RightNow Technologies Announces Second Quarter 2008 Financial Results
Bozeman, Mont., July 30, 2008
RightNow® Technologies, Inc. (NASDAQ: RNOW) today announced results for the second quarter ended June 30, 2008. Total revenue in the second quarter of 2008 was $35.2 million, compared to $26.5 million in the second quarter of 2007, reflecting 33% growth in revenue over the second quarter of 2007. Net loss in the second quarter of 2008 was $(3.1) million or $(0.09) per share, compared to a net loss of $(5.7) million or $(0.17) per share, in the second quarter of 2007. Non-GAAP net loss per share in the second quarter of 2008, which excludes stock-based compensation charges of $1.9 million, was $(1.2) million or $(0.04) per share, as compared to Non-GAAP net loss of $(3.8) million or $(0.11) per share, in the second quarter of 2007.
Revenue for the six months ended June 30, 2008 was $68.1 million, compared to $52.2 million for the comparable period in 2007. Net loss for the six months ended June 30, 2008 was $(6.5) million or $(0.19) per share, as compared to $(11.7) million or $(0.36) per share, for the comparable period in 2007. Non-GAAP net loss for the six months ended June 30, 2008, which excludes stock-based compensation charges of $3.2 million, was $(3.4) million or $(0.10) per share, as compared to Non-GAAP net loss of $(8.5) million or $(0.26) per share, for the comparable period in 2007.
New, renewed and expanded customer relationships during the second quarter of 2008 included Activision, Beretta USA, Department of Homeland Security, Enterprise Rent-A-Car, Hertz Europe, LifeLock, NutriSystem, NVIDIA, RealNetworks, Sovereign Bank, and Virgin Mobile Australia.
"We remain focused on execution and believe we are positioned well to take advantage of a tremendous market opportunity," stated Greg Gianforte, founder and CEO. "Our success is being driven by the strength of our solutions which enable our clients to retain and enhance relationships with existing customers, provide great customer experiences, and demonstrate a quick and measurable return on investment. This core value proposition resonates at the highest executive levels within our enterprise target market."
"We are pleased to report another strong quarter with revenue and earnings above guidance," said Jeff Davison, CFO. "This quarter was our sixth consecutive quarter of operating margin improvement as we continue to gain operating leverage through our land and expand strategy. We remain positive about the growth opportunities we see in the second half of 2008 and are raising our full year revenue guidance."
Guidance
- For the full year 2008, revenue is expected to be in the range of $141 to $143 million, with recurring revenue growth of approximately 25%.
- Net loss per share for the full year 2008 is expected to be in the range of $(0.30) to $(0.26). Non-GAAP net loss per share, which excludes stock-based compensation, is expected to be in the range of $(0.11) to $(0.07) for the full year 2008.
- Cash from operations for the full year 2008 is expected to be in the range of $25 to $30 million.
- For the third quarter of 2008, revenue is expected to be in the range of $36 to $37 million. Third quarter net loss per share is expected to be in the range of $(0.08) to $(0.06). Non-GAAP net loss per share, which excludes stock-based compensation, is expected to be in the range of $(0.03) to $(0.01) for the third quarter of 2008.
Quarterly Conference Call
RightNow Technologies will discuss its quarterly results today via teleconference at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time.) To access the call, please dial 877-440-5786, or outside the U.S. 719-325-4873, at least five minutes prior to the 2:30 p.m. MT start time. A live webcast of the call will also be available at http://investor.rightnow.com/events.cfm under the Investor Webcasts menu. An audio replay will be available between 5:30 p.m. MT on July 30, 2008 and 12:00 a.m. MT on August 14, 2008 by calling 888-203-1112 or 719-457-0820, with passcode 9046901. The replay will also be available on our website at http://investor.rightnow.com/events.cfm.
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RightNow Technologies Q208 complete SEC details
About RightNow Technologies
RightNow (NASDAQ: RNOW) delivers the high-impact technology solutions and services organizations need to cost-efficiently deliver a consistently superior customer experience across their frontline service, sales and marketing touch-points. Approximately 1,900 corporations and government agencies worldwide depend on RightNow to achieve their strategic objectives and better meet the needs of those they serve. RightNow is headquartered in Bozeman, Montana. For more information, please visit www.rightnow.com.
RightNow is a registered trademark of RightNow Technologies, Inc. NASDAQ is a registered trademark of the NASDAQ Stock Market.
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words and include, but are not limited to, statements regarding projected results of operations and management's future strategic plans. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to, risks associated with our business model; our ability to develop or acquire, and gain market acceptance for, new products in a cost-effective and timely manner; the market success of our RightNow 8 product; the gain or loss of key customers; competitive pressures; our ability to expand operations; fluctuations in our earnings as a result of the impact of stock-based compensation expense; interruptions or delays in our hosting operations; breaches of our security measures; our ability to protect our intellectual property from infringement, and to avoid infringing on the intellectual property rights of third parties; our ability to manage and expand our partner relationships; our ability to expand, retain and motivate our employees and manage our growth, and general economic conditions. Further information on potential factors that could affect our financial results is included in our Annual Report on Form 10-K, quarterly reports of Form 10-Q, and in other filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.
FRNOW
Greg Gianforte