Science & Technology
Science and Technology
Science and Technology
Thu, July 23, 2009
Wed, July 22, 2009
Omniture: Omniture Reports Second Quarter Fiscal Year 2009 Financial Results
OREM, UT--(Marketwire - July 22, 2009) - Omniture, Inc. (
"Despite a very challenging economy, we delivered solid second quarter results, which means the Omniture Online Marketing Suite is resonating very well in the marketplace," said Josh James, CEO and co-founder. "We believe we have seen some stabilization in our business as well as with the businesses of some of our customers, and we remain committed to the investments that will drive the long-term growth of our business with the objective of helping our customers leverage the more than 1 trillion transactions that we capture for them every quarter."
Omniture's GAAP net loss was $4.9 million or $0.06 per diluted share in the second quarter of 2009 as compared to a net loss of $6.5 million or $0.09 per diluted share in the second quarter of 2008. Non-GAAP net income was $10.5 million or $0.13 per diluted share for the second quarter, compared to net income of $7.3 million or $0.10 per diluted share in the second 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.
Second quarter adjusted EBITDA was $18.9 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 second quarter of 2009, Omniture added over 150 new customers and captured data from approximately 1.05 trillion transactions. New customer relationships secured in the second quarter include: 3M, Alvenda, Azamara Cruises, Celebrity Cruises, Colonial First State, Forex Direct Dealer, FOXTEL, Ghirardelli Chocolate Company, Mozy by Decho, Neu.de GmbH, Niche Technologies, Press immo On Line S.A.S, Rhamat Trading Inc., Royal Caribbean International, Ryman Direct, Senshukai Co., SurveyMonkey.com, The Education Center, TV2 Danmark A/S, University Hospitals of Cleveland, Viking Line and YouCompare.
Guidance
Q3 FY 2009: Omniture is targeting flat revenues from the second quarter, with adjusted EBITDA and non-GAAP net income per share approximately the same as the second quarter.
Information for Conference Call to Discuss Q2 2009 Financial Results
Omniture, Inc. will host a conference call and simultaneous audio-only webcast at 5:00 p.m. (Eastern Time) this afternoon. To access the conference call, dial 866-730-5764, or 857-350-1588 for international callers. The access code is 62479935. Please call 10 minutes prior to the scheduled conference call time. The webcast will be available on the company's investor relations 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 57556005. The conference call will also be archived on the company's investor relations web site. Both the replay and archived webcast will be available until August 5, 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 company's investor relations 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 over 5,000 customers include eBay, AOL, Wal-Mart, Gannett, Microsoft, Neiman Marcus, Oracle, 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 and expected benefits of our services to customers, the stabilization in our business, our ability to manage our business in the midst of uncertainty in the market, and our current expectations regarding future 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 quarterly report on Form 10-Q for the period ended March 31, 2009, 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 June 30, June 30, (Decrease) ==================== ==================== ======== % of % of 2008 Revenues 2009 Revenues ========= ======== ========= ======== Revenues: Subscription, license and maintenance $ 64,601 90 % $ 77,349 88 % 20 % Professional services and other 7,019 10 10,223 12 46 --------- -------- --------- -------- Total revenues 71,620 100 87,572 100 22 Cost of revenues (1): Subscription, license and maintenance 27,071 38 32,748 37 21 Professional services and other 3,627 5 4,141 5 14 --------- -------- --------- -------- Total cost of revenues 30,698 43 36,889 42 20 --------- -------- --------- -------- Gross profit 40,922 57 50,683 58 24 Operating expenses (1): Sales and marketing 32,170 45 33,413 38 4 Research and development 8,849 12 8,946 10 1 General and administrative 11,815 17 11,857 14 0 --------- -------- --------- -------- Total operating expenses 52,834 74 54,216 62 3 --------- -------- --------- -------- Loss from operations (11,912) (17) (3,533) (4) (70) Interest income 343 1 67 - (80) Interest expense (230) - (324) - 41 Other income (expense), net 47 - (551) (1) (1,272) --------- -------- --------- -------- Loss before income taxes (11,752) (16) (4,341) (5) (63) (Benefit from) provision for income taxes (5,291) (7) 538 1 (110) --------- -------- --------- -------- Net loss $ (6,461) (9)% $ (4,879) (6)% (24)% ========= ======== ========= ======== Net loss per share: Net loss per share, basic and diluted $ (0.09) $ (0.06) (33)% Weighted-average number of shares, basic and diluted 71,720 76,286 6 % Adjusted EBITDA (2) $ 13,701 19 % $ 18,890 22 % 38 % (1) Amounts include stock-based compensation expenses, as follows: Cost of subscription, license and maintenance revenues $ 865 1 % $ 753 1 % Cost of professional services and other revenues 232 0 204 0 Sales and marketing 3,119 4 2,862 3 Research and development 1,512 2 1,313 2 General and administrative 2,423 4 1,957 2 --------- -------- --------- -------- Total stock-based compensation expenses $ 8,151 11 % $ 7,089 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. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) % Six Months Ended Six Months Ended Increase June 30, June 30, (Decrease) ==================== ==================== ======== % of % of 2008 Revenues 2009 Revenues ========= ======== ========= ======== Revenues: Subscription, license and maintenance $ 121,770 90 % $ 154,340 88 % 27 % Professional services and other 13,063 10 20,389 12 56 --------- -------- --------- -------- Total revenues 134,833 100 174,729 100 30 Cost of revenues (1): Subscription, license and maintenance 50,864 38 63,916 36 26 Professional services and other 6,761 5 8,564 5 27 --------- -------- --------- -------- Total cost of revenues 57,625 43 72,480 41 26 --------- -------- --------- -------- Gross profit 77,208 57 102,249 59 32 Operating expenses (1): Sales and marketing 63,386 47 70,915 41 12 Research and development 18,650 14 18,126 11 (3) General and administrative 22,629 16 23,407 13 3 --------- -------- --------- -------- Total operating expenses 104,665 77 112,448 65 7 --------- -------- --------- -------- Loss from operations (27,457) (20) (10,199) (6) (63) Interest income 1,291 1 192 - (85) Interest expense (457) - (680) - 49 Other income (expense), net 44 - (1,253) (1) (2,948) --------- -------- --------- -------- Loss before income taxes (26,579) (19) (11,940) (7) (55) (Benefit from) provision for income taxes (7,176) (5) 1,121 - (116) --------- -------- --------- -------- Net loss $ (19,403) (14)% $ (13,061) (7)% (33)% ========= ======== ========= ======== Net loss per share: Net loss per share, basic and diluted $ (0.28) $ (0.17) (39)% Weighted-average number of shares, basic and diluted 70,450 75,668 7 % Adjusted EBITDA (2) $ 25,898 19 % $ 35,285 20 % 36 % (1) Amounts include stock-based compensation expenses, as follows: Cost of subscription, license and maintenance revenues $ 2,492 2 % $ 1,529 1 % Cost of professional services and other revenues 491 0 412 0 Sales and marketing 6,277 5 6,053 4 Research and development 3,840 3 2,485 1 General and administrative 4,202 3 3,980 2 --------- -------- --------- -------- Total stock-based compensation expenses $ 17,302 13 % $ 14,459 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 Six Months Ended June 30, June 30, ==================== ==================== 2008 2009 2008 2009 ========= ========= ========= ========= Reconciliation of Total Revenues on a GAAP Basis to Total Revenues on a Non-GAAP Basis: Total revenues on a GAAP basis $ 71,620 $ 87,572 $ 134,833 $ 174,729 Acquisition-related adjustment to Touch Clarity deferred revenue (1) - - 378 - Acquisition-related adjustment to Offermatica deferred revenue (1) 161 - 537 2 Acquisition-related adjustment to Visual Sciences deferred revenue (1) 3,117 - 8,738 - Acquisition-related adjustment to Mercado deferred revenue (1) - 347 - 959 --------- --------- --------- --------- Total revenues on a non-GAAP basis $ 74,898 $ 87,919 $ 144,486 $ 175,690 ========= ========= ========= ========= Reconciliation of Net Loss on a GAAP Basis to Net Income on a Non-GAAP Basis: Net loss on a GAAP basis $ (6,461) $ (4,879) $ (19,403) $ (13,061) Acquisition-related adjustment to deferred revenue (1) 3,278 347 9,653 961 Amortization of intangible assets (2) 7,893 7,944 14,806 15,888 Stock-based compensation 8,151 7,089 17,302 14,459 Imputed interest on patent license obligation (3) 62 38 125 89 Non-cash tax benefit resulting from the reduction in acquisition-related deferred tax liabilities (4) (5,613) - (7,904) - --------- --------- --------- --------- Net income on a non-GAAP basis $ 7,310 $ 10,539 $ 14,579 $ 18,336 ========= ========= ========= ========= 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 $ (0.09) $ (0.06) $ (0.28) $ (0.17) Acquisition-related adjustment to deferred revenue (1) 0.05 - 0.14 0.01 Amortization of intangible assets (2) 0.11 0.10 0.21 0.21 Stock-based compensation 0.12 0.09 0.25 0.19 Non-cash tax benefit resulting from the reduction in acquisition-related deferred tax liabilities (4) (0.08) - (0.11) - Impact of difference in number of GAAP and non-GAAP diluted shares (0.01) - (0.02) (0.01) --------- --------- --------- --------- Diluted net income per share on a non-GAAP basis $ 0.10 $ 0.13 $ 0.19 $ 0.23 ========= ========= ========= ========= Reconciliation of Net Loss on a GAAP Basis to Adjusted EBITDA: Net loss on a GAAP basis $ (6,461) $ (4,879) $ (19,403) $ (13,061) Other expense, net (160) 808 (878) 1,741 (Benefit from) provision for income taxes (5,291) 538 (7,176) 1,121 --------- --------- --------- --------- Loss from operations on a GAAP basis (11,912) (3,533) (27,457) (10,199) Depreciation and amortization 14,184 14,987 26,400 30,064 Stock-based compensation 8,151 7,089 17,302 14,459 Acquisition-related adjustment to deferred revenue (1) 3,278 347 9,653 961 --------- --------- --------- --------- Adjusted EBITDA $ 13,701 $ 18,890 $ 25,898 $ 35,285 ========= ========= ========= ========= (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 Six Months Ended June 30, June 30, ==================== ==================== 2008 2009 2008 2009 ========= ========= ========= ========= Cost of subscription, license and maintenance revenues $ 4,794 $ 4,984 $ 9,052 $ 9,948 Sales and marketing 3,008 2,960 5,577 5,913 General and administrative 91 - 177 27 --------- --------- --------- --------- Total amortization of intangible assets $ 7,893 $ 7,944 $ 14,806 $ 15,888 ========= ========= ========= ========= (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. 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 June 30, 30, 31, 31, 30, 2008 2008 2008 2009 2009 ========== ========== ========== ========== ========== Full-time employee headcount 1,045 1,087 1,189 1,204 1,208 Quarterly number of transactions captured (in billions) 886.6 938.8 993.5 1,045.1 1,052.9 Three Months Ended Six Months Ended June 30, June 30, ==================== ==================== 2008 2009 2008 2009 ========= ========= ========= ========= Revenues by geography (in thousands): Customers within the United States $ 52,024 $ 62,895 $ 98,108 $ 125,797 Customers outside the United States 19,596 24,677 36,725 48,932 --------- --------- --------- --------- Total revenues $ 71,620 $ 87,572 $ 134,833 $ 174,729 ========= ========= ========= ========= Revenues by geography as a percentage of total revenues: Customers within the United States 73% 72% 73% 72% Customers outside the United States 27 28 27 28 --------- --------- --------- --------- Total 100% 100% 100% 100% ========= ========= ========= ========= Omniture, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended Six Months Ended June 30, June 30, ==================== ==================== 2008 2009 2008 2009 ========= ========= ========= ========= Cash flows from operating activities: Net loss $ (6,461) $ (4,879) $ (19,403) $ (13,061) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 14,184 14,987 26,400 30,064 Stock-based compensation 8,151 7,089 17,302 14,459 Other non-cash transactions (5,613) (22) (7,921) (32) Gain from reduction in acquisition-related deferred tax liabilities (82) - (252) - Loss on foreign currency forward contracts, net - 1,963 - 1,787 Net changes in operating assets and liabilities: - Accounts receivable, net (16,821) (7,379) (27,703) (11,709) Prepaid expenses and other assets 137 (24) 2,009 893 Accounts payable (7,358) (3,752) 6,224 (1,254) Accrued and other liabilities 6,352 4,170 (2,011) (1,010) Deferred revenues 23,764 2,851 36,966 7,891 --------- --------- --------- --------- Net cash provided by operating activities 16,253 15,004 31,611 28,028 Cash flows from investing activities: Purchases of investments (9,945) (24,956) (19,831) (39,938) Proceeds from sales of investments 1,171 5,000 36,970 5,000 Maturities of investments 5,000 15,000 5,000 20,000 Purchases of property and equipment (17,891) (6,015) (28,002) (11,590) Purchases of intangible assets (437) - (2,874) (458) Foreign currency forward contracts - (2,439) - (2,168) Business acquisitions, net of cash acquired (7,851) (484) (59,721) (3,589) --------- --------- --------- --------- Net cash used in investing activities (29,953) (13,894) (68,458) (32,743) Cash flows from financing activities: Proceeds from exercise of stock options 3,975 617 6,081 915 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 (234) (505) (963) (1,103) Proceeds from issuance of notes payable 5,000 (26) 8,006 (51) Principal payments on notes payable and capital lease obligations (1,209) (464) (6,269) (539) --------- --------- --------- --------- Net cash provided by (used in) financing activities 7,532 (378) 6,980 24,418 Effect of exchange rate changes on cash and cash equivalents (49) 254 195 189 --------- --------- --------- --------- Net (decrease) increase in cash and cash equivalents (6,217) 986 (29,672) 19,892 Cash and cash equivalents at beginning of period 54,310 85,926 77,765 67,020 --------- --------- --------- --------- Cash and cash equivalents at end of period $ 48,093 $ 86,912 $ 48,093 $ 86,912 ========= ========= ========= ========= Omniture, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) December 31, June 30, ============ ============ 2008 2009 ============ ============ Assets: Current assets: Cash and cash equivalents $ 67,020 $ 86,912 Short-term investments 9,997 29,973 Accounts receivable, net 106,810 119,053 Prepaid expenses and other current assets 10,369 9,858 ------------ ------------ Total current assets 194,196 245,796 Property and equipment, net 61,482 59,135 Intangible assets, net 137,505 120,941 Goodwill 427,565 426,676 Long-term investments 18,136 13,993 Other assets 3,316 3,041 ------------ ------------ Total assets $ 842,200 $ 869,582 ============ ============ Liabilities and Stockholders' Equity: Current liabilities: Accounts payable $ 7,662 $ 6,500 Accrued liabilities 41,179 35,616 Current portion of deferred revenues 101,728 113,564 Current portion of notes payable 1,617 1,958 Current portion of capital lease obligations 150 88 ------------ ------------ Total current liabilities 152,336 157,726 Deferred revenues, less current portion 10,222 6,976 Notes payable, less current portion 13,528 12,750 Capital lease obligations, less current portion 79 48 Other liabilities 8,467 7,921 Commitments and contingencies Stockholders' equity: Preferred stock - - Common stock 73 76 Additional paid-in capital 754,151 793,345 Deferred stock-based compensation (366) (80) Accumulated other comprehensive loss (3,256) (3,085) Accumulated deficit (93,034) (106,095) ------------ ------------ Total stockholders' equity 657,568 684,161 ------------ ------------ Total liabilities and stockholders' equity $ 842,200 $ 869,582 ============ ============
