RightNow Technologies Announces Third Quarter 2008 Financial Results
Bozeman, Mont., October 23, 2008
RightNow® Technologies, Inc. (NASDAQ: RNOW) today announced results for the third quarter ended September 30, 2008. Total revenue in the third quarter of 2008 was $36.2 million, compared to $29.2 million in the comparable period of 2007, reflecting 24% growth in revenue. Net loss in the third quarter of 2008 was $(1.4) million or $(0.04) per share, compared to a net loss of $(3.6) million or $(0.11) per share, in the third quarter of 2007. Non-GAAP net income in the third quarter of 2008, which excludes stock-based compensation charges of $1.5 million, was $85,000 or $0.00 per share, as compared to non-GAAP net loss of $(2.4) million or $(0.07) per share, in the same quarter last year.
Revenue for the nine months ended September 30, 2008 was $104.4 million, compared to $81.4 million for the comparable period in 2007, reflecting a 28% growth in revenue. Net loss for the nine months ended September 30, 2008 was $(8.0) million or $(0.24) per share, as compared to $(15.3) million or $(0.46) per share, for the same period in 2007. Non-GAAP net loss for the nine months ended September 30, 2008, which excludes stock-based compensation charges of $4.7 million, was $(3.3) million or $(0.10) per share, as compared to non-GAAP net loss of $(10.8) million or $(0.33) per share, for the comparable period in 2007.
New, renewed and expanded customer relationships during the third quarter of 2008 included Air Force Personnel Center, Black and Decker, British Airways, Casual Male Retail Group, Center for Medicare and Medicaid, Commvault Systems, DeVry, Energy Australia, Restoration Hardware, Sony Computer Entertainment, USDA-Forest Service, and Virgin America.
"Our customers represent many of the largest consumer-facing companies in the world,” stated Greg Gianforte, CEO and founder. “We believe clients will prioritize their spending, looking for solutions that will reduce costs and retain customers. Across many industries and geographies, our solutions enable our clients to retain and enhance relationships with existing customers, provide great customer experiences, and demonstrate a quick and measurable return on investment. We look forward to helping our customers succeed in the current environment and in the long-term.”
"We used $1.3 million of cash in operations during the third quarter, consistent with our October 6th preannouncement. We believe our balance sheet stands strong with over $100 million in cash and investments," said Jeff Davison, CFO. “We achieved non-GAAP profitability in the third quarter as we continue to execute on our land and expand strategy. This was our seventh consecutive quarter of operating margin improvement, representing 21 percentage points of improvement.”
Guidance
- For the fourth quarter of 2008, revenue is expected to be in the range of $36.5 to $37.5 million. Fourth quarter net loss per share is expected to be in the range of $(0.04) to $(0.03). Non-GAAP net income per share, which excludes stock-based compensation, is expected to be in the range of $0.00 to $0.01 for the fourth quarter of 2008. This would equate to full year revenue of approximately $141 million, net loss per share of approximately $(0.28) and non-GAAP net loss per share of approximately $(0.10).
- Cash from operations for the full year 2008 is expected to be in the range of $12 to $15 million.
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) 675-4753, or outside the U.S. (719) 325-4875, 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/index.cfm under the Events & Presentations menu. An audio replay will be available between 5:30 p.m. MT October 23, 2008 and 10:00 p.m. MT November 6, 2008 by calling (888) 203-1112 or (719) 457-0820, with passcode 4119951. The replay will also be available on the Company’s website at http://investor.rightnow.com.
For the full report and complete SEC filing information and details please visit: http://investor.rightnow.com/
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 LLC.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
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 general economic conditions; our business model; our ability to develop or acquire, and gain market acceptance for, new products in a cost-effective and timely manner; the gain or loss of key customers; competitive pressures; our ability to expand or contract 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; any unanticipated ambiguities in fair value accounting standards; fluctuations in foreign currency exchange; the amount and timing of any stock repurchases under our stock repurchase program; and our ability to expand, retain and motivate our employees. 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