Kenexa is a leading end-to-end provider of software, proprietary content, services and process outsourcing that enable organizations to more effectively recruit and retain employees. Our talent acquisition and employee performance management solutions are based on our 20 years of experience helping clients to maximize the performance of their HR department and overall organization. Our solutions enable our clients to improve the effectiveness of their talent acquisition programs, increase employee productivity and retention, decrease costs and improve management decision making based on analyzing and summarizing key HR metrics associated with employee performance.

Assessment
Our Assessment suite includes solutions for skills assessments, psychometric and personality assessments, structured interviews, phone screenings, simulation exercises, process consulting and competency modeling and management services that help companies select top performers for employment, identify areas for personal development and determine potential successors in an organization.

Talent Acquisition/Recruiting
Our Talent Acquisition/Recruiting suite includes solutions for global recruitment, workforce transformation, vendor management, campus recruiting, diversity recruitment and recruitment process outsourcing. Our suite also features solutions for employment branding that identify the cultural brand of an organization and provide creative services to match that cultural brand. We provide a full range of consulting services including recruitment process consulting, workforce planning, change management and candidate experience mystery shop services. These solutions improve quality, increase the speed of hiring and reduce the cost of managing resource levels to reflect hiring volume.

Talent Management
Our Talent Management suite includes solutions for large enterprise, mid-market and hourly applicant tracking, onboarding, performance management, succession planning, career development, mentoring programs and workforce intelligence. We also provide career center optimization and system integrations services, as well as recruitment process consulting and candidate experience mystery shop services. Our Talent Management solutions automate hiring, retention and succession planning processes giving organizations visibility of and access to hiring and retention data.

Survey
Our survey suite includes solutions for employee engagement and satisfaction surveys, 360 degree mult-rater feedback, exit interviews, brand proximity and action planning. We also offer a number of services that assist organizations in leadership coaching, training, content optimization and post-survey evaluation. These solutions help organizations understand and act on the unique drivers of engagement within their cultures to improve overall business processes.

Since 1999, Kenexa has focused on providing talent acquisition and employee performance management solutions on a subscription basis, and we currently generate a significant portion of our revenue from these subscriptions. During the years ended December 31, 2007, 2006 and 2005, subscription revenue comprised approximately 81.7%, 80.7% and 77.7%, respectively, of our total revenue. These subscription-based solutions provide Kenexa a recurring revenue stream that we believe represent a more compelling opportunity in terms of growth and profitability than discrete professional services. As a result, since 1999, discrete professional services have represented a consistently decreasing percentage of our revenue.

Customer Base

We sell our solutions to large- and medium-sized organizations through our direct sales force. As of December 31, 2007, we had a client base of approximately 4,000 companies, including approximately 199 companies on the Fortune 500 list published in April 2007. Our client base includes companies such as Microsoft Corporation, Philips Electronics, Wachovia, Starwood Hotels & Resorts Worldwide, Office Depot, Beckman Coulter, Time Warner, Target, Bank of America, Petco, Circuit City and many others.