Omniture Reports Second Quarter 2008 Financial Results

Posted Jul 23, 2008

Revenues Increase 114% Year over Year
Organic Growth Exceeds 50%;
New Customer Average Contract Value Increases Nearly 74%

OREM, UT, July 23, 2008 – Omniture, Inc. (NASDAQ:OMTR), a leading provider of online business optimization software, today announced results for its second quarter ending June 30, 2008. In the second quarter of 2008, Omniture achieved record revenue of $71.6 million, an increase of 114% compared to revenue of $33.5 million reported for the same period a year ago and an increase of 13% compared to $63.2 million in the prior period. Non-GAAP revenue for the quarter was $74.9 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 encouraged by our execution against our long-term goals, with continued growth in our top line and a track record of consistent non-GAAP profitability,” stated Josh James, CEO and co-founder of Omniture. “I am proud of the team’s execution in the integration of our acquisitions, the expansion of our customer base and the adoption of the additional products and services we are bringing to market. We believe Omniture is the only technology company focused on the needs of the CMO and we are committed to providing a world-class suite of products to independently measure and allocate advertising dollars as well as optimize the customer experience."

Omniture’s GAAP net loss was $6.5 million or $0.09 per diluted share in the second quarter of 2008, as compared to a net loss of $4.1 million or $0.08 per diluted share in the second quarter of 2007. Non-GAAP net income was $7.3 million or $0.10 per diluted share for the second quarter 2008, compared to non-GAAP net income of $1.9 million or $0.03 per diluted share in the second quarter of 2007. Non-GAAP net income excludes the effect of acquisition-related adjustments 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.

Second quarter fiscal 2008 adjusted EBITDA was $13.7 million. Adjusted EBITDA is defined as loss from operations on a GAAP basis less depreciation and amortization, stock-based compensation and acquisition-related adjustments to deferred revenue.

During the second quarter of 2008, Omniture captured data from over 886 billion transactions and organically added over 250 new customers. Omniture now has nearly 4,700 customers worldwide. New customer relationships secured and announced in the second quarter include: AirChina, Circuit City, Classified Ventures, Commonwealth Bank of Australia, Constellation Energy Group, Finish Line, Gamefly.com, Homeaway.com, Malaysia Airlines, Owens Corning, Red Letter Days, Reliant Energy, Sega of America, Shutterfly, Telecom New Zealand, TV Guide Online, United Overseas Bank, Wal-Mart Brazil and Yahoo!Japan.

Click here to view the Q2 2008 financial results.

Guidance

  • Q3 FY 2008: GAAP revenue for the third quarter is expected to be in the range of $76 million to $78 million. GAAP net loss is expected to be in the range of $0.12 to $0.11 per share in the third quarter of 2008. Non-GAAP revenue for the company’s third quarter is expected to be in the range of $78.5 million to $80.5 million. Non-GAAP net income for the third 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 $14.5 million to $15.5 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 $0.47 to $0.42 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 Q2 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 800-659-1942, or +1-617-614-2710 for international callers. The access code is 46327050. 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 +1-617-801-6888 for international callers. The access code is 52814764. 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 6, 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 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. Omniture's nearly 4,700 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 acquisitions, the benefits of the acquisitions to customers, partners and stockholders, the extent to which our installed customer base will accept our new or acquired products and services and our strategy will be successful, the impact of recent acquisitions and partnerships on our business and our ability to effectively integrate our recent acquisitions. 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 or partners 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 quarterly report on Form 10-Q for the period ended March 31, 2008 and from time to time in other reports filed by Omniture with the U.S. Securities and 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 SiteCatalyst are registered trademarks of Omniture, Inc. in the United States, Japan, Canada and the European Community. Omniture, Inc. owns other registered and unregistered trademarks throughout the world. Other names used herein may be trademarks of their respective owners.

Media Relations:
Kristi Knight
801-722-7000
kknight@omniture.com

Investor Relations:
Mike Look
650-450-1008
mlook@omniture.com


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.