Taleo (TLEO) 8-K Year-Over-Year; Subscription Revenue Growth up 38% to $67 million

Exhibit 99.1

Media Contact	Investor Relations Contact
Caroline Japic	Mike Magaro
925-452-3833	925-452-3120
cjapic@taleo.com	mmagaro@taleo.com

Taleo Announces Record Quarterly Revenues of $83 million, up 41%

Year-Over-Year; Subscription Revenue Growth up 38% to $67 million

• Record Quarterly Non-GAAP Revenue of $85 million, up 44% Year-Over-Year;

• Non-GAAP subscription revenue of $68 million, up 40% Year-Over-Year;

• Current deferred revenue rose to a record $111 million, up 41% Year-Over-Year;

• Added 270 new customers with 7 transactions of $250,000 or greater

Dublin, Calif. – November 1, 2011 –Taleo Corporation (NASDAQ: TLEO), the global leader of SaaS-based Talent Management solutions, today announced strong results for its third quarter 2011.

“Taleo continued to drive change and build business momentum in Q3 with global expansion and solid execution against our growth initiatives resulting in strong top-line metrics,” said Michael Gregoire, Taleo’s Chairman and CEO. “Our customers tell us they view the talent intelligence they gain from Taleo as a competitive differentiator and are making it a part of their corporate strategy to recruit, grow and retain the talent they need to drive long-term growth.”

Taleo delivered the following results for the third quarter 2011:

Third Quarter Revenue: Subscription revenue for the third quarter was $67 million, an increase of 38% on a year-over-year basis. Professional services revenue for the third quarter was $16 million, an increase of 59% on a year-over-year basis. Total revenue for the third quarter was $83 million, an increase of 41% on a year-over-year basis.

Non-GAAP subscription revenue for the third quarter was $68 million, an increase of 40% on a year-over-year basis. Non-GAAP professional services revenues for the third quarter was $17 million, an increase of 66% on a year-over-year basis. Total third quarter non-GAAP revenue was $85 million, an increase of 44% on a year-over-year basis.

Third Quarter Loss per Share:Third quarter net loss per share was $(0.08), compared to net income per fully diluted share of $0.04 a year ago.

Non-GAAP net income per fully diluted share was $0.30, compared to non-GAAP net income per fully diluted share of $0.25 a year ago.

An explanation of the non-GAAP measures used in this press release is included in the section below titled “Non-GAAP Financial Measures” and a reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.

Cash: Year-to-date cash flow from operations totaled $25 million down from $37 million generated in the comparable period a year ago. Cash flow year-to-date was negatively impacted by litigation settlements aggregating nearly $10 million and the payment of acquisition related costs of an additional $10 million. Cash generated from operations for the third quarter of 2011 totaled $6 million as compared to $15 million in the third quarter of 2010. Cash flow for the third quarter was negatively impacted by the payment of $6.5 million in connection with the TSA settlement disclosed in August 2011, and acquisition related spending and working capital requirements totaling an additional $6 million. Total cash and cash equivalents finished the quarter at $111 million, a decrease of $31 million year-to-date due primarily to the acquisitions of Cytiva and Jobpartners.

Customers: In the third quarter, 270 new customers chose Taleo’s Talent Management solutions for recruiting, performance, learning and/or compensation management, including: Abbott Laboratories, Cliffs Natural Resources, Inc., Credit Suisse Securities, LLC., John Muir Health Systems and Petco. In the third quarter we were awarded 7 new contracts of $250,000 or larger in first year subscription revenue, underscoring the market interest in larger, global deployments and in multiple component suite solutions.

Billings: Billings, defined as the change in short-term deferred subscription revenue plus non-GAAP subscription revenue, was $71 million in the third quarter, up 50% year-over-year.

Quarterly Conference Call

Taleo will host a conference call to discuss its third quarter 2011 results at 1:30 p.m. Pacific Time today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company’s Investor Relations Web site at http://www.taleo.com/ir. Please join the conference call at least 10 minutes early to register. A replay of the conference call will be available until midnight PT on November 10, 2011 athttp://ir.taleo.com/events.cfm, or via dial-in at 800-642-1687 or 706-645-9291 . The pass code for the replay is14831950.

About Taleo

Taleo (NASDAQ: TLEO) helps organizations improve the performance of their business by unlocking the power of their people. Taleo is the only company to provideindustry-leading solutions in every category ofTalent Management. Through its cloud-based platform, Taleo optimizes recruiting, performance management, learning and compensation – and integrates them all so managers have the insights they need to achieve talent intelligence. Customers also plug into Taleo’s uniqueTalent Grid community to harness the power of proven best practices, millions of users, and Taleo-ready partner solutions. From small and medium sized businesses to large enterprises, more than 5,000 organizations rely on Taleo every day to pursue growth, innovation and customer success.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding Taleo’s future financial performance, market growth, the demand for and benefits from the use of Taleo’s solutions, and general business conditions. Any forward-looking statements contained in this press release are based upon Taleo’s historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Taleo’s expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Taleo disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Further information on potential factors that could affect actual results is included in Part II, Item 1A of Taleo’s Quarterly Report on Form 10-Q, as filed with the SEC on August 8, 2011, and in other reports filed by Taleo with the SEC.

Non-GAAP Financial Measures

Taleo has provided in this release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. This information includes non-GAAP revenue and non-GAAP earnings per share. Taleo uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Taleo’s ongoing operational performance. The non-GAAP measures include amounts excluded from GAAP revenue due to the write down of deferred revenue associated with purchase accounting for the Worldwide Compensation, Learn.com, Cytiva, and Jobpartner acquisitions, and the reduction in GAAP revenue from the TSA settlement, and exclude costs associated with stock-based compensation expense, amortization of acquisition-related intangibles, acquisition-related transaction costs, and TSA settlement expenses, the refundable tax credits related to 2009 and 2010, the gain on re-measurement of a previously held interest in Worldwide Compensation, the gain on settlement of the Worldwide Compensation escrow account, and income taxes associated with certain non-GAAP adjustments.

Third quarter loss per share calculations are based on 41.2 million basic weighted average shares outstanding, while third quarter non-GAAP EPS calculations are based on 43.7 million fully diluted weighted average shares outstanding. The fully diluted weighted average shares outstanding used to compute non-GAAP earnings per share have been calculated without giving consideration to the treasury stock method.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.

A historical reconciliation of GAAP to non-GAAP financial measures for past periods can be located on the investor relations section ofwww.taleo.com.

Taleo Corporation

Condensed Consolidated Statements of Operations

(All amounts in thousands except per share data)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Revenues:
Subscription and support	$	66,881		$	48,631		$	186,985		$	144,123
Professional services		16,034			10,106			43,636			25,936
TSA settlement – subscription and support		—			—			(6,500	)		—
Net revenues		82,915			58,737			224,121			170,059
Cost of revenues (Note 1):
Subscription and support		14,664			10,575			39,637			32,227
Amortization of acquisition-related intangibles		842			860			3,603			2,734
Total cost of subscription and support revenues		15,506			11,435			43,240			34,961
Professional services		12,440			7,102			32,691			20,467
Total cost of revenues		27,946			18,537			75,931			55,428
Gross profit		54,969			40,200			148,190			114,631
Operating expenses (Note 1):
Sales and marketing		25,612			16,151			68,604			46,967
Sales – amortization of acquisition-related intangibles		4,374			2,096			11,310			6,473
Research and development		14,071			10,247			40,752			31,174
General and administrative		15,720			10,234			43,002			30,323
Total operating expenses		59,777			38,728			163,668			114,937
Income (loss) from operations		(4,808	)		1,472			(15,478	)		(306	)
Other income (expense), net:
Interest and other income		114			147			278			398
Interest expense		(142	)		(13	)		(225	)		(77	)
Gain on remeasurement of previously held interest in Worldwide Compensation, Inc.		—			—			—			885
Gain on Worldwide Compensation, Inc. escrow settlement		—			—			350			—
Total other income (expense), net		(28	)		134			403			1,206
Income (loss) before benefit from income taxes		(4,836	)		1,606			(15,075	)		900
Benefit from income taxes		(1,542	)		(26	)		(1,523	)		(140	)
Net income (loss) attributable to Class A common stockholders	$	(3,294	)	$	1,632		$	(13,552	)	$	1,040
Net income (loss) per share attributable to Class A common stockholders – basic	$	(0.08	)	$	0.04		$	(0.33	)	$	0.03
Net income (loss) per share attributable to Class A common stockholders – diluted	$	(0.08	)	$	0.04		$	(0.33	)	$	0.03
Weighted average Class A common shares – basic		41,187			39,815			40,915			39,474
Weighted average Class A common shares – diluted		41,187			40,963			40,915			40,655
NOTES
1. Includes stock-based compensation expense
Subscription and support cost of revenue	$	455		$	285		$	975		$	703
Professional services cost of revenue	$	801			488			1,901			1,266
Cost of revenue subtotal		1,256			773			2,876			1,969
Sales and marketing operating expense		1,766			1,123			4,468			3,006
Research and development operating expense		1,465			883			3,286			1,859
General and administrative operating expense		1,955			1,381			5,005			4,173
Operating expense subtotal		5,186			3,387			12,759			9,038
Total stock-based compensation expense	$	6,442		$	4,160		$	15,635		$	11,007

Taleo Corporation

Condensed Consolidated Statements of Operations (continued)

(All amounts in thousands except per share data)

(Unaudited)

Reconciliation of GAAP net loss to non-GAAP net income:
	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2011			2010		2011			2010
GAAP net income (loss) reported above	$	(3,294	)	$	1,632	$	(13,552	)	$	1,040
Add back:
Revenues
Non-GAAP subscription and support revenue		1,533			200		5,055			548
Non-GAAP professional services revenue		708			—		2,473			—
TSA settlement – subscription and support		—			—		6,500			—
Total Non-GAAP revenues		2,241			200		14,028			548
Expenses
Acquisition-related transaction costs		3,483			2,051		7,001			3,073
TSA settlement related expenses		—			—		300			—
Refundable tax credits related to 2009 and 2010		—			—		(1,296	)		—
Stock-based compensation expense		6,442			4,160		15,635			11,007
Amortization of acquisition-related intangibles		5,216			2,956		14,913			9,207
		15,141			9,167		36,553			23,287
Other income
Gain on remeasurement of previously held interest in Worldwide Compensation, Inc.		—			—		—			(885	)
Gain on settlement of Worldwide Compensation, Inc. escrow		—			—		(350	)		—
		—			—		(350	)		(885	)
Income taxes
Income taxes associated with certain non-GAAP adjustments		(911	)		—		(1,781	)		—
Non-GAAP net income	$	13,177		$	10,999	$	34,898		$	23,990
Non-GAAP net income per share
Basic	$	0.32		$	0.28	$	0.85		$	0.61
Diluted	$	0.30		$	0.25	$	0.79		$	0.56
Reconciliation of basic and fully diluted share count:
Basic		41,187			39,815		40,915			39,474
Add:
Weighted Average options and unreleased restricted stock, without consideration for the treasury stock method		2,484			3,406		2,996			3,172
Diluted		43,671			43,221		43,911			42,646

Taleo Corporation

Condensed Consolidated Balance Sheets

(All amounts in thousands)

(Unaudited)

	September 30,			December 31,
	2011			2010
ASSETS
Current assets:
Cash and cash equivalents	$	110,999		$	141,588
Accounts receivable, net		63,927			58,120
Prepaid expenses and other current assets		21,134			18,065
Investment credits receivable		9,720			6,034
Total current assets		205,780			223,807
Property and equipment, net		26,490			26,552
Restricted cash		224			218
Goodwill		244,081			206,418
Intangible assets, net		64,438			59,478
Other assets		8,097			7,363
Total assets	$	549,110		$	523,836
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	48,499		$	36,377
Deferred revenue – subscription and support and customer deposits		94,787			79,704
Deferred revenue – professional services		16,325			19,692
Capital lease obligations, short-term		60			105
Total current liabilities		159,671			135,878
Long-term deferred revenue – subscription and support and customer deposits		1,369			150
Long-term deferred revenue – professional services		5,285			10,006
Other liabilities		9,601			9,241
Capital lease obligations, long-term		12			46
Total liabilities		175,938			155,321
Stockholders’ equity:
Capital stock		1			1
Additional paid-in capital		464,143			442,514
Accumulated deficit		(90,161	)		(76,609	)
Treasury stock		(2,622	)		(776	)
Accumulated other comprehensive income		1,811			3,385
Total stockholders’ equity		373,172			368,515
Total liabilities and stockholders’ equity	$	549,110		$	523,836

Taleo Corporation

Condensed Consolidated Statements of Cash Flows

(All amounts in thousands)

(Unaudited)

	Nine Months Ended
	September 30,
	2011			2010
Cash flows from operating activities:
Net income (loss)	$	(13,552	)	$	1,040
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		26,034			19,680
Loss on disposal of fixed assets		—			98
Amortization of debt issuance costs		68			—
Amortization of tenant inducements		(148	)		(56	)
Tenant inducements from landlord		—			211
Stock-based compensation expense		15,635			11,007
Excess tax benefits on the exercise of stock options		(133	)		(16	)
Tax benefit recorded upon business acquisition		(1,403	)		—
Director fees paid with stock in lieu of cash		200			171
Gain on remeasurement of previously held interest in Worldwide Compensation, Inc.		—			(885	)
Bad debt provision		758			(133	)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable		(4,156	)		5,398
Prepaid expenses and other assets		(2,576	)		(2,975	)
Investment credits receivable		(4,140	)		492
Accounts payable and accrued liabilities		4,881			3,811
Deferred revenues and customer deposits		3,543			(1,128	)
Net cash provided by operating activities		25,011			36,715
Cash flows from investing activities:
Purchases of property and equipment		(10,418	)		(12,231	)
Change in restricted cash		(6	)		210
Acquisitions, net of cash acquired		(46,590	)		(13,381	)
Purchase of intangible assets		(1,150	)		—
Net cash used in investing activities		(58,164	)		(25,402	)
Cash flows from financing activities:
Principal payments on capital lease obligations		(330	)		(1,349	)
Payments for expenses associated with 2009 equity offering		—			(681	)
Payments for debt issuance costs		(815	)		—
Excess tax benefits on the exercise of stock options		133			16
Treasury stock acquired to settle employees withholding liability		(4,576	)		(2,153	)
Proceeds from stock options exercised and ESPP shares		8,395			12,321
Net cash provided by financing activities		2,807			8,154
Effect of exchange rate changes on cash and cash equivalents		(243	)		286
Increase (decrease) in cash and cash equivalents		(30,589	)		19,753
Cash and cash equivalents:
Beginning of period		141,588			244,229
End of period	$	110,999		$	263,982