RightNow Technologies Announces Fourth Quarter and Full Year 2008 Financial Results
Company Reports Q4 GAAP EPS of $0.02 and Non-GAAP EPS of $0.06
Bozeman, Mont., February 04, 2009
RightNow® Technologies, Inc. (NASDAQ: RNOW) today announced results for the fourth quarter and year ended December 31, 2008. Total revenue was $36.1 million in the fourth quarter of 2008, compared to $30.7 million in the comparable period of 2007, reflecting 18% growth in revenue.
Net income in the fourth quarter of 2008 was $692,000 or $0.02 per share, compared to a net loss of $(3.3) million or $(0.10) per share, in the fourth quarter of 2007. Non-GAAP net income in the fourth quarter of 2008, which excludes stock-based compensation charges of $1.3 million, was $2.0 million or $0.06 per share, as compared to non-GAAP net loss of $(2.3) million or $(0.07) per share, in the comparable period of 2007. Additionally, during the fourth quarter, the Company repurchased approximately 1.9 million shares of its common stock under its Board-approved stock repurchase program.
Revenue for the twelve months ended December 31, 2008 was $140.4 million, compared to $112.1 million for the comparable period in 2007, reflecting 25% growth in revenue.
Net loss for the twelve months ended December 31, 2008 was $(7.3) million or $(0.22) per share, as compared to $(18.6) million or $(0.56) per share, for the comparable period in 2007. Non-GAAP net loss for the twelve months ended December 31, 2008, which excludes stock-based compensation charges of $6.0 million, was $(1.3) million or $(0.04) per share, as compared to non-GAAP net loss of $(13.2) million or $(0.40) per share, for the comparable period in 2007.
RightNow added 59 customers in the fourth quarter and more than 260 new customers for the year. New, renewed and expanded customer relationships during the fourth quarter of 2008 included Big Brother and Sisters of America, Canon, Cisco, Drugstore.com, Nikon, Orbitz, Prudential Financial, Sam’s Club, Symantec, Social Security Administration, TiVo, and Under Armour.
“In the fourth quarter our sales teams delivered our highest total bookings in any quarter over the past two years, which we believe is a tremendous achievement in the current environment,” stated Greg Gianforte, CEO and founder. “Our results in Q4, reaffirm my confidence in our team’s ability to deliver, and validates our strategy of helping companies lower costs and retain customers.”
“We’re pleased with a second consecutive quarter of non-GAAP profitability, which was ahead of our guidance and driven by focused expense management,” said Jeff Davison, CFO. “Our sales teams turned in a great quarter. Despite the fact total revenue was lowered by a $1.6 million foreign exchange impact, this was our eighth consecutive quarter of operating margin improvement, and a 300 basis point improvement over last quarter.”
Guidance
- For the full year 2009, the Company expects revenue in the range of $150 to $155 million, with recurring revenue growth of approximately 10-15%.
- Net income (loss) per share for the full year 2009 is expected to be in the range of $(0.07) to $0.01. Non-GAAP net income per share, which excludes stock-based compensation, is expected to be in the range of $0.15 to $0.23.
- For the first quarter of 2009, revenue is expected to be in the range of $36 to $37 million. First quarter net loss per share is expected to be in the range of $(0.03) to $(0.01). First quarter non-GAAP net income per share, which excludes stock-based compensation, is expected to be in the range of $0.02 to $0.04.
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 February 4, 2009 and 10:00 p.m. MT March 10, 2009 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/releasedetail.cfm?ReleaseID=363654 and http://investor.rightnow.com/sec.cfm
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; fluctuations in foreign currency exchange; 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; 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