CRM Software Comparison Blog

Bozeman, MT (July 24, 2006) — RightNow(R) Technologies, Inc. (NASDAQ: RNOW), today announced results for the second quarter ended June 30, 2006. RightNow reported its 34th consecutive quarter of revenue growth, with second quarter consolidated revenue of $26.9 million, an increase of 28 percent from the second quarter of 2005. The net loss in the second quarter of 2006 was $(1.8) million or $(0.05) per diluted share, including $(0.02) related to the post-acquisition operating results of Salesnet, compared to net income of $1.6 million, or $0.05 per diluted share, in the second quarter of 2005. Second quarter 2006 non-GAAP net income per diluted share was $0.00, which excludes stock-based compensation charges of $(0.05) per diluted share.

Revenue for the six month period ended June 30, 2006 was $51.5 million, or 31 percent more than the comparable 2005 period. The net loss for the six months ended June 30, 2006 was $(2.2) million, or $(0.07) per diluted share, as compared to net income of $2.4 million, or $0.07 per diluted share, for the six months ended June 30, 2005.

RightNow added 70 new customers and handled 223 million customer interactions during the second quarter. Including the addition of the Salesnet customers, we now have over 1,700 customers. New, renewed and expanded customer relationships during the second quarter of 2006 included Authentium, Briggs Corporation, CIGNA, Datamail, iRobot, Monster.com, New Balance Athletic Shoe, Sharper Image Corporation, US Government Printing Office, and Vodafone NZ.

“RightNow continues to gain momentum from the combination of our industry leading customer experience solutions and the growing mainstream acceptance of On Demand solutions among large enterprises,” said Greg Gianforte, founder and CEO. “Our sales pipeline is the strongest ever, driven by our expanding product footprint and the high levels of customer satisfaction we have enjoyed since our earliest days.”

Susan Carstensen, CFO, stated “Bookings of $33.2 million and cash from operations of $6.9 million in the quarter bring our year-to-date totals to approximately $71 million and $13 million, respectively, for increases of 49 percent and 123 percent, respectively, over last year. We are reiterating our guidance of 40 – 50 percent bookings growth and 70 – 115 percent cash flow growth for 2006. One positive trend to note is that term licenses as a percentage of revenue continue to increase, as they have over the last 5 quarters providing additional visibility into our results.”

Guidance

• The Company expects to record amortization of intangible assets related to the purchase of Salesnet of approximately $250,000 per quarter. Additionally, the Company now expects that perpetual license revenue will make up 18 to 22 percent of revenue, compared to previous guidance of 20 to 25 percent.
• For the third quarter of 2006, revenue is anticipated to be in the range of $28.0 to $29.0 million. The net (loss) per diluted share is expected to be in the range of $(0.01) to $(0.04) cents, including $(0.01) from the amortization of acquired intangible assets. Excluding the effect of stock-based compensation, non-GAAP net income per diluted share is expected to be in the range of $0.00 to $0.03 cents.
• For the full year 2006, the Company reiterates its bookings growth guidance of 40 to 50 percent, with cash from operations of $26 to $32 million. Accounting for the lower mix of perpetual revenue, revenue is anticipated to be in the range of $111 to $114 million, and the net loss per share in the range of $(0.07) to $(0.12) cents. Excluding the effect of stock-based compensation, non-GAAP net income per diluted share for the year is expected to be in the range of $0.04 to $0.09 cents.

Filed under: RightNow