
OREM, UT, May 1, 2007 – Omniture, Inc. (NASDAQ:OMTR), a leading provider of online business optimization software, today announced results for its first quarter ended March 31, 2007. Omniture reported another record revenue quarter, with first quarter GAAP revenue of $29.2 million, an increase of 77 percent over the first quarter of 2006 and 24 percent over the fourth quarter of 2006. Non-GAAP revenue for the quarter was $29.5 million. The difference between GAAP and non-GAAP revenue reflects the revenue excluded from our GAAP results due to purchase accounting adjustments, which reduce deferred revenue to its fair value.
GAAP net loss in the first quarter of 2007 was $2.4 million or $0.05 per diluted share, compared to a net loss of $3.4 million, or $0.24 per diluted share, in the first quarter of 2006. Non-GAAP net income was $0.9 million or $0.02 per diluted share for the first quarter. Non-GAAP net income and net loss excludes the effect of acquisition-related accounting adjustments to deferred revenue, stock-based compensation, amortization of certain intangible assets, imputed interest related to a patent license agreement and non-recurring acquisition related expenses.
First quarter adjusted EBITDA was $4.0 million. Adjusted EBITDA is defined as net cash provided by operations less the acquisition-related adjustment to deferred revenues, non-operating gains and losses, the net change in operating assets and liabilities, other income (expense), net and the provision for income taxes.
Operating cash flow for the first quarter was $2.9 million. Free cash flow, defined by the company as operating cash flow reduced by capital expenditures of $2.3 million, was $0.6 million for the quarter.
“In the first quarter, we hit another milestone delivering the fastest sequential revenue growth quarter for Omniture in the last three years,” said Josh James, CEO and co-founder of Omniture. “Our industry is experiencing explosive growth and our leadership position is enabling us to capture the majority of this opportunity.”
During the first quarter of 2007, Omniture added over 250 new customers organically and approximately 200 through acquisitions, bringing the total to over 2,200. The company captured data from nearly 500 billion transactions. New customer relationships include: American Family Insurance, Amp’d Mobile, H&R; Block, Kor Hotel Group, Monster Worldwide, Inc., Move, Inc., PGATOUR.com, Rent.com, Spiegel Brands and TheStreet.com; and internationally, allesklar.com AG, Arcadia Group Limited, European Directories, Nissan Europe, OPEN Business Club AG and Scout 24.
Click here for the Q1 2007 Financial Results
Guidance
Q2 FY 2007: GAAP revenue for the company's second quarter is expected to be in the range of $31 million to $32 million. GAAP net loss is expected to be in the range of $0.11 to $0.10 per diluted share. Non-GAAP revenue for the company’s second quarter is expected to be in the range of $32 million to $33 million. Non-GAAP net income is expected to be between $0.00 to $0.01 per diluted share. Omniture expects to record positive adjusted EBITDA in the range of $3.0 million to $3.5 million.
Full Year FY 2007: GAAP revenue for the company's full year 2007 is expected to be in the range of $136 million to $138 million. GAAP net loss is expected to be in the range of $0.36 to $0.32 per diluted share. Non-GAAP revenue for the company’s full year 2007 is expected to be in the range of $138 million and $140 million. Non-GAAP net income for the year is expected to be in the range of $0.06 to $0.08 per diluted share. Omniture expects to record positive adjusted EBITDA in the range of $17 million to $19 million.
Information for Conference Call to Discuss Q1 FY 2007 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 866-356-3093, or 617-597-5381 for international callers. The access code is 76910275. 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, 39174364. 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 March 15, 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 are helpful in understanding our past financial performance and our future results and facilitate comparisons of results between periods. We 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 non-recurring acquisition related expenses, provides a meaningful comparison to our net loss figures. We also believe that adjusted EBITDA, which we calculate as net cash provided by operations less the acquisition-related adjustment to deferred revenue, non-operating gains and losses, the net change in operating assets and liabilities, other income (expense), net and the provision for income taxes , 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 as an on-demand subscription service, 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™. Omniture’s more than 2,200 customers include eBay, AOL, Wal-Mart, Gannett, Microsoft, Neiman Marcus, Oracle, Countrywide Financial, 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 on-demand, online business optimization services, including web analytics, and our current expectations regarding GAAP and non-GAAP 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, the potential that Omniture or its customers may not realize the benefits Omniture currently expects from the recent acquisitions, risks inherent in the integration and combination of complex products and technologies, 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, risks associated with our acquisition strategy and 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, 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, 2006 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.
Historical Information:
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