Taleo (TLEO) 8-K/A Results of Operations and Financial Condition

Exhibit 99.2

Taleo Corporation

Condensed Consolidated Balance Sheets
(All amounts in thousands)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2006			2006			2006			2006			2005
ASSETS
Current assets:
Cash and cash equivalents	$	58,785		$	52,989		$	63,050		$	62,731		$	59,346
Restricted cash		2,722			972			961			779			1,110
Accounts receivable		25,952			24,230			17,070			20,517			15,026
Prepaid expenses and other current assets		3,657			4,906			3,729			4,021			3,010
Investment credit receivable		4,395			4,010			3,461			2,815			4,944
Total current assets		95,511			87,107			88,271			90,863			83,436
Property and equipment, net		12,928			12,748			12,210			6,924			7,129
Restricted Cash		1,048			1,053			1,048			1,248			936
Other assets		1,448			435			274			382			283
Goodwill		6,028			6,027			6,027			6,027			5,947
Other Intangibles, net		457			541			791			1,040			1,289
Total assets	$	117,420		$	107,911		$	108,621		$	106,484		$	99,020
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Capital lease obligation, current	$	381		$	501		$	602		$	581		$	583
Accounts payable and accrued liabilities		18,708			13,579			14,918			11,267			13,063
Contingent shares issuable		—			80			80			80			81
Customer deposits		80			1,152			1,654			2,397			342
Deferred revenue		18,547			16,149			16,415			17,724			10,870
Total current liabilities		37,716			31,461			33,669			32,049			24,939
Customer deposits and long term deferred revenue		360			303			303			187			114
Other liabilities		1,101			889			105			129			155
Capital lease obligation, non-current		17			46			95			256			399
Class B redeemable common stock		—			—			—			—			—
Total liabilities		39,194			32,699			34,172			32,621			25,607
Exchangeable share obligation		796			833			1,352			1,713			1,715
Stockholders’ equity:
Capital stock		—			—			—			—			—
Additional paid-in capital		133,610			130,621			128,518			125,934			124,947
Accumulated deficit		(56,329	)		(56,880	)		(56,123	)		(54,295	)		(53,701	)
Deferred compensation		—			—			—			—			(21	)
Treasury Stock		(158	)		(86	)		—			—			—
Accumulated other comprehensive income		307			724			702			511			473
Total Stockholders’ equity		77,430			74,379			73,097			72,150			71,698
Total liability and stockholders’ equity	$	117,420		$	107,911		$	108,621		$	106,484		$	99,020

Taleo Corporation

Condensed Consolidated Statements of Operations
(All amounts in thousands except per share data)

	Three Months Year Ended						Twelve Months Year Ended
	December 31						December 31
	2006			2005			2006			2005
Revenue:
Application	$	21,616		$	17,206		$	79,137		$	63,296
Consulting		4,908			3,837			17,906			15,114
Total revenue		26,524			21,043			97,043			78,410
Cost of revenue (note 1):
Application		4,922			3,969			18,485			15,449
Amortization of acquired intangibles		84			249			832			970
Total cost of application revenue		5,006			4,218			19,317			16,419
Consulting		3,168			3,192			12,785			11,058
Total cost of revenue		8,174			7,410			32,102			27,477
Gross profit		18,350			13,633			64,941			50,933
Operating expenses (note 1):
Sales and marketing		7,819			5,903			29,482			22,544
Research and development		5,031			4,830			19,475			16,687
General and administration (note 2)		5,547			2,383			21,113			10,725
Restructuring costs and other charges		(12	)		—			414			804
Total operating expenses		18,385			13,116			70,484			50,760
Income / (loss) from operations		(35	)		517			(5,543	)		173
Other income / (expense):
Interest income		659			578			2,891			873
Other income (expense)		(40	)		(54	)		(107	)		(1,273	)
Fees for early extinguishment of debt		—			(726	)		—			(2,264	)
Total other income / (expense)		619			(202	)		2,784			(2,664	)
Income / (loss) before provision for income tax		584			315			(2,759	)		(2,491	)
Provision / (benefit) for income taxes		33			4			(131	)		4
Net Income / (loss)	$	551		$	311		$	(2,628	)	$	(2,495	)
Accretion of dividends and issuance cost on preferred stock		—			(388	)		—			(2,984	)
Net income / (loss) attributable to Class A common stockholders	$	551		$	(77	)	$	(2,628	)	$	(5,479	)
Net income / (loss) attributable to Class A common stockholders — basic	$	0.03		$	(0.00	)	$	(0.13	)	$	(1.19	)
Net income / (loss) attributable to Class A common stockholders — fully diluted	$	0.02		$	(0.00	)	$	(0.13	)	$	(1.19	)
Weighted average Class A common shares — basic		21,667			18,168			20,031			4,619
Weighted average Class A common shares — fully diluted		25,848			18,168			20,031			4,619
NOTES
1.     Includes share-based payments expense pursuant to adoption of SFAS 123R as of January 1, 2006.
Application COS	$	49					$	192
Service COS		63						222
COS Subtotal		112						414
Sales & Marketing Operating Cost		298						1,048
R&D Operating Cost		200						694
G&A Operating Cost		499						2,348
SG&A Subtotal		997						4,090
Total share-based payments expense	$	1,109					$	4,504
2.     Includes $366 of stock compensation expense under SFAS 123 related to a warrant issued to an external consultant in the fiscal year ended December 31, 2005.

Reconciliation of GAAP net income/(loss) and non-GAAP net income:

	Three Months Year Ended						Twelve Months Year Ended
	December 31						December 31
	2006			2005			2006			2005
GAAP net income/(loss) reported above	$	551		$	(77	)	$	(2,628	)	$	(5,479	)
Add back:
Restructuring costs and other charges		(12	)		—			414			804
Loss on disposal of fixed assets		—			—			181			—
Stock compensation expense		—			—			—			366
Share-based compensation expense (SFAS 123(R))		1,109			—			4,504			—
Amortization of acquired intangibles		84			249			832			970
Fees for early retirement of indebtedness		—			31			—			1,569
Write-off of unamortized indebtedness fees		—			695			—			695
Net adjustment for tax valuation allowances		(184	)		—			(367	)		—
Accretion of dividends and issuance costs on preferred stock		—			388			—			2,984
		997			1,363			5,564			7,388
Non-GAAP net income	$	1,548		$	1,286		$	2,936		$	1,909
Non-GAAP net income per share
Basic	$	0.07		$	0.07		$	0.15		$	0.41
Basic, pro forma as adjusted	$	0.07		$	0.06		$	0.13		$	0.11
Fully Diluted	$	0.06		$	0.05		$	0.11		$	0.09
Reconciliation of basic and diluted share count:
Basic		21,667			18,168			20,031			4,619
Add: Weighted Average — Series B Common Stock		1,874			4,038			3,140			4,038
Weighted Average — Preferred Stock		0			402			0			9,351
Weighted Average — Warrants & Options		2,307			2,108			2,475			2,305
Diluted		25,848			24,716			25,646			20,313
Less: Weighted Average — Warrants & Options		(2,307	)		(2,108	)		(2,475	)		(2,305	)
Basic, pro forma as adjusted		23,541			22,608			23,171			18,008