Taleo (NASDAQ: TLEO), the leading provider of on demand talent management solutions, today announced record financial results for the first quarter ended March 31, 2008.

Quarterly Highlights Include:

• Record revenues of $37.2 million for the first quarter of 2008, an increase of 30% year-over-year, and 8% quarter over quarter.
• Customer base grew to over 1,700 customers with more than 1.2 million users.

"Our strong first quarter results build on the momentum we established in 2007 as we continue to see demand for our talent management solutions from companies of all sizes across the globe," stated Michael Gregoire, president and CEO of Taleo. "To extend our ability to meet this demand, today we announced a definitive agreement to acquire Vurv Technology, Inc., a privately held talent management company with more than 1,700 customers across the globe."

Other significant achievements during the first quarter 2008 include:

• Acquired 197 new customers. Corporate demand for Taleo's talent management solutions continued with the company signing 197 new customers in Q1 bringing Taleo's customer base to over 1,700 organizations around the world. New customers included Burns & McDonnell, CIBER, InfoPrint Solutions Company and Vail Resorts.
• Achieved significant international growth. International revenues grew by 52% over the same period last year and represented 11% of total revenues. New international customers included Merck KGaA, Renault SA and TuV SuD Asia Pacific Pte Ltd.
• Launched Taleo Performance™. This revolutionary new Performance Management solution was declared generally available, and Freeport-McMoRan Copper & Gold Inc. and TeleTech Holdings Inc. both went live on the solution. Also, Children's Healthcare of Atlanta purchased Taleo Performance in early April of 2008 to align their workforce with corporate objectives and achieve higher retention and workforce productivity.
• Expanded SMB Reach. Taleo Business Edition™, a recruiting solution targeted at companies with less than 3,000 employees, grew revenues by 145% over last year, further establishing Taleo as the leader for SMB Recruiting. New customers included Columbia Sportswear, Reunion.com, EntertainmentCruises.com, City of Evanston, IL, BJETS India Private Limited and URS Australia.
• Expanded User Base. Taleo grew its global presence by adding more than 170,000 new users to bring the total number of users to over 1.2 million worldwide, working with candidates in 25 languages and 190 countries and territories.
• Demonstrable Unsurpassed Scale and Stability. During Q1, Taleo processed more than 340,000 hires, from over 8.9 million applicants through its on demand platform.

"During the first quarter, we expanded our unified talent management platform beyond recruiting with the addition of Taleo Performance and extended our reach further into the SMB and international markets," said Gregoire. "Our proven ability to execute, build innovative solutions and expand our global market coverage gives us a solid position as we move through 2008."

Taleo delivered the following results for the first quarter ended March 31, 2008:

Revenue: Total revenue for the first quarter was $37.2 million, representing an increase of 30% on a year-over-year basis. Application revenue for the first quarter was $30.2 million, an increase of 28% on a year-over-year basis.

Net Income and Net Income Per Share to Common Stockholders: Net income in accordance with accounting principles generally accepted in the United States, or GAAP, was $1.6 million for the first quarter, compared to net income of $0.9 million for the same period last year. Net income for the first quarter of 2008 and 2007 includes share-based compensation expense of $2.5 million and $1.4 million, respectively, pursuant to the adoption on January 1, 2006 of Financial Accounting Standards Board (FASB) Statement No. 123(R), "Share-Based Payment" (SFAS 123(R)), which requires companies to expense the fair value of employee stock options and similar stock based compensation awards. Net income per fully diluted share was $0.06 for the first quarter of 2008 based on 28.9 million weighted average shares outstanding compared to net income per fully diluted share of $0.03 for the same period in 2007 based on 26.0 million weighted average shares outstanding.

Non-GAAP Net Income and Non-GAAP Net Income Per Share: Non-GAAP net income, which excludes share-based compensation expense pursuant to SFAS 123(R), amortization of acquired intangibles, and non-cash income tax and tax valuation adjustments was $3.9 million for the first quarter of 2008, compared to a non-GAAP net income of $2.3 million in the same period last year. Non-GAAP net income per fully diluted share was $0.14 for the first quarter of 2008 based on 28.9 million weighted average shares outstanding compared to non-GAAP net income per fully diluted share of $0.09 for the same period in 2007 based on 26.0 million weighted average shares outstanding.

Conference Call Details
In conjunction with this announcement, Taleo will host a conference call today at 8:30 a.m. EDT to discuss the company's first quarter 2008 financial results. To access this call, dial 800-573-4840 (domestic) or 617-224-4326 (international) and reference passcode: 5190-1870. A replay of the call can also be accessed by dialing 888-286-8010 (domestic) or 617-801-6888 (international), and by referencing passcode: 77749780.

About Taleo
Taleo (NASDAQ: TLEO) is the leader in on demand unified talent management solutions that empower organizations of all sizes, around the world to assess, acquire, develop and align their workforce for improved business performance. More than 1,700 organizations use Taleo, including 35 of the Fortune 100, for talent acquisition and performance management, with over 1.2 million users hiring 3.6 million employees from 86 million candidates in more than 190 countries and territories. Known for its strong configurability and usability, Taleo's talent management platform runs on a world-class infrastructure and offers 99.9% availability.

Forward-looking Statements
This release contains forward-looking statements, including statements regarding Taleo’s future financial performance, new product development, market growth, the demand for 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 I, Item 1A of Taleo's Annual Report on Form 10-K, as filed with the SEC on March 14, 2008, 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 GAAP. This information includes non-GAAP net income and non-GAAP net income 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. Taleo believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial measures with other companies in Taleo's industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial measures discussed above exclude share-based compensation expense pursuant to SFAS 123(R), amortization of acquired intangibles and non-cash income tax and tax valuation adjustments. 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 as detailed above. As previously mentioned, a reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.