Last week, Ariba announced its latest quarterly results. Even though the purpose of this mini-series looking at their performance and what it means for the market is to dig into the numbers and qualitative observations, I find it curious that Ariba has completely backed away from calling itself a procurement or Spend Management vendor. To wit, in the first sentence of the press release, Ariba now describes itself as “the leading provider of collaborative business commerce solutions.” Still, despite the updated corporate positioning as a new type of buyer/supplier intermediary, you can’t argue with Ariba’s actual results. The company is now pushing a $400 million run-rate.
Specifically, “total revenues for the fourth quarter of fiscal year 2010 were $95. One million, as compared to $84.3 million for the fourth quarter of fiscal year 2009.” Year-over-year subscription (e.g., SaaS) revenue increased 12% by our calculations, jumping from $41.1 million to $46.50 million for the same fiscal fourth quarter period. Yet maintenance revenue dropped on the quarter compared with the prior year, from $16.80 million to $16.40 million based on our calculations of how Ariba breaks out this category of revenue. Spend Matters believes this decline is due in part to limited customer defections from legacy Buyer/P2P implementations and potentially renegotiated maintenance pricing.
Ariba continues to generate cash. In the latest quarter, “net cash flow from operations …
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