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Omniture Reports First Quarter 2008 Financial Results Company Posts 117% Revenue Growth; Organic Growth Exceeds 60% OREM, UT--(MARKET WIRE)--Apr 30, 2008 -- Omniture, Inc. (NasdaqGM:OMTR - News), a leading provider
of online business optimization software, today announced
results for its
first quarter ending March 31, 2008. The Company's results
reflect the
acquisition of Visual Sciences, Inc., which was completed
on January 17,
2008, and include Visual Sciences operating results since
that date.
In the first quarter of 2008, Omniture achieved record revenue of $63.2 million, an increase of 117% compared to revenue of $29.2 million reported for the same period a year ago and an increase of 47% compared to $43.1 million in the prior period. Non-GAAP revenue for the quarter was $69.6 million. The difference between GAAP and non-GAAP revenue reflects the revenue excluded from the GAAP results due to purchase accounting adjustments, which reduces deferred revenue to its fair value. "We are proud of our team delivering on earlier than expected synergies in our acquisitions and the continued strength of our core business. The combination of these two items led to better than expected non-GAAP profitability for the quarter and increased guidance for our non-GAAP Q4 operating margin and full-year revenue," stated Josh James, CEO and co-founder of Omniture. "As one of the largest SaaS companies in the world, Omniture is leveraging its leadership position in the marketplace and building an ecosystem in arguably the most exciting space." Omniture's GAAP net loss was $12.9 million or $0.19 per diluted share in the first quarter of 2008 as compared to a net loss of $2.4 million or $0.05 per diluted share in the first quarter of 2007. Non-GAAP net income was $7.3 million or $0.10 per diluted share for the first quarter 2008, compared to non-GAAP net income of $0.9 million or $0.02 per diluted share in the first quarter of 2007. Non-GAAP net income excludes the effect of the acquisition-related reduction to deferred revenue, stock-based compensation, amortization of certain intangible assets, imputed interest related to a patent license agreement and certain acquisition-related expenses and tax benefits. First quarter fiscal 2008 adjusted EBITDA was $12.2 million. Adjusted EBITDA is defined as loss from operations on a GAAP basis less depreciation and amortization, stock-based compensation and the acquisition-related adjustment to deferred revenue. During the first quarter of 2008, Omniture captured data from over 851 billion transactions and added over 250 new customers organically in addition to the new customers acquired in connection with the Visual Sciences acquisition. Following its acquisition of Visual Sciences, Omniture now has more than 4,500 customers worldwide. New customer relationships secured and announced in the first quarter include: American Cancer Society, Boingo Wireless, Burpee Seeds, Dominion Enterprises, Fox International Channels, HIT Entertainment, Jones Soda Company, Kia Motors, Nutrisystem, Rugs Direct, Sephora, Shopit, Sylvan Learning Centers, Ubid and Washington Post Newsweek Interactive. New international customers include: Cadbury Schweppes, FrenchConnection UK and Volkswagen Nutzfahrzeuge. Guidance
-- Q2 FY 2008: GAAP revenue for the second quarter is expected to be in
the range of $70 million to $72 million. GAAP net loss is expected to be in
the range of $0.13 to $0.14 per share in the second quarter of 2008. Non-
GAAP revenue for the company's second quarter is expected to be in the
range of $73 million to $75 million. Non-GAAP net income for the second
quarter is expected to be between $0.10 to $0.11 per diluted share.
Omniture expects to record positive adjusted EBITDA in the range of $13.5
million to $14.5 million.
-- Full Year FY 2008: GAAP revenue for the full year 2008 is expected to
be in the range of $295 million to $300 million. GAAP net loss is expected
to be in the range of $0.44 to $0.49 per share. Non-GAAP revenue for the
company's full year 2008 is expected to be in the range of $308 million to
$313 million. Non-GAAP net income for the year is expected to be in the
range of $0.41 to $0.46 per diluted share. Omniture expects to record
positive adjusted EBITDA in the range of $59 million to $63 million for the
full year.Information for Conference Call to Discuss Q1 FY 2008 Financial Results Omniture, Inc. will host a conference call and simultaneous audio-only webcast at 5:00 p.m. (Eastern Time). To access the conference call, dial 800-259-0251, or 617-614-3671 for international callers. The access code is 27036195. Please call 10 minutes prior to the scheduled conference call time. The webcast will be available on the "Investor Relations" section of the company's corporate Web site at www.omtr.com. A replay of the conference call will be accessible by telephone after 7:00 p.m. (Eastern Time) by dialing 888-286-8010 or 617-801-6888 for international callers. The access code is 71748405. The conference call will also be archived on the company's corporate Web site. Both the replay and archived webcast will be available until May 14, 2008. About Non-GAAP Financial Measures In this release and during our conference call as described above we use or plan to discuss certain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. A reconciliation between non-GAAP and GAAP measures can be found in the accompanying tables and on the Investor Relations section of our corporate Web site at www.omtr.com. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. We believe that, while these non-GAAP measures are not a substitute for GAAP results, they provide a basis for evaluating the company's operating results because they are helpful in understanding our past financial performance and our future results and facilitate comparisons of results between periods. We believe the calculation of non-GAAP revenue, which reflects the revenue excluded from the GAAP results due to purchase accounting adjustments to reduce deferred revenue to its fair value, provides a meaningful comparison to our historic GAAP revenue. We also believe the calculation of net income and loss, calculated without acquisition-related accounting adjustments to deferred revenue, stock-based compensation expense, the amortization of certain intangible assets, imputed interest expense and certain acquisition-related expenses and tax benefits, provides a meaningful comparison to our net loss figures. We also believe that adjusted EBITDA, which we calculate as loss from operations on a GAAP basis less depreciation and amortization, stock-based compensation and the acquisition-related adjustments to deferred revenue, is an indicator of the company's financial results and cash flows and is useful to investors in evaluating operating performance. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures have been reconciled to the nearest GAAP measure as required under the rules and regulations promulgated by the U.S. Securities and Exchange Commission. About Omniture Omniture, Inc. is a leading provider of online business optimization software, enabling customers to manage and enhance online, offline and multi-channel business initiatives. Omniture's software, which it hosts and delivers to its customers as an on-demand subscription service and on-premise solution, enables customers to capture, store and analyze information generated by their Web sites and other sources and to gain critical business insights into the performance and efficiency of marketing and sales initiatives and other business processes. In addition, Omniture offers a range of professional services that complement its online services, including implementation, best practices, consulting, customer support and user training through Omniture University(TM). Omniture's 4,500 customers include eBay, AOL, Wal-Mart, Gannett, Microsoft, Neiman Marcus, Oracle, General Motors, Sony and HP. www.omniture.com Note on Forward-looking Statements Management believes that certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, statements regarding our leadership in the market for online business optimization services, including web analytics, and our current expectations regarding GAAP and non-GAAP revenue, GAAP and non-GAAP net income and net loss, and adjusted EBITDA, the integration of our recent acquisitions, and the extent to which our installed customer base will accept our new or acquired products and services and our strategy will be successful. These statements are based on current expectations and assumptions regarding future events and business performance and involve certain risks and uncertainties that could cause actual results to differ materially, including, but not limited to, risks associated with changes in the demand for our services, the potential that we or our customers may not realize the benefits we currently expect from our recent acquisitions, risks that the expected financial effect of our recent acquisitions may not be realized, risks associated with the operation of our business or our industry in general, risks inherent in the integration and combination of complex products and technologies from our acquisitions, our ability to continue to attract new customers and sell additional services to our existing customers, the continued adoption by customers of our SiteCatalyst service and other product and service offerings, including the new combined offerings from our acquisitions, the significant capital requirements of our business model that make it more difficult to achieve positive cash flow and profitability if we continue to grow rapidly, our ability to develop or acquire new products and services, our ability to raise capital in the future, risks associated with our acquisition strategy and disruptions in our business and operations as a result of acquisitions, the ability of our expanding sales organization to become productive, possible fluctuations in our operating results and rate of growth, the continued growth of the market for on-demand, online business optimization services, changes in the competitive dynamics of our markets, the inaccurate assessment of changes in our markets, errors, interruptions or delays in our services or other performance problems with our services, our ability to hire, retain and motivate our employees and manage our growth, our ability to effectively expand our sales and marketing capabilities, our ability to develop and maintain strategic relationships with third parties with respect to either technology integration or channel development, our ability to expand our international operations and to sell our services to customers located outside the United States, our ability to implement and maintain proper and effective internal controls, the adoption of laws or regulations, or interpretations of existing law, that could limit our ability to collect and use Internet user information, and the blocking or erasing of "cookies"; and such other risks as identified in Omniture's annual report on Form 10-K for the period ended December 31, 2007 and from time to time in other reports filed by Omniture with the U.S. Securities Exchange Commission. These reports are available on our Web site at www.omtr.com. Omniture undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. Copyright (c) 2008 Omniture, Inc. All rights reserved. Omniture and the Omniture logo are registered trademarks of Omniture, Inc., and Omniture owns other registered and unregistered trademarks. Other names used herein may be trademarks of their respective owners.
Omniture, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Three Months %
Ended Ended Increase
March 31, March 31, (Decrease)
================ ================ =========
% of % of
2007 Revenues 2008 Revenues
========= ==== ========= ====
Revenues:
Subscription, license and
maintenance $ 27,320 94 % $ 57,169 90 % 109%
Professional services and
other 1,833 6 6,044 10 230
--------- ---- --------- ----
Total revenues 29,153 100 63,213 100 117
Cost of revenues (1):
Subscription, license and
maintenance 9,460 33 23,793 38 152
Professional services and
other 1,278 4 3,134 5 145
--------- ---- --------- ----
Total cost of revenues 10,738 37 26,927 43 151
--------- ---- --------- ----
Gross profit 18,415 63 36,286 57 97
Operating expenses (1):
Sales and marketing 13,324 45 31,216 49 134
Research and development 3,143 11 9,801 16 212
General and administrative 4,386 15 10,814 17 147
--------- ---- --------- ----
Total operating
expenses 20,853 71 51,831 82 149
--------- ---- --------- ----
Loss from operations (2,438) (8) (15,545) (25) 538
Interest income 636 2 948 2 49
Interest expense (257) (1) (227) - (12)
Other expense, net (353) (1) (3) - (99)
--------- ---- --------- ----
Loss before provision for
(benefit from) income taxes (2,412) (8) (14,827) (23) 515
Provision for (benefit from)
income taxes 34 - (1,885) (3) (5,644)
--------- ---- --------- ----
Net loss $ (2,446) (8)% $ (12,942) (20)% 429%
========= ==== ========= ====
Net loss per share:
Net loss per share, basic
and diluted $ (0.05) $ (0.19) 280%
Weighted-average number of
shares, basic and diluted 47,753 69,180 45%
Adjusted EBITDA (2) $ 3,972 14 % $ 12,197 19 % 207%
(1) Amounts include stock-based compensation expenses, as follows:
Cost of subscription,
license and maintenance
revenues $ 293 1 % $ 1,627 2 %
Cost of professional
services and other
revenues 104 0 259 0
Sales and marketing 675 2 3,158 5
Research and development 383 1 2,328 4
General and administrative 430 2 1,779 3
--------- ---- --------- ----
Total stock-based
compensation expenses $ 1,885 6 % $ 9,151 14 %
========= ==== ========= ====
(2) Adjusted EBITDA is equal to the loss from operations less depreciation
and amortization, stock-based compensation and the acquisition-related
adjustment to deferred revenue.
Omniture, Inc.
Reconciliation of Non-GAAP Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
--------------------
2007 2008
--------- ---------
Reconciliation of Total Revenues on a GAAP Basis to
Total Revenues on a Non-GAAP Basis:
Total revenues on a GAAP basis $ 29,153 $ 63,213
Acquisition-related adjustment to Instadia
deferred revenue (1) 165 -
Acquisition-related adjustment to Touch Clarity
deferred revenue (1) 180 378
Acquisition-related adjustment to Offermatica
deferred revenue (1) - 376
Acquisition-related adjustment to Visual Sciences
deferred revenue (1) - 5,621
--------- ---------
Total revenues on a non-GAAP basis $ 29,498 $ 69,588
========= =========
Reconciliation of Net Loss on a GAAP Basis to Net
Income on a Non-GAAP Basis:
Net loss on a GAAP basis $ (2,446) $ (12,942)
Acquisition-related adjustment to deferred
revenue (1) 345 6,375
Amortization of intangible assets (2) 841 6,913
Stock-based compensation 1,885 9,151
Imputed interest on patent license obligation (3) 69 63
Loss on foreign currency forward contract related
to Instadia acquisition (4) 243 -
Non-cash tax benefit resulting from the reduction
in acquisition-related deferred tax liabilities (5) - (2,291)
--------- ---------
Net income on a non-GAAP basis $ 937 $ 7,269
========= =========
Reconciliation of Diluted Net Loss per Share on a
GAAP Basis to Diluted Net
Income per Share on a Non-GAAP Basis:
Diluted net loss per share on a GAAP basis $ (0.05) $ (0.19)
Acquisition-related adjustment to deferred
revenue (1) 0.01 0.09
Amortization of intangible assets (2) 0.02 0.10
Stock-based compensation 0.04 0.14
Non-cash tax benefit resulting from the reduction
in acquisition-related deferred tax liabilities (5) - (0.03)
Impact of difference in number of GAAP and
non-GAAP diluted shares - (0.01)
--------- ---------
Diluted net income per share on a non-GAAP basis $ 0.02 $ 0.10
========= =========
Reconciliation of Net Loss on a GAAP Basis to
Adjusted EBITDA:
Net loss on a GAAP basis $ (2,446) $ (12,942)
Other income, net (26) (718)
Provision for (benefit from) income taxes 34 (1,885)
--------- ---------
Loss from operations on a GAAP basis (2,438) (15,545)
Depreciation and amortization 4,180 12,216
Stock-based compensation 1,885 9,151
Acquisition-related adjustment to deferred
revenue (1) 345 6,375
--------- ---------
Adjusted EBITDA $ 3,972 $ 12,197
========= =========
(1) This item is recorded in subscription, license and maintenance revenue
in the Condensed Consolidated Statements of Operations
(2) Amortization of intangible assets is allocated as follows in the
Condensed Consolidated Statement of Operations:
Three Months Ended
March 31,
--------------------
2007 2008
--------- ---------
Cost of subscription, license and maintenance
revenues $ 563 $ 4,258
Sales and marketing 227 2,569
General and administrative 51 86
--------- ---------
Total amortization of intangible assets $ 841 $ 6,913
========= =========
(3) This item is recorded in interest expense in the Condensed Consolidated
Statements of Operations
(4) This item is recorded in other expense, net in the Condensed
Consolidated Statements of Operations
(5) This item is recorded in provision for (benefit from) income taxes in
the Condensed Consolidated Statements of Operations
Omniture, Inc.
Reconciliation of Forward Looking Measures
(in millions, except per share data)
(unaudited)
Reconciliation of Forward Looking Total Revenues on a GAAP Basis to Total
Revenues on a Non-GAAP Basis
Three Months Ended Year Ended
June 30, 2008 December 31, 2008
------------------- -------------------
Total revenues on a GAAP basis $ 70 to $ 72 $ 295 to $ 300
Acquisition-related adjustment
to deferred revenue 3 13
------------------- -------------------
Total revenues on a non-GAAP
basis $ 73 to $ 75 $ 308 to $ 313
=================== ===================
Reconciliation of Forward Looking GAAP Diluted Net Loss Per Share to
Non-GAAP Diluted Net Income Per Share
Three Months Ended Year Ended
June 30, 2008 December 31, 2008
------------------- -------------------
Diluted net loss per share on a
GAAP basis $ (0.14) to $ (0.13) $ (0.49) to $ (0.44)
Acquisition-related adjustment
to deferred revenue 0.05 0.18
Stock-based compensation 0.12 0.44
Amortization of intangible
assets 0.11 0.42
Non-cash tax benefit resulting
from the reduction in
acquisition-related
deferred tax liabilities (0.03) (0.11)
Impact of difference in number
of GAAP and non-GAAP diluted
shares (0.01) (0.03)
------------------- -------------------
Diluted net income per share on a
non-GAAP basis $ 0.10 to $ 0.11 $ 0.41 to $ 0.46
=================== ===================
Reconciliation of Forward Looking Net Loss on a GAAP Basis to Adjusted
EBITDA
Three Months Ended Year Ended
June 30, 2008 December 31, 2008
------------------- -------------------
Net loss on a GAAP basis $ (10.4) to $ (9.4) $ (35.7) to $ (31.7)
Other income, net (0.5) (1.9)
Provision for income taxes (1.9) (6.4)
------------------- -------------------
Loss from operations on a GAAP
basis (12.8) to (11.8) (44.0) to (40.0)
Depreciation and amortization 14.5 58.0
Stock-based compensation 8.8 32.0
Acquisition-related adjustment
to deferred revenue 3.0 13.0
------------------- -------------------
Adjusted EBITDA $ 13.5 to $ 14.5 $ 59.0 to $ 63.0
=================== ===================
Omniture, Inc.
Additional Metrics
(unaudited)
September December
March 31, June 30, 30, 31, March 31,
2006 2006 2006 2006 2007
--------- --------- ---------- ---------- ----------
Full-time employee
headcount 312 324 323 353 465
Quarterly number of
transactions captured
(in billions) 288.5 315.0 362.7 420.7 496.0
September December
June 30, 30, 31, March 31,
2007 2007 2007 2008
--------- --------- ---------- ----------
Full-time employee
headcount 531 578 713 985
Quarterly number of
transactions captured
(in billions) 520.0 561.3 619.3 851.5
Three Months Ended
March 31,
--------------------
2007 2008
--------- ---------
Revenues by geography
(in thousands):
Customers within the
United States $ 22,548 $ 46,084
Customers outside
the United States 6,605 17,129
--------- ---------
Total revenues $ 29,153 $ 63,213
========= =========
Revenues by geography
as a percentage of
total revenues:
Customers within the
United States 77% 73%
Customers outside the
United States 23 27
--------- ---------
Total 100% 100%
========= =========
Omniture, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
March 31,
--------------------
2007 2008
--------- ---------
Cash flows from operating activities:
Net loss $ (2,446) $ (12,942)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 4,180 12,216
Stock-based compensation 1,885 9,151
Gain from reduction in acquisition-related
deferred tax liabilities - (2,308)
Gain on sale of investments - (48)
Loss on foreign currency forward contract 243 -
Amortization of premiums and discounts on
short-term investments - (122)
Net changes in operating assets and liabilities:
Accounts receivable, net (7,326) (10,882)
Prepaid expenses and other assets 13 1,872
Accounts payable 3,487 13,582
Accrued and other liabilities (1,497) (8,363)
Deferred revenues 4,386 13,202
--------- ---------
Net cash provided by operating activities 2,925 15,358
Cash flows from investing activities:
Purchases of investments (12,000) (9,886)
Sales of investments - 35,799
Purchases of property and equipment (2,302) (10,111)
Purchases of intangible assets (1,628) (2,437)
Payment related to foreign currency forward contract (337) -
Business acquisitions, net of cash acquired (26,264) (51,870)
--------- ---------
Net cash used in investing activities (42,531) (38,505)
Cash flows from financing activities:
Proceeds from exercise of stock options 659 2,106
Proceeds from employee stock purchase plan 99 125
Repurchases of vested restricted stock - (729)
Proceeds from issuance of notes payable - 3,006
Principal payments on notes payable and capital lease
obligations (1,623) (5,060)
--------- ---------
Net cash used in financing activities (865) (552)
Effect of exchange rate changes on cash and cash
equivalents - 244
--------- ---------
Net decrease in cash and cash equivalents (40,471) (23,455)
Cash and cash equivalents at beginning of period 68,287 77,765
--------- ---------
Cash and cash equivalents at end of period $ 27,816 $ 54,310
========= =========
Omniture, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, March 31,
----------- -----------
2007 2008
----------- -----------
Assets: (unaudited)
Current assets:
Cash and cash equivalents $ 77,765 $ 54,310
Short-term investments 56,924 11,103
Accounts receivable, net 51,971 82,086
Prepaid expenses and other current assets 3,663 4,107
----------- -----------
Total current assets 190,323 151,606
Property and equipment, net 31,214 46,567
Intangible assets, net 50,769 154,814
Goodwill 94,960 427,004
Long-term investments - 20,593
Other assets 3,457 2,149
----------- -----------
Total assets $ 370,723 $ 802,733
=========== ===========
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $ 6,470 $ 21,490
Accrued liabilities 17,126 27,431
Current portion of deferred revenues 42,041 64,397
Current portion of notes payable 4,407 4,953
Current portion of capital lease obligations 246 261
----------- -----------
Total current liabilities 70,290 118,532
Deferred revenues, less current portion 1,815 1,977
Notes payable, less current portion 2,948 4,428
Capital lease obligations, less current portion 173 145
Other liabilities 4,422 20,177
Commitments and contingencies
Stockholders' equity:
Preferred Stock - -
Common stock 61 71
Additional paid-in capital 340,424 720,158
Deferred stock-based compensation (1,182) (977)
Accumulated other comprehensive income (loss) 40 (568)
Accumulated deficit (48,268) (61,210)
----------- -----------
Total stockholders' equity 291,075 657,474
----------- -----------
Total liabilities and stockholders'
equity $ 370,723 $ 802,733
=========== ===========Contact: Media Relations:
Kristi Knight
801-722-7000
Email Contact
Investor Relations:
Mike Look
650-450-1008
Email Contact
Source: Omniture
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