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Exhibit 99.1 
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Exhibit 99.1
FINANCIAL ANALYST UPDATE
Roy Lobo
VP Investor Relations April 9, 2014
Safe Harbor Statement
This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, the Company’s current progress and timing objectives regarding completion of its accounting restatement and becoming current in its required filings with the SEC, the potential impact of the restatement on the Company’s financial performance and financial statements, the Company’s guidance concerning preliminary financial results and certain other financial and operating metrics for fiscal years 2012, 2013, 2014 and future periods, the expectation that the financial and operating metrics reported in the presentation will not be impacted by the restatement, the subscription uplift over annual maintenance, and market and industry data. The actual outcome of such matters could differ materially from those expressed in any forward-looking statements due to, among other things, the Company’s ability to complete the work required for the pending restatement of its financial statements in a timely manner, any additional required adjustments to the Company’s financial statements and/or other factors arising in the restatement process that are not currently known or identified or where the scope of work required or impact of the restatement may be greater than what is currently known or anticipated by the Company and the impact of the restatement on the Company’s sales, operations and financial performance. In addition,
Saba faces risks and uncertainties that could affect timing of the completion of its restatement and becoming current with respect to its delayed filings with the SEC including material weaknesses that exist with respect to its internal controls over financial reporting or additional deficiencies in its internal controls over financial reporting that may be identified. Readers should refer to the section entitled “Risk Factors” in the Form 10-K for the fiscal year ended May 31, 2011, and similar disclosures in subsequent reports filed with the SEC. The forward-looking statements and risks stated in this press release are based on information available to Saba today. Saba assumes no obligation to update them.
2 | | | ©2014 Saba Software, Inc. |
FINANCIAL
ANALYST UPDATE
Shawn Farshchi
President & CEO April 9, 2014
AGENDA
Cloud Migration
Product Innovation – Hallmark of the Company
TAM Opportunity
Execution
Cloud Operations
4 | | | ©2014 Saba Software, Inc. |
LATEST ANNOUNCEMENTS
Saba Announces Paige Newcombe as Chief Customer Officer
Saba Showcases Talent Management Transformation at @Work 2014
Saba Shifts Talent Management Into High Gear with Spring Cloud Release
Saba Announces Winners of Customer Excellence Awards at @Work 2014 Summit
Saba @Work 2014 Brings Together Leaders in the Talent Management Community to Discuss Transformation
5 | | | ©2014 Saba Software, Inc. |
CLOUD MIGRATION
SUCCESS TO DATE
7 | | | ©2014 Saba Software, Inc. |
FINANCIAL IMPACT – CLOUD MIGRATION
Annual Subscription Uplift over Annual Maintenance
2.0x to 3.0x
4.7x
Cross-Sell Opportunities
Up-Sell Opportunities
8 | | | ©2014 Saba Software, Inc. |
FUTURE PLANS FOR CLOUD MIGRATION
PRODUCT INNOVATIONS
PRODUCT INNOVATION
Excited by all the innovation around the Talent 1 Platform 3 key features about our Talent 1 Platform
Irresistible Experience
Intelligent at the core
Integrate with ease to provide extensibility with your ecosystem
11 | ©2014 Saba Software, Inc.
MARKET OPPORTUNITY
MARKET OPPORTUNITY FOR TALENT & COLLABORATION
$ in M’s
7,000 6,368
6,025
6,000 5,381 1,301
4,944 1,283
5,000 4,524 1,157
4,078 1,089
1,019
4,000 3,508 2,412
3,308 933 2,123
800 1,632 1,862
3,000 783 1,426
1,241
929 1,076 1,129 1,145
2,000 959 1,019
821 897
689 704
1,000 501 512 597 652 697 741 821 833
407 416 485 530 566 602 667 677
0
2011 2012 2013 2014 2015 2016 2017 2018
Performance Learning Recruiting Collaboration Other
13 | ©2014 Saba Software, Inc.
Source: Saba, Gartner 2014
TALENT AND COLLABORATION BY REGION
$ in M’s
7,000 6,368
6,025
6,000 5,381
4,944
4,524
5,000
4,078
4,000 3,308 3,508
3,000
2,000
1,000
0
2011 2012 2013 2014 2015 2016 2017 2018
North America Western Europe Eastern Europe
Asia/ Pacific Latin America MENA
14 | ©2014 Saba Software, Inc.
Source: Saba, Gartner 2014
TALENT AND COLLABORATION FOR LARGE ENTERPRISES
$ in M’s
4,457
4,500 4,217
3,767
4,000 3,461
3,500 3,167
2,855
3,000 2,455
2,316
2,500
2,000
1,500
1,000
500
0
2011 2012 2013 2014 2015 2016 2017 2018
North America Western Europe Eastern Europe
Asia/ Pacific Latin America MENA
15 | ©2014 Saba Software, Inc. Source: Saba, Gartner 2014
TALENT MANAGEMENT FOR LARGE ENTERPRISES
$ in M’s
3,389
3,500 3,256
2,905
3,000 2,691
2,480
2,500 2,253
1,875 1,959
2,000
1,500
1,000
500
0
2011 2012 2013 2014 2015 2016 2017 2018
North America Western Europe
16 | ©2014 Saba Software, Inc. Source: Gartner Enterprise Software Forecast 2014
Bersin by Deloitte, 2013
GREAT SUCCESS IN REPLACING COMPETITORS
18 | ©2014 Saba Software, Inc.
TALENT AND COLLABORATION FOR LARGE ENTERPRISES
$ in M’s
1,200 1,068
962
1,000
862
769
800 686
601
600 496
441
400
200
0
2011 2012 2013 2014 2015 2016 2017 2018
Eastern Europe Asia/ Pacific Latin America MENA
19 | ©2014 Saba Software, Inc. Source: Saba, Gartner 2014
SUCCESS WE HAVE IN REST OF THE WORLD
20 | ©2014 Saba Software, Inc.
TALENT & COLLABORATION FOR SMALL AND MEDIUM ENTERPRISE
$ in M’s
1,910
2,000 1,807
1,800 1,614
1,600 1,483
1,357
1,400 1,223
1,200 992 1,052
1,000
800
600
400
200
0
2011 2012 2013 2014 2015 2016 2017 2018
North America Western Europe Eastern Europe
Asia/ Pacific Latin America MENA
21 | ©2014 Saba Software, Inc. Source: Saba, Gartner 2014
SUCCESS WE HAVE IN SMALL & MEDIUM ENTERPRISE
22 | ©2014 Saba Software, Inc.
SUMMARY OF MARKET OPPORTUNITY – 2015
0
$1.5B
$2.7 B
$0.8 B
Replacement Opportunity in
North America & Europe
Greenfield Opportunity at Large Enterprise for ROW
Greenfield Opportunity at SME
23 | ©2014 Saba Software, Inc.
EXECUTION
HOW DO WE CAPTURE THIS MARKET OPPORTUNITY?
People
Upgrading leadership teams across all functions
GM North America
Talented sales executives with Talent Management domain experience Chief Customer Officer VP Operations and associated operations staff
Product
Saba Cloud is ready for all types and sizes of customers
Saba Cloud momentum is building with new customers and with existing customers – the product is VERY competitive
25 | ©2014 Saba Software, Inc.
HOW DO WE CAPTURE THIS MARKET OPPORTUNITY?
Product (continued)
Completeness of Talent Suite
– Recruiting is delivered
– Compensation in development
– Talent Insight in development
All built on the Talent1 platform
– Irresistible user experience
– Predictive machine learning
– Extremely extensible
– Highly scalable, available, and secure
– Global
26 | ©2014 Saba Software, Inc.
HOW DO WE CAPTURE THIS MARKET OPPORTUNITY?
Positioning
Increase awareness
– Branding; Events; Regional User Groups
Increase demand generation
– Thought Leadership/Best Practices
– Retargeting
– Evangelizing
Agile and innovative vs slow and stagnant
Selling beyond the CLO to CHRO and CIO
27 | ©2014 Saba Software, Inc.
HOW DO WE CAPTURE THIS MARKET OPPORTUNITY?
Process
Expertise@Work
– Agile enablement rather than traditional waterfall implementations
– Transparent, cost certain, and modern
– Redefined the customer journey for the talent management industry with the expertise manager
– Chief Customer Officer – Paige Newcombe
28 | ©2014 Saba Software, Inc.
CLOUD OPERATIONS
SCALE EFFICIENTLY
Improve Gross Margins
RATIONALIZE DATA CENTER COSTS Moving away from Managed services Global reach Vendor redundancy
Automation of Provisioning
Optimizing scalability of the platform
30 | ©2014 Saba Software, Inc.
SCALE EFFICIENTLY
Best In Class Security
Privacy
Customers trust Saba to maintain privacy
Not only Safe Harbor and Privacy Certification, Saba adds COPPA Children’s Privacy and Trusted
Cloud which is assessed by a third party
Application Security
Embed Security into the System Development Lifecycle, not after it is in production
Certifications Beyond Data Centers
Saba obtained SSAE-16 SOC II Type 2 for Corporate Policies and Processes
Security Personnel
Experienced professionals building security for cloud
Access
Saba personnel undergo awareness training and certification
Background checks that not only includes work history and reference checks, but also financial, government watch list, education, and more
31 | ©2014 Saba Software, Inc.
FINANCIAL ANALYST UPDATE
Mark Robinson
CFO
April 16, 2014
AGENDA
Regaining SEC Compliance
Business Trends
Key Financial Metrics
33 | ©2014 Saba Software, Inc.
REGAINING SEC COMPLIANCE
Data intensive work for restatement is substantially complete
Focus is on completing financial audits
The audits span multiple years
Goal to regain SEC compliance during the fourth calendar quarter of this year
34 | ©2014 Saba Software, Inc.
BUSINESS TRENDS –
PROJECTED CHANGE IN BOOKINGS MIX:
FY’ 11 Targets (2)
Cloud 14% 50% - 60% Our core Cloud
business currently
Hosting 8% ~ 4% represents
Support 33% 15% - 20% approximately 40%
of total bookings
Professional Services 29% ~ 15%
License 16% ~ 5%
Approximately 75%
of total current
Recurring Business (1) 55% 80%+ bookings are
recurring in nature
(1) | | Recurring Business includes Cloud, Hosting and Support |
(2) | | Reflect future 2-3 year targets |
35 | ©2014 Saba Software, Inc.
BUSINESS TRENDS – RECURRING BOOKINGS MIX
$
9% 6%
9%
35%
37%
42%
54% 59%
49%
FY12 FY13 FY14 (1)
Cloud Support Hosting
36 | ©2014 Saba Software, Inc.
BUSINESS TRENDS - YoY GROWTH AND DYNAMICS IN NEW CLOUD BOOKINGS (1)
FY'14 FY'12 FY'13 Forecast New Cloud Bookings 54% -22% 15%
FY’12:
Strong growth realized during early transition to Cloud which included a number of very large complex deals with heavy customization and high support requirements
FY’13:
Sales Execution issue
More rigor around managing deals – less customization Deals became more protracted
FY’14: YTD YoY results driven by weak Q1 offset by strong Q2 & Q3
Q1 YoY down 60% due to sales execution issues coupled with unusually strong Q1 FY’13 bookings
Q2-Q4 combined YoY growth up 60% - driven by change in sales culture, leadership change and product innovation
(1) | | Bookings are based on annual contract value and are not expected to be impacted by the restatement. |
37 | ©2014 Saba Software, Inc.
BUSINESS TRENDS –
YoY GROWTH AND DYNAMICS IN CLOUD RENEWALS
FY'14
FY'12 FY'13 Forecast
Cloud Renewal Rates 94% 89% 88%
FY’12: Early evolution Cloud business which included a number of complex enterprise customers with high support costs FY’13/14 Renewal Dynamics:
Certain customers with heavy customization and support requirements did not align with our business model which near term reduced renewal rates Customer move to in-house application Acquisition and adoption of acquirer applications Renewal rate target 90%+
38 | ©2014 Saba Software, Inc.
BUSINESS TRENDS – TARGET GROSS MARGINS
Targets (1)
Cloud ~ 80%
Support ~ 80%
Professional Services ~ 30%
License ~ 92%
Total Gross Margin ~ 75%
(1) The above figures represent two to three year targets that do not account for any impact to the company’s prior financial results that may be caused by the restatement. These targets are subject to customary uncertainties related to future performance of the business.
39 | ©2014 Saba Software, Inc.
KEY FINANCIAL TARGET METRICS (1)
Cloud Bookings YoY Growth 30%+
Cloud Margins 80%+
Cash Flow From Operations
EBITDA
Cloud Retention Rate 90%+
Revenue per Employee $250K
(1) The above figures represent two to three year targets that do not account for any impact to the company’s prior financial results that may be caused by the restatement. These targets are subject to customary uncertainties related to future performance of the business. The level of targeted improvement in cash flow from operations and EBITDA will depend on a variety of factors related to the performance of the business but achievement of the other financial targets can be expected to give rise to increases in cash flow and EBITDA over time.
40 | ©2014 Saba Software, Inc.
Thank You
