Ariba results – read the Jason Busch analysis of what they mean

Ariba announced pretty impressive results last week, with revenue up for the quarter over 35% year on year. Their profit figures are harder to interpret; at first sight they're not as good, but when you strip out elements such as "$14.2 million for stock-based compensation" (which I assume means that when you meet an Ariba senior exec, they should buy the drinks, and lots of them), then they look much better.

Not being an accountant, I can't really judge whether all the number juggling makes sense, but anyway, things look good and even after the acquisition of Quadrem, they've plenty of money in the bank if they feel like some further acquisitions. "Total cash, cash equivalents, investments and restricted cash were $252.3 million at March 31, 2011, up $29.4 million from March 31, 2010".

Jason Busch at Spend Matters US has written here a very good (as always) piece looking at both the glass half full and the glass half empty view of Ariba and their prospects. He's not putting his money on either option; but it is a very good analysis that you should read if you're a current - or potential - Ariba client.

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