{"id":218,"date":"2005-12-15T01:00:55","date_gmt":"2005-12-15T09:00:55","guid":{"rendered":"https:\/\/systematichr.com\/?p=218"},"modified":"2006-01-02T20:36:48","modified_gmt":"2006-01-03T04:36:48","slug":"tms-non-fiancials","status":"publish","type":"post","link":"https:\/\/systematichr.com\/?p=218","title":{"rendered":"TMS (non) fiancials"},"content":{"rendered":"

I seem to have made the quite unwise statement that I would attempt to evaluate the financials of several TMS vendors. Realizing now that I should take that statement back (entirely possible with just a quick stroke of the keyboard) and deny the whole thing, I submit the following with a few disclaimers (on top of my normal disclaimers):
\n1.\tAny and all analysis performed for this post is almost pure conjecture.
\n2.\tWhile I reviewed a few sources of financial data, and have made some pretty reasonable calculations and guesses, many of these calculations were based on educated guesses.
\n3.\tI actually have crunched numbers and came up with a few comparisons of profitability, revenues, total clients, total employees. I will not post these numbers since I could be so far off it would be misleading.
\n4.\tI have decided to look only at Authoria<\/a>, RecruitMax<\/a>, and SuccessFactors<\/a>. These are private companies and difficult to get data for. For WorkStream<\/a>, please visit their website here<\/a> to download the annual report. It\u2019s simply not fair to evaluate WS against \u201ceducated guesses.\u201d
\n5.\tI have not been involved in a TMS search in the last couple quarters, and don\u2019t have any direct information other than what is on the public internet.
\n
\nKey Points:
\n\u2013\tSuccesFactors seems to be adding clients faster than anyone else.
\n\u2013\tAuthoria seems to have the strongest base in the Fortune 1000. SuccessFactors is a very close second.
\n\u2013\tRecruitMax may not be profitable (I don’t know for sure), but is also adding clients as a fast pace. Their average clients size seems to be smaller than Authoria or SuccessFactors.
\n\u2013\tAuthoria and RecruitMax have more users that SuccessFactors, but it is impossible to tell what product those users are on. For example, my numbers for Authoria may include non-TMS products. However, I have reasonable confidence that Authoria has the most TMS employee subscriptions. RecruitMax has a pure TAS base.
\n\u2013\tAs SuccessFactor\u2019s client base is 100% subscription based on employee headcount, each employee added is much more significant to the bottom line than for Authoria or RecruitMax.<\/p>\n

Profitability:
\n\u2013\tSuccess Factors has been profitable since inception in 2001. I\u2019m not sure if they have ever taken a loss if you exclude cash infusions of about $5M\/year.Red Herring, September 19, 2005. \u201cSix Software Startups to Watch.\u201d<\/footnote> However, this is chump change and I\u2019d guess that they have been turning real profits. I really can\u2019t figure out how they have been cash flow positive since inception.
\n\u2013\tAuthoria turned a profit in FY\u201904. They state that they are on course to turn a profit in FY\u201905 as well.Press Release, November 7, 2005. \u201cAuthoria Again Delivers Record-Breaking Revenue and Profits in Q3 2005 .\u201c Retrieved December 11, 2005 from http:\/\/www.authoria.com.<\/footnote> Obviously I don\u2019t know how the acquisition of hire.com<\/a> will affect the books (or when). Strong revenues from pre-TMS products should help them.
\n\u2013\tRegarding RecruitMax, my best guess is that they are not profitable. R&D and acquisitions may affect profitability for a few years, but that’s true for anyone in this space.
\n\u2013\tIn my only comment on WorkStream, they are clearly not profitable. You can look at their financials yourself.<\/p>\n","protected":false},"excerpt":{"rendered":"

I seem to have made the quite unwise statement that I would attempt to evaluate the financials of several TMS vendors. Realizing now that I should take that statement back (entirely possible with just a quick stroke of the keyboard)…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[33,20,3],"tags":[],"class_list":["post-218","post","type-post","status-publish","format-standard","hentry","category-finance","category-talent-management","category-vendors"],"_links":{"self":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=218"}],"version-history":[{"count":0,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/218\/revisions"}],"wp:attachment":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}