Omniture Reports Second Quarter 2006 Financial Results

Posted Jul 27, 2006

Company Announces Year-Over-Year Revenue Growth of 98%

OREM, Utah – July 27, 2006 — Omniture, Inc. (NASDAQ: OMTR), a leading provider of online business optimization software, today announced results for its second quarter ended June 30, 2006. Omniture reported another record quarter of revenue growth, with second quarter revenue of $18.8 million, an increase of 98 percent over the second quarter of 2005 and 15 percent over the first quarter of 2006.

GAAP net loss in the second quarter of 2006 was $(2.3) million or $(0.16) per diluted share, compared to net loss of $(3.7) million, or $(0.27) per diluted share, in the second quarter of 2005. Second quarter 2006 EBITDA was $1.8 million and non-GAAP net loss was $(1.0) million, or $(0.07) per diluted share. Non-GAAP net loss excludes the effect of expensing stock-based compensation under SFAS 123R beginning in 2006, amortization of deferred compensation related to stock options, amortization of intangible assets related to a warrant and a patent license agreement and imputed interest related to this patent license agreement.

Total cash and cash equivalents on June 30, 2006 were $16.4 million, which does not include proceeds from the IPO which closed in July, 2006. Net proceeds from the IPO , including the full exercise by the underwriters of the over-allotment option, were approximately $62.3 million before offering costs and will be reflected in the Q3 2006 financial results. Omniture used $4.0 million of the IPO proceeds to make a license payment due on the closing.

During the second quarter of 2006, Omniture added over 200 customers, bringing the total to over 1,300, and captured data from over 300 billion transactions. New, renewed and expanded customer relationships secured included Avis Europe, Comcast, Encyclopedia Britannica, Expedia, Hearst Communications, Lenovo, Salesforce.com, Washington Post and WhitePages.

“With 300 billion transactions per quarter, we have proven that scalable, enterprise, on-demand applications have truly arrived,” stated Josh James, CEO and co-founder. “This scale has led to record revenue and year-over-year growth rates of 98%.”

Click here for the Q2 2006 Financial Schedules

Guidance

    • Q3 FY2006: Revenue for the company’s third quarter is expected to be in the range of $20.2 to $21.2 million. GAAP net loss is expected to be in the range of $(1.8) million to $(1.4) million. Excluding the effect of stock-based compensation expense, the amortization of certain intangible assets and imputed interest expense, non-GAAP net loss is expected to be in the range of $(0.4) million to $0.0 million. Omniture expects to record positive EBITDA in the range of $2.4 million to $2.8 million.

    • Full Year FY2006: Revenue for the company’s full year 2006 is expected to be in the range of $77 to $79 million, and GAAP net loss is expected to be in the range of $(9.0) million to $(8.2) million. Excluding the effect of stock-based compensation expense, the amortization of certain intangible assets and imputed interest expense, non-GAAP net loss for the year is expected to be in the range of $(3.7) million to $(2.9) million. Omniture expects to record positive EBITDA in the range of $7.1 million to $7.9 million.

    Information for Conference Call to Discuss Q2 FY2006 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 866-383-8108, or 617-597-5343 for international callers. The access code is 66790599. 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), reservation number, 47051708. The conference call will also be archived on the company’s corporate Web site. Both the replay and archived web cast will be available until August 10, 2006.

    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 facilitate the comparison of results for future periods with results from past periods. Omniture adopted SFAS 123R on January 1, 2006 using the prospective method. Results of prior periods have not been restated to conform with the 2006 presentation. Omniture also recorded deferred compensation in 2005 related to the granting of options which is being amortized in subsequent periods. We believe the calculation of net loss, calculated without stock-based compensation expense, the amortization of certain intangible assets and imputed interest expense, provides a meaningful comparison to our net loss figures reported for 2005 and prior years. These non-GAAP measures have been reconciled to the nearest GAAP measure as required under SEC rules.

    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 on-demand, enables customers to capture, store and analyze information generated by their websites 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 services, best practices, consulting services, customer support and user training provided through Omniture University. Omniture's customers include eBay, AOL, Wal-Mart, Gannett, Microsoft, Oracle, General Motors and Hewlett-Packard. 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 the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our business strategy, continuing customer demand for our services, our leadership in the market for on-demand, online business optimization services, the strength of our business in 2006, and expected revenue, GAAP and non-GAAP net loss, and 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 changes in the demand for our services, 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, 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 services, 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 the sales of 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, the blocking or erasing of “cookies,” the unauthorized disclosure of personally identifiable information regarding Web site visitors, whether through breach of our secure network by an unauthorized party, employee theft or misuse, or otherwise, changes in relevant accounting standards and securities laws and regulations; and such other risks as identified in our registration statement on Form S-1 filed on June 22, 2006 with the U.S. Securities and Exchange Commission (SEC) and in other filings made by Omniture, Inc. with the SEC. These documents are available on the Investor Relations page of our corporate Web site at www.omtr.com. Omniture, Inc. undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.


Historical Information:
Note to Readers: The press releases, presentations and printed remarks and materials are included on this web site for historical purposes only. The information contained in these documents should be considered accurate only as of the date of the relevant document. This information may change over time. Visitors to this web site should not assume that the information contained in these documents remains accurate at a later time. We do not have any current intention, and expressly disclaim any obligation, to supplement, update or revise any of the information in these documents.