OREM, UT–(Marketwire - April 23, 2009) - Omniture, Inc. (NASDAQ: OMTR), a leading provider of online business optimization software, today announced results for its first quarter ended March 31, 2009. In the first quarter, Omniture achieved record revenues of $87.2 million, compared to $63.2 million reported for the first quarter of 2008 and $83.0 million reported for the fourth quarter of 2008. This represents 38 percent year-over-year revenue growth. Non-GAAP revenue for the quarter was $87.8 million. The difference between GAAP and non-GAAP revenue reflects the revenue excluded from the GAAP results due to purchase accounting adjustments, which reduce deferred revenue to its fair value.
“In the first quarter, our business continued to deliver solid growth hitting the high end of our revenue guidance and showing continued strong demand for our suite of products,” stated Josh James, CEO and co-founder. “We continue to see uncertainty in the market and are taking appropriate steps to manage through this macro-economic turbulence.”
Omniture’s GAAP net loss was $8.2 million or $0.11 per diluted share in the first quarter of 2009 as compared to a net loss of $12.9 million or $0.19 per diluted share in the first quarter of 2008. Non-GAAP net income was $7.8 million or $0.10 per diluted share for the first quarter, compared to net income of $7.3 million or $0.10 per diluted share in the first quarter of 2008. Non-GAAP net income excludes the effect of acquisition-related adjustments to deferred revenue, stock-based compensation, amortization of certain intangible assets, imputed interest related to patent license agreements and certain acquisition-related expenses and non-cash tax adjustments.
First quarter adjusted EBITDA was $16.4 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 2009, Omniture added over 200 new customers bringing its total to nearly 5,200 and captured data from nearly 1.05 trillion transactions. New customer relationships secured in the first quarter include: AGL Australia, Alibaba, All Star Directories Inc., Arby’s Restaurant Group (AFA Service Corp.), B2W Viagens, Boligportal.dk, Damart Thermawear Ltd., Dobbies Garden Centres plc, Feed The Children, Inquirer Interactive, IPF Holdings Ltd., Kalaydo GmbH & Co. KG, lovemoney.com, Pasona Career Inc., ShareBuilder, Spotzer Media Group, The Oxbridge Research Group Ltd., Tokyo Broadcasting System Television Inc., TT Club, and Xerox.
Guidance
- Q2 FY 2009: GAAP revenue for the second quarter is expected to be in the range of $87.6 million to $88.6 million. GAAP net loss is expected to be in the range of $0.10 to $0.09 per share based upon an estimated weighted average share count of 76.4 million in the second quarter of 2009. Non-GAAP revenue for the second quarter is expected to be in the range of $88.0 million to $89.0 million. Non-GAAP net income for the second quarter is expected to be between $0.11 to $0.12 per diluted share based upon an estimated weighted average fully diluted share count of 79.5 million in the second quarter of 2009. Omniture expects to record positive adjusted EBITDA in the range of $17.0 million to $18.0 million.
Information for Conference Call to Discuss Q1 2009 Financial Results
Omniture, Inc. will host a conference call and simultaneous audio-only webcast at 8:00 a.m. (Eastern Time) this morning. To access the conference call, dial 866-730-5769, or 857-350-1593 for international callers. The access code is 67190577. 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 10:00 a.m. (Eastern Time) by dialing 888-286-8010, or 617-801-6888 for international callers. The access code is 59296420. 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 7, 2009.
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.
While these non-GAAP measures are not a substitute for GAAP results, we believe 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 non-cash tax adjustments, 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 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 Education. Omniture’s nearly 5,200 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 demand for our suite of products, our ability to manage our business in the midst of uncertainty in the market and our current expectations regarding GAAP and non-GAAP revenue, GAAP and non-GAAP net income and net loss, and adjusted EBITDA. 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 current uncertainty in and deterioration of global economic conditions, which could negatively impact the demand for our products and services and other related matters and could result in reductions in spending by our customers for our products and services and changes in customers’ subscription and renewal patterns, the potential that we or our customers or partners may not realize the benefits we currently expect from our recent acquisitions and strategic partner relationships, risks that the expected financial effect of our recent acquisitions and strategic partner relationships may not be realized, risks inherent in the integration and combination of complex products and technologies from our acquisitions and strategic partner relationships, our ability to continue to attract new customers and sell additional services to our existing customers, including our SiteCatalyst service and the other components of our Online Marketing Suite, 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 effectively streamline our corporate structure to adapt to a suite rather than a standalone product structure, our ability to develop or acquire new products and services, our ability to raise capital in the future, particularly in light of the ongoing financial crisis affecting the banking system and financial and capital markets and the going concern threats to investment banks and other financial institutions that have resulted in a tightening in the credit markets, reduced liquidity in many financial markets and increased volatility in the equity and debt markets, risks associated with our acquisition and strategic partner strategy and disruptions in our business, operations and financial results as a result of acquisitions and strategic partner relationships, our ability to cost effectively expand our sales and marketing capabilities, the ability of our sales organization to become more productive and our ability to effectively consolidate our sales channels to eliminate redundancies, 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, including the potential for increased pressure on the pricing of our products and services in light of the ongoing economic crisis, 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 develop and maintain strategic partner relationships with third parties with respect to either technology integration or channel development and respond to potential changes in the financial stability and solvency of our strategic partners that may result from the economic crisis, our ability to expand our international operations and to profitably sell our services to customers located outside the United States and to manage the associated fluctuations in currency exchange rates, 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, 2008, and from time to time in other reports filed by Omniture with the U.S. Securities and 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 © 2009 Omniture, Inc. All rights reserved. Omniture and SiteCatalyst are registered trademarks of Omniture, Inc. in the United States, Japan, Canada and the European Community. Omniture, Inc. owns other registered and unregistered trademarks throughout the world. 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 Ended Three Months Ended Increase
March 31, March 31, (Decrease)
------------------- ------------------- --------
% of % of
2008 Revenues 2009 Revenues
--------- -------- --------- --------
Revenues:
Subscription,
license and
maintenance $ 57,169 90 % $ 76,991 88 % 35 %
Professional
services and
other 6,044 10 10,166 12 68
--------- -------- --------- --------
Total revenues 63,213 100 87,157 100 38
Cost of revenues
(1):
Subscription,
license and
maintenance 23,793 38 31,168 36 31
Professional
services and
other 3,134 5 4,423 5 41
--------- -------- --------- --------
Total cost of
revenues 26,927 43 35,591 41 32
--------- -------- --------- --------
Gross profit 36,286 57 51,566 59 42
Operating expenses
(1):
Sales and marketing 31,216 49 37,502 43 20
Research and
development 9,801 16 9,180 11 (6)
General and
administrative 10,814 17 11,550 13 7
--------- -------- --------- --------
Total operating
expenses 51,831 82 58,232 67 12
--------- -------- --------- --------
Loss from operations (15,545) (25) (6,666) (8) (57)
Interest income 948 2 125 - (87)
Interest expense (227) - (356) - 57
Other expense, net (3) - (702) (1) 23,300
--------- -------- --------- --------
Loss before income
taxes (14,827) (23) (7,599) (9) (49)
(Benefit from)
provision for
income taxes (1,885) (3) 583 - (131)
--------- -------- --------- --------
Net loss $ (12,942) (20)% $ (8,182) (9)% (37)%
========= ======== ========= ========
Net loss per share:
Net loss per
share, basic and
diluted $ (0.19) $ (0.11) (42)%
Weighted-average
number of shares,
basic and
diluted 69,180 75,050 8 %
Adjusted EBITDA (2) $ 12,197 19 % $ 16,395 19 % 34 %
(1) Amounts include stock-based compensation expenses, as follows:
Cost of
subscription,
license and
maintenance
revenues $ 1,627 2 % $ 776 1 %
Cost of
professional
services and other
revenues 259 0 208 0
Sales and marketing 3,158 5 3,191 4
Research and
development 2,328 4 1,172 1
General and
administrative 1,779 3 2,023 2
--------- -------- --------- --------
Total stock-based
compensation
expenses $ 9,151 14 % $ 7,370 8 %
========= ======== ========= ========
(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,
------------------
2008 2009
-------- --------
Reconciliation of Total Revenues on a GAAP Basis to Total Revenues on a
Non-GAAP Basis:
Total revenues on a GAAP basis $ 63,213 $ 87,157
Acquisition-related adjustment to Touch Clarity
deferred revenue (1) 378 -
Acquisition-related adjustment to Offermatica
deferred revenue (1) 376 2
Acquisition-related adjustment to Visual Sciences
deferred revenue (1) 5,621 -
Acquisition-related adjustment to Mercado deferred
revenue (1) - 612
-------- --------
Total revenues on a non-GAAP basis $ 69,588 $ 87,771
======== ========
Reconciliation of Net Loss on a GAAP Basis to Net Income on a Non-GAAP
Basis:
Net loss on a GAAP basis $(12,942) $ (8,182)
Acquisition-related adjustment to deferred revenue
(1) 6,375 614
Amortization of intangible assets (2) 6,913 7,944
Stock-based compensation 9,151 7,370
Imputed interest on patent license obligation (3) 63 51
Non-cash tax benefit resulting from the
reduction in acquisition-related deferred tax
liabilities (4) (2,291) -
-------- --------
Net income on a non-GAAP basis $ 7,269 $ 7,797
======== ========
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 $ (0.19) $ (0.11)
Acquisition-related adjustment to deferred revenue
(1) 0.09 0.01
Amortization of intangible assets (2) 0.10 0.11
Stock-based compensation 0.14 0.10
Non-cash tax benefit resulting from the reduction
in acquisition-related deferred tax liabilities (4) (0.03) -
Impact of difference in number of GAAP and non-GAAP
diluted shares (0.01) (0.01)
-------- --------
Diluted net income per share on a non-GAAP basis $ 0.10 $ 0.10
======== ========
Reconciliation of Net Loss on a GAAP Basis to Adjusted EBITDA:
Net loss on a GAAP basis $(12,942) $ (8,182)
Other expense, net (718) 933
(Benefit from) provision for income taxes (1,885) 583
-------- --------
Loss from operations on a GAAP basis (15,545) (6,666)
Depreciation and amortization 12,216 15,077
Stock-based compensation 9,151 7,370
Acquisition-related adjustment to deferred revenue
(1) 6,375 614
-------- --------
Adjusted EBITDA $ 12,197 $ 16,395
======== ========
(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,
------------------
2008 2009
-------- --------
Cost of subscription, license and maintenance
revenues $ 4,258 $ 4,964
Sales and marketing 2,569 2,953
General and administrative 86 27
-------- --------
Total amortization of intangible assets $ 6,913 $ 7,944
======== ========
(3) This item is recorded in interest expense in the Condensed Consolidated
Statements of Operations
(4) This item is recorded in (benefit from) provision for 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
June 30, 2009
===================
Total revenues on a GAAP basis $87.6 to $88.6
Acquisition-related adjustment
to deferred revenue 0.4
-------------------
Total revenues on a non-GAAP basis $88.0 to $89.0
===================
Reconciliation of Forward Looking GAAP Diluted Net Loss Per Share
to Non-GAAP Diluted Net Income Per Share
Three Months Ended
June 30, 2009
===================
Diluted net loss per share on a GAAP basis $(0.10) to $(0.09)
Acquisition-related adjustment
to deferred revenue 0.01
Stock-based compensation 0.10
Amortization of intangible assets 0.10
-------------------
Diluted net income per share on a
non-GAAP basis $0.11 to $0.12
===================
Reconciliation of Forward Looking Net Loss on a GAAP Basis to
Adjusted EBITDA
Three Months Ended
June 30, 2009
===================
Net loss on a GAAP basis $(7.6) to $(6.6)
Other expense, net 0.7
Provision for income taxes 0.5
-------------------
Loss from operations on a GAAP basis (6.4) to (5.4)
Depreciation and amortization 15.3
Stock-based compensation 7.7
Acquisition-related adjustment
to deferred revenue 0.4
-------------------
Adjusted EBITDA $17.0 to $18.0
===================
Omniture, Inc.
Additional Metrics
(unaudited)
March June September December March
31, 30, 30, 31, 31,
2007 2007 2007 2007 2008
-------- -------- --------- --------- ---------
Full-time employee
headcount 465 531 578 713 985
Quarterly number of
transactions captured
(in billions) 496.0 520.0 561.3 619.3 851.5
June September December March
30, 30, 31, 31,
2008 2008 2008 2009
--------- --------- --------- ---------
Full-time employee
headcount 1,045 1,087 1,189 1,204
Quarterly number of
transactions captured
(in billions) 886.6 938.8 993.5 1,045.1
Three Months Ended
March 31,
------------------
2008 2009
-------- --------
Revenues by geography (in
thousands):
Customers within the
United States $ 46,084 $ 62,902
Customers outside the
United States 17,129 24,255
-------- --------
Total revenues $ 63,213 $ 87,157
======== ========
Revenues by geography as
a percentage of total
revenues:
Customers within the
United States 73% 72%
Customers outside the
United States 27% 28%
-------- --------
Total 100% 100%
======== ========
Omniture, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
March 31,
--------------------
2008 2009
--------- ---------
Cash flows from operating activities:
Net loss $ (12,942) $ (8,182)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 12,216 15,077
Stock-based compensation 9,151 7,370
Other non-cash transactions (170) (10)
Gain from reduction in acquisition-related
deferred tax liabilities (2,308) -
Gain on foreign currency forward contracts, net - (176)
Net changes in operating assets and liabilities:
Accounts receivable, net (10,882) (4,330)
Prepaid expenses and other assets 1,872 917
Accounts payable 13,582 2,498
Accrued and other liabilities (8,363) (5,180)
Deferred revenues 13,202 5,040
--------- ---------
Net cash provided by operating activities 15,358 13,024
Cash flows from investing activities:
Purchases of investments (9,886) (14,982)
Proceeds from sales of investments 35,799 -
Maturities of investments - 5,000
Purchases of property and equipment (10,111) (5,575)
Purchases of intangible assets (2,437) (458)
Foreign currency forward contracts - 271
Business acquisitions, net of cash acquired (51,870) (3,105)
--------- ---------
Net cash used in investing activities (38,505) (18,849)
Cash flows from financing activities:
Proceeds from exercise of stock options 2,106 298
Proceeds from employee stock purchase plan 125 196
Proceeds from issuance of common stock, net of
issuance costs - 25,000
Repurchases of vested restricted stock (729) (598)
Proceeds from issuance of notes payable 3,006 (25)
Principal payments on notes payable and capital
lease obligations (5,060) (75)
--------- ---------
Net cash (used in) provided by financing activities (552) 24,796
Effect of exchange rate changes on cash and cash
equivalents 244 (65)
--------- ---------
Net (decrease) increase in cash and cash equivalents (23,455) 18,906
Cash and cash equivalents at beginning of period 77,765 67,020
--------- ---------
Cash and cash equivalents at end of period $ 54,310 $ 85,926
========= =========
Omniture, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
December March
31, 31,
--------- ---------
2008 2009
--------- ---------
Assets:
Current assets:
Cash and cash equivalents $ 67,020 $ 85,926
Short-term investments 9,997 24,984
Accounts receivable, net 106,810 110,665
Prepaid expenses and other current assets 10,369 9,554
--------- ---------
Total current assets 194,196 231,129
Property and equipment, net 61,482 59,829
Intangible assets, net 137,505 129,207
Goodwill 427,565 426,696
Long-term investments 18,136 13,993
Other assets 3,316 3,118
--------- ---------
Total assets $ 842,200 $ 863,972
========= =========
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $ 7,662 $ 10,139
Accrued liabilities 41,179 31,666
Current portion of deferred revenues 101,728 110,223
Current portion of notes payable 1,617 1,984
Current portion of capital lease obligations 150 132
--------- ---------
Total current liabilities 152,336 154,144
Deferred revenues, less current portion 10,222 6,318
Notes payable, less current portion 13,528 13,125
Capital lease obligations, less current portion 79 47
Other liabilities 8,467 8,081
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock 73 76
Additional paid-in capital 754,151 786,280
Deferred stock-based compensation (366) (195)
Accumulated other comprehensive loss (3,256) (2,688)
Accumulated deficit (93,034) (101,216)
--------- ---------
Total stockholders' equity 657,568 682,257
--------- ---------
Total liabilities and stockholders' equity $ 842,200 $ 863,972
========= =========
