More on ARBA--earnings from Wed etc; Teflon, please help! And anybody else! I wanted to buy calls at 160 and didnt
From their thread:
ARIBA: Ariba announces record quarterly revenues of $17 million, up 266%
Presswire - November 10, 1999 13:31
M2 PRESSWIRE-10 November 1999-ARIBA: Ariba announces record quarterly revenues of $17 million, up 266% (C)1994-99 M2 COMMUNICATIONS LTD
* Net Loss Per Share $0.12, Beats First Call Estimates
London -- Ariba, Inc. (NASDAQ: ARBA), the leading independent business-to-business electronic commerce network, has announced record results for the fourth quarter ended September 30, 1999.
Revenues for the fourth quarter of fiscal 1999 marked the largest quarter in Ariba's history at $17.1 million, up 266 percent from the same period last year. Net loss for the quarter excluding the amortisation of stock-based compensation was $4.6 million or a loss of $0.12 per share, beating First Call consensus estimate of a loss of $0.17 per share. During the corresponding quarter in fiscal 1998, the net loss was $2.2 million or a loss of $0.28 per share, excluding the amortisation of stock-based compensation. Including the amortisation of stock-based compensation, net loss for the fourth quarter of fiscal 1999 was $9.9 million or a loss of $0.26 per share.
Revenues for the fiscal year 1999 marked Ariba's continued leadership as the largest independent business-to-business e-commerce network of buyers and suppliers. Fiscal year 1999 revenues were $45.4 million, up 443 percent versus $8.4 million in the same period last year. Net loss for the fiscal year excluding stock-based compensation was $14.7 million or a loss of $0.84 per share. Including the amortisation of stock-based compensation, net loss for the fiscal year was $29.3 million or a loss of $1.67 per share.
"Upside in the quarter came from higher than expected revenues from transaction-based licenses and faster than expected migration onto the Ariba Network, as e-commerce is becoming a strategic imperative for leading corporations," said Keith Krach, chairman and chief executive officer of Ariba. "By capitalising on our early mover advantage in providing the first business-to-business eCommerce buying infrastructures to some of the world's largest, most respected corporations, and attracting over 20,000 corporate suppliers, Ariba has created a global eCommerce network. With another record-breaking quarter, we've extended that leadership going into the next fiscal year."
The following highlights were announced during Ariba's fourth fiscal quarter:
* Ariba announced the new Ariba Internet Business Exchange (Ariba IBXTM) service, a hosted Internet service that will enable Ariba partners to quickly build their own commerce platform powered by the Ariba Network without installing or maintaining their own eCommerce infrastructures.
* Hewlett-Packard and SAirGroup are among the first companies who will help form commerce communities on the Ariba Network platform. Targeted at small and mid-size businesses and vertical industry consortia, these commerce communities will be able to deliver volume discounted pricing, streamlined internal purchasing processes, and a single point of access to an organised world of business products and services.
* Ariba also announced that more than fourteen percent of the Fortune 100 are now Ariba corporate buyers. Several new large customers joined the Ariba Network platform as buyers including American Honda Motor Co., Inc., Andersen Consulting, Charles Schwab & Co., CNA Insurance, Deloitte Consulting, Morgan Stanley Dean Witter, Motorola and National Semiconductor, among several others. In total, the Ariba customer base spends more than US$140 billion annually on operating resources.
* Continued momentum from new suppliers to the Ariba Network platform, brought the total supplier network reach to over 20,000 suppliers. Today, Ariba's buyer base can access any major category of spend because of Ariba's supplier network reach.
* US Bancorp, (NYSE: USB), the largest provider of purchasing cards in the world, and Ariba, Inc., announced an alliance to develop an integrated electronic buying and payment infrastructure for business-to-business eCommerce. The joint solution delivers fully electronic orders and invoices, automatically reconciles purchase orders with purchasing card charges, and integrates purchase data with the buyer's financial systems. It enables businesses and their suppliers to streamline commerce, reduce operating costs and increase internal efficiencies by replacing paper-based payment processes with integrated electronic payment systems.
* Ariba announced the new Ariba ORMX application, a version of the industry-leading Ariba ORMS Release 6 application tailored for use in an application service provider (ASP) environment and ideally suited for mid-size companies and other organisations who prefer to minimise their up-front IT investments
Over time, Ariba may build a very attractive transaction-based revenue model.
Is this new? Anybody know?
Discussed in the conference call - here is the relevant part of the transcript and link.
Jim Moore: Hey. Congratulations on a great quarter and a great year and your third-year anniversary. I wanted to ask you if you could just give a little bit more detail on the transaction revenue components to the revenue stream. If you could talk a little bit about the make-up of that and, you know, sort of - what do the contracts look like? How do you structure that vis-…-vis sort of a traditional enterprise software contracts?
Keith Krach (?): Yeah. That's a good question, (Jim). It really - the biggest core element of it is that what our customer base purchases is transaction volume. They buy perpetual right to execute a number of transactions, and then they have that right every year. So it's really a value-based type of pricing. If you compare that to the old kind of client/server type of model, that's more (seat) based. And, you know, when you become effective, you're basically purchasing more (seats). You know, in our case, they're buying the capacity that they're going to use as they grow the organization, and they are expanding the amount of capacity than they need. So it's really transaction based. So and that's the biggest differentiater. Do you want to hear a little bit more about the details of that piece of our revenue?
Jim Moore: Yeah, if you could. You know, what kinds of things are you putting into the contract, and how is it structured? I don't know if you can quantify it or not.
Keith Krach (?): Well, the basic element of how it is structured is a customer will purchase the transactions up front and they'll pay for it up front. So, in that sense, they are licensing that volume transaction and (INAUDIBLE). it's really - typically if the majority is hovering in the range of 75 to 80 percent, the transaction pieces it, and the other 25 to 20 percent of it is things such as maintenance and modules.
Jim Moore: O.K. And just to be clear again, this is sort of a per-line-item charge versus any - you're not taking a piece of any transactions going across the network at this point?
Keith Krach (?): No. That's a per-line-item charge.
vcall.com. |
