Employee-management-software developer Taleo (NASDAQ:TLEO) has attracted several high-caliber members to its board recently, including former VERITAS CEO Gary Bloom. The influx of talent is little surprise, given the company's big market potential, solid technology platform, and of course, strong growth.

In the fiscal fourth-quarter earnings report released last week, revenues increased 26% to $26.5 million. Net income was $892,000, or $0.03 per share, compared to a net loss of $77,000 in the same period a year ago.

Founded in 1999, Taleo offers two product suites -- the Enterprise and Business Editions -- to help companies manage their workforces in areas such as resume processing, screening, assessment, and performance management. The Enterprise Edition is focused on large organizations that typically have a global footprint, like Citigroup (NYSE:C), Dell (NASDAQ:DELL), or Starbucks (NASDAQ:SBUX). The Business Edition is geared primarily toward small-to-medium-sized businesses.

Taleo delivers its software via the Internet and charges its customers based on subscriptions (usually for one-year terms). This typically means lower costs for its customers, since there is no need to make hardware investments or periodic installations.

Partnerships have been critical to Taleo's success. For example, the company has agreements with large human resources outsourcing firms like Fidelity Investments, Accenture (NYSE:ACN), and ADP (NYSE:ADP). A recent deal with IBM (NYSE:IBM) has already produced two customers. And since IBM tends to focus on long-term, high-priced deals, this arrangement will likely move the needle and keep the growth going at Taleo.

Taleo's revenue run-rate now stands at $100 million or more. This is an important hurdle for an on-demand company, because it shows customer validation, proven scalability of infrastructure, and improved operating leverage. And as seen with other on-demand companies that have crossed this milestone -- like RightNow and Salesforce.com -- it may mean carrying a larger earnings multiple.

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Fool contributor Tom Taulli does not own shares of any company mentioned in this article.