Omniture Reports First Quarter 2008 Financial Results

Posted Apr 30, 2008

Company Posts 117% Revenue Growth; Organic Growth Exceeds 60%

OREM, UT, April 30, 2008 – Omniture, Inc. (NASDAQ:OMTR), a leading provider of online business optimization software, today announced results for its first quarter ending March 31, 2008. The Company’s results reflect the acquisition of Visual Sciences, Inc., which was completed on January 17, 2008, and include Visual Sciences operating results since that date.

In the first quarter of 2008, Omniture achieved record revenue of $63.2 million, an increase of 117% compared to revenue of $29.2 million reported for the same period a year ago and an increase of 47% compared to $43.1 million in the prior period. Non-GAAP revenue for the quarter was $69.6 million. The difference between GAAP and non-GAAP revenue reflects the revenue excluded from the GAAP results due to purchase accounting adjustments, which reduces deferred revenue to its fair value.

“We are proud of our team delivering on earlier than expected synergies in our acquisitions and the continued strength of our core business. The combination of these two items led to better than expected non-GAAP profitability for the quarter and increased guidance for our non-GAAP Q4 operating margin and full-year revenue,” stated Josh James, CEO and co-founder of Omniture. “As one of the largest SaaS companies in the world, Omniture is leveraging its leadership position in the marketplace and building an ecosystem in arguably the most exciting space.”

Omniture’s GAAP net loss was $12.9 million or $0.19 per diluted share in the first quarter of 2008 as compared to a net loss of $2.4 million or $0.05 per diluted share in the first quarter of 2007. Non-GAAP net income was $7.3 million or $0.10 per diluted share for the first quarter 2008, compared to non-GAAP net income of $0.9 million or $0.02 per diluted share in the first quarter of 2007. 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 and tax benefits.

First quarter fiscal 2008 adjusted EBITDA was $12.2 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 first quarter of 2008, Omniture captured data from over 851 billion transactions and added over 250 new customers organically in addition to the new customers acquired in connection with the Visual Sciences acquisition. Following its acquisition of Visual Sciences, Omniture now has more than 4,500 customers worldwide. New customer relationships secured and announced in the first quarter include: American Cancer Society, Boingo Wireless, Burpee Seeds, Dominion Enterprises, Fox International Channels, HIT Entertainment, Jones Soda Company, Kia Motors, Nutrisystem, Rugs Direct, Sephora, Shopit, Sylvan Learning Centers, Ubid and Washington Post Newsweek Interactive. New international customers include: Cadbury Schweppes, FrenchConnection UK and Volkswagen Nutzfahrzeuge.

Click here to view the Q1 2008 financial results.

Guidance

  • Q2 FY 2008: GAAP revenue for the second quarter is expected to be in the range of $70 million to $72 million. GAAP net loss is expected to be in the range of $0.13 to $0.14 per share in the second quarter of 2008. Non-GAAP revenue for the company’s second quarter is expected to be in the range of $73 million to $75 million. Non-GAAP net income for the second quarter is expected to be between $0.10 to $0.11 per diluted share. Omniture expects to record positive adjusted EBITDA in the range of $13.5 million to $14.5 million.

  • Full Year FY 2008: GAAP revenue for the full year 2008 is expected to be in the range of $295 million to $300 million. GAAP net loss is expected to be in the range of $0.44 to $0.49 per share. Non-GAAP revenue for the company’s full year 2008 is expected to be in the range of $308 million to $313 million. Non-GAAP net income for the year is expected to be in the range of $0.41 to $0.46 per diluted share. Omniture expects to record positive adjusted EBITDA in the range of $59 million to $63 million for the full year.

Information for Conference Call to Discuss Q1 FY 2008 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 800-259-0251, or 617-614-3671 for international callers. The access code is 27036195. 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 71748405. 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 May 14, 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 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 tax benefits, 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 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 University(TM). Omniture's 4,500 customers include eBay, AOL, Wal-Mart, Gannett, Microsoft, Neiman Marcus, Oracle, 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 online business optimization services, including web analytics, and our current expectations regarding GAAP and non-GAAP revenue, GAAP and non-GAAP net income and net loss, and adjusted EBITDA, the integration of our recent acquisitions, and the extent to which our installed customer base will accept our new or acquired products and services and our strategy will be successful. 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 our international operations and to sell 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, 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.


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