Oppenheimer Reports Solid F2Q11 For Ariba

According to Oppenheimer, Ariba (NASDAQ: ARBA) reported a solid F2Q11, with better than expected billings driven by continued network membership renewal strength.

Oppenheimer said that coupled with a strong quarter of application subscription growth, Ariba raised FY11 revenue guidance by $9M to $426-$430M. “Further, network software revenue is expected to grow 50% organically (and 168% with Quadrem) in FY11. We believe that the Quadrem integration, which is on track, will provide ARBA with a venue for strong international expansion. However, while we continue to remain optimistic about growth prospects, we believe that the shares are appropriately valued (~32x CY12E FCF) and expect ARBA to trade in line with the broader SaaS universe in coming quarters.”

Ariba closed yesterday at $32.07.