2. Safe Harbor Statement With the exception of historical information, this presentation contains “forward-looking statements” that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including any statements that use words such as “may,” “will,” “expects,” “projects,” “plans,” “estimates,” and “believes.” These statements are subject to many assumptions, risks, uncertainties and changes in circumstances. Any assumptions we offer about future performance represent a point-in-time estimate. Actual results may vary materially from those expressed or implied by such statements, due to changes in economic, business, competitive, technological and/or other factors. More detailed information about risk factors that could affect actual results is set forth in filings by Saba with the Securities and Exchange Commission, including Saba’s annual report on Form 10-K for the fiscal year ended May 31, 2011 and other filings with the SEC. Saba is not obligated to(and expressly disclaims any obligation to) revise or update anyforward-looking statement.
3. Founded in 1997—(NASDAQ: SABA) Saba solutions support Public and Private Cloud Large Enterprise Public Sector presence 19 Million Users, 1,400 customers Average seat deployment 23K users 25% of users access solutions through the Public Cloud 90%+ Renewal Rate Presence in 195 countries; support 28 languages 60+ Global Partners, Distributors and Resellers IBM, HP, ACS, Hewitt, Comenius, Bluemat, Hudson Gates, Sistemas, Bristech Saba Overview
4. Total Addressable Market $18B 10% CAGR PEOPLE SYSTEMS MARKET OPPORTUNITY CAGR 38.2% 7.9% 5.4% 16.5% 7.0% 8.0% Workforce Management Performance Management LearningManagement Collaboration Social Platforms Compensations and Benefits 2009 2014 Source: Forrester, IDC
5. Four Growth Markets Enterprise Learning Web Conferencing Enterprise Talent Management Enterprise Social Software
6. Four Markets Converge into One Collaborative People Systems People Collaboration Suite Collaborative Enterprise Learning Web Conferencing Enterprise Learning Enterprise Social Software Enterprise Talent Management Collaborative Enterprise Talent Management People Management Suite
7. Opportunities for Technology Innovation and Differentiation People Systems Web Conferencing Enterprise Learning Cloud People Enterprise Talent Management Enterprise Social Software
10. Trusted Partnerships withGlobal Leaders 51 of the Fortune 100 7of the top 10 global automakers 6 of the top 10 aerospace and defense firms 5 of the top 10 global food and beverage enterprises 5 of the top 10 global banks 4 of the top 10 oil and gas companies 4 of the world’s top 10 military forces 3 of the top 10 global pharmaceutical companies
11. Marquee List of Customers Across Verticals 1,400 organizations, 19 million+ users in 195 countries Automotive and Mfg Financial Services Retail/ Hospitality High Tech Life Sciences Energy/Utilities Public Sector
14. Note: Does not include customers purchased through resellers. Saba Customers Overview
15. Global Account Sales Reps Enterprise Sales Reps Dedicated Installed Base Mid-Enterprise Sales Reps Alliances & Channel Enterprise Mid-Enterprise Channel * # Of Employees Saba Go-to-Market Strategy
16. Saba’s Transforming Learning Informal Learning User generated content Microblogging Comment, rating, tagging Extended Enterprise Structured Formal Compliance Internal Resellers Partners Distributors Web 2.0 Mobile Cloud LMS 1.0 LMS 1.0 Web Services Self Expertise Identification Virtual Classroom Online office hours Interactive class meetings Easy recording and editing Mentor identification Profile matching Project to expert mapping
17. What are the Business Drivers 1 Reduce Risk Improve Compliance Speed-up Time to Proficiency Collaborate via Social Learning 2 3 Improve Operations Effectiveness Educate extended enterprise 4 Increase Revenue For Profit Learning 5 Be a Market Leader Support Global Deployment Reduce cost Deliver Virtual Classroom 6 7 Be the “Employer of choice” Offer Continuous Learning
19. Forbes Magazine August 6, 2011 Saba Named one of Forbes‘Most Trustworthy Companies’
20. Total Revenues ($M) EPS Deferred Revenues ($M) Free Cash Flow ($M) Financial Highlights Revenue and EPS are Non-GAAP; $ in MM’s, except EPS
21. Q2FY11 Highlights 14% Growth in Bookings in Q2FY11 to $30.8M 20% Growth in Deferred Revenues to $36.7M Added Record 42 New Customers in the Quarter Doubled Dollar Value of ACV for new Public Cloud Bookings Sequentially and Year-over-Year 3 Fold Increase in new Public Cloud Transactions over $50K 1 out of every 4 customers purchasing multiple modules Dollar Value of our Average Deal Size is the highest we have seen
22. Growth Initiatives Cross-sell & Up-sell into installed base Accelerate New Customer Acquisition Concerted push into mid-market Deepen existing partnerships / extend partner networks Strategically pursue geographic expansion China, South East Asia, Middle East
23. Summary Further Expanding our Leadership Across the Talent Management Suite Marquee List of Customers Poised for Growth in a $18B TAM Seasoned Executive Leadership Team Strong Financials Profitable since FY06 $28.9M in Cash & Equivalents Debt Free Attractive Valuation $8.2M Stock Repurchase Program
89% of the customers have Saba Learning and Saba Centra57% of customers are in enterprise and public sector17% of customers are in mid-market60% of small customers came from Saba Centra acquisitionMore than 73% of our customers are on-premise and hosted61% of current customers are based in NA39% of current customers in the rest of the worldMore than 73% of our customers are on-remise and hosted
