CRM Software Comparison Blog

Bozeman, MT (October 25, 2006) — RightNow(R) Technologies, Inc. (NASDAQ: RNOW) today announced results for the third quarter ended September 30, 2006. RightNow reported its 35th consecutive quarter of revenue growth, with third quarter consolidated revenue of $30.1 million, an increase of 30 percent from the third quarter of 2005. The net loss in the third quarter of 2006 was $(0.5) million or $(0.02) per diluted share, compared to net income of $2.3 million, or $0.07 per diluted share, in the third quarter of 2005. Third quarter 2006 non-GAAP net income per diluted share was $0.02, which excludes stock-based compensation charges of $1.1 million.

Revenue for the nine month period ended September 30, 2006 was $81.6 million, or 30 percent more than the comparable 2005 period. The net loss for the nine months ended September 30, 2006 was $(2.7) million, or $(0.08) per diluted share, as compared to net income of $4.7 million, or $0.14 per diluted share, for the nine months ended September 30, 2005. Results for the nine months ended September 30, 2006 include $(0.11) per diluted share of stock-based compensation charges.

RightNow added more than 80 new customers and handled more than 260 million customer interactions during the third quarter. New, renewed and expanded customer relationships during the third quarter of 2006 included the Assessments and Qualifications Alliance, eHarmony, EPA Office of Environmental Education, Group Health Cooperative, Minnesota State Colleges and Universities, MTD Products, Northrup Grumman, T-Mobile Austria, and YP.com.

“The third quarter was an outstanding quarter for RightNow across many accounts,” stated Greg Gianforte, founder and CEO. “Solid execution in our public sector business and with large enterprises drove record bookings and our 35th consecutive quarter of revenue growth. During the quarter, we held our largest ever users’ conference where we launched RightNow 8 and received overwhelmingly positive customer reviews. Our track record of success and high customer satisfaction demonstrates that we continue to set the standard for mission critical On Demand CRM.”

Susan Carstensen, CFO, added, “Record bookings of $45.5 million in the third quarter bring our year-to-date bookings to $116 million, or 51% more than the similar period last year. Our deferred revenue balance topped $100 million for the first time, and our 2006 year-to-date cash from operations of $22.7 million is more than double that of the comparable 2005 period.”

Guidance

• For the fourth quarter of 2006, revenue is anticipated to be in the range of $31 to $31.5 million. The fourth quarter net income (loss) per diluted share is expected to be in the range of $(0.02) to $0.00 cents. Excluding the effect of stock-based compensation, fourth quarter non-GAAP net income per diluted share is expected to be in the range of $0.02 to $0.04 cents. These forecasts result in full year 2006 revenue guidance in the range of approximately $113 million, net (loss) per share in the range of $(0.10) to $(0.08) and non-GAAP net income per diluted share in the range of $0.05 to $0.07.
• For the full year 2007, the Company expects revenue in the range of $143 to $148 million. The Company expects recurring revenue to grow approximately 40 percent. Perpetual license revenue in absolute dollars is expected to decrease and is expected to make up approximately 14 to 17 percent of total revenue. Net income per share is expected to be in the range of $0.11 to $0.16 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 $0.30 to $0.35 cents. The Company intends to further discuss its guidance and anticipated business model and related changes in today’s conference call.

Filed under: RightNow