Software developer Taleo's
Taleo develops software to help companies with managing resumes, employee screening, and performance management. Its Web-based products can easily scale to meet the needs of everyone from small firms to titans like Citigroup
For the Q1 results reported on Monday, Taleo increased revenue 29.6% to $28.7 million, and posted net income of $908,000, or $0.03 per share. This compares to a loss of $594,000, or $0.03 per share, in the year-ago period.
The company continued to rack up customers, gaining 14 new enterprise customers and 140 new small and medium-sized clients. Taleo seems to be benefiting from distribution partners such as IBM
In early March, Taleo purchased the assets of JobFlash, which helps companies schedule interviews with non-English-speaking job recruits, for $3 million. The deal gained Taleo 60 new customers, along with new features such as multilingual telephone services.
Taleo's in-house R&D is formidable, too, giving the company a healthy pipeline of new products for 2007. It plans to launch its Taleo 7.5 software, as well as a performance management product. The company's growing customer base should provide some favorable leverage for these new offerings.
Taleo issued upbeat guidance of $30 million to $30.5 million in revenue for Q2, and earnings of $0.09 per share. The company trades for a reasonable 2.9 times revenue, and as other Web-based players like Salesforce.com have shown, companies in this space with consistently strong growth can offer savvy investors considerable upside.