ARBA: Seeking Profits

Seeking Alpha recently posted a quick summary of Ariba’s quarterly results posted late yesterday afternoon. Much of their commentary comes courtesy of Deutsche Bank's write-up. According to the post, "Ariba reported strong 2Q revenues and EPS of $83m and $0.09 (above DB's and consensus estimates of $82m and $0.08) with subscriptions of $31m (up over 50% y/y organically) and bookings up over 70% organically." While I've not had the chance to dig into the numbers, it sounds like decent if not exceptional news. I honestly expected that Procuri's numbers would have contributed more as a percentage to the subscription booking numbers. Perhaps the biggest wildcard for future financial performance will be whether or not Ariba realizes significant traction with its On-Demand procure-to-pay suite -- which is only starting to get off the ground from a deployment standpoint (as the implementation kinks get ironed out). Perhaps I'll be able to gain some more insights into this at LIVE in a couple of weeks. What do you think of the results? Anything we can read into for broader growth in the technology and services Spend Management market?

Disclosure: I do not directly hold stock in Ariba or any of its competitors though may own mutual funds which trade in technology stocks. Ariba is, however, a client of my consulting firm, Azul Partners, and a sponsor of this blog, but we also work with over a dozen of Ariba's competitors in a commercial capacity as well.

- Jason Busch

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