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Enterprise Software - Saturday, November 3, 2007

SuccessFactors Prices Up To $108M IPO

SuccessFactors priced its IPO at 10.8M shares at $8 - $10 per share. It would see net proceeds of $80.9M, assuming an initial public offering price of $9.00 per share. SuccessFactors sells Web-based, on-demand software and solutions and targets companies of all types and sizes that want to align employee performance with bottom-line business results.

SuccessFactors is a bit of a victim of its hype. An IPO had been expected earlier and analysts who saw its revenues and losses for the first time were surprised that they were not far better.

For the nine months ended September 30, the company had a loss of $49.2M, compared with a loss in the same period last year of $22.9M. Revenue more than doubled to $44.1M from $21.2M.

The startup's investors include Greylock Management, TPG Ventures and Canaan Partners. Competitors include Authoria, Softscape, Recruitmax, Oracle, and SAP.

SuccessFactors has more than tripled its workforce to 700 in the last two years. SuccessFactors recently added Great Plains Software's former CEO Doug Burgum and Macromedia's former CFO Betsey Nelson to serve on its board. And over the last several months, the company added a new CFO, CMO, and GM of small business.

Read - Reuters
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