Omniture Reports Third Quarter 2008 Financial Results

Posted Oct 22, 2008
Revenue Increases 108% Year Over Year
Organic Growth Exceeds 50%;
Record $28.6 Million in Operating Cash Flow

OREM, UT, October 22, 2008– Omniture, Inc. (NASDAQ:OMTR), a leading provider of online business optimization software, today announced results for its third quarter ending September 30, 2008. In the third quarter of 2008, Omniture achieved record revenue of $77.8 million, an increase of 108% compared to revenue of $37.4 million reported for the same period a year ago and an increase of 9% compared to $71.6 million in the prior period. Non-GAAP revenue for the quarter was $79.7 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.

“Our business continues to execute well, delivering record revenue and operating cash flow during the third quarter. We are pleased with this performance,” stated Josh James, CEO and co-founder of Omniture. “We remain focused on prudent investment for growth while continuing to ensure we are a stable, strong partner for our many customers in this unpredictable environment.”

Omniture’s GAAP net loss was $17.3 million or $0.24 per diluted share in the third quarter of 2008, and includes a reversal of the $7.9 million in non-cash tax benefits recorded in the first and second quarters, related to purchase accounting adjustments associated with the Visual Sciences acquisition. Excluding this reversal of non-cash tax benefits, third quarter 2008 net loss would have been $9.4 million or $0.13 per diluted share. Non-GAAP net income was $8.2 million or $0.11 per diluted share for the third quarter 2008, compared to non-GAAP net income of $4.4 million or $0.07 per diluted share in the third 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 non-cash tax adjustments.

Third quarter fiscal 2008 adjusted EBITDA was $16.2 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 third quarter of 2008, Omniture captured data from 939 billion transactions and organically added nearly 250 new customers. New customer relationships secured in the third quarter include: AAPT Limited, AirTran Airways, Alticor (Amway Global), Beijing Beat Media, Burton Corporation, Coach, Equifax, E*TRADE FINANCIAL, Helly Hansen, The Hershey Company, IKEA, Kenko.com Inc., Meilleurmobile.com, Netwide Solutions, Norwegian Cruise Lines, Saab Group, Ticket Network and Universo Online.

Click here to view the Q3 2008 financial results.

Guidance

  • Q4 FY 2008: GAAP revenue for the fourth quarter is expected to be in the range of $82.5 million to $84.5 million. GAAP net loss is expected to be in the range of $0.10 to $0.09 per share in the fourth quarter of 2008. Non-GAAP revenue for the fourth quarter is expected to be in the range of $84 million to $86 million. Non-GAAP net income for the fourth quarter is expected to be in the range of $0.12 and $0.13 per diluted share. Omniture expects to record positive adjusted EBITDA in the range of $17 million to $18 million.
  • Full Year FY 2008: GAAP revenue for the full year 2008 is expected to be in the range of $295 million to $297 million. GAAP net loss is expected to be in the range of $0.62 to $0.61 per diluted share. Non-GAAP revenue for the full year 2008 is expected to be in the range of $308 million to $310 million. Non-GAAP net income for the year is expected to be in the range of $0.42 and $0.43 per diluted share. Omniture expects to record positive adjusted EBITDA in the range of $59 million to $60 million for the full year 2008.

Information for Conference Call to Discuss Q3 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 866-831-6267, or +1-617-213-8857 for international callers. The access code is 87486310. 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 81909062. 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 November 5, 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.

While these non-GAAP measures are not a substitute for GAAP results, we believe 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 non-cash tax adjustments, 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 approximately 5,000 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, expectations concerning the proposed acquisition of Mercado’s Site Search and Merchandising business, 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 current uncertainty in global economic conditions, including conditions in the credit market that could affect consumer confidence and our customers’ ability to purchase our products and services, which could negatively impact the demand for our services and other related matters and could result in changes in customers’ subscription and renewal patterns, 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, particularly in light of the recent financial crisis affecting the banking system and financial and capital markets and the going concern threats to investment banks and other financial institutions that have resulted in a tightening in the credit markets, reduced liquidity in many financial markets and increased volatility in the equity markets, risks associated with our acquisition strategy and disruptions in our business, operations and financial results 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, including the potential for increased pressure on the pricing of our products and services in light of the recent economic crisis, 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 and respond to potential changes in the financial stability and solvency of our strategic partners that may result from the economic crisis, our ability to expand our international operations and to sell our services to customers located outside the United States and to manage the associated fluctuations in currency exchange rates, 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 June 30, 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.


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