SuccessFactors' Passion for Customer Success Fuels Massive New Customer Adoption

Over 170 New Customers of All Sizes, 70 New Large Enterprise Customers, No Jerks, and Jack Welch Speaking at Upcoming User Conference

SAN MATEO, Calif. - May 2, 2007 - SuccessFactors, the global leader in on-demand performance and talent management solutions, today announced highlights of its performance during the first quarter of 2007 - a period marked by continued, rapid growth and success for the company as measured by customer wins, customer satisfaction and continued product innovation and leadership.

"I can't say enough great things about our success across the entire company during the first quarter of 2007. I am so humbled by how everything in the business is clicking - all of our sectors, geographies and natively built applications - and how much success our customers are seeing," said CEO Lars Dalgaard. "This quarter we added 170 new customers, created dozens of new opportunities at many existing customers, added and fostered exceptional talent with our own team, and through it all, have kept our culture and spirit thriving and passionate to make a measurable difference in transforming companies through people and through being jerk-free."

"We are just having a lot of fun, getting better and better every month, and like one of our newest international customers Toyota, simply fundamentally improving ourselves every single month," Dalgaard continued. "It will be fun to blow our customers' minds and expectations by having the Manager of the Century, Jack Welch, with me on stage at the upcoming SuccessConnect conference in June, that will bring hundreds of CEOs, EVPs, VPs and HR professionals together to combine our thoughts for outstanding execution on effectively deploying performance and talent management. But we can't rest on our laurels, as we're working to change and improve the way the world works."

SuccessFactors highlights in the first quarter included:

More than 170 new companies, including 70 large enterprises, chose to get "on SuccessFactors." New enterprise customers include US Cellular, Leap Wireless, Methode Electronics, Nissan North America, Northeast Utilities Service Company and AirTran Airways.
Strong momentum in adoption of SuccessFactors by smaller companies as more and more small businesses turn to its software to automate performance review and goal alignment processes. Some new small- and medium-sized business customers include ArcSight, Juanita's Foods, California Cryobank, Torrington Supply Company and Borel Private Bank & Trust Company.
More than 200 customers went live on SuccessFactors in Q1, including QBE Insurance, Oakley, U.S. Endoscopy, Le Sportsac, The Weather Channel, CNET Networks, MediaZone, Toyota, Restoration Hardware, and Nektar Therapeutics.
All products in the SuccessFactors suite sold well with many customers choosing multiple modules.
A high percentage of customers decided to buy more seats and more modules, making the entire company proud we delivered so well on the original sale that customers wanted even more out of our integrated applications.
The SuccessFactors organization has retained 97 percent of its engineers over the last five years and has a powerhouse team of developers who are experts in building human capital management applications. They completed more than 60 releases in that period alone, focused entirely on delivering on thousands of customer requests.
SuccessFactors saw fast-growing adoption across a number of vertical industries, including:
- Entertainment/Media: New customers including CNET Networks, MediaZone, and several other household brand name companies;
- Healthcare: New healthcare provider customers including Baptist Health System-Birmingham, The Queens Medical Center in Hawaii, Montgomery General Hospital, and several others;
- Financial Services: Nineteen new customers including Borel Private Bank, Irwin Commercial Finance, Hamilton Sundstrand Federal Credit Union, Kingsport Press Credit Union, KBC Financial, Proffer Financial Services, MFA, Missouri Employers Mutual, Metavante and Prime Financial; and
- Public Sector/Education/Non-Profits: More than a dozen new accounts including American Diabetes Association, The Leukemia & Lymphoma Society, National Science Teachers Association, National Council of Teachers of English, Washington State Healthcare Authority, Montana Rescue Mission, Milton Hershey School, DeVry University, Southern California College of Optometry and SANDAG (San Diego Association of Governments).
Global momentum: As a worldwide movement for companies to get "on SuccessFactors" takes steam, global wins included Lego and Computershare.

Other Great Stuff

SuccessFactors announced the SuccessConnect 2007 conference taking place June 5-7 in New York City, which will help hundreds of CEOs, HR executives and managers in attendance maximize the productivity of their workforce and make their companies more successful. The conference will feature former General Electric CEO Jack Welch, who will participate with Lars Dalgaard in a Q&A session focused on excellence in people management systems.
On April 10, CNBC News featured SuccessFactors and Lars Dalgaard in a nationally-televised piece on "Morning Bell" about the company's "No Jerks allowed!" policy.
In March, Business 2.0 magazine named SuccessFactors one of 25 companies to watch in its annual Next Net issue.
In January, SuccessFactors unveiled NEXT Labs, a new initiative in user-centric innovation that is solely focused on creating highly interactive, engaging applications to accelerate user adoption and engagement. SuccessFactors NEXT Labs has developed more than 30 prototype offerings, several of which have already been integrated into the SuccessFactors Performance & Talent Management Suite and are available today.

About SuccessFactors
SuccessFactors delivers performance and talent excellence, on demand. The company's software promotes visibility, accountability and results, enabling organizations to eliminate the politics that destroy motivation and impede performance. Fueled by the industry's highest renewal rate, SuccessFactors has grown in the past 12 months from 346 customers to over 1,400 customers and from 1 million users to over 2 million users in 156 countries, across 60 industries, and in 18 languages - all while becoming easier to use. During that period, the company nearly doubled its employee base, currently employing over 450 people, passionate about effective human capital management. Carefully managed and executed internal growth has allowed the company to provide the same caliber of absolute excellence in execution for customers that catapulted SuccessFactors into the product, customer and revenue leader in the performance and talent management space. Customers include Kimberly-Clark Corporation, MasterCard Worldwide, Textron, Sutter Healthcare, Direct Energy, Quintiles Transnational, Volkswagen of North America, Lancaster General Hospital and Salesforce.com. The company continues to execute at a level of global excellence by providing an industry-leading, scalable and secure global hosting operation. Founded in 2001, SuccessFactors has 15 worldwide offices collaborating for strong local support of customers. For more information, visit http://www.successfactors.com/.