
Company Delivers 86% Organic Revenue Growth and Doubles Customer Base
OREM, UT, February 8, 2007 – Omniture, Inc. (NASDAQ:OMTR), a leading provider of online business optimization software, today announced results for its fourth quarter and 2006 fiscal year ended December 31, 2006. Omniture reported another record revenue quarter, with fourth quarter revenue of $23.5 million, an increase of 71 percent over the fourth quarter of 2005 and 12 percent over the third quarter of 2006. Total revenue for the year was $79.7 million, an increase of 86 percent over 2005.
GAAP net loss in the fourth quarter of 2006 was $0.8 million or $0.02 per diluted share, compared to a net loss of $7.2 million, or $0.52 per diluted share, in the fourth quarter of 2005. GAAP net loss for 2006 was $7.7 million or $0.25 per diluted share compared to a net loss of $17.4 million or $1.27 per diluted share for 2005. Non-GAAP net income was $0.9 million or $0.02 per diluted share for the fourth quarter. For the year, non-GAAP net loss was $2.4 million or $0.08 per diluted share. Non-GAAP net income and 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, imputed interest related to this patent license agreement and non-recurring acquisition related expenses.
Fourth quarter and fiscal 2006 adjusted EBITDA was $3.5 million and $8.0 million respectively. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and stock-based compensation.
Operating cash flow for the fourth quarter was $4.7 million. Free cash flow, defined by the company as operating cash flow reduced by capital expenditures of $1.2 million, was $3.5 million for the quarter.
“2006 was a breakout year for Omniture,” stated Josh James, CEO and co-founder of Omniture. “We expanded our market leadership in Web analytics and more importantly, established our products as the foundation for measuring and optimizing online business.”
During the fourth quarter of 2006, Omniture added over 250 new customers, bringing the total to approximately 1,800 and captured data from over 420 billion transactions. With its recent acquisition of Instadia, the company now has over 2,000 customers. New customer relationships secured include: Boston Scientific, Bud TV, Canoe, DivX, eVite, Freedom Communications, Haggar Clothing, Hard Rock Café, K&L; Wine Merchants, Microsoft Zune, Scottrade, SmartMoney.com, Vehix.com and Virgin America; and internationally, Channel 4, Club Méditerranée, De Telegraaf Media, Rakuten, Seek.com.au, Sony Worldwide and StepStone Deutschland AG.
Click here for the Q4 and Fiscal 2006 Financial Results
Guidance
• Full Year FY 2007: Revenue for the company's full year 2007 is expected to be in the range of $128 million to $130 million. GAAP net loss is expected to be in the range of $0.15 to $0.13 per diluted share. Excluding the effect of stock-based compensation expense, the amortization of certain intangible assets, imputed interest expense and non-recurring acquisition related expenses, non-GAAP net income for the year is expected to be in the range of $0.07 to $0.09 per diluted share. Omniture expects to record positive adjusted EBITDA in the range of $16 million to $18 million.
Information for Conference Call to Discuss Q4 FY 2006 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 866-770-7146, or 617-213-8068 for international callers. The access code is 18975896. 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, 69781608. 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 February 22, 2007.
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 income and loss, calculated without stock-based compensation expense, the amortization of certain intangible assets, imputed interest expense and non-recurring acquisition related expenses, provides a meaningful comparison to our net loss figures reported for 2005 and prior years. We also believe that adjusted EBITDA, which we calculate as earnings before interest, taxes, depreciation, amortization and stock-based compensation, is an indicator of the Company’s financial results and cash flows and is useful to investors in evaluating operating performance. 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 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 business strategy, continuing customer demand for our services, our leadership in the market for on-demand, online business optimization services, including web analytics, the strength of our business in 2006, and expectations regarding revenue, GAAP and non-GAAP net income and 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 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 and other product and service offerings, 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, disruptions in our business and operations as a result of acquisitions, 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 Omniture's quarterly report on Form 10-Q for the period ended September 30, 2006 and from time to time in other reports filed by Omniture with the U.S. Securities Exchange Commission. These reports are available on the Investor Relations page of our corporate 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.
(Financial Tables to Follow)
Historical Information:
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