OREM, UT, February 7, 2008 – Omniture, Inc. (NASDAQ:OMTR), a leading provider of online business optimization software, today announced results for its fourth quarter and fiscal year ended December 31, 2007. The Company’s results reflect the acquisition of Offermatica Corporation, which was completed on December 13, 2007.
In the fourth quarter of 2007, Omniture achieved record revenues of $43.1 million, compared to $23.5 million reported for the fourth quarter of 2006 and $37.4 million reported for the third quarter of 2007. This represents 84 percent year-over-year revenue growth and includes $0.5 million in revenue from the company’s Offermatica acquisition. Excluding Offermatica’s revenue contribution, Omniture’s fourth quarter revenue would have been $42.6 million and above the company’s guidance range of $40.6 to 41.6 million.
“Omniture delivered another outstanding year highlighted by strong revenue growth, record customer additions, improved profitability and the successful completion of several key acquisitions. Having exceeded our profitability targets for the year, we were able to invest more aggressively in sales and engineering,” stated Josh James, CEO and co-founder of Omniture. "We believe these investments will enable us to more quickly capture a greater portion of this multi-billion dollar market."
Omniture’s GAAP net loss was $1.8 million or $0.03 per diluted share in the fourth quarter of 2007 as compared to a net loss of $0.8 million or $0.02 per diluted share in the fourth quarter of 2006. Non-GAAP net income was $4.6 million or $0.07 per diluted share for the fourth quarter, compared to net income of $0.9 million or $0.02 per diluted share in the fourth quarter of 2006. Non-GAAP net income excludes the effect of the acquisition-related reduction to deferred revenue, stock-based compensation, amortization of certain intangible assets, imputed interest related to a patent license agreement and certain acquisition related expenses.
As stated during the conference call held on October 30, 2007 to discuss third quarter 2007 financial results, Omniture’s fourth quarter and fiscal year 2007 guidance at that time did not include the impact of the Offermatica acquisition. The inclusion of Offermatica in Omniture’s reported results for the fourth quarter added a net loss of $0.58 million on a GAAP basis and $0.26 million on a non-GAAP basis. Offermatica’s non-GAAP net loss excludes the $0.14 million effect of the acquisition-related reduction to deferred revenue and $0.18 million of amortization of intangible assets related to the acquisition. Excluding the effect of the Offermatica acquisition in the fourth quarter, Omniture would have reported GAAP net loss per share of $0.02, which was within our guidance of $0.02 to $0.01.
In 2007, Omniture achieved record revenue of $143.1 million, compared to $79.7 million in 2006. On a year-over-year basis, annual revenue grew by 79%. Omniture’s annual GAAP net loss for 2007 was $9.4 million or $0.18 per diluted share, compared to a net loss of $7.7 million, or $0.25 per diluted share, for 2006. Omniture’s non-GAAP net income for 2007 was $11.8 million, or $0.20 per diluted share, in 2007, compared to a net loss of $2.4 million, or $0.08 per diluted share, for 2006.
Fourth quarter and fiscal 2007 adjusted EBITDA was $7.2 million and $22.4 million respectively. 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 fourth quarter of 2007, Omniture added over 350 new customers, bringing its total to more than 3,000 and captured data from nearly 620 billion transactions. With its recent acquisition of Visual Sciences, the company now has over 4,300 customers. New customer relationships secured in the fourth quarter include: Alaska Air Group, Borders Group, Digg.com, eToys Direct, Hammacher Schlemmer, InfoSpace, LastMinuteTravel.com, Nikon, Roger’s Media, Spark Networks, The Weather Channel; and internationally, Adversitement, Casio Electronics Co, Ltd., Danske Bank, EF-Education First, Recruit Co., Ltd., Samsung Europe and Vodafone.
“In just a short period of time, we believe our acquisition strategy is paying off,” continued Mr. James. “Moreover, we believe the level of traction and interest in our installed customer base is significant and that as we add more customers and products, the opportunity for growth becomes even greater.”
Click here to view the Q4 2007 financial results.
Guidance
Information for Conference Call to Discuss Q4 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 866-203-2528, or 617-213-8847 for international callers. The access code is 81627138. 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 for international callers. The access code is 60698490. 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 21, 2008.
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 loss from operations on a GAAP basis less depreciation and amortization, stock-based compensation and the 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, 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(TM). Omniture's 4,300 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, our ability to capitalize on market trends, and our current expectations regarding GAAP and non-GAAP revenue, GAAP and non-GAAP net income and net loss, and adjusted EBITDA, the extent to which our acquisitions are paying off, and the extent to which our installed customer base will accept our new or acquired products and services. 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 we or our customers may not realize the benefits we currently expect from our recent acquisitions, risks that the expected financial effect of our recent acquisitions may not be realized, risks associated with the operation of our business or our industry in general, risks inherent in the integration and combination of complex products and technologies from our acquisitions, 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, including the new combined offerings from our acquisitions, 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 products and services, our ability to raise capital in the future, risks associated with our acquisition strategy and disruptions in our business and operations as a result of acquisitions, the ability of our expanding sales organization to become productive, 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 quarterly report on Form 10-Q for the period ended September 30, 2007 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.
Copyright (c) 2008 Omniture, Inc. All rights reserved. Omniture and the Omniture logo are registered trademarks of Omniture, Inc., and Omniture owns other registered and unregistered trademarks. Other names used herein may be trademarks of their respective owners.
(Financial Tables to Follow)
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.