RightNow Technologies Announces Second Quarter 2009 Financial Results
Company Reports Q2 GAAP EPS of $0.00 and Non-GAAP EPS of $0.09
BOZEMAN, Mont. (July 29, 2009) - RightNow® Technologies, Inc. (NASDAQ: RNOW) today announced results for the second quarter ended June 30, 2009. Total revenue in the second quarter of 2009 was $36.3 million, compared to $35.2 million in the second quarter of 2008. Net income in the second quarter of 2009 was $36,000, or $0.00 per share, compared to a net loss of $(3.1) million, or $(0.09) per share, in the second quarter of 2008. Non-GAAP net income in the second quarter of 2009, which excludes stock-based compensation charges of $2.7 million, was $2.8 million, or $0.09 per share, as compared to Non-GAAP net loss of $(1.2) million, or $(0.04) per share, in the second quarter of 2008.
Revenue for the six months ended June 30, 2009 was $72.4 million, compared to $68.1 million for the comparable period in 2008. Net income for the six months ended June 30, 2009 was $1.3 million, or $0.04 per share, as compared to a net loss of $(6.5) million, or $(0.19) per share, for the comparable period in 2008. Non-GAAP net income for the six months ended June 30, 2009, which excludes stock-based compensation charges of $4.3 million, was $5.6 million, or $0.17 per share, as compared to Non-GAAP net loss of $(3.4) million, or $(0.10) per share, for the comparable period in 2008.
New, renewed and expanded customer relationships during the second quarter of 2009 included Belkin, Bowne, Figi's, Husqvarna, Jackson Hewitt, K2 Network, The Ladders.com, NetScout, Snapfish and TD Banknorth.
"In the second quarter we delivered strong revenue, earnings ahead of guidance and closed a record ten deals over one million dollars," stated Greg Gianforte, CEO and Founder. "We believe RightNow is creating momentum in the marketplace as we help new and existing customers lower costs and retain customers in the current economy. Our success is being driven by our focus on consumer oriented organizations and our ability to deliver complete multichannel solutions to meet their unique needs."
"We are pleased with a third consecutive quarter of GAAP profitability, which was driven by recurring revenue growth and continued expense management," said Jeff Davison, CFO, "and we are raising earnings guidance for the full year."
Guidance
- For the full year 2009, revenue is expected to be in the range of $147 to $151 million. Net income per share for the full year 2009 is expected to be in the range of $0.06 to $0.10 compared to previous guidance of $(0.02) to $0.03.
- Non-GAAP net income per share for the full year 2009, which excludes stock-based compensation, is expected to be in the range of $0.29 to $0.33 compared to previous guidance of $0.20 to $0.25.
- For the third quarter of 2009, revenue is expected to be in the range of $37 to $38 million. Third quarter net income per share is expected to be in the range of $0.00 to $0.02. Third quarter non-GAAP net income per share, which excludes stock-based compensation, is expected to be in the range of $0.06 to $0.08.
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 (888) 312-9852, or outside the U.S. (719) 325-2114, 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 Investor Webcasts menu. An audio replay will be available between 5:30 p.m. MT on July 29, 2009 and 9:59 p.m. MT August 12, 2009 by calling (888) 203-1112 or (719) 457-0820, with passcode 5324517. The replay will also be available on our website at http://investor.rightnow.com/events.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 and to grow profitability; 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; 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
[a] Estimated stock-based compensation expense to be recorded for the periods indicated in accordance with Statement of Financial Accounting Standards No. 123R, Share-Based Payments, ("SFAS 123R") which is effective for periods beginning January 1, 2006.
About Non-GAAP Financial Measures
Non-GAAP net income (loss) and diluted net income (loss) per share are supplemental measures of our performance that are not required by, or presented in accordance with GAAP. These non-GAAP financial measures are not intended to be used in isolation and should not be considered a substitute for net income (loss) and net income (loss) per share or any other performance measure determined in accordance with GAAP. We present non-GAAP net income (loss) and net income (loss) per share because we consider each to be an important supplemental measure of our performance.
Management uses these non-GAAP financial measures to make operational decisions, evaluate the Company's performance, prepare forecasts and determine compensation. Further, management believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company's performance when planning, forecasting and analyzing future periods. Our stock-based compensation expenses are expected to vary depending on the number of new grants issued, changes in our stock price, stock market volatility, expected option lives and risk-free rates of return, all of which are difficult to estimate. In calculating non-GAAP net income (loss) and net income (loss) per share, management excludes stock-based compensation expenses to facilitate its review of the comparability of the Company's operating performance on a period-to-period basis because such expenses are not, in management's view, related to the Company's ongoing operating performance. Management uses this view of its operating performance for purposes of comparison with its business plan and individual operating budgets and resource allocation.
Management further believes that these non-GAAP financial measures are useful to investors in providing greater transparency to the information used by management in its operational decision making. We believe that the use of non-GAAP net income (loss) and net income (loss) per share also facilitate a comparison of RightNow's underlying operating performance with that of other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results.
Calculating non-GAAP net income (loss) and net income (loss) per share have limitations as an analytical tool, and readers should not consider these measures in isolation or as substitutes for GAAP net income (loss) and GAAP net income (loss) per share. In the future, we expect to incur additional stock-based compensation expenses and the exclusion of these expenses in the presentation of our non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring. Investors and potential investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool, which include:
- Other companies inside and outside of our industry may calculate non-GAAP net income (loss) and net income (loss) per share differently than we do, limiting their usefulness as a comparative tool; and
- The Company's income tax expense or benefit will be ultimately based on its GAAP taxable income and actual tax rates in effect, which may differ significantly from the effective tax rate used in our non-GAAP financial measures.
In addition, the adjustments to our GAAP financial measures reflect the exclusion of stock-based compensation expenses that are recurring and will be reflected in the Company's financial results for the foreseeable future. The Company compensates for these limitations by providing specific information regarding the GAAP amount excluded from the non-GAAP financial measures. The Company further compensates for the limitations of our use of non-GAAP financial measures by presenting comparable GAAP measures more prominently. The Company evaluates the non-GAAP financial measures together with the most directly comparable GAAP financial measures.
Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with our GAAP net income (loss) and net income (loss) per share. For more information, see the consolidated operating statements and reconciliation of non-GAAP measurements contained in this press release.
For Further Information, Contact:
Investor Relations:
Todd Friedman or Stacie Bosinoff
The Blueshirt Group
415.217.7722
todd@blueshirtgroup.com
stacie@blueshirtgroup.com
Corporate Communications:
Katie O'Connell
RightNow Technologies
925.674.1487 Desk
925.270.6107 Cell
koconnell@rightnow.com
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