HYSL Presentation at MS/NSDQ Investor Conference
Posted on December 5, 2006
Robin Washington, the CFO, presented to what sounded like a very small audience. Claims that he primary position for the company is a business performance managment software company. Hyperion strives to manage the process from setting goals to building models, planning, monitoring, analyzing and reporting.
Interestingly the presentation dove right into financial metrics which is their heritage and what they are known for (versus the broader category they are claiming.)The release of Hyperion System 9 bundles several of their services into a single workspace and offers better integration between applications, business intelligence, data management and core services like single sign on.Again the stress is really on the quality and management of financial data rather than other aspects of business or enterprise management.
From a competitive standpoint they showed the Gartner CPM (Corporate Performance Management) grid with them paired off against Cognos in the leaders quadrant. Hovering around them are SAP, Oracle, SAS, Business Objects and two upstarts, Cartesis and OutlookSoft.
IDC puts their BPM market share at 19% versus 5-8% each for COGN, SAP, ORCL and SAS. They have the market size at $1.6B and growing about 12%. In query and reporting BOBJ and COGN lead with 18% and 13% respectively. HYSL thinks that they can improve their 6% share here.
Company revenues have reached $800M. ASP is $145K. Cash stands at $436M. Market capitalization today is $2.1B. They have 12,000 customers and 2,800 employees. Operating margins are 17-18%.
CFOPS has been strong. Up from about $80M/year in FY04 to over $125M in FY05 and over $150M in FY06. Have been buying back stock ($390M so far) and building cash levels. Raised guidance recently to $860M and $1.70-5 of non-GAAP EPS. Management thinks they can get to $1B in revenues and 20% non-GAAP OM but doesn’t say when.
The company is looking at M&A and has made a number of acquisitions to date including: Alcar (strategic finance), UpStream (financial data quality management), Brio (query and reporting), QiQ (dashboards), and Razza (master data management).
So despite the rhetoric they are a financial data management firm as they always have been. It’s not a criticism just a reality.
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