CRM On-Demand Vendor RightNow Releases 2007 Financial Results
January 31, 2008
RightNow Technologies (News - Alert) has announced results for the fourth quarter and year ended December 31, 2007. Fourth quarter total revenue was a record $30.7 million, compared to $28.8 million in the fourth quarter 2006. Fourth quarter 2007 results reflect 33 percent growth in recurring revenue over the fourth quarter of 2006 and the impact of the Company's business model shift away from perpetual licenses in 2007.
The net loss in the fourth quarter of 2007 was $(3.3) million or $(0.10) per share, compared to net loss of $(2.3) million, or $(0.07) per share, in the fourth quarter of 2006. Fourth quarter 2007 non-GAAP net loss per share was $(0.07) which excludes stock-based compensation charges of $1.0 million.
Revenue for the full year 2007 was $112 million, compared to full year 2006 revenue of $110 million. Recurring revenue for the 2007 full year increased 34 percent year over year to $85 million.
The net loss for the full year 2007 was $(18.6) million or $(0.56) per share, compared to net loss of $(5.0) million or $(0.16) per share for the full year 2006. Full year 2007 non-GAAP net loss per share was $(0.40) which excludes stock-based compensation of $5.5 million.
RightNow added 60 new customers in the fourth quarter and more than 250 new customers for the year. New, renewed and expanded customer relationships during the fourth quarter of 2007 included Activision, Easy Jet Airline Company, Epson America, Kodak Imaging Network, Logitech, Napster, Social Security Administration, and Vodafone (News - Alert) Netherlands.
In a separate announcement, RightNow announced the promotions of Susan Carstensen to Chief Operating Officer, and Jeff Davison to Chief Financial Officer.
For the full year 2008, the company expects revenue in the range of $135 to $140 million, with recurring revenue growth of approximately 25 percent. The net loss per share for the full year 2008 is expected to be in the range of $(0.36) to $(0.27). Non-GAAP net loss per share, which excludes stock-based compensation, is expected to be in the range of $(0.16) to $(0.07).
For the first quarter of 2008, revenue is anticipated to be in the range of $31 to $32 million. The first quarter net loss per share is expected to be in the range of $(0.17) to $(0.14).
Earlier this week RightNow Technologies was selected by a panel of industry experts from Forrester Research, Yankee Group (News - Alert), and Service and Support Professionals Association, as the SearchCRM.com 2007 Product of the Year award recipient for its enterprise-class on demand customer relationship management (CRM) product.
RightNow was labeled a "pioneer in the SaaS (News - Alert) CRM space" and was selected in the Enterprise Suite category because of its "strength in multi-channel integration and strong customer knowledge base technologies that support customized customer experiences."
Greg Gianforte, RightNow's affable founder and CEO, said more than 60 percent of RightNow's business comes from organizations with more than $1 billion in revenue.
In October RightNow CEO Greg Gianforte was inducted into the CRM Hall of Fame. Nicknamed "The Lone Wolf," the tribute noted, Gianforte has spent the last decade "in Bozeman, Montana, far from the glare of Silicon Valley and the rest of the CRM cohort." CRM magazine has written that Gianforte "always recognized that the people matter at least as much as processes."
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