% compared to 2011. The decrease was primarily due to our conversion of customers from on-premise license to on-demand subscription service.
Cost of Recurring Revenues. Cost of recurring revenues decreased by $0.4 million, or 5%, in the three months ended March 31, 2012 compared to the same period in 2011. The decrease was primarily due to lower third-party data center costs of $0.6 million, lower professional fees of $0.5 million and third-party support maintenance costs of $0.2 million, which was partially offset by increases in personnel-related costs of $0.4 million, offshore third-party technical services and support costs of $0.2 million and hosting fees of $0.2 million. Our third-party data center costs decreased as we transitioned certain functions from external to internal resources. Our professional fees were lower due to the decrease in contract employees upon completion of a specific customer project. Our third-party maintenance and support costs decreased as we brought the customer support process in-house and eliminated the associated third-party maintenance contract. Our personnel-related costs increased due to increased headcount from our 2011 and 2012 acquisitions and new hires, our technical services and support costs increased to support increased on-demand subscription services and our hosting fees increased due to pre-existing arrangements our acquired companies had with third-party service providers. The costs associated with supporting our on-demand subscription service are generally higher than our on-premise license customer as we are responsible for the full operation of the software in our hosting facility.
Sales and Marketing. Sales and marketing expenses increased by $2.7 million, or 65%, in the three months ended March 31, 2012 compared to the same period in 2011. Overall sales and marketing expenses increased compared to the same period in 2011, primarily from our seven acquisitions and new hires in sales. The increase was primarily driven by increased personnel-related costs of $1.7 million, increased commission expense of $0.5 million and increased marketing events and programs of $0.2 million. The increase in personnel-related costs was due to additional headcount from our 2011 and 2012 acquisitions as well as the addition of sales people in January, an increase in commission expense due to increased sales and a rise in marketing expense related to the new offerings of Callidus. Travel related expenses also increased by $0.2 million due to our annual reward conference, which was in the first quarter of 2012, but was held in the second quarter in 2011. Stock-based compensation expense increased by $0.4 million in 2012 due to new hire, merit and retention stock grants.
In the three months ended March 31, 2012, net cash used in investing activities was $8.4 million compared to $1.5 million in the same period of 2011. The cash used in our investing activities in 2012 was primarily related to $2.8 million net inflows from the sales or maturities and purchases of investments, $7.0 million for our acquisitions, $3.6 million in payments for intangible assets and $0.6 million of equipment expenditures.
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