Cytiva's Q2 Financials

By Ian Alexander
VP Marketing

Even though the Dow has been on a roller coaster ride these last few weeks, Cytiva recently release our audited financials for Q2 07 and the news is quite good. The highlights of the latest results can be found here.

As many who follow the talent management market have seen recently with the release of performance evaluation software vendor Successfactors’ financials in advance of a planned IPO, there can be a big difference between what is being written about a company's financial results and reality.

That's because private companies do not have to reveal financial information in accordance with generally accepted accounting principles (GAAP), and as a practical matter, they are not subject to a great amount liability if they put a spin on the numbers that could be construed as misleading.

In fact, in this brave new world of Software as a Service (SaaS), audited GAAP financials become an important concept in that it forces vendors to adhere to a common standard for recognizing subscription and service revenues.

Having both competed against, and consulted for, Successfactors in the past, I was well aware that much of what was being printed about revenues, client counts and more was inaccurate and/or could be misleading. I even exchanged emails with a journalist who staunchly defended his publication's estimate that Successfactors’ revenue was $100 million!

This should be a reminder for companies out there that do business with privately-held vendors in a "hot" category like talent management. Ask for audited financials from any potential vendors. And if they won't provide them, then move on. The vendor that seems hot could be wildly unprofitable with a burn rate that could force them into a disruptive and rushed IPO, a company sale or, worst of all, bankruptcy.

This is nothing new. Technology has long been a market where companies grow, sell, IPO or go bankrupt. That's why technology consumers need to remember to check the financials.

Cytiva is a public company and therefore must present financial results in a way that is consistent with GAAP. SonicRecruit is sometimes chosen over other privately held vendors because of the strength and transparency of our financials. Knowing who you're doing business with is a key benefit of choosing vendors who freely share audited financials with their clients.